Can you assist me with the given assignment?
Your local drug dealer has the greatest need to launder money. Drug dealers need to launder a lot of cash, but there are many safeguards in the system these days, which raise red flags on large cash deposits. That's why one of the most common methods is to use what appears to be a legitimate business as a front. Knowing what you know about the U.S. Patriot Act, the BSA, FinCen, and the OCC, how would you help your local bank train its employees to look for small businesses being used to launder money?
Discuss the type of customer identification program you would put into place and the type of due diligence you would recommend. How do you think the smart drug dealer would get around this?Discuss the type of customer identification program you would put into place and the type of due diligence you would recommend. How do you think the smart drug dealer would get around this?
If the bank slips up and does indeed open an account for a small business that is a front for a drug dealer, what sort of methods will the dealer use to deposit the cash and withdraw it without raising suspicion?
Find an example of a bank that was penalized for allowing a small business to act as a front for money laundering.