Misleading Account titles could prevent Detection of suspicious activity


Financial permitting misleading title account may unwittingly be an obstacle detection of suspicious behavior. One area of ​​concern involves account trophies private investment (PIC’s). PIC members is established in order to protect personal property. However, it is not uncommon to PIC be used for other purposes, such as operating, etc. Sometimes the titles of these accounts contain words that suggest the account type is something other than it is.

This is particularly problematic when the words indicate the account is a financial institution. Words and phrases like “Trust Company”, “Investment Services”, “Banque”, “Investors” Investment Company “,” Financial Services “,” security “,” Investments “, etc. put in the title of the account can confuse and mislead against money laundering responsible for review of possible suspicious activity. For example, if the money launderer opened an account for the PIC include the phrase “Investment Company” in its title and then often transferred large sums of money through it, that the activity might not seem unusual. The reason, frequent money movement and wire through financial institutions account is not unusual, it is expected. Since the phrase “Investment Company” appears in the account title, the fact that it is not actually could financial institutions account not be obvious to control workers often look Account titles for clues about what behavior is expected. If the account activity appears consistent with the title, can be no further investigation. As a result, increasing numbers misleading titles split some accounts do not get the appropriate level of review. More importantly, is giving the possibility of money laundering or worse will go undetected.

Fortunately, companies can reduce the incidence of this problem by refusing to establish or maintain accounts misleading title. Turn to the company’s customers in the branches are the first line of defense against the problem. They are the best positioned to spot misleading title of opening the account. Another line of defense is the new accounts department where the application is made when finished article. This department is responsible for actually come and update the organizations public account record. Associates in this area is aware of the different types of data required for each account. When they see the title is out of step with the type of units specified in the documents, directly before the account is officially opened. Requested changes the title to current accounts should trigger a re-examination of deceptive words.

Finally, financial institutions can also help prevent this problem by conducting regular keyword searches on current accounts to weed out those with inappropriate titles. For example, organizations could perform automated search accounts not coded as a financial institution that contain one or more deceptive words. Eliminating misleading title will provide a bit more clarity for monitoring employees and tying up a loose end in the global fight against money laundering and terrorist financing. While this article focused on the use of financial titles atypical financial institutions, titles of any kind should be discouraged and considered a red flag worthy of further consideration.


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