Subject: Taming the Anti-Money Laundering Monster
From: "K2 Intelligence" <[email-masked]>
To: "Hunter" <[email-masked]>
Date: Tue, 24 Jul 2012 12:44:40 +0000

July Newsletter

Taming the AML Monster
Dear Friends,

   This month it was revealed that Bank of America had seen Mexican drug
   lords use the bank to hide money in its accounts and invest illegal
   proceeds. Then, if that revelation was not startling enough, [1]a
   Senate subcommittee issued a remarkable report on the AML and OFAC
   deficiencies at HSBC.
     Links:
       1. http://www.levin.senate.gov/newsroom/press/release/hsbc-exposed-us-financial-system-to-money-laundering-drug-terrorist-financing-risks

   That global bank was cited for numerous lapses that included a 3-year
   failure to do any AML monitoring on $15 billion in bulk cash
   transactions; more than 28,000 undisclosed, OFAC sensitive transactions
   involving $19.7 billion; and a backlog of 17,000 unreviewed suspicious
   activity alerts.

   Because the Senate subcommittee’s report chastises the Office of the
   Comptroller of the Currency for allowing these problems to “fester,” it
   is hard to imagine an outcome from the hearings that does not include a
   massive new focus on AML and OFAC monitoring across the global banking
   landscape.

   That new scrutiny will significantly add to the cost of compliance and
   increase the likelihood a financial institution will have its growth
   frozen by a red flag or its continuing operations hampered in the
   effort to comply with AML and OFAC monitoring regulations.

   Fast, Effective AML/OFAC Monitoring

   Now might be a good time for me to remind you that K2 Intelligence has
   developed a suite of AML/OFAC services that will allow financial
   institutions to deal with alerts and compliance needs with greater
   speed and cost-efficiency than what is currently in use today.

   At the center of our AML/OFAC capabilities is our proprietary K2
   Analytics program which will allow banks and other financial clearing
   houses to isolate, track and investigate transactions in the most
   effective manner.

   The Problems at HSBC

   Contrast this with what [2]Reuters recently revealed about HSBC’s
   AML/OFAC programs:
     Links:
       2. http://in.reuters.com/article/2012/07/13/hsbc-compliance-delaware-special-report-idINDEE86C0I420120713

   “Former employees in the New Castle office describe a febrile
   boiler-room environment overseen by managers uninterested in
   investigating transactions with possible links to drug trafficking,
   terrorist financing, Iran and other countries under U.S. sanctions, and
   other illegal activities. Instead, they say, the single-minded focus
   was on clearing out the paperwork as fast as possible.”

   AML/OFAC compliance should not be an exercise in clearing paperwork.
   Our AML/OFAC solutions are designed to swiftly discern and address real
   concerns without creating a backlog of make-work.

   Join Us for Breakfast

   On Tuesday, July 31st, [3]we will be presenting our AML/OFAC services
   at a breakfast in our offices. More important, we are most interested
   in hearing about your needs and concerns, especially in light of this
   extraordinary spate of news. So [4]please register here for the event
   or[5] feel free to get in touch directly.
     Links:
       3. http://www.eventbrite.com/event/3748495852
       4. http://www.eventbrite.com/event/3748495852
       5. mailto:[email-masked]?subject=AML%20Breakfast

   Yours,

   Jeremy M. Kroll

   K2 Intelligence, LLC

    [6]follow on Twitter | [7]forward to a friend
    [8]unsubscribe from this list | [9]update subscription preferences |
   [10]view email in browser
 Copyright © 2012 K2 Intelligence, LLC, All rights
   reserved.
   You are receiving this e-mail because you have requested updates from or are affiliated with K2 Intelligence, LLC or its employees.
   Our mailing address is:
   K2 Intelligence, LLC
845 Third Avenue, 4th Floor
New York, NY 10022
     Links:
       6. http://www.twitter.com/K2Intelligence/

       7. http://us2.forward-to-friend.com/forward?u=cf79fdb6463d1d0b7ebd54315&id=e3dd3236b6&e=b0cfa8275e
       8. http://k2intelligence.us2.list-manage.com/unsubscribe?u=cf79fdb6463d1d0b7ebd54315&id=73b85bc69c&e=b0cfa8275e&c=e3dd3236b6
       9. http://k2intelligence.us2.list-manage.com/profile?u=cf79fdb6463d1d0b7ebd54315&id=73b85bc69c&e=b0cfa8275e
       10. http://us2.campaign-archive1.com/?u=cf79fdb6463d1d0b7ebd54315&id=e3dd3236b6&e=b0cfa827