Second Edition of the e-magazine for compliance professionals,it has one article and latest happenings around the world in regards to financial crime and compliance. #KYC # AML #Knowyourcustomer #BeneficialOwnership #

1. BE-COMPLIANT
ISSUE | 2
SAVE YOUR BUSINESS
FROM MONEY
LAUNDERING
How to protect your business
from money laundering
FEB 2018
Latest happenings in the
world of compliance
AROUND THE WORLD

2. FEBRUARY 2018 | ISSUE 2
IN
THIS
ISSUE
Welcome to the free edition of BE-COMPLIANT, our monthly
supplement designed especially for people in the compliance roles
or interested to learn how compliance works. This is for readers who
want to know more about due diligence, transaction monitoring,
financial crime & fraud. We aim to cut through the confusion and
give you clear, sensible and reliable information that you can trust.
We want it to be entertaining and informative, but above all useful.
I hope you enjoy the issue and do let us know if there are any topics
you’d like to see covered in the future.
Suresh Chavali
Editor-in-chief
EDITOR'S NOTE
03 SAVE YOUR BUSINESS
FROM MONEY LAUNDERING
08 Around the World
Latest happenings in the
world of compliance
How to protect your business
from money laundering
PAGE | 2

3. SAVE YOUR BUSINESS
FROM MONEY
LAUNDERING
We live in a world of uncertainty, we look around and see a
potential danger in every nook and corner.With economic
slowdowns, fear of losing jobs and terrorist threats we are
compelled to live in fear.
By Suresh Chavali
FEBRUARY 2018 | ISSUE 2
PAGE | 3
This pushes us to be more diligent while performing every activity and
most important matters related to finance as money laundering can
impact individuals and business adversely ultimately leading to
negative economic effects.
Small and medium business entities are often the victims of money
laundering as they lack the understanding of complex financial
transactions generally used for hiding the source of illegitimate
funds.By the time these entities realize that they are being used as a
vehicle for money laundering, they would have been multiple
transactions between the entity and the money launderers making it
impossible to identify dirty money pushing them to face a lot of legal
troubles leading to fines, penalties and ultimately causing irreversible
damage to reputation.
However, these business entities can save themselves by being
proactive before establishing any sort of relationship with other
parties, these parties might be potential investors or trading
counterparts.

4. PAGE| 4
Below are few ways to being vigilant while fighting against money
launderers:
1) Conduct Proper Due Diligence:
One should conduct proper due diligence before establishing a
relationship. For example, if one company approaches you and says
that they would like to invest a large amount of money in your company
without any apparent reason that can be a potential red flag.
Take efforts to identify and verify the authenticity of the other party,
look where their company is incorporated is it active or dormant, do
their financials look proportional to the amount of money they want to
invest with you.Perform online checks on the company and the key
people involved, see if there is any negative news about them on the
web and perform free sanction checks on OFAC web site. This would not
cover your entire risk, but it can de-risk your business to a certain
extent for you to be comfortable and proceed ahead.
FEBRUARY 2018 | ISSUE 2
2) Have Formal Anti- Money Laundering(AML) Policies In Place:
Not only financial institutions but business entities need to have
formal AML policies. This needs to emphasize the seriousness of
money laundering schemes. It needs to describe what kind of
transactions are valid for the entity and those that are void.
This also needs to include the training that has to be provided to
the staff for them to be able to understand the money laundering
schemes. It should state the course of action to be taken when staff
encounters any suspicious activity including the documentation
requirements and timely escalation.

5. FEBRUARY 2018 | ISSUE 2
PAGE | 5
3) Get To Know Them More:
When someone approaches you with a business deal, without straightly
accepting it you should try to get important pieces of information from
them.
Try to probe them about the source of wealth and source of funds
details, if any vague answers are provided it might be an indication of
potential money laundering. Ask them to share their financials with you
so that you can understand more about their assets and get a clear
picture of how they operate.
One should be aware of all three stages of money laundering, most
importantly the layering stage as the dirty money gets complexly
integrated with the legal money and then gets further down in the
financial system.There is a lot of information available on the web in
regards to money laundering which can be a great starting place to get
yourself and your staff to get educated.
Last but not the least, always believe in your instincts if you feel that
there is some sort of question on the authenticity of the party
approaching you, respect your instincts and listen to it. This might just
be a FLAG for you to be vigilant and conduct a proper investigation
before proceeding.
4) Understand How Money Laundering Works:
To catch a criminal, you have to think like one. So to know about
money laundering one should have good enough knowledge about
money laundering techniques.Criminals are continuously
developing new strategies for moving money around, the more you
know about it the more you can train your staff and identify any
potential red flags.

6. AROUND
THE
WORLD
FEBRUARY 2018 | ISSUE 2
PAGE | 6

7. The U.S. Federal Reserve Board said on Wednesday it had fined
Taiwan's Mega International Commercial Bank Co. US$29 million
for anti-money laundering violations and required the company
to improve its anti-money laundering oversight and controls.
Read the full story below:
https://www.channelnewsasia.com/news/business/fed-fines-
taiwan-s-mega-bank-us-29-million-for-anti-money-laundering-
failures-9871634
FEBRUARY 2018 | ISSUE 2
PAGE | 7
Fed fines Taiwan's Mega Bank

8. India, backed by the US and Russia, is set to intensify pressure on
Pakistan to step up its fight against terror funding when the Financial
Action Task Force(FATF) holds its plenary in Paris according to people
familiar with the development.
Read full story below:
https://economictimes.indiatimes.com/news/defence/india-set-to-push-
pakistan-to-curb-terror-funding-at-paris-
meet/articleshow/62467717.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
FEBRUARY 2018 | ISSUE 2
PAGE| 8
India to Step-up

9. New restrictions aimed at money laundering in B.C. casinos were
imposed in January 2018, almost two years after similar
recommendations were rejected by the BC Lottery Corporation.
Read the full story below:
https://www.theglobeandmail.com/news/british-columbia/bc-rolls-out-
new-casino-rules-aimed-at-tackling-money-
laundering/article37570414/
FEBRUARY 2018 | ISSUE 2
PAGE | 9
New AML policies

10. Democratic Senator Elizabeth Warren said the United States needed to
review outdated laws for combating money laundering which is creating
an undue compliance burden for small and community banks.
Read the full story:
https://www.reuters.com/article/us-usa-senate-
moneylaundering/senator-warren-says-u-s-needs-to-rethink-money-
laundering-laws-idUSKBN1EY28B
FEBRUARY 2018 | ISSUE 2
PAGE | 10
US Govt to review outdates laws

11. Contact Details
Suresh Chavali +91-9176330668
suresh.chavali@hotmail.com
https://www.linkedin.com/in/suresh-chavali/
FEBRUARY 2018 | ISSUE 2
PAGE | 11