Financial Crimes Compliance

Week 1 Readings and Activities

Week 1: What Are Financial Crimes and How Are They Addressed at the Domestic and International Levels?

Objectives Requirements

Upon completion of this week, students will be able to:

Explain the concept of “financial crime” and why these crimes have been the subject of heightened concern at the international and domestic levels in recent years

Identify the major challenges in identifying and investigating financial crimes at the domestic and international levels

Explain the role and mission of the Financial Action Task Force, and the significance of its recommendations on addressing money laundering, terrorist financing, and the proliferation of weapons of mass destruction

Explain the need for international cooperation in the regulation and investigation of financial crimes

Evaluate the role and efficacy of the FATF Recommendations

Readings:

UNODC, The Money Laundering Cycle,

FATF Recommendations, pp. 6-28

FATF, Anti-Money Laundering and Counter-

Terrorist Financing Measures: United States, Mutual Evaluation Report, December 2016, pp 3-5

Video Presentation: 1. View the video presentation by Monday of

this week. Activity #1: Tutorial Questions Activity #2: Discussion Questions

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Tutorial Questions for Week 1

The Tutorial Questions are designed to ensure that you have an accurate understanding of the key points in the readings. Answers to these questions can be any length. Your goal should be to accurately state the relevant points of law as concisely as possible. Your professor will provide feedback and guidance on your responses. Answers are due by 11:59PM on Wednesday.

TQ1.1: What is money laundering and why is it a matter of global concern? TQ1.2: Briefly describe each of the three stages of the money laundering cycle. TQ1.3: What is the FATF? TQ1.4: What are the FATF Recommendations? TQ1.5: Which industries and professions, outside the banking and financial services industry, has the FATF identified as the most vulnerable to money laundering in the United States?

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Discussion Questions for Week 1

A "threaded discussion" is a discussion forum that allows students to respond to questions posted by the professor (original responses), which can then be read by other users who add their own comments in response (secondary postings). Unlike chat rooms and other "real-time" interaction forums, threaded discussions do not require different users to be logged on at the same time.

Discussion questions are assigned each week. Original responses to these questions must be posted by Thursday at 11:59PM. Original responses must be at least 250 words and must incorporate concepts from the lectures and assigned readings.

Secondary Responses/Postings: Each student must post two or more secondary responses to other students’ postings for each discussion question. Secondary responses are due by 11:59PM on the Monday following the week in which the questions were assigned. They must be a minimum of 150 words and, like original responses, should incorporate concepts from the lectures and assigned readings. Students are encouraged to embark on interactive discussions that go beyond the minimum number of secondary postings. Although the discussion board is expected o be student-driven, professors will be participating in the discussions as well. DQ1.1: Given the number of international treaties already in place in relation to money laundering and anti-terrorism financing, why is there a need for an additional body like the FATF? What does the FATF contribute in the area of financial crimes monitoring and prevention that was lacking under the previous regime? Do you think the FATF Recommendations are a useful addition to the international regulatory landscape in this area? Why/why not? If you could revise or expand on the FATF Recommendations, what changes would you propose? DQ1.2: The FATF Recommendations stress the importance of international cooperation in dealing with money laundering, terrorism financing, and the proliferation of weapons of mass destruction. However, not all countries have the resources, expertise, or political will to prioritize these issues. Do you think the FATF Recommendations provide sufficient incentives, support, or procedures to address these problems in practice? Are there any other effective ways countries could address these challenges?

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