Madoff Case Study

AML Task Force Group II:

CDD Module for RELJJ Bank

Jagjeet Bhamra

Rosa Gutierrez

Erica Means

Lizbeth Pineda

Jacqueline Takyi-Yeboah

Roosevelt University At RELJJ Bank, we are committed to customer satisfaction and ensuring that our customers banking activities are both private and safe for all parties involved. The banking institution community has evolved over the last decades thanks to the introduction of the internet and exposure to the national and international banking markets. As a standard procedure, our system of Customer Due Diligence (CDD) is updated every few years in order to stay in compliance and up-to-date with changing laws and regulations. The following report contains our company 's objectives of CDD, the

“A consequence of the Madoff case will be that all banks will need to be far tougher on their clients—and not just crooks” (THE ECONOMIST). At the result of Bernie Madoff 's ponzi scheme, banking institutions had difficulty conducting business without looking at every customer as a crook. Don’t be afraid of customer’s financial privacy because that is what made Madoff rip off all of his victims. They did not want to question his multimillion dollar checking accounts he had in the USA or countless investments he made in England because of the risk of losing his

This report has outlined the FATF, CDD and its objectives, Know Your Customer, Risks and Gaps. The various inclusions have been discussed in the detail. Under this report, the customer identification program, which is composed of 3 parts- acknowledges, verify and engage and KYC have been discussed.

This report has updated our CDD measures to detect and prevent money laundering or terror financing and be aware of all the known and unknown risks involved without CDD. Proper CDD will add substantial business value and ensure that the decisions about the customers, their past, present, and future account transactions are made on a well-informed basis. If we look at the J.P. Morgan Chase Bank example being discussed in the report, we can see how they did not identify the key requirements of the CDD and suffered million dollars