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
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“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 …show more content…
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
One year ago, on September 8, 2016 the Consumer Financial Protection Bureau(CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo Bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015. This essay will discuss the Wells Fargo scandal by explaining how the event happened and describing how the organization approached handling a response to the crisis. This will be seen, firstly by describing the how the scandal happened, and what were the causes, secondly by discussing the reaction of the company in front of the situation, how they dealt with the crisis and then
The PBS Frontline Documentary The Untouchables shined light on the claim that wealthier people in today’s society get off easier when they break the law. During the financial crisis of 2008, it was said that fraud was committed when many mortgage bankers and high-end executives on Wall Street knowingly bought loan portfolios that didn’t meet their policy credit standards. Even with the evidence in place, no one was arrested and held responsible for a stock crash that nearly destroyed the entire financial system of the United States. With a powerful justice system and justifiable evidence in place, no was prosecuted. Did the justice system not take the necessary steps to ensure that justice was served
“Bernie Madoff began investing in penny stocks in 1960, and due to his impressive work ethic, received several big breaks. The first of which was his father in-law loaning him $50,000 to invest, and soon after, Carl Shapiro, a man who made his fortune in women’s clothing gave Madoff $100,000 to invest on his behalf” (Collins 2011). With this kick-start, Bernie quickly began making a name for him, especially as he promised clients a guaranteed 20% annual return on investment. This, coupled with his firm’s adoption of the latest technology made them a tour-de-force in the investment world. But what makes his eventual downfall more interesting is that he was not just a crook, Madoff did manage a successful, and legitimate brokerage firm. To some extent, the credibility he earned from these legitimate busines...
Enron corporation, a company establisted at 1985, in Taxes. Until 2001, it becames one of the biggest company in the world, which service for energy, natural gas and telecommunications. In 2000, the disclosure turnover reached $101 billion. Everything is going well for Enron corporation. However, at beginning of 2001, Jim - a good reputation of the short-term investment agency owner. Publicly on Enron’s profit model expressed doubts. He pointed out that alough Enron’s business looks very brilliant, but in fact they cannot really make the amount of moeny like the data shown before. No one can say they can understand how Enron is making moeny. According to the inverstment owner’s analysis, Enron’s profitability in 2000 to 5%, to the beginning
The Dodd-Frank Wall Street Reform and Consumer Protection Act’s policies haven’t really been implemented to the extent that regulators would have liked. Although the legislation takes many steps in addressing systematic risks in the United States financial system and improving coordination among regulators, some critics believe that alternative options might have been more effective. The coming years will give us a better understanding of how well the Dodd-Frank Act addressed these concerns.
Bernie Madoff is one of the greatest conman in history. The Bernie Madoff scandal takes the gold as one of the top ponzi scheme in America. Madoff started the Wall Street firm, Bernard L. Madoff Investment Securities LLC, in 1960. Starting off as a penny stock trader with five thousand dollars, earned from his workings as a lifeguard and sprinkler installer, his firm began to grow with the support of his father-in-law, Saul Alpern, who helped by referred a group of close friends and family. Originally, his firm made markets by the National Quotations Bureau’s Pink Sheets. However, in order to compete with the bigger firms that were trading on the New York Stock Exchange floor, his firm started to use very intelligent computer software that help distributed their quotes in second’s rater then minutes. This software later became the NASDAQ that we know today. In December of 2008 Bernard Madoff confessed that he had embezzling billions of dollars from investors. It is estimated to have lasted nearly two decades, and stolen approximately $64.8 billion. On December 11, 2008 he was arreste...
The new vision of Wells Fargo & Co. will need to address where it wants to be in regards to the trust of its customers. With the extensive media attention the company has received recently, it is important to focus the vision on changing how the public views it. The company’s vision should be as follows:
1994 is a sharp increase, but even if the growth rate for 1994 is not
In this essay, I will be examining the financial events surrounding Bernie Madoff, and the events surrounding Enron. Bernie Madoff, “a former American stock broker, investment advisor, non-executive chairman of the NASDAQ stock market, and the admitted operator of what has been described as the largest Ponzi scheme in the history of the world”. Bernard Madoff, 2011, para. 78. 1) Bernie was able to convince investors to give him large sums of money with the promise that they would receive between eight percent and twelve percent return a year.... ...
In 2008 the worst financial crisis since the great depression hit and left many people wondering who should be responsible. Many Americans supported the prosecution of Wall Street. To this day there have still not been any arrests of any executive on Wall Street for the financial collapse. Many analysts point out that greed of executives was one of the many factors in the crisis. I will talk about subprime loans, ill-intent, punishments, and white collar crime.
During the past year Wells Fargo, a well-recognized bank of the United States, has been trying to clean its name and the mess it got itself into, when it was brought to the public that the bank was involved in generating fraudulent checking and savings accounts for its clients without their knowledge or their authorization. “The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent”
This paper is about customer relationship polices and how they are key to the success of a business. It talks about businesses taking care of their internal/external customers’ needs, receiving and handling customer feedback, and meeting customer’s demanding expectations.
This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n...
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
While banking and financial institutions have play an important role in contributing the economic growth by collecting and allocating the resources to those who in need of finance, it also can bring the financial chaos to the economy as well. Since this industry is a sentitive and fragile one, the banking superivision is required to monitor on the banking system aiming to identify and measure risks in order to protect not only the financial institutions but also the customers from the contagious risk that would happen without any alert. Moreover, banking supervision is established in order to protect depositors against avoidable losses, thereby contributing to confidence in the financial system and the