Thread Options
#1550859 - 05/13/11 02:41 PM 18 USC 1343 Wire Fraud
CompliKat Offline
Member
CompliKat
Joined: Dec 2009
Posts: 96
I received a security incident report for "Wire Transfer Fraud" in which a branch received an email from an individual posing as our customer, requesting a large sum of money be wired to Austrailia. Naturally we verified this request with our customer who indicated that she did not make this request. I have been asked to consider a SAR for Wire Fraud but when I read 18USC1343 my brain just doesn't want to accept this type of activity as the same "wire fraud". Would some of you mind chiming in with your insights???? Please and Thank You!

Return to Top
BSA/AML/CIP/OFAC Forum
#1550868 - 05/13/11 02:48 PM Re: 18 USC 1343 Wire Fraud CompliKat
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Description of wire fraud from the 7th issue of the SAR Activity Review:


A person who, intending to defraud or obtain money or property by fraudulent means of false pretenses, representations or promises, transmits an electronic funds transfer.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1550913 - 05/13/11 03:14 PM Re: 18 USC 1343 Wire Fraud Elwood P. Dowd
CompliKat Offline
Member
CompliKat
Joined: Dec 2009
Posts: 96
Yes, I did read that, but I can't wrap my brain around how that is derived from the code... I'm sure it is there - folks much smarter than me have interpreted it that way...... just can't quite see it. Also, nothing was transmitted, does this mean it is another characterization than wire fraud? We may be hanging up on the wire part because a wire was requested. This is probably the simplest SAR I would ever consider and I am overthinking it!

Return to Top
#1551001 - 05/13/11 04:51 PM Re: 18 USC 1343 Wire Fraud CompliKat
BSABecky Offline
100 Club
BSABecky
Joined: Mar 2011
Posts: 126
Seymour, IN USA
It was ATTEMPTED wire fraud; I would file a SAR if the amount was over the $25,000 threshold (since obviously the client wasn't really who was requesting it, and no one knows the true identity), completing all the information I could.
_________________________
My opinions do not necessarily reflect those of my employer.

Return to Top
#1551038 - 05/13/11 05:34 PM Re: 18 USC 1343 Wire Fraud BSABecky
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,971
Galveston, TX
18 USC 1343

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

So how was this not intending to devise an artiface to defraud to obtain money under fraudulent pretenses?

I see no issues with placing this square within the statute.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1551045 - 05/13/11 05:38 PM Re: 18 USC 1343 Wire Fraud CompliKat
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
As you suggest, you might be overthinking this. If it helps, try to figure out how you would explain not filing the SAR if the dollar threshold is crossed. I couldn't.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top

Moderator:  Andy_Z