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#1553620 - 05/19/11 01:37 PM Money Laundering and Prepaid Cards
Retread Offline
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Retread
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Thought some of you might be interested in this article.

http://tinyurl.com/6d6wfuw
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#1553628 - 05/19/11 01:46 PM Re: Money Laundering and Prepaid Cards Retread
BSABecky Offline
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Seymour, IN USA
Thanks for posting! Lots of our banking centers aren't understanding why we monitor MSBs that only participate in pre-paid card sales; this will help them see it in a different light, I think.
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#1553659 - 05/19/11 02:21 PM Re: Money Laundering and Prepaid Cards BSABecky
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BSABecky,

If the article does not help, maybe this will.

http://bit.ly/k1d9OO
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#1553670 - 05/19/11 02:35 PM Re: Money Laundering and Prepaid Cards Retread
BSABecky Offline
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Seymour, IN USA
That one is great as well; very thorough. smile
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#1553709 - 05/19/11 03:36 PM Re: Money Laundering and Prepaid Cards BSABecky
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The article is dead on regarding that LE and the laws themselves are always playing catch up. It will be interesting to see how FinCEN finally decides to handle prepaid access.
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#1553715 - 05/19/11 03:38 PM Re: Money Laundering and Prepaid Cards ACBbank
edAudit Offline
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You are here
I went to a FBI conference last year and one of the topics was the prepaid card issue. They were awaiting legislation on the issue an found it fustrating it was taking so long.
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#1553778 - 05/19/11 04:17 PM Re: Money Laundering and Prepaid Cards edAudit
devsfan Offline
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Would pre-paid phone cards be considered in this category? They cannot easily be converted to cash. Any thoughts?

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#1553800 - 05/19/11 04:33 PM Re: Money Laundering and Prepaid Cards devsfan
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Retread- great articles, thanks! We've got some newer people to prepaid and these really help paint the picture of what is going on.

devsfan- I wouldn't exclude pre-paid phone cards, but you might consider risk rating them lower than a standard use prepaid card. There are so many different types, we rate different cards in accordance with their features. I hope that helps.
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#1553816 - 05/19/11 04:48 PM Re: Money Laundering and Prepaid Cards EB, CAMS
edAudit Offline
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You are here
At the conference they mentioned that some phone cards can be reloadable to unlimited dollar amounts and those would be a higher risk.
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#1554207 - 05/20/11 01:28 PM Re: Money Laundering and Prepaid Cards edAudit
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Here is some more information on prepaid cards for those that are interested.

http://www.nbpca.com/~/media/9DAFB97304B44501B29087366ED0580E.ashx

The NBPCA web site has other good information also.
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#1554443 - 05/20/11 03:18 PM Re: Money Laundering and Prepaid Cards Retread
Chicgolf Offline
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Posts: 137
Westside
Retread, I'm a day late and tried to open the first link to the article you mentioned and the article is not there. Can you provide a better link?
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#1554562 - 05/20/11 04:15 PM Re: Money Laundering and Prepaid Cards Chicgolf
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Send me a PM with your e-mail address and I'll send you a copy of the article. There is nothing wrong with the link. The article has been removed from the site for some reason.
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#1555102 - 05/20/11 10:17 PM Re: Money Laundering and Prepaid Cards Retread
BrendaC Offline
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Sweet Home AL
Primary risk is associated with reloadable cards that can carry higher balances. You can mitigate your risk by establishing card limits that make they unattractive for use by money launderers.

Your service provider should be able to offer multiple surveillance options such as monitoring for credit balances, common usage sites over a specified dollar amount, multiple source credits, multiple purchases of cards by same person, etc.
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#1555182 - 05/21/11 08:48 PM Re: Money Laundering and Prepaid Cards BrendaC
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BrendaC - I think that this was more aimed at identifying the risks in banking customers that issue these cards and not the bank themselves issuing them.
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