Skip to content
BOL Conferences
Thread Options
#1553620 - 05/19/11 01:37 PM Money Laundering and Prepaid Cards
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
Thought some of you might be interested in this article.

http://tinyurl.com/6d6wfuw
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
BSA/AML/CIP/OFAC Forum
#1553628 - 05/19/11 01:46 PM Re: Money Laundering and Prepaid Cards Retread
BSABecky Offline
100 Club
BSABecky
Joined: Mar 2011
Posts: 126
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.
_________________________
My opinions do not necessarily reflect those of my employer.

Return to Top
#1553659 - 05/19/11 02:21 PM Re: Money Laundering and Prepaid Cards BSABecky
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
BSABecky,

If the article does not help, maybe this will.

http://bit.ly/k1d9OO
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1553670 - 05/19/11 02:35 PM Re: Money Laundering and Prepaid Cards Retread
BSABecky Offline
100 Club
BSABecky
Joined: Mar 2011
Posts: 126
Seymour, IN USA
That one is great as well; very thorough. smile
_________________________
My opinions do not necessarily reflect those of my employer.

Return to Top
#1553709 - 05/19/11 03:36 PM Re: Money Laundering and Prepaid Cards BSABecky
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,344
New York City
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.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#1553715 - 05/19/11 03:38 PM Re: Money Laundering and Prepaid Cards ACBbank
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,796
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.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1553778 - 05/19/11 04:17 PM Re: Money Laundering and Prepaid Cards edAudit
devsfan Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,927
NYC
Would pre-paid phone cards be considered in this category? They cannot easily be converted to cash. Any thoughts?

Return to Top
#1553800 - 05/19/11 04:33 PM Re: Money Laundering and Prepaid Cards devsfan
EB, CAMS Offline
100 Club
EB, CAMS
Joined: Mar 2009
Posts: 133
flyover country
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.
_________________________
It is actually possible for you and I to have different opinions and yet still live peaceably upon this planet.

Return to Top
#1553816 - 05/19/11 04:48 PM Re: Money Laundering and Prepaid Cards EB, CAMS
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,796
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.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


Return to Top
#1554207 - 05/20/11 01:28 PM Re: Money Laundering and Prepaid Cards edAudit
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
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.
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1554443 - 05/20/11 03:18 PM Re: Money Laundering and Prepaid Cards Retread
Chicgolf Offline
100 Club
Joined: Jun 2003
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?
_________________________
These are just my own opinions...my body is here but my mind has already teed off...FORE!

Return to Top
#1554562 - 05/20/11 04:15 PM Re: Money Laundering and Prepaid Cards Chicgolf
Retread Offline
Power Poster
Retread
Joined: Oct 2003
Posts: 2,548
Southeast
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.
_________________________
Politicians are like diapers. They need to be changed often and for the same reason.

Return to Top
#1555102 - 05/20/11 10:17 PM Re: Money Laundering and Prepaid Cards Retread
BrendaC Offline
Power Poster
BrendaC
Joined: Sep 2001
Posts: 6,029
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.
_________________________
Life without Jesus is like an unsharpened pencil - it has no point.

Return to Top
#1555182 - 05/21/11 08:48 PM Re: Money Laundering and Prepaid Cards BrendaC
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z