#QuickbiteCompliance day 274
🚨 Stop the Money Trail: How Criminals Exploit Banking Systems & How We Catch Them
Imagine your bank account is a piggy bank. Now imagine bad guys trying to sneak dirty money into it, then move it around like a shell game until it looks clean. That’s financial crime. And Transaction Monitoring & Filtering Programs (TMPs) are the alarm systems banks use to catch them.
🔍 In Simple Terms:
TMPs are like super-smart guards that:
1️⃣ Watch money moving in/out of accounts after transactions happen (e.g., $10,000 cash deposits every Friday).
2️⃣ Block dirty money before it moves (e.g., stopping payments to a terrorist group).
New York’s DFS Part 504 Rule requires banks to have these guards in place—or face massive fines 🚨 .
😎 How Criminals Trick the System:
Bad guys get creative. Here’s how they’ve slipped past weak TMPs:
– The Dark Web Drug Market:
Criminals used crypto wallets linked to sites like Hydra Market to move $5 billion in drug money. They broke transactions into small amounts to avoid detection—until a TMP spotted odd patterns .
– The Fake Pill Factory:
A China-based vendor sold deadly fentanyl materials to U.S. buyers. They used “structuring”—sending payments just below $5,000 thresholds—to fly under the radar. TMPs caught the repetitive transfers .
– The North Korean Hackers:
The Lazarus Group stole crypto, then swapped it across 20+ wallets using privacy coins (Monero). TMPs using blockchain analytics flagged the rapid hops .
🛡️ Fighting Back Smarter:
The rule isn’t just about compliance—it’s about collaboration. Banks now share:
– Better tech (like AI that learns crime patterns).
– Open-source tools (so small banks access big-bank defenses 💡).
– Global SAR databases (tagging suspicious activity across borders) .
💡 The Future is Inclusive:
Regtech shouldn’t be a luxury. When tools are open-source and accessible, even community banks can shut down money launderers—making the whole system safer 🌍.
👉 REPOST if you believe tech + teamwork = safer finance!
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📚 Dive deeper: [AML Glossary of Terms](https://www.acams.org/en/resources/aml-glossary-of-terms)
🔗 Learn about #InclusiveRegtech & #OpenSourceAML—democratizing compliance.
#TransactionMonitoring #AML #FinancialCrime #NYDFS #FinTech #RegTech #100HariNulis #Compliance