AML Conference Takeaways: Four Money Laundering Trends You Should Know

First & Foremost: Plan. Prepare. Test.
As cryptocurrency becomes more common and as cyber threats grow and evolve, such as ransomware, it’s important to stay alert, develop a plan, be in the know, and prepare to take action. One way of being in the know is to stay updated with new regulations published by the Financial Crimes Enforcement Network, U.S. Department of the Treasury. 

1. 1. Ransomware Attacks on the Rise
      Ransomware is an attack on a business’s technology or computer system with the intent to extensively disrupt production with the goal of extortion to incentivize large sums of payments, often up to seven- and eight-figures. Within the last couple of years, the amount of money attackers demand in ransom and the extent of ransomware itself has increased substantially. Contrarily, the average attack window (the time between initial compromise and ransomware) has decreased, which means attackers are willing to engage in prolonged negotiations. This poses a threat to financial institutions, such as casinos. You can learn more about trends, steps to take to protect your property, and pitfalls to avoid with FinCEN’s Financial Trend Analysis on Ransomware.
   2. Compliance Officers are Partners in Fighting Crime
      Reporting suspicious activity, or SAR reporting, consistently, accurately, and promptly is critical to successfully—and without penalty—alerting law enforcement, regulators, and the intelligence community of potentially suspect actions to protect the US financial system. Unfortunately, these illegal actions involve the use of gaming organizations and casinos to facilitate criminal activity. That’s why being persistent and developing a compliance culture is essential. During the conference, speakers often referred to compliance staff as unsung heroes because their work is extremely important to the big picture. Deborah Connor, of the DOJ, gave encouragement to keep fighting the good fight, "It can be exhausting to be vigilant, but you’re crime fighters just like us.”
   3. Technology continues to prove challenging for law enforcement
      From mobile gaming and sports betting to convertible virtual currencies and cyber attacks, technology is innovating faster than law enforcement can keep up. Cryptocurrency is one of the biggest sources of money laundering and tax evasion. The number of cybercrimes grossly outweigh the manpower there is to combat them. Knowing how to identify red flags early on expedites the support compliance teams provide law enforcement, which goes a long way.
   4. The Whistleblower Program
      It’s important for gaming organizations and casinos to remember that they are financial institutions and are subject to the BSA (Bank Secrecy Act). Anti-money laundering is a priority of the highest law enforcement agencies in our nation. As COVID fraud, corruption, cybercrime, drug trafficking, human trafficking, and human smuggling persist, monitoring your properties and reporting on any “bad actors” can help close high-profile government cases. A Whistleblower Program has been instituted to help further the fight against money laundering, and increase the prevention of cyber and financial crimes. You can read about the new Whistleblower Program here.