ALEXANDRIA, Va. (3/19/15)--The NCUA Report March issue is available and its lead story examines a growing form of money-laundering activity--the use of funnel accounts.
The accounts, the article notes, usually fly under the Bank Secrecy Act radar by keeping transactions below the $10,000 trigger for suspicious activity reporting. However, a credit union or other financial institution could be tipped off to possible criminal activity by observing this kind of red flag activity: Funds from cash deposits made to an individual consumer or business account in one geographic location are withdrawn at a different location with little time elapsing between the two transactions.
Criminal organizations use larger institutions as well as small- and medium-sized ones for different forms of the funnel account schemes. The article said that credit unions that participate in shared branching are also vulnerable to the schemes.
To read more about warning signs of funnel accounts and associated reporting requirement, see this month's issue of The NCUA Report.
Also in found in the newest issue are: