Transcription
IEGOWORLD WDODeer0Ye ars of SviOvr5ceCONTINENTAL EXPRESS MONEY ORDER CO., INC.Agent Anti-Money LaunderingCompliance ManualLast Revised 08/01/201801/17/2020
Table of ContentsEnglish Version .1I. INTRODUCTION .3II. CEMO COMPLIANCE STANDARDS .3III. CEMO COMPLIANCE POLICY .3IV. REGULATORY OVERVIEW.4A.C.D.BANK SECRECY ACT (BSA) .41.Reporting and Record Keeping Requirements . 4a) Currency Transaction Report .4b) Record Keeping Requirements . 5c) Suspicious Transaction Reporting .82.Law Enforcement Procedure Title 31 CFR 1022.210 .10THE USA PATRIOT ACT .11a) Agent Responsibilities . .12OFFICE OF FOREIGN ASSETS CONTROL .13FINANCIAL CRIME ENFORCEMENT NETWORK (FinCEN) .13A.B.C.D.GRAMM-LEACH-BLILEY ACT .14PRIVACY ACT FINANCIAL CODE .14ELDER ABUSE .14HUMAN TRAFFICKING .15A.C.D.LEY DEL SECRETO BANCARIO (BSA) .201.Requerimientos para el reporte y archivo de documentos .20a) Reporte de Transacción Monetaria (CTR) .20b) Requerimientos de la forma de Cumplimiento .22c) Reporte de Actividades Sospechosas .242.Procedimiento Para dar respuesta a las agencias del Gobierno .27ACTA PATRIOTICA DE LOS ESTADOS UNIDOS .27a) Responsabilidad de los Agentes . 28LA OFICINA DE CONTROL DE ACTIVOS EXTRANJEROS (OFAC) .29RED DE INVESTIGACION DE LOS DELITOS FINANCIEROS (FinCEN) .30A.B.C.D.LEY GRAMM-LEACH-BLILEY .30LEY DE PRIVACIDAD CONTENIDA EN EL CODIGO FINANCIERO .31EXPLOTACION DE ANCIANOS .31TRAFICO DE PERSONAS . 32B.V. GUIDE LINES . 14Versión en Español. 17I. INTRODUCCION. 19II. ESTANDAR DE CUMPLIMIENTO EN CEMO. 19III. POLIZA DE CUMPLIMIENTO DE CEMO . 19IV. VISION GENERAL REGULATORIA . 20B.V. GUIA DE REGULACIONES . 30Exhibits & Training Quiz . 33EXHIBIT 1 – Currency Transaction Report (CTR) .35EXHIBIT 2 – Record Keeping Form (RKF).38EXHIBIT 3 – Suspicious Activity Report (SAR) .42EXHIBIT 4 – AML Compliance Program Form .49EXHIBIT 5 – Independent Compliance Review .51TRAINING QUIZ – English .53TRAINING QUIZ - Español.5655
WORLD WIEGODDOeer0Ye ars of SviOvr5ceCONTINENTAL EXPRESS MONEY ORDER CO., INC.English Version
CEMOAgent Anti-Money Laundering Compliance ManualI.INTRODUCTIONWelcome to the Continental Express Money Order Company (hereinafter referred to in thismanual as CEMO).We are providing this manual in order to help you understand your responsibilities as ourMoney Order agent under the laws and regulations that govern our industry.The Money Order business is subject to strict federal regulations designed to prevent MoneyLaundering, and to bring those engaged in this illegal activity to justice. Failure to follow theseregulations can result in severe civil and/or criminal penalties including fines and imprisonment.Money laundering is the name given to the criminal activity of concealing or disguising theexistence, nature, or source of illegal funds in order to make them appear legitimate.II.CEMO COMPLIANCE STANDARDSEstablished strict ethical standards of compliance with federal regulations and be committed tothe prevention of Money Laundering.Follow “Know Your Customer” program included in this manual.Be alert for transactions or other customer activities that may be indicative of drug trafficking,money laundering or other criminal activity.Report detected suspicious transactions and activities to the proper government authorities.Maintain all records required by the BSA, the USA PATRIOT Act and all applicable anti-moneylaundering laws and regulations, for five (5) years.As a CEMO agent, you are expected to read this manual carefully and completely. Direct anyquestions to the CEMO Compliance Department at (714) 667-6617.III.CEMO COMPLIANCE POLICYCEMO has a zero tolerance policy regarding intentional violations of applicable laws prohibitingmoney laundering, terrorist financing and related financial crimes. CEMO will require theimmediate discharge of any agent’s employee who commits such violation. Depending on thecircumstances CEMO may also terminate the agent relationship.CEMO never give any advice or other assistance to customers regarding how to structurecurrency transactions and thereby evade the Bank Secrecy Act's record keeping and reportingrequirements.The purpose of the manual is to explain how to follow the applicable law.Page 3Page 3
CEMOAgent Anti-Money Laundering Compliance ManualIV.REGULATORY OVERVIEWA.BANK SECRECY ACT (BSA)The Bank Secrecy Act (BSA) establishes reporting and record keeping requirements for large orunusual transactions. These requirements insure the maintenance of financial records, whichassist government agencies in criminal investigations and prosecutions.Under the BSA a money transmitter, check cashing business, currency exchange business, andMoney Order issuer and/or redeemer is defined as a “money services business” (MSB).The BSA requires MSBs to:xComplete a Currency Transaction Report, FinCEN CTR form prior to conducting a currencytransaction exceeding 10,000.00 (including fees charged for the transaction) and maintaina copy of each CTR for five (5) years from the date it is filedxKeep records of certain information pertaining to transactions of 3,000.00 or more andmaintain such records for five (5) yearsxReport suspicious transactions of 2,000.00 or more to the federal government agency,Financial Crimes Enforcement Network (FinCEN)xRegister with FinCEN. The registration requirement is not applicable to agents of MSBsunless they engage in a money services business independently1.Reporting and Record Keeping Requirementsa)Currency Transaction ReportA currency transaction exceeding 10,000 (including fees) requires the electronic filingof FinCEN CTR form. An agent must complete a CTR and obtain a copy of the customer'sidentification before selling or cashing Money Orders totaling more than 10,000(including fees).A sample of CTR form is provided in the back of this manual as Exhibit 1 to be used forreference only.Acceptable Forms of IdentificationAcceptable forms of Identification for completing a CTR must be current, and includethe following:xxxxDriver's licenseState Issued non-drivers identification cardOfficial passportFederal ID cards, such as those for agents of the military, Secret Service, or IRSPage 4Page 4
CEMOAgent Anti-Money Laundering Compliance ManualxxxxResident alien cardEmployment Authorization Card issued by the United StatesIdentification card (Cedula, Registro Consular, Carnet de Elector)Certificate of NaturalizationSources of FundsCEMO reserves the right to require additional documentation of the source of fundsused to conduct the transaction for Money Orders sales exceeding 10,000.The following are examples of acceptable forms of documentation to demonstratelegitimate source of funds:xxxxxCustomer’s bank statementCopy of a payroll check stubBank, attorney or insurance company check made payable to the customerA copy of the customer’s tax return.Federal Tax payer registration / RFC ( Mexico )If you have a question regarding a document presented by a customer to show thesource of funds used to conduct his or her transaction, please contact ComplianceDepartment.Transactions which do not involve more than 10,000 in cash do not require the filing ofa CTR.CTRs must be electronically filed by the agent on the 15th calendar day after the day ofthe transaction with FinCEN at http://bsaefiling.fincen.treas.gov/main.html. A copy ofeach CTR must be retained for five (5) years from the date it is filed. Agents areresponsible to file their own CTRs and copies of the information must send to CEMOcompliance department along with the confirmation page of the submission.b)Record Keeping RequirementsRecord Keeping FormWhen a financial institution sells or cashes Money Orders totaling 3,000 (including fee)or more on the same day to the same person or on behalf of the same person, thefollowing information must be obtained, verified, recorded on a Record Keeping Form(RKF) and kept for a period of five (5) years in records readily accessible for inspectionby government authorities. The RKF is provided in the back of this manual as Exhibit 2.xxxxBusiness Name and Agent NumberName, address of the purchaser and phone numberSocial security numberType of identification, identification number and expiration datePage 5Page 5
CEMOAgent Anti-Money Laundering Compliance ManualxxxxxPurchaser’s date of birthSerial number and dollar amount of each Money OrderFees & total amount of transactionTransaction DatePreparer’s nameIf the customer who conducts the transaction in person is acting on behalf of someoneelse, you must get a record of the identification document and social security number ofthe person on whose behalf the customer is conducting the transaction.Multiple TransactionsMultiple Transactions requiring the filing of a CTR occur when more than one currencytransaction is conducted by the same person or conducted on behalf of the same personon the same business day resulting in cash in or cash out of the financial institutiontotaling more than 10,000. Such transaction must be treated as a SINGLE currencytransaction exceeding 10,000 and must be reported on a CTR.Example 1A customer buys Money Orders totaling 4,550* at 11:00 a.m. The same customerreturns on the same day at 2:30 p.m. and buys more Money Orders totaling 5,400*.The total amount of the customer's transactions exceeds 10,000 (i.e. 4,500 5,400 9,950 66 service fee 10,016), therefore a CTR must be filed.*Note that each transaction is greater than 3,000. You must keep records of eachtransaction with the information required by law.Multiple transactions, which are subject to the “ 3,000 or more” record keepingrequirement, occur when Money Orders are purchased on the same business day by thesame person or on behalf of the same person resulting in cash entering the financialinstitution totaling 3,000 or more. Such transactions must be treated as a SINGLEcurrency transaction of 3,000 or more and the requisite record must be maintained.Example 2A customer purchases Money Orders totaling 1,300 at 12:00 noon. At 4:00 p.m. thesame day, the same customer purchases Money Orders totaling 1,800. The customer’scash purchases exceed 3,000 (i.e. 1,300 1,800 3,100). Therefore, you mustobtain and verify the customer’s identification and prepare records with the informationrequired by law.To recognize multiple transactions, CEMO agents must do the following:x Watch for the same customer purchasing or cashing multiple Money Orders on thesame dayx Watch for customers purchasing or cashing multiple Money Orders on the same dayon behalf of the same personx For purposes of filing a CTR, add together all the Money Orders purchased or cashedby the same customer or on behalf of the same person to determine if they exceed 10,000Page 6Page 6
CEMOCEMOAgent Anti-Money Laundering Compliance ManualAgent Anti-Money Laundering Compliance Manualx For record keeping purposes add together all the Money Orders purchased by thesamecustomeror onbehalf ofthetogethersame persondetermineif theyequal anx Forrecordkeepingpurposesaddall thetoMoneyOrderspurchasedby theamountof 3,000samecustomeror oronmorebehalf of the same person to determine if they equal anKnowYour Customeramountof 3,000 Policyor moreKnow Your Customer PolicyOne of the most effective ways to protect a business from becoming the victim offinancialcrimeswithwaysverifyingthe identityof thecustomers.Oneof themoststartseffectiveto protecta businessfrombecoming the victim offinancial crimes starts with verifying the identity of the customers.CEMO will comply with KYC guidelines issued by FinCEN and other applicable regulatoryauthorities,and willwithprovidecomprehensiveto itsagentsa regularregulatorybasis.CEMOwill complyKYC guidelinesissuedtrainingby FinCENandotheronapplicableauthorities, and will provide comprehensive training to its agents on a regular basis.In furtherance of the KYC obligations, CEMO has established due diligence procedurestothat theidentitiesof its customersagents are known.In ensurefurtheranceof theKYC obligations,CEMO andhas establisheddue diligence proceduresto ensure that the identities of its customers and agents are known.x Customer information on RKFs and CTRs must be verified for accuracy andcompleteness.x Customerinformation on RKFs and CTRs must be verified for accuracy andx completeness.Documentation must be filed in a secure place and kept for five (5) years.x Documentation must be filed in a secure place and kept for five (5) years.Acceptable Identification DocumentsAcceptable Identification DocumentsThere are identifications issued by our federal and state government and foreignidentificationsissued by theirgovernment.Thereare identificationsissuedby our federal and state government and foreignidentifications issued by their government.The following are ACCEPTABLE forms of identification:The following are ACCEPTABLE forms of identification:Federal IdentificationsFederal IdentificationsOfficial PassportPassportCardOfficial PassportMilitary IDPassportCardPermanentMilitaryID Resident cardNonimmigrantVisa cardPermanentResidentCertificate of eof AuthorizationNaturalizationCard issued by the United StatesEmployment Authorization Card issued by the United StatesTrusteed Traveler Cards issued by US Customs and Border Protection:Trusteed Traveler Cards issued by US Customs and Border Protection:Nexus card (US- Canada Border)Sentri card (US- MexicoNexusCanada Border)Border)GlobalEntryCardSentri card (US- Mexico Border)Global Entry CardState IdentificationsState IdentificationsDriver's tion cardPage 7Page 7
CEMOAgent Anti-Money Laundering Compliance ManualForeign IdentificationsForeign PassportNational Identification card (Cedula, Registro Consular, Carnet de Elector)Any types of identification that are expired or canceled are NEVER ACCEPTABLE.The following are UNACCEPTABLE forms of identification:xxxxxxxxxc)Social Security card (except to verify a social security number)Temporary or expired driver's licenseFood stamp cardClub and association cardsCheck cashing cardsMarriage licenseLibrary cardBusiness cardFishing and hunting licensesSuspicious Transaction ReportingCertain MSBs, namely,money transmitterstransmitters and issuers/sellers/redeemers of Moneynamely moneyOrders and traveler’s checks, and their agents are required to report suspicioustransactions to FinCEN. Agents have an independent obligation to electronically filesuspicious transactions. This means that CEMO cannot fulfill this obligation on yourbehalf. It is the agent’s responsibility to report transactions, which the agent deemssuspicious. The form for reporting suspicious activity is called the Suspicious ActivityReport (SAR). A sample of SAR is provided in the back of this manual as Exhibit 3 to beused as reference only. You are encouraged to visit FinCEN’s website for informationand updates regarding these legal requirements. FinCEN’s website is located athttp://www.fincen.gov/.The BSA defines suspicious transactions as follows:xxxxTransactions involving funds derived from illegal activityTransactions intended or conducted in order to hide funds or assets derived fromillegal activityTransactions designed, whether through structuring or other means, to evade therequirements of the BSATransactions that appear to serve no business or apparent lawful purposeThe foregoing general definition requires the MSB to use its own judgment in decidingwhether a particular transaction is suspicious.StructuringPage 8Page 8
xCEMOCEMOrequirements of the BSATransactions that appear to serve no business or apparent lawful purposeThe foregoing general definition requires the MSB to use its own judgment in decidingwhethera particulartransactionis suspicious.Agent nsactionsareindicative ofpotentially suspicious activity. Structured transactionsAgent Anti-MoneyLaunderingComplianceManualoccur when customers break down amounts above a legal threshold into lesser amountsandintermittentlyplace MoneyOrders forthese lesseramountsto evadetheTransactionsare indicativeof nsrequirementsof the BankSecrecy– such aboveas presentingan identificationdocumentoccur when customersbreakdownActamountsa legal thresholdinto lesseramountsortransaction filingwiththe government.anda intermittentlyplaceMoneyOrders for these lesser amounts to evade therequirements of the Bank Secrecy Act – such as presenting an identification documentStructuringis thefilingillegalpracticeof conducting such transactions. Structuring is notor a transactionwiththe government.Page 8limited to transactions conducted on the same day. It includes those conducted over aperiodof daysor monthswhen doneto evade thethe BSA. is notStructuringis theillegal practiceof nglimited to transactions conducted on the same day. It includes those conducted over aOtherof orconductandcircumstancesare suspiciousby natureandBSA.should alert theperiodtypesof daysmonthswhendone to evadethe requirementsof theagent to the potential for illegal customer activity. Some examples include thefollowing:Other types of conduct and circumstances are suspicious by nature and should alert theagent to the potential for illegal customer activity. Some examples include thexfollowing:Insufficient, false or suspicious information provided by the customer when suchinformation is requestedInsufficient,reluctantfalse or suspiciousprovidedby thecustomerwhenx Customersto proceedinformationwith a requestedidentification will be required, or withholding information necessary to completeform reluctant to proceed with a transaction after being informed thatx theCustomersidentificationwill be required,or withholdinginformationnecessaryto completex Largecash transactionsfor whichthe customerdoes not havea reasonablethe form or erdoes notreasonablex haveeachaoneconducts a largeexplanationorbasiscurrency transactionTwo or morecustomersenteryour businesstogetherand eachoneconductsa largex Customerswhoare overlyinquisitiveabout theBank SecrecyActrecordkeepingorcurrency transactionreportingrequirementsx Customers who are overly inquisitive about the Bank Secrecy Act record keeping orThe reportingrequirementto report suspicious transactions is triggered when certain thresholdsrequirementsare met, but an MSB may voluntarily report transactions below the threshold if itbelievesthe transactionssuspicious.The thresholdis 2,000.00for MoneyOrderThe requirementto reportaresuspicioustransactionsis triggeredwhen certainthresholdssales.are met, but an MSB may voluntarily report transactions below the threshold if itbelieves the transactions are suspicious. The threshold is 2,000.00 for Money OrderInthe event you determine that a customer’s transaction is suspicious or constitutessales.structuring, proceed as follows:In the event you determine that a customer’s transaction is suspicious or llyfileasSARwith FinCEN at http://bsaefiling.fincen.treas.gov/main.htmlx Inquire about the source of funds used to conduct the transactionElectronicallyfileComplianceSAR with FinCENat http://bsaefiling.fincen.treas.gov/main.htmlx ContactCEMO’sDepartmentx Inquire about the source of funds used to conduct the transactionInto filea SAR,Complianceyou need nothave actual knowledge that structuring is takingx orderContactCEMO’sDepartmentplace, just a reasonable suspicion. Keep in mind that if you avoid or turn a blind eye ty youthatare placingyourselfat riskIn order to filea SAR, youneed notorhaveactual knowledgestructuringis takingofprosecution.place,just a reasonable suspicion. Keep in mind that if you avoid or turn a blind eye toinformation indicating structuring or suspicious activity you are placing yourself at riskExample1of prosecution.Maria buys 900 worth of Money Orders on Wednesday and another 950 worth ofMoneyon Friday. On the following Monday, she attempts to purchase 975ExampleOrders1worthof Moneyrecognizeas the person,conductedthe 900Maria buys 900 Orders.worth ofYouMoneyOrdersMariaon Wednesdayand whoanother 950 worthofand 950transactionsin theweek.Monday,Before sellingher theto 975worth 975ofMoneyOrderson Friday.On previousthe followingshe attemptspurchaseworth of Money Orders. You recognize Maria as the person, who conducted the 900and 950 transactions in the previous week. Before selling her the 975 worth ofPage 9Page 9
CEMOCEMOAgent Anti-Money Laundering Compliance ManualAgent u must verifyMaria's identification (or locate it in your files), andobtain documentation regarding the source of the funds used to conduct theMoneyOrders,If youmustverifytoMaria'sit in yourfiles),and aindocumentationregardingthe ifsourceof thefunds used to conduct thethefunds,at your discretion,decidefiling SARis necessary.transactions. If Maria refuses to provide identification or demonstrate the legitimacy ofthediscretion,fileddecideif filingSARis daysnecessary.SARsfunds,must atbeyourelectronicallywithinthirty(30)of discovering the suspiciousactivity and must be kept for five (5) years. Agents must keep them readily available forSARsmust be electronicallyfiled agencieswithin thirty(30) days of discovering the suspiciouslaw enforcementand regulatoryto review.activity and must be kept for five (5) years. Agents must keep them readily available forlaw enforcementandfromregulatoryagenciesto review.MSBsare prohibiteddisclosingto a thirdparty or to the customers involved in thetransactions that a SAR has or will be filed. MSBs may only disclose the filing of a SAR toMSBsare prohibiteddisclosingto a thirdthe customersinvolvedin havethelaw enforcementandfromregulatoryagencies.It ispartyillegalortotoinformcustomersthat youtransactionsthat a SARhas ortheirwill befiled. MSBsonly disclose the filing of a SAR toreported,or intendto reporttransactionsasmaysuspicious.law enforcement and regulatory agencies. It is illegal to inform customers that you havereported,or intendto reporttheir transactionsas fromsuspicious.An MSB thatfiles a SARis accorded“safe harbor”civil liability for filing reports ofsuspected or known criminal violations and suspicious activities with appropriateAnMSB that AnyfilesMSBa SARorisagentaccordedharbor” fromcivil liabilityfor filingtoreportsauthorities.that “safeis subpoenaedor otherwiserequesteddiscloseofsuspected orcontainedknown priateinformationin a SARor the facta SAR wasfiled towithothersshall decline wiserequestedto discloseproduce the SAR or provide any information or statements that would disclosethat edtoothersshallSAR has been prepared or filed. This prohibition does not preclude disclosuredeclineof the toproduceprovideinformationdisclosethatthatafacts thattheareSARtheorbasisof theanySAR,as long as orthestatementsdisclosure thatdoeswouldnot stateor asa SAR has been filed on the underlying hedisclosuredoesnotstateorimplythatlong as the disclosure does not state or imply that a SAR has been filed on the underlyingaDirectors,SAR has beenfiledemployeeson the underlyinginformation.information.officers,and agentsof any financial institution who participate inpreparing and reporting of SARs are protected under safe harbor provision.Directors, officers, employees and agents of any financial institution who participate inpreparingand ion.CEMOreservesthe right oftoSARsrequireto obtainprovideadditionalinformation ordocumentation regarding a transaction or a customer from time to time. In addition,CEMO reservesreserves thethe rightright toto rejectrequiretransactionsagents to obtainor provideadditionalinformationorCEMOit deemsin its solediscretionto mtimetotime.Inaddition,inconsistent with its compliance policies or lacking sufficient information to make suchCEMOreserves the right to reject transactions it deems in its sole discretion to bedetermination.inconsistent with its compliance policies or lacking sufficient information to make suchdetermination.2.Law Enforcement Procedure Title 31 CFR 1022.2102.EnforcementProcedureTitle(IRS)31 CFR1022.210 by law to conduct spot checks toxLawTheinternal RevenueServiceis empowereddetermine whether financial institutions are complying with the BSA and inx TheinternalRevenueService requirements.(IRS) is empowered by law to conduct spot checks toparticularwithCTR reportingwhethe
Established strict ethical standards of compliance with federal regulations and be committed to the prevention of Money Laundering. Follow "Know Your Customer" program included in this manual. Be alert for transactions or other customer activities that may be indicative of drug trafficking, money laundering or other criminal activity.
