Suspicious alerts in money laundering – the Crédit Agricole case

Author:Mohammed Ahmad Naheem
Position:Seven Foundation Switzerland, Zurich, Switzerland
Pages:691-703
SUMMARY

Purpose The purpose of this paper is to provide an analysis of the recent Crédit Agricole case outcome, whereby the bank was found to have undertaken insufficient investigation and failed to follow through on reporting suspicious account activity, in line with AML compliance requirements. Design/methodology/approach The paper uses the two main legal documents in the Michailidis v ... (see full summary)

 
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Suspicious alerts in money
laundering the Crédit
Agricole case
Mohammed Ahmad Naheem
Seven Foundation Switzerland, Zurich, Switzerland
Abstract
Purpose The purpose of this paper is to providean analysis of the recent Crédit Agricole case outcome,
whereby the bank was found to have undertaken insufcient investigation and failedto follow through on
reportingsuspicious account activity, in line with AML compliancerequirements.
Design/methodology/approach The paper uses the two main legal documents in the Michailidis v
Crédit AgricoleCorporate and Investment (CACI) bank case and analysesthe judgement details to discuss the
implications for the banking and nancial services sector on money laundering and AML compliance
reportingrequirements.
Findings The main ndings from the analysisare that bankshave a greater legal responsibility towards
detecting and reporting suspicioustransactions than they would have previously considered. This includes
identifyingthe source and purpose of fund transfers and establishing the benecialownership of recipients.
Research limitations/implications The research topic is new, and therefore, analysis papers and
other academicwriting on this topic are limited.
Practical implications The research paper has identied a number of implications to the banking
sector on addressing AML deciencies, especially the detection and reporting requirements of suspicious
transactions.
Social implications This paper has implications for the corporate social responsibility of banks and
other nancial services towards monitoring the source and use of money that is in their organisation. The
paper identies areas of legalresponsibility that banks now have to manage, as part of their commitment to
supportthe prevention of money laundering.
Originality/value The originalityof this paper is the current example of theCrédit Agricole case and the
future legal implications for banks and nancial services on suspicious transaction reporting and money
launderingrisk assessment.
Keywords Banking, Trade Based Money Laundering, Risk assessment, Anti money laundering,
Credit agricole, Suspicious transaction reports
Paper type Case study
Please note that this paper was composed and submitted for review to this journal in May 2015. All
the content was current at that point in time (May 2015). The regulation industry is constantly
evolving with new research emerging and being published. These points need to be taken into
consideration when reading this paper. The author acknowledges being the recipient of a research
grant awarded by Princess Ālae as part of Seven Foundations2020 Banking Vision building
banks of the futureand he thanks her for the continued support and motivation both to himself and
other students who benet through her generosity (www.sevenfoundation.ch). The author also
thanks Professor Muhammad Jumáah (a leading economist of this era in the world today, based in
Damascus), who has continued to provide valuable input both through his teaching of the science of
economics and for his continued guidance.
Suspicious
alerts in
money
laundering
691
Journalof Financial Crime
Vol.24 No. 4, 2017
pp. 691-703
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-12-2015-0074
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1359-0790.htm

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