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Posted by  in Fraud Awareness

Nelson F. Everhardt, President, Everhardt & Associates, LLC

International Fraud Awareness Week continues and the DARTON GROUP team touched base this week with Nelson Everhardt who suggested we spotlight a topic of importance to financial services firms in our hometown of Charlotte, NC (more banking resources are headquartered in Charlotte than all but one other US city).  Nelson is President of Everhardt & Associates, LLC, an independent consulting firm specializing in proactive compliance solutions for the financial services industry.

The topic?

Anti Money Laundering (AML).

Nelson is a subject matter expert in AML.  He is a former Senior Vice President and Corporate Compliance Executive for Bank of America, where his responsibilities included the corporate-wide administration of the Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC) and Escheatment Compliance Programs.  While at Bank of America, Nelson served the role of liaison with the bank regulators on bank information technology issues.

Let’s begin by providing a definition of money laundering.  According to Nelson, money laundering has traditionally addressed funds that are illegally acquired (often through money from drug trade, crime or corruption) and then “washed” through a financial institution to appear legitimate.  Nelson advises that the traditional definition has been expanded to include the movement of legitimate funds through a financial institution to fund potentially illegitimate activity, such as terrorism.

The financial services industry continues to operate under increased scrutiny from government agencies to take a leading role in the prevention of money laundering and potential terrorist funding.  As with other forms of fraud, the ability to detect and report suspicious activity is essential to combating money laundering.

Nelson suggests that there are several components that are critical to develop an effective, proactive and sustainable AML compliance program. The components include:

  • Policy and Procedures that encourage vigilance and a commitment to deterring the use of a company for criminal activity
  • Due Diligence and Customer Identification Program for a full understanding of each customer
  • Risk Assessment to understand customer, product and transaction risks
  • Suspicious Activity Monitoring with advanced technology to detect any behavior within the organization that is unusual and analyze it for risk
  • AML Training

Nelson believes that these components, when working together, make up a comprehensive AML compliance program that is both commercially reasonable and effective in ultimately reducing risk to the organization by preventing use of the financial services institution for criminal activity.

Nelson has authored an informative white paper on this topic entitled “Meeting the AML Compliance Challenge.  Click here to review.

For more information on International Fraud Awareness Week, click here.

DARTON GROUP has assembled a top-tier projecting consulting team of “fraud fighters” with expertise in internal audit, IT audit, credit risk, operational risk, BASEL, AML and more.  Call us at 704+525+9378 to learn more.

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