ROSEMONT FINANCIAL IS A CRIMINAL CORPORATION ?

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

THE BITTER LESSONS OF ROSEMONT FINANCIAL CORPORATION

 Lest we forget:

(1) Money service businesses can NEVER think that they can circumvent US regulators through artful use of the accounts of a registered MSB. Both FinCEN and state regulators will find you, one way or the other; Shortcuts never work out.

(2) Your US relationships are only as good as your US partner is honest; Ramakrishna Vyasulu, Rosemont Financial's CEO (and not its owner) was caught trying to launder $1m if what he thought was drug proceeds.

(3) your US financial partner will roll over on you in a New York minute, if he is caught breaking the law, and he will not be punished nearly as strongly as you will be. Vyasulu cut a sweetheart deal with DOJ in Massachusetts, whilst his clients has $200m seized, and it was costly and time-consuming to get only most of it back.

(4) If it is discovered that you have any dodgy clients, expect years of investigation, and no clean bill of health later, should you be lucky enough to escape the criminal justice system.

(5) Your legal fees, in any dispute with US regulators and law enforcement, will be obscenely high; forego this nightmare by not giving them cause to seize your US accounts, investigate you ad nauseum, damage you in the media,  and ultimately keep some of your hard-earned profits.

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BITCOIN MUST BE REGULATED.

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA

~Contributed & Written by Kenneth Rijock ~

REPORTS SAY BITCOIN HAS REGISTERED AS AN MSB WITH FINCEN

Media reports claim that Bitcoin, the virtual currency, has registered as a money service business, with the Financial Crimes information Center, FinCEN. Assuming that this is true, it may signify that the virtual currency industry is ready to concede that it must be regulated, meaning that banking best practices compliance will be necessary. How exactly will that be accomplished online, I wonder ?One final question; since FinCEN registration must be accomplished within six month of beginning operation, and Bitcoin has been around for much longer than that, will charges of operating an unlicensed MSB be filed, as was done with Rosemont Financial ? The Rosemont case was a nightmare for that company's clients , as they had massive funds seizures, resulting in costly settlements with DOJ.

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BE CAREFUL IDENTIFYiNG CLIENTS WHOSE ACCOUNTS COULD BE INVOLVED IN FINANCIAL CRIMES

FROM THE - JOURNALS of Monte Friesner – Criminal & Intelligence Analyst and Consulaire for WANTED SA ~ Contributed & Written by Kenneth Rijock

ARE YOU UNWITTINGLY BANKING ANY

VIRTUAL CURRENCY BROKERS ?

Now that virtual/digital currency dealers and brokers are required to obtain both FinCEN, as well as state, money service business licenses, and those who fail to do so are being targeted, you should review your existing accounts, to determine whether you are banking any company or individual in the virtual currency industry. hint: they may be harder to identify than you think.

Since was an unregulated activity, prior to the FinCEN ruling, participants in this unconventional method of finance may have resorted to subterfuge to appear to be something else entirely. Though this is a relatively new class of payment system, virtual currency brokers and traders must, initially at least, exchange dollars for virtual funds. That is how you will probably identify them.

Do you have any clients whose lines of business involve barter, or exchanges of some sort ? These may be cleverly-disguised virtual funds dealers. Any new clients with substantial business that doesn't seem  to fit into any known category ? Though there are no established red flags for identifying virtual currency companies, any unusual or unconventional bank client could be one, and in performing a search, you just may find some whose accounts involve financial crime, in the process.

Whilst we are certainly not targeting the virtual or digital currency industry, since it is is totally unregulated, it does, at this time, qualify as high risk for financial institutions that choose to process its payments, especially since the recent Liberty Reserve cash exposed the use of that company's facilities to facilitate payments for illegal services, and to move the proceeds of crime. Until and unless the virtual or digital currency business becomes effectively regulated, on a global basis, anyone dealing with it, in a business relationship, runs the risk of unwittingly assisting in money laundering, or a number of other financial crimes; be extremely careful here.

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