Money-Laundering Alert: Watch for $100 Bills

Introduction of New $100 Bill May Lead to Laundering of Old Cash In Feb. 2011, there will be a new $100 bill introduced in the U.S. Recently, the Treasury Department announced the new bill will arrive at financial institutions with improved anti-counterfeiting additions.

Before the new $100 bill arrives, be mindful that criminals will look to launder their old caches of $100 bills, says anti-money laundering expert Ken Rijock, financial crime consultant for World-Check, an international risk intelligence firm.

Narcotics traffickers keep a percentage of their money in large denomination bills, he explains. "When they see that a new bill is coming out, I expect that they will begin converting their large cash holdings into bank deposits."

Rijock warns compliance officers to be on the watch for large amounts of the old series. "Because once the new bills come out," Rijock says, "any amount of these old series bills will draw attention to them, because the bank will want to know 'Where did you get all of these old hundreds from?'"

At the very least, compliance officers will want to take note of the deposits, and where warranted, file a Suspicious Activity Report (SAR) on the transaction, Rijock says.

Even non-banks that take cash transactions should be on the lookout for these old bills. People buying large ticket such as luxury cars or high end items in cash, especially when paying with hundred dollar bills, should be scrutinized as possible money launderers, Rijock says. Approximately $6.5 billion of the old $100 bills remain in circulation, according to Treasury estimates.


About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.




Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.co.uk, you agree to our use of cookies.