Healthcare
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AML & KYC Regulations for Healthcare Facilities
The healthcare industry is one of the biggest in the world. It is an industry that never sleeps, operating 24 hours per day seven days per week to take care of patients. Healthcare organizations are seen as performing an essential human service. Unfortunately, there are also people who try to take advantage of this service.
The healthcare industry is a target for money laundering. Financial criminals will try to clean dirty money by moving it through the healthcare industry. For this reason, healthcare organizations need to protect themselves.
Truth Technologies is dedicated to protecting organizations, such as healthcare companies, from money launderers and other financial criminals. We are proud to be one of the leading providers of AML protection. Please learn more about how we can assist you and your healthcare company by protecting against money laundering activity.
What is Money Laundering?
While many people think about money laundering as a crime that takes place in banks, it also is a major problem in the healthcare field. Some of the ways that someone might try to commit financial crimes in healthcare include:
- Making a large donation to a nonprofit healthcare company with dirty money to obtain a tax break
- Filing false health insurance claims to draw on dirty funds for fake procedures
- Attempting to make deals with healthcare companies overseas before diverting dirty money into offshore accounts
The goal of any money laundering activity is to clean dirty money using healthcare companies as an intermediary. It is important for healthcare companies to guard against this dangerous practice.
Why the Healthcare Industry
Healthcare organizations such as hospitals are a common target for money laundering for a few reasons. These include:
- Reputation: Healthcare organizations are seen as being charitable and performing an essential human service. Therefore, the bar of suspicion is lower in this industry.
- Donations: Hospitals regularly receive large donations from outside sources, so this is seen as normal.
- Large Amounts of Money: In addition to large donations, it is also not unusual for healthcare companies to move large amounts of money for procedures and equipment. Therefore, large financial transactions are seen as normal.
The healthcare industry is a vulnerable area for those looking to commit money laundering. For this reason, all healthcare companies need to have robust policies and procedures in place to protect themselves against illicit financial activities.
Money Laundering Regulations in the Field of Healthcare
It is critical for every healthcare organization to make sure they comply with rules and regulations regarding money laundering. These regulations have been installed by FINRA and the United States government. Some of the relevant regulations that all healthcare companies need to follow include:
- Healthcare organizations must make sure they have a firm leadership structure in place for their anti-money laundering program
- Employees need to report any suspicions of money laundering to the proper compliance officer immediately
- Organizations need to test their anti-money laundering programs regularly to make sure they work as designed
- There should be continuing education provided on money laundering practices
- Organizations need to have relevant contact information updated in the FINRA contact system (CS)
Healthcare organizations need to make sure they remain in compliance with these regulations to protect themselves against potential fines and sanctions.
Red Flags for Money Laundering in Healthcare
Healthcare is a frequent target for money laundering. Some of the key signs of money laundering in this field include:
- Someone appears to be filing claims at a high rate compared to the national average or that person's baseline
- An individual is trying to donate a large sum of money yet is unwilling to disclose where the money came from
- An individual is trying to order large amounts of medical equipment from a healthcare organization that they appear to have no use for
- Someone contacts a hospital to make a deal yet appears to have skipped multiple hospitals in between their location and that of the hospital
- An individual is reluctant to disclose his or her identity before making a transaction
The good news is that there are ways for healthcare organizations to protect themselves against money laundering.
Know Your Customer (KYC) Practices in Healthcare
One of the most important tools that healthcare organizations can use to protect themselves is called Know Your Customer (KYC). KYC is important because these policies can protect hospitals against fraudulent activity while also reducing their risk. The goal of KYC is to make sure that healthcare organizations know everything about a potential client or business partner before making any business deals with that entity. Some of the important information that is collected through KYC include:
- The entity's verified identity
- The source of any finances used to complete any relevant transactions
- The complete financial portfolio and background of that individual
KYC is an important part of anti-money laundering (AML) practices.
Premier AML Screening from Truth Technologies, Inc. (TTI)
Truth Technologies is one of the top organizations in the world when it comes to anti-money laundering (AML) protection and screening. We rely on innovative specialists in compliance, AML, anti-fraud, and consumer identity verification. We have positioned ourselves to provide premier AML benefits including:
- Robust Know Your Customer (KYC) practices that ensure verification of customer identities and source of funding
- Compliance with international regulations from the United States, European Union, and Canada
- Rapid cross-checking of various global watch lists and registrations
- Streamlined screening using APIs that will search thousands of names without any manual entry
- Advanced due diligence programs, automated reporting, and rapid updating
- Reduced need for manual review of matches thanks to new data alerts and continuous customer monitoring
Augment AML Security with Truth Technologies Today
As a healthcare company, it is important for you to protect your clients, patients, and employees against money laundering. Therefore, please give us a call today to learn more about our services and our free tool demos. Trust TTI for all of your anti-money laundering (AML) and KYC needs.
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