Financial Crime Academy Blog
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There is a common misconception that businesses that are not banks don’t need AML regulation protocols. AML in banking may be one of the most prominent industries, but it is definitely not the only one. AML is banking seems most renowned, but it is not the sole industry that needs protective protocols.
There is seemingly an infinite number of ways to launder money. Every day criminals discover new ways to clean funds or hide their means of income. One of the ways that is becoming increasingly more well-known is real estate money laundering.
In order to fight back against money launderers, businesses and firms have to understand the processes that take place during each stage. The placement stage of money laundering is commonly what occurs first. This entails depositing the illegal money into a financial institution.
Screening has to be performed correctly to avoid dealing with potentially sanctioned parties. Since screening requirements are frequently changed and updated, financial crime programs must adapt to tackle the most recent threats through sanction checking.
Market surveillance is the prevention of illegal or manipulative trading practices throughout global security markets. This a common point of scrutiny for regulators across the globe.
In recent years, there has been an increase in scrutiny and monitoring over transactions because of an increase in general transaction activity. In turn, this has led to a dramatic increase in the number of suspicious transaction reports that financial institutions are filing. What’s the benefit of automating the process?
The US dollar is one of the most important currencies worldwide – If not THE most important currency overall. The US dollar is also one of the most important currencies for money laundering and US money laundering is already a global concern.
Obviously, this is closely related to the US of the US dollar in international business dealings. According to research, 87% of global foreign-exchange transactions involve the US dollar. Researchers also observed that at least 80% of trade finance dealings were conducted in USD. With other currencies settling at around only 5-10%, the US dollar dominates the financial world of trade.
The prominence of the US dollar makes it prone to money laundering.
In recent years, money laundering schemes have found their way into the spotlight through various news leaks. Specific disclosures from renowned lists have recently exposed various laundering schemes, including the Panama Papers and Wikileaks in 2010. These schemes bring questions to light, like why do US firms use places like the Bahamas as offshore financial centers? This list is known as the Paradise Papers.
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