Anti Money Laundering - Assignment Example

Anti Money Laundering Introduction Anti money laundering encompasses procedures, laws and regulations provided to impede the act of acquiring money through banned actions. I have learnt that those involved in money laundering activities hide their activities in a series of steps and procedures that make it be seen like money generated from illegal or unethical sources was earned legitimately. I think this is what has stimulated intensive research into money laundering activities. It has come to my knowledge that criminal activities funded by the money launderers, vulnerable money launderers and laws to effect the anti laundering activities have been identified.

I have now realized that money laundering is associated with unethical issues in the society and this is what has stimulated intensive research to look into the matter. Money laundering has been associated with criminal activities such as drug trafficking, terror activities and massive corruption .I think this is what has influenced massive research into the issue bringing about anti money laundering activities. The article, (Financial Action Task Force, 2005) clearly shows that anti money laundering activities are aimed at preventing issuance of money to finance these criminal activities.

I have learnt that a study of the methods used and trends linked to money laundering is one of the crucial components of anti money laundering activities. Furthermore, this helps to know what the money transferred is used for. I think the financial sector is one of the main sector which helps in transfer of these large sums of money. As such, banking institutions should be required to know their customers well and the businesses they engage in to prevent such criminal activities from taking place.

I have learnt that politically exposed persons are usually the most vulnerable people in the society associated with money laundering activities (Greenberg et.al, 2009). In my opinion, I think this is so because they handle large sums of money meant for the state and its citizens. However, most of these politically exposed persons use the money for their own selfish gains. Furthermore, they extort and accept bribes from citizens to enrich themselves. I tend to think that they thus use the domestic financial systems of the country to launder their stolen money.

That is why they are mainly involved in financing drug trafficking activities which is a criminal offence (United States Department of State, 2012). Anti money laundering campaigns should therefore aim at identifying these people during their transactions at the bank by making them account for their money hence criminal activities are reduced. In my opinion, the legal system is left with the duty of identifying money laundering activities associated with criminal activities and bringing those involved to justice.

Research into money laundering activities has provided necessary information to the regulatory authorities and the law enforcement agencies. I have learnt that the legal system uses several indicators to help detect money acquired for illegal purposes. Some of these indicators include: very high levels of cash deposits on a regular basis, no business explanation for the size of business or huge volumes of cash deposited or withdrawn, huge transactions recorded informally, records that do not match banking transactions and high volumes of money deposited at banks located far away from the business premises.

I think all the legal systems are supposed to look into any suspicious transactions made and as such the staff in the financial sector should be trained on detecting such transactions. It has come to my knowledge that criminal activities have been mostly associated with money laundering activities that finance them. Anti laundering activities have risen to curb these acts and prevent criminal activities from taking place. I have identified politically exposed people as the most involved people in the society in illegal money laundering activities.

I strongly believe therefore that the legal system is posed with a challenge to identify such activities and bring those involved to justice. References (2005). “Money Laundering & Terrorist Financing Typologies 2004-2005.” Financial Action Task Force. Greenberg.T.S. Gray, L., Schantz, D.Latham, M., &Gardnen, C. (2009). Stolen Asset Recovery: Politically Exposed Persons. The International Bank for Reconstruction and Development.United States Department of State. (2012). International Narcotics Control Strategy Report: Volume II Money Laundering and Financial Crimes.

Bureau for International Narcotics and Law Enforcement Affairs.