Money Laundering and Terrorism Financing - Essay Example

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Money Laundering and Terrorism Financing

However, it is common sight for the law keepers to have a red light burn the moment they find unaccounted money getting passed down somewhere.
Money laundering in today's world happens mostly through the banks. Banks were expected to tighten their money movement specifications. But with the wide open internet all around it becomes tougher for the banks to manage and monitor what is the nature of movement and who is sending what to whom. The following section identifies the various methods adopted by the banks to ensure fair movement of money.
Three points were the money laundering and terrorism related monetary transactions can be identified and monitored are: 1) entry of cash into the financial system 2) transfers to and from financial system and 3) cross border flows of cash. The following processes are adopted by the banks in order to monitor these three and control them:
1. 'Know your customer' rule. This was brought in during the heights of terrorist bombings on the aircrafts that every customer should be known and identified by the financial institutions. This would ensure that the customers are monitored and they are known if there is an uncanny behavior in any it is identified and monitored for further action1. This is for the existing customers.
2. ...
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Money laundering has its origin when the British landed up in India and other Oriental countries. It was a common scene to find a person who has returned from the Orient rich and pompous. Money in various forms, taken from these Oriental countries was sent back to England without the knowledge of the administration was common…
Author : brownheaven

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