AML Legal Regime - fffdd PDF

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Running head: MONEY LAUNDERING

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Institution name Student name Professor Date

MONEY LAUNDERING

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As a global policy, the AML has been put in place for enactment to ensure that employees, as well as the businesses themselves, are aware of concerning all the transactions that their customers are carrying out. As a global policy, it calls for awareness to the nature of transactions as well as other activities that the customers carry in the accounts they hold with them (Masciandaro, 2017). As the fight against tax evasion, money laundering, as well as terrorist financing, has gained ground post the terrorist act of September 11, 2001. The AML policies have drastically changed, and more stringent measures have been put in place to address the loopholes that prior policies, set by the G7 countries in previous years could not address. In his assessment, Professor Richard Gordon is of the view that it is possible to use law in trailing ill-gotten money and at the same time the states can use such money as evidence for thus disguising these proceeds from both the source and the recipient of the profits. However, at the same time, he’s optimistic on the account that over the years, several laws have been put in place or the existing ones refined in order to counter money laundering, and many jurisdictions and also institutions have adopted this regulation in order to keep track of these transactions (Gordon, 2011). Thus the awareness of the consequences that may occur such institutions or jurisdictions in case of non-compliance makes them be looked into more effectively, especially in the period post-September 11, 2001. Thus such, measures have seen implementation in most countries around the world. However, in spite of the effort that the enactment of these laws has contributed to Professor Richard Gordon is of the view that these laws do seem to work. In his view, he thinks these laws should be rethought as since in his assessment; there are no proper mechanisms to evaluate whether individuals working in such institutions are involved in money laundering or are terrorist themselves (Gordon, 2011). Similarly, he observes that for the financial institutions

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with problems in the liquidity, they have to depend on illegal finances to beat a hard time. Thus they exploit the loopholes as these rules are more into individuals that the institutions themselves. Therefore due to the recession, these institutions are pushed to a corner, a chance that money launders seek to exploit. Therefore, based on this reading, I do not agree with the conclusions of a failed system as they seem to purport. However, I share a similar opinion on the proposals he puts forward. There is the need to revise the laws on money laundering to address the inadequacies that criminals have exploited. Similarly, the thought that the financial institutions being tasked with reporting on customer transactions to the relevant authority. At the same time, the other suggestions on seizing and freezing of loot have been suggested as another measure to counter this problem. These enactments have been seen to be effective in the fight against money laundering and thus need to be looked into deeper (Gordon, 2011). In spite of the success, there have been several setbacks, the effectiveness of the international AML/CFT standards in the fight against money laundering has been put to question (Beekarry, 2011). It also puts to question the role of the government and the private sector in combating the menace as it may work to the contrary, as new ways to beat the system may be devised. Thus in the quest to address this problem, the public sectors units concerned with financial intelligence should be capacitated with the right tools to deal with the problem. Thus the need for a clear definition of the role of each. That is both the private and the public sector on what their mandate and obligation on reporting financial irregularities to entail.

MONEY LAUNDERING

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Beekarry, N. (2011). International anti-money laundering and combating the financing of regulatory terrorism strategy: a critical analysis of compliance determinants in international law. Nw. J. Int'l L. & Bus., 31, 137. Gordon, R. K. (2011). Losing the War Against Dirty Money: Rethinking Global Standards on Preventing Money Laundering and Terrorism Financing, 21 DUKE J. COMP. & INT'L L, 503, 506. Masciandaro, D. (Ed.). (2017). Global financial crime: terrorism, money laundering and offshore centres. Taylor & Francis....