NCJ Number
195059
Journal
Journal of Financial Crime Volume: 9 Issue: 2 Dated: November 2001 Pages: 134-152
Date Published
November 2001
Length
19 pages
Annotation
This article presents an investigation of the relationship between Internet-based financial services and the potential for increased incidence of the use of financial institutions for International money laundering.
Abstract
The author presents an overview of both money laundering techniques and Internet based financial services in order to show the risks that money laundering poses to overall market confidence and credibility. He discusses the development of Internet-based financial services offerings, explores whether or not the widespread use of these new services will increase institutional vulnerability to money laundering, and makes a series of regulations for financial services practices that may decrease money laundering incidents in the legitimate financial services industry and through Internet-based services in particular. Traditional money laundering includes the three stages of money laundering, placement, layering and integration. International efforts to counterbalance money laundering are detailed including United Nations Conventions, European Union Directives, and the recommendations of the Financial Action Task Force (1990). The rise of Internet financial services is explored including basic explanations of how these services function and a listing and discussion of currently available Internet-based financial services. Recommendations for controlling money laundering risk in the Internet environment include increased customer identification measures, staff training, and increased transaction monitoring. Table, 30 notes