ANTI-MONEY LAUNDERING REGULATIONS: PROBLEMS AND PERSPECTIVES

DESMOND McFORAN

 

Abstract

This paper looks at the broad spectrum of the global problem of money-laundering and how international reaction to this phenomenon has resulted in strict regulations with which all banks must comply, by creating internal systems and procedures for compliance with anti-money laundering regulations. The fact that these regulations have been significantly widened to include accountants and lawyers, for example, makes us all – to a greater or to a lesser extent – subject to these regulations. How the European Union and the United States have responded is also discussed, as is the relationship between these regulations and Basel II.

 

Key words

AML, enterprise, securities markets, correspondent bank, customer, shell banks, compliance.

 

References

FATF: Special Recommendation 2001. Especially SR2.
Directive 2001/97/EC 10 June 1991; Directive 2001/97/EC 4. December 2001.
FATF 40 Recommendations, Enlarged #rd. Revision, June 2003.
Article 6.
Article 3.10.
Article 3.11.
Article 25.
Robinson, P., “Anti-Money Laundering Regulations – Next Generation Developments” in Financial Crime FSA 2005; also “How Banks are Facing Up to the Challenge” in Global Anti-Money Laundering Survey KPMG 2004.

 

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