Essays on Risk of Money-Laundering among International Financial Institutions Coursework

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The paper "Risk of Money-Laundering among International Financial Institutions " is a great example of a finance and accounting coursework.   With rapid development in financial institutions, as a result of advancement in information flow, technology use and communication, money now can easily be transferred everywhere in the world without any big problem. This has resulted in the need to enact various provisions to combat activities related to money laundering through various financial institutions that engage in facilitating money transfer globally. According to (Aufhauser, 2003), money laundering “ is the process of converting illegally acquired money from sources such as drug trafficking, terrorism and other various crimes in order to make it look as if its money obtained from legitimate sources. ” The more the ‘ dirty money’ gets into the banking system, the more it’ s becomingly increasingly very difficult to identify its origin (Leong 2004).

This way many financial institutions have found themselves in a very difficult situation to deal with money laundering and that many of them have themselves in the press for allegations that their channels have been used for money laundering. The most recent and common example involves HSBC Bank.

With this kind of allegations, then financial institutions that facilitate money banking globally are likely to taint their reputation and even risk withdrawal of their registrations. This essay is purposed to exploring this risk of money-laundering among financial institutions by looking at various examples and also the various regulations that have been enacted to combat this crime that is affecting the global finance transfer industry. The financial institutions which are involved in international finance are facing the risk of the use of legal bank channels by some of their clients to transfer the funds which are illegally earned or obtained.

The HSBC bank is currently facing such allegation which is just one example in recent times. This is one of the world major money laundering scandal that had almost put Barclays into a big shade. Barclays had been accused by the senate for entertaining money-laundering conduits within its systems for people dealing in drugs and terrorism (Blomberg and Orphanides 2004).  

References

Aufhauser, D 2003, ‘Terrorist financing: Foxes run to ground (Analysis)’. Journal of Money Laundering Control, 6(4), p. 301-305.

Bagella M 2004, ‘Regional Externalities And Direct Effects Of Legislation Against Money Laundering: A Test On Excess Money Balances In The Five Andean Countries’. Journal of Money Laundering Control, Vol. 7, No. 4, p. 347-366.

Blomberg, S and Orphanides, A 2004, ‘The macroeconomic consequences of terrorism’. Journal of monetary economics, Vol. 51, No. 5, p. 1007-1032.

Dolar, B and William, F 2007, "The wealth effects of the USA Patriot Act: evidence from the banking and thrift industries", Journal of Money Laundering Control, Vol. 10, No. 3, pp.300-317.

The Guardian 2012, HSBC money-laundering scandal almost puts Barclays in shade, retrieved on 30th September 2012, available at: http://www.guardian.co.uk/business/nils-pratley- on-finance/2012/jul/17/hsbc-money-laundering-barclays

FitzGerald, V 2004, ‘Global financial information, compliance incentives and terrorist funding’. European Journal of Political Economy, 20, p. 387-410.

Hart, J 2010 "Criminal infiltration of financial institutions: a penetration test case study", Journal of Money Laundering Control, Vol. 13, No. 1, pp. 55-65.

He, P 2006, "Lawyers, notaries, accountants and money laundering", Journal of Money Laundering Control, Vol. 9, No. 1, pp. 62-70.

Johnson, J 2006, "An analysis of the obligations of gambling entities under the FATF's 2003 anti-money laundering recommendations", Journal of Money Laundering Control, Vol. 9, No. 1, pp. 7-18.

Johnston, B and Carrington, I 2006, "Protecting the financial system from abuse - Challenges to banks in implementing AML/CFT Standards", Journal of Money Laundering Control, Vol. 9, No. 1, pp.48-61.

Leong, A 2004, ‘Definitional analysis: The war on terror and organised crime’. Journal of Money Laundering Control, 8(1), p. 19-36

Rosdol, A 2007, "Are OFCs leading the fight against money laundering?", Journal of Money Laundering Control, Vol. 10, No. 3, pp. 337-351.

Schneider, S 2006, "Testing the limits of solicitor-client privilege - Lawyers, money laundering, and suspicious transaction reporting", Journal of Money Laundering Control, Vol. 9, No. 1, pp. 27-47.

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