International Money Laundering


The international money transfer system has been derailed by various financial crimes like tax evasion and money laundering. This paper will focus on money laundering as an abuse to international money transfer. Money laundering is the illegal act of financial transfer in which there is disguise of identity, source, and the receiver of the money. Wechsler and Stuart Young articles have a common approach on money laundering. Both articles address the issues concerning how to curb money laundering scourge, restriction of money laundering and the situation of privacy in banking. They have similar response to money laundering as discussed below.

Follow the Money: “Secrets and lies”

In the article titled “Follow the Money: Secrets and lies” states that there are multilateral efforts to combat this genie of money laundering. However, it is not an easy task because money laundering and tax evasion is quite encased in a complex web that seems demanding to untie. Several criminal organizations have made international legislation to enforce money laundering scum. International standards were formed through multinational firms on Bank supervision and a few dealt with secrecy. However, only the developed countries took part in this legislation. These countries not only had profound financial systems that resulted in hefty profits turn over in their Bank regimes but improved their political environments. As a result, there has been pressure up-build from other countries that have forced developed countries like Switzerland to reschedule their bank secrecy regimes (Wechsler, page 262).

In addition, developing countries are linking themselves with developed countries due to the advent of globalization by using the internet. The aftermath of this quick access of money via the internet has been cancerous. That is, there has been creation of internet gambling, has led to influx on investment, crime and corrupt related dealings and other proliferation of rogue system of Banking. This abuse alerted the American government because of the potential effects like lack of transparency, endemic corrupt dealings and inconsistent flow of capital and income. Several economic organizations like the IMF and OECD assessed the situation and found out that globalization posed a devastating economic crisis that reduced the Gross Domestic Product alarmingly, thus a threat to developing countries. Therefore, the firms responsible on curbing this vice need to incorporate international standards in their programs to steam up their anti-laundering campaigns. That is, severity in dealing with stubborn countries should be adhered to like multilateral penalties enforced by G-7.

Meeting International Standards: Antigua Restructures Its Offshore Financial Sector

Offshore Financial Sectors have been hit by the same money laundering genie. Thus G-7 has enacted reviews that will try to establish the root cause and curb the vice. This led to imposing of Advisories. The Advisories were as a result of the Antigua legislations that rendered the firm vulnerable to money laundering. Thus, they have improved their regulatory and supervisory legislations that have conformed to financial crime related laws (Stuart-Young, Page 276). This led to regulatory control through International Business Act. This body prescribes several legislations like knowing Bank clients to refute the aspect of anonymous customers. Other activities are secrecy concerning private information of customers, alternative way of depositing money other than cash, basic keeping of records, close supervision suspicious transactions and international corporations. These steps resemble the ones discussed in the previous article.

Brief comparison

The first article majorly points out the steps carried by the developed countries to curb money laundering as discussed above. The second article highlights upon the developing countries. The main theme is how to curb money laundering. Other issues discussed are bank secrecy and the future of anti-money laundering.

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