CRM 324 Lecture Notes - Lecture 4: Terrorism Financing, Informa, Internal Control
5 Jun 2014
School
Department
Course
Professor
Document Summary
Terrorist financing can include providing property, assisting in terrorist financing, money laundering/providing funds. Legitimate sources are harder to locate and prove their part in a money laundering scheme. Placing dirty money in a service company, where it is layered with legitimate income, and then integrated into the flow of money is a common form of money laundering. Overlapping and over-regulation; reporting requirements, cross-border movement of currency, creation of agency to administer the proceeds of crime act: lots of reporting. Threat to the economic activity of private business; there may be a burden in terms of monitoring and reporting costs (which need to be listed, evaluated and quantified) Possibility that someone"s personal information may be disclosed or reported creates a disincentive to deal with the bank, even if they are not engaging in terrorist financing at all. So, potential that financial institutions will suffer a loss of customer base under the legislation alone.
