ipl-logo

Disadvantages Of Money Laundering

871 Words4 Pages

Legal and Practical Disadvantages of Money Laundering as a Specific Crime in International Law
There are problems which international AML laws could cause in practice, despite the fact that there are also many advantages in handling money laundering. The disadvantages are important to investigate to comprehend why some States are not combating money laundering as well as other States. The advantages highlight the requirement for States to comply with international AML laws and the consequences if they do not comply with them effectively.
Disadvantages.
There are various legal disadvantages and problems which law enforcement agencies could encounter as a result of international AML laws. Primarily, there would be numerous errors in municipal …show more content…

Unfortunately, it is not possible to accomplish uniformity in the regulation of financial institutions, as each State has its own financial regulator which may vary in their approach to ensuring compliance. In this manner, universal AML laws, if uniformly executed, can ignore the important differences between States, respective regulatory regimes and sanctions.
The problem of having international AML laws is that it can lead to corresponding international sanctions and the threat that “sanctions [may] have to be applied to whole nations rather than to individuals” ( Freeman, 2008 ). In addition to this, harder laws may mean longer screening procedures and more careful investigations to meet the Know Your Client prerequisite. In this manner, legitimate investors may not react well to such interrogation. Successful prosecutions in States as a result of international AML law could result in “an anti-investment climate locally”(Mugarura, 2011, p. 2). …show more content…

Corruption in States undermines the international AML regimes through the formation of “financial secrecy havens” (Boister, 2012, p. 101). Specific States may give “legal guarantees of bank secrecy and weak regulation” (Boister, 2012, p. 101), which thus abandons endeavours to accomplish international cooperation and uniformity of domestic regulatory rules. The money laundering offences committed by Nigerian Governor, James Ibori, and the laundering of over £1bn by Nigeria’s former President, Sani Abacha, both serve as a constant reminder that the individuals who are implementing the laws are themselves not complying with

Show More
Related

  • What Is The Impact Of The Marbury Vs Madison Case Brief

    919 Words  | 4 Pages

    Legal Impact of the

    Read More

  • First Amended Complaint Case Study

    917 Words  | 4 Pages

    I. INTRODUCTION 1. This First Amended Complaint contains causes of action for Federal violations of Sections 20 (b) 20 (d) (1) and 22(a) of the Securities Act of 1933 ("Securities Act of 1933 ("Securities Act"), 15 U.S.C. § 77t(b), 77t(d)(1), and 77v(a), and Sections 21(d)(1) 21(d)(3)(A), 21)e), and 27 of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. § 78u(d)(1), 78u(d)(3)(A), and 78u(e), and 78aa. The first cause of action pertains to Defendant, Gerard Warrens, individually. 2. The First Amended Complaint also contains a cause of action for violations of A.R.S. § 44-1801(26) which defines "offers to sell" or "offers for sale" pursuant to A.R.S. § 44-1801(15) and sales as defined pursuant to A.R.S. § 44-1801(21) and A.R.S. § 44-1841 requiring registration of any dealer or salesperson from

    Read More

  • Essay On Federal Reserve Act 1913

    1004 Words  | 5 Pages

    trade and investments, and these U.S. banking organizations can be competitive with the host country institutions with the safety and soundness of their operations. The Federal Reserve tests the international operations of state banks, and agreement corporations, mostly at the U.S. head offices of these institutions. , the Federal Reserve conducts examinations at the foreign operations of a U.S. banking organization with a view to determine the correctness of financial and operational information kept at the head office at the proper time, and to test whether the organization is safe and maintain sound banking practices and also to assess the efforts to adopt remedial

    Read More

  • Court Case Brief-US V. Martha Stewart And Peter Bacanovic

    991 Words  | 4 Pages

    Rule(s) The government asserted that defendant lied about the reasons for selling stock she owned in ImClone is order to cover up an illegal trade. Also, the government asserted that defendant made materially false statements regarding the sale of the stock with the intention to defraud and deceived investors in order to slow or stop the erosion of the value of her company’s securities.

    Read More

  • Patriot Act Research Paper

    1249 Words  | 5 Pages

    Introduction If one takes the approach that terror can be a means of achieving political goals, one can therefore argue that the crimes of terrorism and money laundering are indeed distinctive in their nature. Nonetheless, in agreement with Dr. Mugarura in his PhD thesis, it can be stated that the distinction between both have been submerged since money launderers, narcotic drug dealers, and terrorists have established partnerships to use terror as a means of achieving their objectives. For this very reason, terrorists utilize typical money laundering methods to move money around and integrate it into the financial system. For the past 14 years anti-money laundering policies have been augmented by measures adopted in order to prevent the

    Read More

  • Fifth Amendment Advantages

    316 Words  | 2 Pages

    For this discussion, I have chosen the fifth amendment and how it applies or could apply to business in general. The best way that I interoperate the fifth amendment is thus, you will be prosecuted and punished if you commit a crime that you are found guilty of in a court of law. For business, I see two ways that we can be effected, knowing that harsh punishment will be awarded to any business person who breaks the law may very well deter those who thought of committing a business crime. The other way is the opposite, with understanding what is at steak those who look to crime to better themselves in the business environment will be more cautious when committing these crimes in efforts not to be caught. As for a personal professional life, I like to keep it simple, I understand and will keep up to date on which business practices will land me behind steel bars and I will refrain from participating in those activities.

    Read More

  • The Patriot Act Essay

    388 Words  | 2 Pages

    When it comes to suspicious activity reporting included in Section 352 of the USAPATRIOT Act, “suspicious may not necessarily mean the same thing to all people”. “An activity that may seem suspicious to an auditor or examiner may not raise the same red flag with a community bank executive, or even another examiner”(Proctor, 2003, p.1). This causes a serious problem in the way institutions comply with the requirements of suspicious activity reporting. With that said, suspicious activity reporting forms the cornerstone of the anti-money laundering goals set out by the USAPATRIOT

    Read More

  • Zemiological Approach

    1350 Words  | 6 Pages

    The Threat Assessment of Transnational Organized Crime (TOC) by the United Nations Office on Drugs and Crime (UNODC) in 2010 came to the following conclusion in relation to organized crime: ‘Since the problem of TOC cannot be resolved purely through arrests and seizures, it cannot be reduced to a criminal justice issue. The

    Read More

  • Webb Vs Edwards Case Study

    978 Words  | 4 Pages

    International laws govern how countries and states should interact with each other international law has an impact on domestic laws through human rights treaties, importing and exporting of goods and global communications and connections. The Mabo case reflects this because the domestic law at the time didn’t match the international

    Read More

  • Crime And Public Order Crimes

    2685 Words  | 11 Pages

    Money laundering serves two purposes when it comes to terrorist activity. It conceals the illegal origin of the money and the illegal destination of the funds (Unger, 2013, p.21). Research has shown and experts agree the sale and trade of drugs is a sizeable financial contributor to terrorist organizations. For example, the Taliban profited from the trafficking of opium and taxing the drug in areas under its control. These funds were then used to support terrorist organizations like Al Qaeda (Unger, 2013, p.22).

    Read More

  • Inventory Valuation Analysis

    1594 Words  | 7 Pages

    Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence

    Read More

  • The Advantages And Disadvantages Of The Public International Law?

    1655 Words  | 7 Pages

    International laws are, by definition “A body of rules established by custom or treaty and recognized by nations as binding in their relations with one another” (www.oxforddictionaries.com). International law is a very significant topic because it affects everyone globally. In this research report, I would like to explore the advantages and disadvantages of international laws and consider if they should be enforced in all countries. The modern system we use today was developed in the 17th century in Europe and is still used worldwide (Stratton, 2009). After the Second World War, international unity became very popular (Neff).

    Read More

  • Pestle Analysis Of Uniqlo

    1510 Words  | 7 Pages

    Introduction Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Question 1:

    Read More

  • Thomas Hobbes Acceptance Of International Law

    2404 Words  | 10 Pages

    The weakness of international law becomes evident when we compare it with municipal law. The greatest shortcoming of international law is that it is not enforceable and it lacks effective legislative machinery. International court of justice lacks compulsory jurisdiction. The sanctions and the enforcement machinery of the international law are so weak. International law cannot be invoked to settle a dispute which is essentially a domestic matter of that state.

    Read More

  • Pestle Analysis Of Maybank Malaysia

    709 Words  | 3 Pages

    For instance, Maybank Malaysia has been influence by the policies, rules and regulation which introduced by the Malaysian government. In addition, Maybank Malaysia is one of the first local bank which came up with the online

    Read More

More about Disadvantages Of Money Laundering

Open Document