Friday, 8 June 2018

Kyc aml case study

Kyc aml::

Online or Internet Banking  ( Special Case study how Money laundering  3 steps Happens):: Very important

Placement — Launderers want to get their proceeds
into legitimate repositories such as banks, securities
or real estate, with as little trace of the source and
beneficial ownership as possible. Often, cyberspace
banks do not accept conventional deposits. However,
cyberbanks could be organized to take custodial-like
forms — holding, reconciling and transferring rights to
assets held in different forms around the world. Money
launderers can create their own systems shadowing
traditional commercial banks in order to accept
deposits, perhaps as warehouses for cash or other
bulk commodities. Thus, cyberspace banks have the
potential to offer highly secure, uncommonly private
“placement” vehicles for money launderers

Layering — Electronic mail messages, aided by
encryption and cyberspace banking transfers, enable
launderers to transfer assets around the world many
times a day.

􀂄 Integration — Once layered, cyberspace banking
technologies may facilitate integration in two ways.
If cyberbanking permits person-to-person cash-like
transfers, with no actual cash involvement, existing
currency reporting regulations do not apply. Using
“super smart-card” technologies, money can be moved
around the world through ATM transactions. These
smart cards permit easy retrieval of the “account”
balance by the use of an ATM card

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