AML

How Technology Can Be Used to Stop Drug Cartels From Laundering Money

By June 24, 2014 No Comments

Money Laundering has become a very important financial issue that authorities are desperately trying to stop.

Billions of dollars every single year are smuggled illegally across international borders, and this cash can be incredibly difficult to track down. Fortunately, there is hope of ending this crime, and it is in the form of technology. Technological innovations are now making it easier than ever to prevent financial crime from occurring and to catch the individuals who are responsible for it.

As money laundering has become so technologically based, the organizations that are fighting it have quickly realized that their tactics must involve technology as well. Money laundering in today’s day and age is quick, effective, and efficient. In other words, it is impossible to track unless you are strategically using technology in order to monitor transactions and certain clients. Manually monitoring accounts simply takes too much time and is not accurate enough. If you do gather your information manually, it could very well be out of date by the time the account is completed.

Years ago, only large currency transactions used to be monitored in order to catch money laundering. Now, almost all types of transactions between financial institutions and other organizations are closely looked at. Any discrepancy or suspicious activity, no matter how small or large, is monitored and reported. This new system has brought up many difficulties in regards to data processing. Millions of transactions occur around the globe each and every day, and it is very difficult to successfully monitor all of these. The solution to this important issue is compliance software.

Additionally, compliance software also allows you to make sure that you are not breaking any sanctions by doing business with a certain individual. This is invaluable, as disregarding sanctions can wind up putting you in extensive legal trouble. If a person or organization is known for money laundering, and they have been caught committing this crime in the past, they may very well have a sanction or trade barrier put against them. Don’t take any risks with this- make sure that you are only dealing with clients that are not involved with criminal activity. The risk will not be worth it in the end.

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