Hi, need to submit a 500 words essay on the topic Anti Money Laundering.
I have now realized that money laundering is associated with unethical issues in the society and this is what has stimulated intensive research to look into the matter.
Money laundering has been associated with criminal activities such as drug trafficking, terror activities and massive corruption .I think this is what has influenced massive research into the issue bringing about anti money laundering activities. The article, (Financial Action Task Force, 2005) clearly shows that anti money laundering activities are aimed at preventing issuance of money to finance these criminal activities. I have learnt that a study of the methods used and trends linked to money laundering is one of the crucial components of anti money laundering activities. Furthermore, this helps to know what the money transferred is used for. I think the financial sector is one of the main sector which helps in transfer of these large sums of money. As such, banking institutions should be required to know their customers well and the businesses they engage in to prevent such criminal activities from taking place.
I have learnt that politically exposed persons are usually the most vulnerable people in the society associated with money laundering activities (Greenberg et.al, 2009). In my opinion, I think this is so because they handle large sums of money meant for the state and its citizens. However, most of these politically exposed persons use the money for their own selfish gains. Furthermore, they extort and accept bribes from citizens to enrich themselves. I tend to think that they thus use the domestic financial systems of the country to launder their stolen money. That is why they are mainly involved in financing drug trafficking activities which is a criminal offence (United States Department of State, 2012). Anti money laundering campaigns should therefore aim at identifying these people during their