Money Laundering – Zoom In on Suspicious Transactions

Money Laundering – Zoom In on Suspicious Transactions

Money laundering and terrorist financing has become increasingly widespread, as terrorists and organized criminals rely on financial frauds to fund their operations. 

In some developing countries, these frauds are extremely extensive and can even threaten the local economy.   In addition, the emergence of new financial products such as virtual currencies, and online banking platforms that enable speedier and more efficient money transfers, could open up new risks of fraud.

Beyond the established rules for transaction limits, security agencies need effective and rapid methods for tracking the movement of money, and revealing the identities of those behind suspicious movements.   By expertly fusing apparently unrelated data, authorities can single out unusual communications and transactions and mark them for further investigation.  Using powerful data mining and machine learning tools, authorities are able to successfully monitor illegal transactions and create evidence.

Please see the attached Report from the Commission to the European Parliament and the Council  on the “Assessment of the Risks of Money Laundering and Terrorist Financing Affecting the Internal Market and Relating to Cross-Border Activities”, 2017.  It is a call for action to EU member states to create more compliance cooperation and for closing regulatory loopholes that criminals use to their advantage in order to avoid detection.

Assessment of the Risks of Money Laundering and Terrorist Financing Affecting the Internal Market and Relating to Cross-Border Activities

Author: Moshe Samoha