Technology and Anti-Money Laundering

Technology and Anti-Money Laundering

A Systems Theory and Risk-Based Approach

Dionysios S. Demetis

This insightful book examines the influence of information systems on anti-money laundering (AML). It builds on systems theory in order to develop a coherent theoretical framework that can be used for AML research.


Dionysios S. Demetis

Subjects: economics and finance, economic crime and corruption, money and banking, innovation and technology, technology and ict, law - academic, corruption and economic crime, internet and technology law, terrorism and security law, politics and public policy, terrorism and security


2. 1. INTRODUCTION TO ANTI-MONEY LAUNDERING Hawala is an underground scheme of moving money and is solely based on trust. A customer that seeks to transfer money to a person in another city or country, approaches a Hawala broker (also known as hawaladar) and gives the broker the sum of money to be transferred (plus a small commission). The broker communicates with his counterpart Hawala-broker in the city/country and the counterpart arranges for the payment. The Hawala brokers settle the debt at a later moment in time. The extent to which money laundering can create economic instability is very difficult to establish. Catherine England suggests that there are several cases where Gresham’s law on ‘bad money drives out good money’ is not valid. Also, there is a very dubious connection between the underground and the ‘upperground’ economy and there have been several occasions where legitimate businesses were funded by criminal money. The recognition of the FATF came in the Commission on Narcotic Drugs resolution 5 (XXXIX) of 24 April 1996. The comment from Professor Arlacchi on the effects of globalization came at a panel discussion held at the United Nations, New York, on 10 June 1998, titled: ‘Attacking the Profits of Crime: Drugs, Money and Laundering’. The title of Professor Arlacchi’s speech was ‘The Need for a Global Attack on Money Laundering’. The Egmont Group is an important transnational organization linking various Financial Intelligence Units around the world. Based on a series of questions submitted to the Egmont Group by...

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