A thorough Review and Analysis of the Role of Banks in Fighting Money Laundering; through the Lenses of Regulations, Principles, and International Best Practices


Authors : Frank Boateng Agyei

Volume/Issue : Volume 8 - 2023, Issue 10 - October

Google Scholar : https://tinyurl.com/2zybf4wd

Scribd : https://tinyurl.com/yc43zv26

DOI : https://doi.org/10.5281/zenodo.10002680

Abstract : Money Laundering has become a threat to economic growth and development in both advanced jurisdictions and developing countries. The purpose of this research paper is to analyze the role of Banks in fighting Money Laundering in augmenting the efforts of the Financial Action Taskforce (FATF) and the Financial Intelligence Unit (FIU), using specific principles and directives in monitoring all suspicious transactions they are prone with. The paper lay emphasis on how the whole banking sector can be safeguarded and also be free from the negative impacts of sanctions and blacklist by the international community. The research clearly states how the banking sector can maintain its sanctity and integrity when the best international principles and directives are adhered to. To be more specific on the objectives of the study, the research explores the roles of banks, the effort of responsible officers in fighting Money Laundering, and the effective use of Know Your Customer (KYC) and Customer Due Diligence (CDD) directives in this regard.Official Reports from international organizations i.e National Crime Agency (NCA), FinCEN, and the Basel Index on money laundering, and suspicious transactions, for specific periods and countries are considered in the context, of getting a clearer picture of the challenge and the actual roles responsible officers need to play in protecting the financial system. Based on the reports and feedback, recommendations were made to the banks in addition to their stakeholders irrespective of their location to properly collaborate especially with the Financial Intelligence Unit and the regulator (the Central bank) in fighting the canker and its related crimes. It would also be necessary for banks to have and properly use internal control mechanisms i.e., Know Your Customer (KYC), and Customer Due Diligence (CDD) procedures for all financial and non-financial transactions in helping to achieve a banking system, clean and free from illegality.

Keywords : Money Laundering, Financial Action Taskforce, Financial Intelligence Unit, Banking Institution, Central

Money Laundering has become a threat to economic growth and development in both advanced jurisdictions and developing countries. The purpose of this research paper is to analyze the role of Banks in fighting Money Laundering in augmenting the efforts of the Financial Action Taskforce (FATF) and the Financial Intelligence Unit (FIU), using specific principles and directives in monitoring all suspicious transactions they are prone with. The paper lay emphasis on how the whole banking sector can be safeguarded and also be free from the negative impacts of sanctions and blacklist by the international community. The research clearly states how the banking sector can maintain its sanctity and integrity when the best international principles and directives are adhered to. To be more specific on the objectives of the study, the research explores the roles of banks, the effort of responsible officers in fighting Money Laundering, and the effective use of Know Your Customer (KYC) and Customer Due Diligence (CDD) directives in this regard.Official Reports from international organizations i.e National Crime Agency (NCA), FinCEN, and the Basel Index on money laundering, and suspicious transactions, for specific periods and countries are considered in the context, of getting a clearer picture of the challenge and the actual roles responsible officers need to play in protecting the financial system. Based on the reports and feedback, recommendations were made to the banks in addition to their stakeholders irrespective of their location to properly collaborate especially with the Financial Intelligence Unit and the regulator (the Central bank) in fighting the canker and its related crimes. It would also be necessary for banks to have and properly use internal control mechanisms i.e., Know Your Customer (KYC), and Customer Due Diligence (CDD) procedures for all financial and non-financial transactions in helping to achieve a banking system, clean and free from illegality.

Keywords : Money Laundering, Financial Action Taskforce, Financial Intelligence Unit, Banking Institution, Central

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