Effects Of Corruption And Money Laundering

The operation and structure of the international financial system in an increasingly globalized world has received considerable attention from all economists worldwide throughout its existence. This study addresses two additional important and core fundamentals of the financial system: corruption and money laundering. These two elements are global issues and affect all countries causing considerable and irrevocable damages to society in various ways. The society has witnessed a number of cases involving money laundering recently and has also experienced the negative effects of terrorist financing. Unfortunately, there can never be one system, which completely rules out money laundering and terrorist financing crimes from penetrating financial …show more content…
The use of banks and other financial institutions is the main generator for the aforesaid activity. The criminals who generate these funds need to bring them into the legitimate financial system without raising any suspicion. Organizations are vulnerable since criminal earnings can enter into banks in the form of large cash deposits. Bank officials therefore need to exercise constant awareness in opening of accounts with large cash deposits and in checking suspicious transactions. Further to this, and in order to mitigate the risk, banks need to apply the appropriate due diligence procedures in order to categorize its perspective clients and monitor them appropriately as per their …show more content…
An examination will be carried out linking corruption and money laundering and how are those mitigated through the anti-money laundering regulations and their effectiveness especially within the banking sector. Further to this, the research will also analyze the usefulness of prevention and detection techniques by organizations and the responsibility against the society and general