The problem here is well defined. Online Banking and Mobile Banking channels pose a massive threat of misuse by the money launderers and criminals using these channels for financing of terrorism. But the solution is not very easy to implement and give the global effect to stop these activities. Scope The Scope of this White Paper is to discuss how Banks and Financial Institutions can minimize or stop the ill effects of money laundering and terrorist financing using the new channels namely Online Banking Payment Gateways and Mobile Payment Getaways using vast number of applications which are already there and also the new applications which will hit the market and will be used by the end consumers. What is ML and Terrorist Financing which is being also done through Online Banking and Mobile Payment Channels ML dates back to good old ages and is present in the Banking channels …show more content…
The software industry is the highest gainer from these regulations as if the Banks and FIs need to implement the big change, only option is to seek the routes of software programs, control, implementation and effective continuous monitoring without significant lapse in Operational activities. The propagation of Mobile and Internet Payment services with all major and niche technology companies fiercely competing with Banks and FIs to bring all regulations complied payment gateways. In order to fight with these inherent risk and issue, the following actions can be thought of 1. Anticipating Problems much ahead of the occurrence of the event. 2. Preventing and Mitigating Money Laundering and Terrorist Financing with most stringent implementation of the regulations. 3. Playing effectively with Unpredictable Events 4. Quantifying the Value of the expected loss, actual loss and reputational loss, in case the adverse event occurs. Probable
...sure that more prosecutorial convictions are made; criminals are held accountable for their actions, and by everyone being on the same accord, clear and concise laws will prevent technicalities’ in the future. Creating generous budgets will allocate funding necessary for manpower and training to support efforts made in protecting our states, as well as national and international boundaries against digital crime and terrorism.
Terrorist and criminal organization have internal problems that can be exploited by law enforcement and policy makers. Form author Nikos Passas we understand that terrorist organization have a lot of different methods of funding, including crime and charities. According to Passas the best way to combat this is to increase transparency and traceability in economic transactions, which was also concluded by author Jonas R. Want in his article discussing the regulation of Hawala. By doing this globally we can combat the financing of terrorist and criminal groups by having better knowledge of the movement of their money. According to author William Phil’s two thousand and seven peace, following the money is the most powerful tool in combating illegal financial transactions. The argument is supported by an Bichler, Bushes, and Malm’s article that states that understanding the market system in which criminal organizations operate is necessary when identifying the key players and mechanisms used. Overall, strengthening financial transaction transparency will help law enforcement combat both terrorist and criminal organization which will have great affects on both organizations
In some situations, risk arises from the possibility of deviation from the predefined strategy or event when there is at least the possibility of negative consequences.
Before the arrival of online payment methods, the next best solution that people had was sending checks or money orders through postal mail. As (Crede) observes, these methods of payment were (and still are) time consuming and expensive for both parties involved in the transaction. A case in point is the time-consuming nature of drafting, and mailing a check or money order by the payer. The payee on the other hand has to collect the check or money order from the mail, cash it, enter the payment details into the information system, process data, and file the transaction details (Crede). Unlike payments by postal mail, online payments are fast and less costly. Better still; the benefits resulting from such a payment system are shared between the payer and the payee since the immediate transfer of online funds to the payees account means that the money can be accessed almost immediately. This not only ...
World Bank, International Monetary Fund. Reference guide to anti-money laundering and combating the financing of terrorism. Ed. Paul Allan Schott. 2nd. Washington, D.C.: World Bank Publications, 2006.
Every year, cybercrime costs businesses $400 billion and by 2019, cybercrime will have cost the global economy 2.1 trillion dollars (Morgan 1). But, economic loss isn’t the only problem caused by weak cybersecurity; weak cybersecurity measures could allow hackers to collect data on citizens, cause widespread death, and destroy entire nations. Despite the massive threat the problem poses, no one has yet to institute an effective solution. Although government regulation and website blocking attempt to eliminate cybercrime and cyberwarfare, an ideal solution exists in government guidance and collaboration with the private sector.
This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n...
Many groups of people use money laundering today, and many ways exist to launder money. Money laundering has become more sophisticated over the years. It is much different then when Al Capone laundered his bootleg profits. The United States is doing what they can to combat this illegal activity but without the help of others it is an impossible task. Many countries have teamed up with the Unites States to help. The only way to truly combat it is to persuade the other countries to develop anti-laundering standards. Along with developing these standards, banks need to train their staff on how to catch different transactions and policies to catch money laundering. Because laundering is so easy in these less developed countries laundering will continue, and while this illegal activity continues the activity itself will continue to destroy the economy in which it exists.
Digital money is undeniably convenient; anyone who has used a credit or debit card understands this. However, the era of digital money is only beginning; rapid technological advances will continue to make paper money a remnant of the past. Several innovations are already lessening the burden in your wallet. For instance, the seemingly innocuous mobile phone is actually playing an increasing role in facilitating monetary transactions, especially in Asia. Already, in Japan, large companies such as Coca-Cola have sanctioned vending machines that are not only compatible with common cell phones but also allow consumers to earn credits for using them (Kupetz). In this regard, the United States is strikingly behind the times when compared to other countries. Another new technology in the vein of mobile phones is no-contact cards. These innovative cards do not require a cashier to conduct a transaction; one simply holds a specia...
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
After identifying the risk, next step is to decide how to handle those risk. There are four main strategies that can help to decide what to do with the
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...
Further they discussed why Singapore is ready for a digital wallet and identify the key challenges in building and deploying a digital wallet. Then discussed one of the key challenges, supporting peer -to-peer cash transactions between individuals using a digital wallet, in more detail and end the paper with their proposed solution.
While the impact of globalization has led to amazing, new discoveries throughout the world, Internet connectivity has also made cybercrime easier. America and the rest of the world have become more reliant on technology and use it in more aspects of their lives, technology users make themselves more vulnerable to cyber attacks. Globalization and the growing use of computers in the world have given people a motive to learn more about computing and become more knowledgeable as programmers. As these people learn more, there is a risk that they will use their new intelligence to commit cybercrimes. The internet offers high-speed connectivity between countries, which allows criminals to commit cybercrimes from anywhere in the world.