WHY IS MONEY LAUNDERING SUCH A CHALLENGE FOR BANKS?

  1. the conversion or transfer of property, knowing that such property is derived from criminal activity or from an act of participation in such activity, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of such an activity to evade the legal consequences of that person’s action.
  2. the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is derived from criminal activity or from an act of participation in such an activity.
  3. the acquisition, possession or use of property, knowing, at the time of receipt, that such property was derived from criminal activity or from an act of participation in such an activity.
  4. participation in, association to commit, attempts to commit and aiding, abetting, facilitating and counselling the commission of any of the actions referred to in points 1), 2) and 3).
  1. Identification: collection of customer data, representation rules and ownership structure using confidential sources and the transparency register.
  2. Verification: comparison and verification of the identification documents submitted.
  3. Screening: checking the client for Politically Exposed Persons (PEPs), embargoes, sanctions and reputation risks for the bank.
  4. Risk rating: risk classification of the client and determination of the required due diligence by the bank.
  5. Onboarding decision: based on the information collected in previous steps.

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Andrii Bruiaka

Andrii Bruiaka

138 Followers

JCash co-founder, fintech/blockchain expert. Interested in innovations in digital payments and AI technologies.