In the new digital economy – the advent of digital banking and cash management, criminals have perfected the art of moving money across continents at the speed of light and technological advances have made it difficult for law enforcement agencies to tackle it. If money laundering was a country, it would have been the fifth largest economy in the world and that equates to 3% of global GDP benchmarked at US$2 trillion according to the United Nations Office on Drugs and Crime estimates.
Fraud and money laundering isn’t a particularly nascent phenomenon but the Internet has been the biggest game-changer in the fight against financial crime. In our present world, money can be transferred and withdrawn without any corresponding trace variable like an IP address. The Internet aid villainous entities avoid detection through the anonymity of online payment services, peer to peer transactions, virtual currencies (crypto) and proxy servers to mention but a few.
Surprisingly, the actors in the fraud-value chain are not just the hackers or the drug cartels but willing conspirators (decision makers) within the financial services industry who offer those illicit services to get hefty commissions in return. Beyond the surface, the impact of dirty money in the society cannot be over-emphasised – it’s used to fund conflicts all across the world and money laundering activities in particular shore up property prices in major cities.Read More »