How to identify dirty money

Nov 09, 2010

Global standards for preventing money laundering and terrorism financing have come under heat after substantial evidence has shown they do not work.

The problem, Case Western Reserve financial law expert Richard K. Gordon says, is that the private sector-mostly in the form of financial institutions-is required to monitor transactions and report to the government those that raise suspicion.

However, the individuals responsible for such monitoring don't have sufficient expertise, access to data or incentives to do so effectively. , on the other hand, doesn't have enough responsibility in identifying suspected cases of laundering or terrorism financing.

"Dividing these tasks between the private sector and law enforcement is inherently inefficient," Gordon says. "It separates expertise and data, making it difficult and unlikely to effectively identify possible criminals."

Explore further: Sharing knowledge positively impacts innovation in retail, study says

More information: Gordon will outline the problems with current preventive measures and offer suggestions for change in the March 2011 issue of the Duke Journal of Comparative & International Law.

Related Stories

New alliance to study and combat ID theft

Jul 01, 2006

A dramatic increase in the number of investigations into identity theft and fraud over the past few years has sparked a partnership between law enforcement, government, the corporate world and academia.

Recommended for you

Lady, you're on the money

Jul 03, 2015

So far, women whose portraits appear on U.S. money have been a party of three. Excluding commemorative currency, only Sacagawea, Susan B. Anthony and Helen Keller appear on coins in general circulation, according ...

Old World monkey had tiny, complex brain

Jul 03, 2015

The brain hidden inside the oldest known Old World monkey skull has been visualized for the first time. The creature's tiny but remarkably wrinkled brain supports the idea that brain complexity can evolve ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.