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: Less-numerate investors swayed by corporate report presentation effects

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.

add to favorites email to friend print save as pdf

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

Migrant employment on the rise

Oct 20, 2014

Skilled migrants are enjoying better jobs and higher levels of employment thanks to a shift in policy, according to a new study by the Melbourne Institute of Applied Economic and Social Research at the University ...

User comments : 0