ANTI-MONEY LAUNDERING

Anti-Money Laundering and Geographic Risk

Anti-Money Laundering and Geographic Risk

Introduction

The word "laundering" originate in the United States in the twenties, a time when American gangs created a network of laundries to hide the illicit origin of the money that reached its activities of crimes, primarily alcohol smuggling which was banned that time. This research paper provides information about countries and entities that support international terrorism and face allegations for severe corruption.

The first major international initiative takes place in Vienna, when the authority adopted the United Convention for Drug Trafficking and Substances for 1988, with that achieved an agreement that states with- traffickers criminalize the "money laundering". The major drawback is that the convention only to money laundering from, namely, the drug trade (Joseph, Roth).

Countries under imposed OFAC sanction, including state sponsors of terrorism

The Department of the office for Treasury regarding Foreign Assets Control (OFAC) is the main entity that is responsible for imposing sanctions on the assets of terrorist organizations and supportive countries in the international arena. The countries subject to OFAC sanctions include Iran, Cuba, Syria, and Sudan (Lawrence, 78). These countries are also declared as the sponsors of illegal activities and terrorism. The blocked funds of these countries include assets blocked due to an interest, as defined by OFAC.

Countries that support and encourage international terrorism

The “state sponsors of terrorism list” declared under Section 6(j) of the Export Administration Act of 1979, as amended (P.L. 96-72; 50 U.S.C. app. 2405(j)). Under this Act, the Secretary of State enlists the countries that have supported acts of terrorism since a consistent period of time. Cuba is first on the list since the year 1982. Other supporters of international terrorism include Iran, Libya, Syria, Sudan, and North Korea (Joseph, Roth).

Jurisdictions of “primary money laundering concern" by the Treasury Secretary

Money laundering is an issue whose regulation apparently corresponds exclusively to criminal law. However, when set acts aimed at achieving a particular purpose and used both financial and nonfinancial channels for this purpose, he, too, can be regulated by commercial law. In other words, the fact that money laundering is an offense under the Penal Code Federal does not preclude other legal disciplines will govern from another angle. In this vein will have to explain the link this issue with international banking regulation and what drove him to the States in different jurisdictions to take action on the matter. The jurisdictions of “primary money laundering concern”, as determined by the Secretary of the Treasury include financial markets and institutions located at foreign lands, types of international transactions, or types of payable accounts.

Jurisdictions imposed through FinCEN

The USA PATRIOT Act (section 311 in particular) deals with special measures for financial markets and institutions located at foreign lands, types of international transactions, or types of payable accounts. It aims to identify the customers possessing correspondent accounts, along with prohibition rules on maintaining or opening up of U.S. payable-through accounts for a foreigner bank (Roth, ...