• Using IT to Detect Money Laundering

    Pages: 13

    This 13 page paper discusses aspects of money laundering, and the feasibility and methodology of a research project based on trying to discover the best IT techniques for detecting money laundering; it includes a literature review. Bibliography lists 10 sources.

    File: D0_HVMonLau.rtf

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    Sample Text:
    has assumed increased importance in international affairs; namely, because large sums of untraced money are often used to finance terrorist operations. The paper explains the data used and the method  of collection, and then gives a literature review of the material that deals with IT systems and how they can be used to identify money laundering operations. The literature review  comprises the bulk of the paper and reveals that the key to almost all IT systems is "KYC" - "know-your-customer." Dealing with strangers is the way in which many institutions  are "fooled" into becoming involved in money laundering operations. The paper also includes a brief consideration of the aims and objectives of the research; and comments that although the field  of anti-money laundering software is not new, 9/11 imparted an urgency to it that it did not have previously. Companies are now mandated to have anti-money laundering plans in place  as quickly as possible. The paper considers the way in which information about the new program should be disseminated throughout a company; gives a speculative timetable for implementing the IT  programs; explains the feasibility of the research project; and outlines the ethical and political issues involved in this type of surveillance, which involves a gross invasion of privacy. It concludes  with suggestions for making the presentation of the research proposal a success. Introduction Money laundering is the practice of taking sums of cash gotten illegally and "processing" it in  various ways so that it appears to be legitimate income. In disguising the origin of such money its also possible to disguise its ultimate intended use, a matter of grave  concern with the increasing threat of terrorism around the world. In fact, almost until 9/11 most governments were concerned with identifying money coming from drug trafficking, today they are much 

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