IT-based Anti-Money Laundering
Money-laundering introduces illegal assets from drug trafficking, prostitution, illegal gambling, or arms trade into the legal financial and economic circulation concealing their origin. Globalization has seen the development of more sophisticated methods and increasing difficulties in preventing acts of money laundering. In order to contain organized crime and protect the financial system against misuse, global standards have been developed and numerous laws passed (e.g. EU Money Laundering Directive, USA Patriot Act, Bank Secrecy Act, FATF 40+9 Recommendations) that are being made more rigorous on a regular basis.
Money laundering is a great challenge for banks and insurance companies. These enterprises are under increasing pressure to completely disclose their business relations and to comply with the numerous statutory requirements.
An efficient IT-based check strategy becomes the decisive competitive factor for financial service provider. Apart from compliance with legal requirements, flexibility and low cost and time expenditure to maintain and update the money-laundering check procedure are critical factors.