#QuickBiteCompliance Day 113
How Criminals Use “Extraterritorial Reach” to Hide Dirty Money
Imagine you’re playing a game of tag, but instead of just your backyard, the rules say you can chase someone across the entire neighborhood—even if they hide in a friend’s house! That’s kind of how extraterritorial reach works in financial crime laws. Some countries say, “Even if you break our laws somewhere else, we can still come after you!”
But bad guys try to take advantage of this. Here’s how:
Country Hopping: Criminals move dirty money through banks in different countries, hoping to find places where the laws don’t apply.
Safe Havens: Some places have weak money laundering laws, so criminals hide their money there, thinking they can’t be caught.
Sanctions Evasion: If one country bans business with a bad person, they might sneak money through another country where the rules don’t apply.
The good news? Financial crime fighters around the world are working together to stop this! The more we close these loopholes, the harder it gets for criminals to hide.
#MoneyLaundering #FinancialCrime #AML #Sanctions #ExtraterritorialLaws #Compliance #CrimeFighters #InclusiveRegtech #OpenSourceAML #100HariNulis
Source: https://www.acams.org/en/resources/aml-glossary-of-terms
