#QuickBiteCompliance Day 129
How Criminals Exploit Weaknesses in Latin American Financial Systems—And How We Fight Back
Imagine a giant spiderweb across South America, with money moving from one country to another. This web is supposed to catch criminals laundering dirty money. But what if some parts of the web have holes? That’s where bad guys slip through.
GAFISUD (now called GAFILAT) is a group of countries in Latin America working together to stop financial crime. They track dirty money, close loopholes, and make sure banks follow strict rules. But criminals are always looking for ways to outsmart the system. Here’s how they do it:
🔸 Using weak regulations – Some countries have weaker laws. Criminals send money through these places, making it hard to trace.
🔸 Shell companies & fake businesses – A “coffee shop” with no customers? A factory that doesn’t produce anything? These fake businesses help criminals hide dirty money.
🔸 Crypto & cash smuggling – Criminals mix illegal money with real transactions or use cryptocurrency to move funds secretly across borders.
So, how do we fight back?
✅ Stronger regulations that cover all financial sectors
✅ Smarter technology, like #InclusiveRegtech and #OpenSourceAML, that helps track suspicious transactions faster
✅ Cross-border cooperation, so criminals can’t just “hop” to another country to escape detection
The fight against dirty money isn’t just about banks and regulators. Every business and financial institution has a role to play. Let’s close the loopholes and build a stronger, safer financial system!
📖 Learn more about AML terms: https://www.acams.org/en/resources/aml-glossary-of-terms
#AML #FinancialCrime #GAFILAT #AntiMoneyLaundering #FraudPrevention #100HariNulis
