#QuickBiteCompliance Day 131
Globalization: How Criminals Use It to Stay One Step Ahead
Imagine a big river with many branches. If one path gets blocked, the water finds another way to flow. That’s how criminals use globalization to move dirty money.
Globalization connects the world—businesses trade across borders, people invest internationally, and goods travel freely. It’s great for the economy, but bad guys also take advantage of this system to evade sanctions, hide wealth, and launder money.
Sanctions loopholes – A country is banned from selling its products, but instead of stopping, it sells them through another country. The same goods reach the market, just with a new label. Shell companies in safe havens – A corrupt official steals money and hides it in a fake company overseas. Since the company is registered in a country with weak rules, tracing the money is difficult. Trade-based money laundering – A criminal sells a luxury watch overseas for $10 but reports it as $10,000. This tricks banks and makes dirty money look clean.
Sanctions and financial crime controls work best when all countries cooperate. But in a globalized world, criminals just reroute money and trade through weak spots.
What can we do?
Stronger global cooperation to close loopholes Better technology like #InclusiveRegtech and #OpenSourceAML to track suspicious transactions Tougher enforcement to ensure bad actors can’t just switch trade partners and continue business as usual
The world is more connected than ever. It’s time to ensure criminals don’t benefit from that connection.
Learn more about AML terms: https://www.acams.org/en/resources/aml-glossary-of-terms
#AML #FinancialCrime #AntiMoneyLaundering #SanctionsEvasion #FraudPrevention #RegTech #100HariNulis
