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Wikipedia defines as, ‘the process of concealing the source of money obtained by illicit means. The methods by which money may be laundered are varied and can range in sophistication.’ A number of regulatory and governmental authorities worldwide quote estimates each year for the amount of money laundered, either worldwide or within their national economy. In the year 1996, the International Monetary Fund (IMF) estimated that almost 2 to 5 per cent of the worldwide global economy involved laundered money. So, even on a rough estimate, the amount of money laundered is huge! Regardless of the difficulty in measurement, the amount of money laundered each year is in the billions (US dollars), and thus, poses a significant policy concern for governments in almost each and every country. Governments and international bodies have enacted various laws and regulations in a bid to deter, prevent and apprehend money launderers. Financial institutions have also made serious efforts to prevent and detect transactions involving dirty money, both as a result of government requirements and to avoid the reputational risk involved. There are in fact anti-money laundering solutions available in the market, which can very well be considered to detect any suspicious transaction at the earliest and nab the perpetuators. These anti-money laundering solutions easily integrate into the existing technology of an organisation, and help the top management to safeguard the interests of the stakeholders. Though there can be as many as hundreds of such systems/technologies in the market, not all will fit your exact business requirements. So, you’ll have to check with several vendors and see which enterprise risk management system works for you. Yes, you’ll pay for the software, but the software, with the kind of results It’ll deliver in a few years, will soon recover its costs, and after that, you’ll be using it for free. If you haven’t empowered your organisation with a powerful anti-money laundering system, you better get one now. Just make sure you do not pay for an anti-laundering system which takes months for implementation; yes, there are systems that may take up to 6 months. With the internet, you can find a lot about these systems without even speaking to any company involved in producing anti-laundering and anti-fraud systems. It’s not just the information that you’ll find online, you’ll also be able to find out the top players in the industry which have been around coming out anti-money laundering systems for financial and legal industries.
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Anti-money laundering, Enterprise risk management,
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