Regulating Money Laundering: Banking Sector's Role in the Caribbean

This essay explores the critical roles that the banking sector can play in regulating money laundering activities in the Caribbean region. It highlights the importance of proper customer identification, transaction monitoring, and establishing strong business relationships to combat money laundering. The essay emphasizes that financial institutions should move away from anonymous accounts and focus on transparency and due diligence, including verifying customer identities and identifying beneficial owners. Furthermore, the essay discusses the adoption of new technologies, the importance of accurate originator information in wire transfers, and the implementation of a risk-based approach to manage money laundering and terrorist financing risks. By implementing these measures, Caribbean countries can enhance their anti-money laundering efforts and safeguard their financial systems. Desklib provides a platform to access this essay and many other resources for students.

ESSAY

Contents
Introduction......................................................................................................................................1
Thesis...........................................................................................................................................1
Discussion........................................................................................................................................1
Conclusion.......................................................................................................................................2
References........................................................................................................................................2

Introduction
The money laundering is considered to be the act for concealing the information of the
different profits which comes from the illegal activities and corruption. The major problem is
about the accounting where considerable amount of time and effort is needed so that there are
safe proceeds without any raise of unwanted suspicion. The essay will discuss about the roles of
the banking sector for handling the regulations of money laundering in Caribbean. The different
countries are involved in the same where they are able to transfer the funds in less amount of
time under the use of false names.
Thesis
There are different methods for reducing the problem of money laundering in Caribbean.
Some of them are the proper identification of the customers, their proper monitoring of the
transactions and building a strong business relationship.
Discussion
The financial institutions should not be working on keeping their accounts completely
anonymous. A proper business relation will help in carrying out occasional transactions with
wire transfers. There is a need to identify the customers and then verify the identify using the
reliable and the independent source documents with data and information. The identification of
the beneficial owners will help in taking all the reasonable measures which are important for
identifying the owners (Chong & Lopez, 2015). The customer due diligence and record keeping
will help in understanding about obtaining information on purpose with the nature of business.
The due diligence is on the business relationship that needs to be taken through course of
relationship for ensuring that the transactions are consistent, and they have a constant business
and risk profile.

The new technologies with financial institutions should focus on assessing the money
laundering or financial risks that are related to development of products and the new business
practices (Demetis, 2018). There are wire transfers for ensuring about the financial institutions
which require an accurate originator information. The other role that the bank could play can be
the transparency and the ownership of the legal person and the arrangements. The Caribbean
countries need to work on prevention of any misuse of legal persons rather ensure that the timely
information is updated for the beneficial ownership (Saperstein, Sant & Ng, 2015).
The risk-based approach is an effective way which is able to combat the factors of money
laundering and the terrorist financing (Rose & Palifka, 2018). The countries need to consider
about the capacity and the anti-money factor for experience of terrorism in the relevant sector.
The implementation of this could help in managing the processes to identify, assess, monitory
and then manage the laundering with terrorist financing risks.
Conclusion
As per the discussion, the risks management procedures are often differentiated on the
basis of customer risk profile. Hence, the identification programs are important to deal with and
validating it for compliance and reducing risks.
References
Chong, A., & Lopez‐De‐Silanes, F. (2015). Money laundering and its regulation. Economics &
Politics, 27(1), 78-123.
Demetis, D. S. (2018). Fighting money laundering with technology: A case study of Bank X in
the UK. Decision Support Systems, 105, 96-107.

Rose-Ackerman, S., & Palifka, B. J. (2018). Corruption, Organized Crime, and Money
Laundering. In Institutions, Governance and the Control of Corruption (pp. 75-111).
Palgrave Macmillan, Cham.
Saperstein, L., Sant, G., & Ng, M. (2015). The Failure of Anti-Money Laundering Regulation:
Where is the Cost-Benefit Analysis. Notre Dame L. Rev. Online, 91, 1.