Additionally, a digital currency that has only two possibilities

Additionally, if
we consider bitcoin getting involved in the process of money laundering, it can
be a great helping hand in creating a camouflage for any kind of prohibited
activities as well as holding back any transactions incorporated during such
mechanism. For a layman, bitcoin might seem to be a digital currency that has
only two possibilities of either reforming the world trade system or demolish
it drastically, but the unquestionable wreckage caused by bitcoin can actually
be easily tackled with due diligence and common sense.

          Moving further to an utmost important
aspect which cannot be neglected at any cost, that are the regulations against
money laundering. Regulations are the rules and guidelines laid down by law in
accordance to the required standards for the wellfare of the society. An
important fact that, “Anti-money laundering laws are in turn enforced through a
complex scheme of regulations that require financial institutions to confirm
customer identities, maintain certain records and report certain transactions
to government agencies.”(christopher,2014) As an illustration, if we talk about
the world power i.e. United states of America, it has its own unique set of
regulation to encounter money loundering and broadly, “there are three types of
regulations that impact American anti-money laundering efforts: know your
customer, recordkeeping, and reporting requirements.”(Christopher,2014) Know
your customer, also known as KYC is a tool that is employed as a first aid, which
means it is the very initial step that need to be followed, wherein the banks
execute an agenda which may involve some kind of setup to authenticate the
distinctiveness of each and every customer up to a reasonable and practicable
limit. Identically, in case of record maintenance
there are separate benchmarks for non banks and banks, and it is that the non
banks as an obligation maintains the records exceeding $3000, whereas, on the
flipside, the banks have unavoidable boundation to maintain the records
surpassing $10000. Considering all things, the fact is crystal clear that all
the regulations and rules formed for the wellbeing of society, actually are
burdensome and and complicated in nature and it is genuinely possible for
employees at financial institutions to make errors, but consequently these
errors occurred merely due to negligence might result into criminal penalties
of upto one year in prison and $1000 in the form of fine. In a different
viewpoint, the fear of the legal mortification puts the financial institutions
under the pressure of performing criminal detection as well as law enforcement.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

          The white
collar lawbreakers have an instinct of making unstoppable attempts to discover
new methods and shortcuts to hide out their funds as well as carrying out the
illicit operations under the laundromat hood of their origin, with
consideration of squandering the loopholes in the system and not getting
entrapped by law. This is more or less because,”Transactions that take
place across international borders are appealing because of the potential to
confuse and hide from the authorities of any one jurisdiction.”(Christopher,2014)
The upsurging technical advancements in the processing of payments, domestic as
well as global, have opened up new doors for the white collar culprits because
new technologies are more likely to have loopholes and complexities. There are
multifarious and diversified redundancies existing on the internet today, just
for moving the money in any form throughout the globe just with a single click of
the finger and undoubtedly these online facilities are exploited by the crooks
hiding somewhere in the nook and corners of the world.

 

x

Hi!
I'm Marcella!

Would you like to get a custom essay? How about receiving a customized one?

Check it out