Lal Chand Study On Money Laundering And Terrorist Financing Measures

Lal Chand Money Laundering
The advancement of well thought out and structured monetary techniques and services is central to any effective and comprehensive Anti-money Laundering regime Says Lal Chand. The major out flows which guards principle of anti-money laundering safeguards can have the unintended consequence of excluding legitimate businesses and consumers from the financial system. The FATF published its well formulated anti money laundering guidance paper which helps financial institutions to curb all types of money laundering in designing Anti money laundering and counter terrorism procedures that meet the national goal of financial presence, without compromising the measures that exist for the purpose of combating crime and money laundering Says Lal Chand.

Lal Chand Money Laundering Report

Financial corruptions by many political and industrial businessman , including tax crimes, threaten any states strategic monitoring policy, governmental and monetary interests of both developed and developing countries and destabilize self-reliance in the global financial system. In a world of limited resources and increasing complexity, government authorities must work closely together in a "whole of government" approach to best address these challenges. Anti-money laundering experts like Lal Chand believes contesting serious money laundering and terrorism financing needs new strict laws agreed over by all countries and put on task. offshore company incorporation in Dubai, Panama or British virgin island and on other territories needs to be investigated. Every Country’s authority pooling their knowledge and skills, the fight against financial crimes will be more effective. Every country’s financial institutions need inter communication so that they recognize threats endangering economy. There are hypothetically significant financial and efficient money laundering laws which needs to be implemented by both tax administrations and money laundering authorities through mutual teamwork.

The main aims of the any government to develop a common platform understanding of the FATF Standards  in Anti money Laundering that are relevant when promoting financial inclusion and to lay out the flexibility that the Standards offer, in particular regarding the risk-based approach (RBA), thus enabling jurisdictions to craft effective and appropriate controls. The Guidance paper has been developed within the framework of the 2003 version of the FATF Standards. It is non-binding and does not override the measures applied by national authorities.

Lal Chand Believes money laundering and terrorism financing can be curbed through joint Cooperation.

With mutual cooperation, government and tax authorities can play vita role in not only identifying suspected money laundering and tax evasion but also in identifying and reporting other serious crimes such as bribery, corruption. However, anti-money laundering experts and tax specialists believes tax authorities do not have access to information to, and even where some level of access is provided, significant barriers, both of a legislative and non-legislative nature, remain.

This report by Lal Chand on Anti Money Laundering focuses on ensuring strict financial laws and capacity building protocol for financial regulatory groups. It extensively explores the pre-eminences to address money laundering in emerging markets, the research paper considers commercially excluded and undeserved clusters, in both developing and developed countries and they should not be automatically classified as only crime units in money laundering.

Anti-money laundering Measures

With regard to customer identification IT solutions of banks can also provide reliable identifiers. Countries fighting terrorism should though remain attentive of the coverage of certain of these alternative acceptable IDs to fraud and abusive practices. 

As per Lal Chand Anti money laundering research report, procedures can be pertained in circumstances where there is a established money laundering hazard. Financial institutions may apply measures based on an assessment of money laundering and financial terrorism risks. Different levels of control will be designed and implemented according to the different categories of risks identified.

Record-keeping of risk banking transactions should be available for all institutions.

Ongoing business relationship monitoring have to be performed through manual or electronic scanning.

Report of suspicious transactions. The risk-based approach will enable financial institutions to direct additional resources at higher risk areas, but once a suspicion has been formed, RBA is not applicable.

Scrutinizing to detect unusual, potential suspicious transactions is required. When serving low income and low risk customers, financial institutions will need to balance their assessment of ML/TF risks with their technical capabilities and the level/type of information available on customers.

The trials correlated to the empathy and verification of customers' information will vary according to the agents' ability to conduct CDD measures. 

Supervision and oversight will primarily focus on the principal financial institution, but could include onsite oversight visits to agents. The degree of monitoring of the agents will be based on the perceived risks, both external and internal, associated with the agent, such as the products or services being provided, the location and the nature of the activity.

Scrutinizing In-house money laundering controls must develop including suspicious activity monitoring and reporting

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