Policy Brief 2 days ago
Money laundering and terrorism financing are intricately connected to one another. Money laundering refers to the processing and movement of money or assets of illegal origin stemming from criminal activity. Terrorism financing is the raising, moving and using of funds to support terrorist activities. Both these activities exploit the same gaps within the financial structures of a country or countries to suit their agendas. Money laundering is often a cover for terrorism financing. Therefore, strict legal regulations are imperative to prevent the exploitation of financial systems for either of these illegal activities. A major part of preventing such schemes is keeping check on currency exchange in the country, setting stringent rules for the transfer of large amounts of funds and ensuring there are proper procedures involved for setting up and managing bank accounts.
