Evolving threats of Money laundering

  • Increasing proliferation of new non-cash payment methods such as prepaid cards, internet payments, and mobile payments has opened up new gateways for money launderers.
  • The rapid speed of transactions, coupled with minimal face-to-face interaction between the person initiating the transaction and the service provider, makes these new payment modes vulnerable to money laundering activities.
  • Money launderers are also taking advantage of the increased need for financial institutions to identify and onboard their customers online.
  • Trade-Based Money Laundering takes advantage of trade systems complexity, mostly in international contexts where the involvement of multiple parties and jurisdictions make CDD processes and AML checks more challenging.