Additionally, ifwe consider bitcoin getting involved in the process of money laundering, it canbe a great helping hand in creating a camouflage for any kind of prohibitedactivities as well as holding back any transactions incorporated during suchmechanism. For a layman, bitcoin might seem to be a digital currency that hasonly two possibilities of either reforming the world trade system or demolishit drastically, but the unquestionable wreckage caused by bitcoin can actuallybe easily tackled with due diligence and common sense. Moving further to an utmost importantaspect which cannot be neglected at any cost, that are the regulations againstmoney laundering.
Regulations are the rules and guidelines laid down by law inaccordance to the required standards for the wellfare of the society. Animportant fact that, “Anti-money laundering laws are in turn enforced through acomplex scheme of regulations that require financial institutions to confirmcustomer identities, maintain certain records and report certain transactionsto government agencies.”(christopher,2014) As an illustration, if we talk aboutthe world power i.
e. United states of America, it has its own unique set ofregulation to encounter money loundering and broadly, “there are three types ofregulations that impact American anti-money laundering efforts: know yourcustomer, recordkeeping, and reporting requirements.”(Christopher,2014) Knowyour customer, also known as KYC is a tool that is employed as a first aid, whichmeans it is the very initial step that need to be followed, wherein the banksexecute an agenda which may involve some kind of setup to authenticate thedistinctiveness of each and every customer up to a reasonable and practicablelimit.
Identically, in case of record maintenancethere are separate benchmarks for non banks and banks, and it is that the nonbanks as an obligation maintains the records exceeding $3000, whereas, on theflipside, the banks have unavoidable boundation to maintain the recordssurpassing $10000. Considering all things, the fact is crystal clear that allthe regulations and rules formed for the wellbeing of society, actually areburdensome and and complicated in nature and it is genuinely possible foremployees at financial institutions to make errors, but consequently theseerrors occurred merely due to negligence might result into criminal penaltiesof upto one year in prison and $1000 in the form of fine. In a differentviewpoint, the fear of the legal mortification puts the financial institutionsunder the pressure of performing criminal detection as well as law enforcement. The whitecollar lawbreakers have an instinct of making unstoppable attempts to discovernew methods and shortcuts to hide out their funds as well as carrying out theillicit operations under the laundromat hood of their origin, withconsideration of squandering the loopholes in the system and not gettingentrapped by law. This is more or less because,”Transactions that takeplace across international borders are appealing because of the potential toconfuse and hide from the authorities of any one jurisdiction.
“(Christopher,2014)The upsurging technical advancements in the processing of payments, domestic aswell as global, have opened up new doors for the white collar culprits becausenew technologies are more likely to have loopholes and complexities. There aremultifarious and diversified redundancies existing on the internet today, justfor moving the money in any form throughout the globe just with a single click ofthe finger and undoubtedly these online facilities are exploited by the crookshiding somewhere in the nook and corners of the world.