The Most Important Practical Obstacles that Hinder the Fight against Money Laundering

Authors

Aqel Maqableh, Yarmouk University - JordanFollow

DOI

https://doi.org/10.35192/jjoas-h.v23i1.5

Abstract

This study examines the major obstacles to combating money laundering at both national and international levels. A significant obstacle is bank secrecy, which prevents banks from disclosing client information, including account numbers and transaction details, to protect client interests. Criminal investigators face challenges in gathering evidence due to the transnational nature of money laundering and the sophisticated methods used by perpetrators. Banks may not fulfill their duty to monitor transactions despite their critical role in combating money laundering, as deposits and withdrawals primarily occur through them. Laws require banks to report transactions exceeding certain amounts, yet compliance may be lacking. Additionally, the lack of experience among financial sector employees hinders effective action against money laundering. Training programs are necessary to equip these employees with knowledge of methods used to conceal illicit funds. Weak international cooperation further limits the effectiveness of efforts to combat money laundering, stemming from conflicts of interest between states, non-signature of relevant treaties, and political instability in some regions that drives fund transfers to safer jurisdictions. Some countries prioritize bank secrecy for their own interests, while poorer nations may facilitate the remittance of funds to address domestic issues like unemployment and poverty, especially as foreign aid decreases. Insufficient participation in international and national anti-money laundering efforts, along with sporadic data sharing among surveillance authorities, exacerbates the problem. This study recommends enhancing international cooperation on money laundering, urging wealthier nations to assist poorer countries, reconsidering unnecessary adherence to bank secrecy, and providing advanced training programs for financial sector employees to better understand the tactics used by holders of illicit funds

Recommended Citation

Maqableh, Aqel (2020) "The Most Important Practical Obstacles that Hinder the Fight against Money Laundering," Jordan Journal of Applied Science-Humanities Series: Vol. 23: Iss. 1, Article 5.
DOI: https://doi.org/10.35192/jjoas-h.v23i1.5
Available at: https://digitalcommons.aaru.edu.jo/jjoas-h/vol23/iss1/5