Terrorism and Fraud are spreading all over the globe and they are a serious threat to the entire world. There is a significant change in the thinking of the people. They are ready to do anything to satisfy their aspirations and are least bothered about the consequences. The world has witnessed many terrorist activities in the recent past. Such activities require huge amount of money and manpower. The sponsors of terrorism, who are the inhabitants of one country, transfer the money from their account to the accounts of others of another country, who have been selected to execute the devastating attacks. This money is used to purchase the necessary material to carry out terrorist activities. Financial Institutions face domestic frauds also. People make use of the inadequacies of the system and make unlawful gains. The aforesaid are the serious problems and require instant solution.
What are the deficiencies that allow the criminals to take advantage over the system? A careful research in the area of AML is needed to answer the above question. As per the knowledge gained from previous experiences it was understood that Lack of Manpower, Inadequacies in Technological Capabilities, insufficient infrastructure, interference of outsiders, lack of knowledge of regulatory norms etc are some of the major causes which considered as responsible factors for the failure of the financial institutions to control the fraudulent tasks.
Financial Institutions must take action to solve the aforesaid problems. They operate according to the regulations of authorities. Heavy fines have been levied on the financial institutions by the regulators for not identifying such frauds. The act of penalization creates a huge gap in the financial table of the institutions. They lose reputation and credibility in a single stroke. The credibility earned by the Financial Institutions from a long time for their committed service to the customers is lost in a single act of mismanagement.
All the points mentioned above explain the necessity of an efficient AML platform. The world of technology is highly dynamic so it changes every day. Latest technologies are adopted by the financial institutions to prevent the above discussed crimes. People with ill intentions try to identify the deficiencies of the system and once they spot the loophole, they will discover a new technology to get advantage over that. The criminals adapt to the changing technological wave and continue to pose challenge to the system.
Meticulous planning, cutting edge technologies and an expert team of AML professionals are needed to safeguard the interest of the depositors not only to prevent terrorist activities but also to generate trust among the people besides ensuring peace and tranquillity in the world.