Money laundering online needs to be tackled, says ACCA

John Davies, head of technical services at the international accounting body ACCA, says governments around the world need to work together to come up with creative measures to reduce money laundering as technology is making it easier for persons to commit criminal acts.

Improvements in information technology and other technological developments have made money laundering a big issue globally, said Davies at a one-day anti money laundering seminar underway in Kingston.

The internet in particluar has made it a lot easier to do business, both legitimately and illegally, he said, and to make matters even more complex, the shift to online transactions has removed the confinement of jurisdiction.

“Information technology has certainly revolutionised the way we go about doing our business,” said Davies, adding that the internet has been around for only 30 years.

“This revolution has certainly given new ways to transfer money both legitimately and illegitimately,” he said. “Today we can transfer large amount of money from one country and back in the time that it would take to click a few buttons.”

Technology has made it easier to deregulate trade, and allows for easier movement of assets across borders. But while the core objective of deregulation of trade is to promote economic growth, it has also made it easier for criminals to launder money online, Davies said.

“While many of these developments are making the world a better place because it increases business opportunity for a lot of persons unfortunately these developments have not resulted in all positives and there is a downside – one of them being that it is a new opportunity for people to commit crime,” he said.

The seminar now underway at Knutsford Court Hotel is titled ‘Tackling Money Laundering: Enhancing the Compliance Regime’ is co-hosted by the Financial Services Commission and ACCA.

marcella.scarlett@gleanerjm.com