How BANKS help CRIMINALS launder BILLIONS (Mini Documentary)

Описание: Banks play a crucial role in helping criminals hide their money. For years, scammers, ponzi schemes, and drug cartels have been using international banks with questionable business practices to launder their money.

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*The statement mentioned in the video:
https://www.fincen.gov/news/news-rele...
**The BuzzFeedNews article mentioned:
https://www.buzzfeednews.com/article/...

THE SCRIPT:
Banks play a crucial role in helping criminals hide their money. For years, scammers, ponzi schemes, and drug cartels have been using international banks with questionable business practices to launder their money.

These shady individuals typically look for banks that have mismanaged anti-fraud and anti-money laundering units. Most banks have these programs, especially if they want to do business in countries such as the United States, Canada, the United Kingdom, and Germany. In fact, a G7 initiative called the Financial Action Task Force is responsible for many of the regulations that banks have to follow in order to combat money laundering. Created in 1989, this task force laid out numerous regulations that member states had to implement, and banks had to follow.

However, as with many international agreements, what looks good on paper, sometimes doesn’t come out well in reality.

While member states are required to implement the regulations, there is wiggle room depending on a country’s situation and constitutional framework. Many of the policies also require the banks themselves to monitor their own transactions. Unethical banks can often just look the other way, even when they know transactions are coming from illegal sources.

And then there’s the problem of enforcement, which is challenging when banks are multinational corporations. If it’s found that a bank is violating one country’s laws, that country will have to charge the organization with a crime, or issue the bank a fine. Often, country’s want to avoid criminal prosecution because of the challenging diplomatic lines between nations. The result of this is that many banks view fines as a slap on the wrist, and they really aren’t incentivized to actually make any changes.

From the bank’s perspective, they can bring more money in by serving account holders indiscriminately. They can avoid the heavy cost of analyzing every single transaction and having money laundering units that are actually equipped to do their jobs effectively. Then, if it happens to be discovered that one of their account holders is acting illegally, they can just say “oops, we didn’t know” and pay the fine, which is usually small in comparison to the profit that servicing those customers brings in.

All in all, combating money laundering on an international scale is a challenging job. Banks aren’t incentivized to act ethically, and governments are sort of powerless to stop them.

One fantastic example of this problem can be found when examining multinational bank HSBC.

SOURCES:
https://docs.google.com/document/d/1H...

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