- Opening bank accounts
- AML consulting
- Business support
- Сompanies for sale
The parallel between corruption, bribery, and money laundering cannot be denied. Overall, corruption crimes contribute to increasing the illegal money circulation as well as creates the perfect conditions for money laundering. The research conducted by IMF stated that countries with poor control over corruption are likely to how low Anti-Money Laundering and Combating the Financing of Terrorism standards (AML / CFT).
The international “golden” standards of AML / CFT rules are set by FATF (2012b): they are considered a respected example by governments, financial institutions, and companies worldwide. The global AML / CFT system can be characterized as a “strict law” model. It aims at combatting money laundering, financial support of terrorism, bribery, and proliferation.
All kinds of economies – developed and developing – should not underestimate the fight against corruption and money laundering. It has been proven that regulatory and legal AML / CFT policies exercised on a regular basis are able of limiting the numbers of financial crimes such as money laundering and acts of terrorism financing.
Corruption is one of the main sources of illegal income. Both in the private and public sectors, these criminal financial gains come from bribery, fraud, abuse of power, and other unlawful ways. To keep the corruption profits undetected and maneuverable, they are laundered often. Corrupt representatives of authorities launder the money to conceal their identities and put the illegal incomes into the financial system. Equally, the bribers undergo the same process with the aim of hiding the link between them and the paid officials.
Usually, companies need to obtain licenses, registrations, permits, and other approvals once they enter the business sector in a foreign location. Some types of business activities explicitly require companies to adapt to the country’s laws; otherwise, those activities could not be conducted in the new location. This adjustment process is an investment itself.
Since it is the decisions of authorities’ representatives that allow the business to set up in a new location successfully, some company executives of large firms with large financial resources tend to influence the officials with financial offers. Surely, in some cases, these incentives can be considered investments into the local infrastructure of the foreign country. Yet the secret money-giving is deemed bribery as its aim is to mainly influence public decisions.
The failure to comply with AML / CFT rules can ruin a company’s reputation. Make sure your AML compliance corresponds to the global standards with the help of experts from COREDO.