As money and its equivalents flow around the world…where does it
come from and where is it going? There are so many transactions—some
stand alone, some simultaneous—happening at any one time, that it
is literally impossible to determine and verify original sources
and final destinations and to see whether such transactions conform
to appropriate foreign exchange laws, or whether the flow is from
illegal activity destined for illicit purposes.
In the U.S. and many other
countries, money coming from ill-gotten sources such as from illegal
drug sales and counterfeiting is unlawful, and there are requirements
to screen or vet individuals and screen for suspicious activity with
their money flows. (See the USA Patriot Act of 2001..here..)
IRI is well-versed in “know your
customer” (KYC) vetting techniques
and can help monitor for such problems.
Further, IRI technology specialists have devised systems allowing
for deployment of automated screening and detecting of suspicious
activity among thousands of transactional money flows through money
center banks and brokers. Closer scrutiny may yield confirmation
of suspicious behavior requiring law enforcement intervention…such
as that associated with international terrorist groups.