CSE1006 Study Guide - Black Market, Know Your Customer, Efficient-Market Hypothesis

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The goal of aml policy is to prevent large flows of money from crossing borders or moving between the underground and legitimate economies without being detected. Aml policy is intended to make certain kinds of crime more difficult, especially organized crime. Organized crime groups often find themselves getting a lot of money in one place. They want to ship it to somewhere else but not explaining where that money came from. So, it"s easier if they are able to make money cross borders. In previous lecture we have already talked about how to prevent money from crossing the borders. Moving from underground to legitimate economy without detection. Organized crime groups can also find themselves making a lot of money in underground economy. So, they would like to get it into the legitimate economy to be able to spend it. One of the rules to prevent money laundering is "know your customer".

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