Money Landry - Research Proposal Example

The only paper trials available to the financial institution used to be the records of bank accounts if which the deposition was made. The banks did not feel the need to report currency transactions. Bank Secrecy Act (BSA) was enacted by the Congress in 1970 which was followed by (the introduction of the Currency Transaction Report (CTR, Form 4789), Report of International Transportation of Currency or Monetary Instruments (CMIR, Form 4790) and Report of Foreign Bank and Financial Accounts (FBAR, Form TD F 90-22.1)) (IRS.gov, 2010).

Enactment of BSA proved a big step in the way of hindering the money laundering in that it developed the paper trial which was required by the law enforcement in order to trace the dollars that went untaxed as well as others that were laundered by the financial institutions. IRS has evaluated the performance of BSA and has reached the conclusion that BSA has done a lot to dismantle the prime money and drug laundering organizations in the country through prudent investigation and forfeiture of their assets.

Besides, three directives have been issued by the European Union (EU) that are directed at eliminating the use of financial system for money laundering (Hopton, 2009, p. 9). Regulations and laws in the whole EU against money laundering are influenced by the very directives. In the sub-region of West Africa, participants of a seven page communique which was issued at a course’s termination noticed a remarkable increase in the dangers associated with financial crimes including money laundering.

“With globalization, participants added, crime transcends national boundaries so easily that the fight against the scourge calls for absolute collaboration at the. Money Landry: Research Proposal Money laundering is not just the outcome of the legal framework of a country, but is a result of the socioeconomic conditions as well as culture prevailing in it. This research tends to identify the specific factors that are responsible for the growth and strengthening up of the money laundering in a country.

Moreover, this research aims at determining the most cost effective and useful way of controlling money laundering in a country. The research will compare the differences in the causal and restraining factors determined between a developed and a developing country to analyze the influence of economic strength on money laundering. Research objectives: This research has three primary objectives: 1. To study the effects of money laundering on a nation’s economy. 2. To study the factors promoting the growth of money laundering in a nation. 3. To identify the most useful and cost effective way of restraining the growth of money laundering Literature Review: “Money laundering has traditionally been considered to be a process by which criminals attempt to hide the origins and ownership of the proceeds of their criminal activities [so that they] retain control over the proceeds”.

Banks are the fundamental facilitators of money laundering. The factor analysis will be conducted to identify common variables whose relation with money laundering will be evaluated through regression analysis. The dependent variable will be money laundering and there will be a multitude of independent variables including law, bank policy, and governmental taxes.