ution of non-financial goods and services are dominated by small and independent firms or self employed individuals, the more difficult the job of separating legal from illegal transactions.6.The greater the facility for using checks, credit cards, and other non-cash instruments for effecting illegal financial transactions, the more difficult it is in the detection of money laundering. 7.The greater the degree of financial deregulation of legitimate transactions, the more difficult it will be tracing and neutralizing criminal money flows.8.The lower the ration of illegally to legally earned income entering and given economy from outside, the harder the job of separating from legal money.9.The greater the progress towards the financial services supermarket, the greater the degree to which all manner of financial services can be met with in on integrated multidivisional institution, the less the functional and institutional separation of financial activities, the more difficult the job of detecting money laundering. 10.The worse becomes the current contradiction between global operation and national regulation of financial markets, the more difficult the detection of money laundering.HOW TO COMBAT ITThe United States has set into place many legislative and regulatory standards to deter money laundering according to the Comptroller of the Currency Administrator of National Banks. Some of these laws are:The Bank Secrecy Act of 1970 was designed to:oDeter laundering and the use of secret foreign bank accounts.oCreate an investigative "paper trail" for large currency transactions by establishing regulatory reporting standards and requirements (e.g. the Currency Transaction Report requirement).oImpose civil and criminal penalties for noncompliance with its reporting requirements.The Money Laundering Control Act of 1986oPart of the Anti-Drug Abuse Act of 1986, made money laundering a federal crime. It created three criminal offenses for money l...
