Do you know the institution that revealed and exposed international documents showing the assets of the world’s wealthiest and elite was nominated for the Nobel Peace Prize in 2021? Yes, we are talking about the ICIJ leaks, which exposed a couple of millions of documents. The leaks revealed that world leaders, elites, politicians, and business people were hiding their money in foreign countries to evade tax and legal scrutiny of their money and assets.
Exposing money and assets obtained through illegal sources such as corruption, bribery, embezzlement, and other financial crimes is tiring, and journalists’ fears are high. However, journalists and media outlets are still exposing their trillion-dollar stolen money for a better global economic system.
People around the world blame the laws that have been there to combat money laundering for helping criminals easily launder their money to other destinations. International watchdogs working against such crimes had to accept this and develop the most transparent solution for beneficial ownership and other financial crimes.
Dubai Leaks is the latest addition to hundreds of leaked documents. What challenges does it pose for financial institutions? International leaked document screening has become necessary for institutions to avoid providing a platform to people involved in any money laundering activities listed in the international leak databases.
International Leaks and their role in combating Money Laundering¶
The connection between money laundering and politicians, world leaders, and elite business people showed in the Panama Paper and Wiki leaks had significantly put public awareness, and it had also pressurized the international bodies and government institutes working against money laundering activities to stringent their AML compliance program.
How have these leaks helped make stringent laws and mitigate money laundering and other financial crimes? Since all these leaks went public, they have played a significant role in combating money laundering and making the AML regulations more stringent.
And you, what was the hitting point of all these leaks? They infuse pressure and public awareness at the commoner and governmental levels to act against these illegal practices. As a result, even the FATF had to reanalyze its rules and recommend that countries and institutions make laws to fight financial crime.
Five Key Advantages of International Database Monitoring for Businesses¶
Look closely at international leaks such as the Panama, Paradise, Pandora, and even the latest Dubai leaks. You will learn that all the above leak databases reveal the hidden information of individuals, heads of state, business people, and other criminals hiding their money in tax evasion haven destinations such as Swiss banks.
Online Leaked Documents Screening can benefit businesses, particularly financial institutions.
1. Enhanced Due Diligence (EDD):¶
Once you have access to all international leaks can help your business with risk assessment because the papers provide valuable information about high-risk individuals and entities. However, with proper screening solutions, the company can identify the customers and partners against leaked data to identify potential risks in the first place.
2 Regulatory Compliance:¶
The International regulatory bodies make it mandatory for financial institutions to comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. So, how can companies achieve this? Monitoring is the best way to help identify non-compliant entities and take necessary actions. The best part? Ongoing monitoring of leaked databases can save you from regulatory penalties by ensuring that no illicit activities are linked to the institution.
3. Protect against Reputational Damage¶
It does not matter whether your organization has linked with the sanctioned entity intentionally or unintentionally; it will harm your institution’s reputation. Therefore, an international Leaks Database monitoring system must be implemented within your screening process to avoid such clients and distance them to maintain public trust. It also shows the company’s commitment to transparency and ethical practices.
4. Fraud Detection and Prevention:¶
The long and detailed documents in the international leaks also highlight how the criminal made such transactions possible. Therefore, the organization can detect similar patterns during monitoring and screening to prevent potential fraud within their jurisdiction.
5. Strategic Decision Making:¶
When your compliance team has the leaked documents, they will see the tactics and methods used to perform such illegal activity. The compliance team can then make more informed decisions regarding your clients’ partnership, investment, and relationship history. Institutions utilizing leaked data effectively gain a competitive edge by mitigating risks others might overlook.
How can it Help a business monitor and Screen leaked databases?¶
The compliance challenges for businesses never end, and every two to three years, a new Pandora’s box opens in the realm of financial crime. This also exaggerates the need for preventive measures that could help businesses combat financial crimes with a particular focus on money laundering and terror financing.
So, to achieve this, you must have technologically advanced AI and ML-integrated screening and monitoring tools like the one offers to its customers. The tool has emerged as the best screening tool against international leaks.
