Electronic Trade and Money Laundering :: Economics

Electronic Trade and Money Launderingelectronic TRADE FEATURES AND EXPECTATIONSElectronic trade is a reality that reveals and promises both quick andexponential growth. Its constant progress, as well as increasing introduction in electronic payments, has for long been the subject ofwide attention, especially for regulative bodies, in respect of theopportunities for money laundering that these sassy instruments canprovide, and of the responses that regulatory systems can and mustdevelop in their regard. Detailed reports on the wholesaleimplementation of the new payment systems are avail able from the Bankfor transnational Settlements. These reports show that, with greateror lesser speed, much(prenominal) systems are fetching on a global dimension.Innovation continues incessantly and rumours spread all day aboutthe development of newer instruments, residing even in the mostfamiliar tools such as mobile telephones.Aside from unpredictable shocking events, which could stop thea dvance and availability of technological resources, electronic tradeis eventually liable(predicate) to become the norm, at least in the most advancedcountries. It get out spread over all markets, just as other instruments cars, abode appliances, telephones have done before, becauseit is equally effective, cheap, and within everybodys reach. The mainfactors still inhibiting general diffusion are security risks such as problems of transparency and ratio of information a needfor defence from intrusive technologies a think for guarantees againstthreats deriving from fraud, embezzlement, counterfeiting, falseidentities and privacy.These risks are likely to be scaled down, as the diffusion of the newinstruments enlarges the market in such a counsel as to make lawfulbehaviour thoroughly prevail which in turn will make the marketitself more reliable. Under such conditions, obstacles and constraintsthat interfere with market development will not be able to resist itsinner pressure, or will turn into discriminations and losses incommercial competition, which is positively unwelcome for theeconomies involved. It is certainly not by chance that in this matterthe governments of many countries have so far shown a wait and seeattitude.NEW INSTRUMENTS AND MONEY LAUNDERING RISKSIn its broadest sense, money laundering includes any(prenominal) activity isapt to disguise the source of illicitly earned wealth, dissipation thetracks that can lead back to it. To this goal, whatever means theeconomic and pecuniary system can supply is beneficial.Experience has shown that money launderers prefer environments feature with poor control, high risks that justify high losses andprofits, multiplier effects, midget transparency and thus asymmetricinformation, ease of manipulation, chance of connivance or illicitprofit sharing. In this perspective, the internet is an idealenvironment. The access to new technologies is more effective, and at