Internal Control on Prevention and Combating Money Laundering in the Context of Domestic and International Legal Provisions

Author:Gheorghe DRĂGAN



Keywords:money laundering; financial institutions; customer identification; approaching operations analysis from the risk angle; suspicious transactions

The prevention and combating money laundering is an objective involving the activity characteristic to the bodies confronted with such a risk. It is imposed both by the legal regulations and by the international bodies recommendations, and by the interest of the organization in protecting the reputation of the own activity integrity. \r\nPromoted at first especially in order to track down and confiscate the drug dealers’ illegal incomes, the prevention and control of money laundering phenomena was subject to several analyses performed by the Police and by the competent legal institutions, leaving the economic aspects of this phenomena largely neglected.\r\nNevertheless, in the context where the scope of money laundering is to recycle the money coming from an increased range of unlawful activities, this phenomena is very much related to the underground economy, this topic is becoming more and more important for several specialized economic projects due to its significance and due to its alarming economic and social effects engendered. Subsequently, money laundering as financial process must be a distinct topic of specialized economic literature. \r\nThe article presents the role of financial circuits’ surveillance, control regarding money laundering preventing and combating and the efficiency of internal and international settlements on the matter. There are analyzed the specific internal control ways regarding money laundering preventing and combating, taking into consideration that the specific internal control modality to fight money laundering and terrorist financing is based on three elements occurring in a tight relation:\r\na) customer identification;\r\nb) approaching operations analysis from the risk angle;\r\nc) identifying and reporting suspicious transactions. \r\n