RISK OF MONEY LAUNDERING WITHIN THE INSURANCE SECTOR

Valentin Scarlat

No 3, Post-Crisis Trends - Working papers from Ecological University of Bucharest, Department of Economics

Abstract: Using financial-banking institutions in money laundering contribute to the undermining of financial institutions, in part and that kind proximal, of the entire financial system. At the same time, the increasing integration of global financial systems and removing the barriers placed in the front of free capitals movement, facilitated ease with which black money can be washed and complicates money tracking circuit (be materialized in their, or as scriptural money). To earn money by fraud has, invariably, a transient nature. They ruin the reputation and it discourages honest investor. Financial institutions involved in money laundering scandal will risk prosecution in court and loss of goodwill on the market. If not controlled, process of money laundering may undermine efforts for existence of a free and competitive market and may affect the development of a healthy economy (Guidelines for suspicious transactions, in www.onpcsb.ro). Thus, the insurance market as a whole plays a special role in the national system of the money laundering preventing and combating and the increase in the volume of transactions grows the risk degree of money laundering and combating terrorism.

Keywords: preventing and combating money laundering; insurance market; entities; knows your customer; suspicious transactions (search for similar items in EconPapers)
JEL-codes: G22 G28 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2014-01
New Economics Papers: this item is included in nep-ias
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Published in Economics of Sustainable Development - Post-Crisis Trends, ISBN: 978-606-652-060-7, March 2014, pages 24-33

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Related works:
Working Paper: Risk of Money Laundering Within the Insurance Sector (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eub:wp2014:2014-03

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