ME PoV Winter 2012 issue
When white is too white
Money laundering, financial sanctions and their impact on financial institutions
As money laundering schemes become more complex and sophisticated and the volume of such schemes continues to amplify, financial institutions are increasingly faced first, with the risks associated with money laundering, second, with the need to comply with anti-money laundering (AML) regulations imposed by regulatory bodies and governments across the globe and ultimately, with the risk of becoming a sanctioned entity as a result of suspected intentional participation, or unintentional facilitation of money laundering. The risks that financial institutions are facing, especially those operating in the Middle East and North Africa region (MENA), have intensified as financial sanctions are imposed on governments, financial institutions and individuals across the region, especially politically exposed persons (PEPs).