Are laws designed to prevent money laundering, terrorism-finance and sanctions violations unintentionally hurting people in poor countries? That’s the question a recent CGD Report seeks to address. Anti-money laundering/combating the finance of terrorism laws (AML/CFT) are grounded in reasonable national security concerns – to prevent the cross-border flow of funds to terror or criminal groups. Banks, if unable to identify the end-customer of an international transaction, could find themselves (unwittingly or not) in breach of these laws, and facing stiff penalties.
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