Author:
B. H. M. Custers
Affiliation:
Tilburg Institute for Law, Technology and Society, Tilburg University; Capgemini Consulting Services, Capgemini Netherlands BV, Netherlands
Keyword(s):
Risk profiling, identification, money laundering, terrorism, terrorism funding, information strategy, KYC, Patriot Act.
Related
Ontology
Subjects/Areas/Topics:
Enterprise Information Systems
;
Formal Methods
;
Information Systems Analysis and Specification
;
Methodologies and Technologies
;
Operational Research
;
Security
;
Simulation and Modeling
Abstract:
In order to track money laundering and terrorist funding, banks have to create risk profiles of their clients. Banks that want to do business in the United States have to implement a worldwide Know Your Customer (KYC) program, partially based on the Patriot Act. Implementing a KYC policy, however, raises several problems and seems to be neither effective nor efficient in tracking money laundering and terrorist funding. Given problems regarding the identification of individuals, it is not too difficult for criminals and terrorists to avoid being detected by certain types of screening. In this contribution, the way risk profiling strategies are implemented in practice are discussed, including the problems this may raise.