Nigel's Eyes

20220620 Is law enforcement outgunned regarding money laundering, etc.?

I often read that law enforcement is outgunned when it comes to money laundering, etc. I'm not sure that is completely true.

I think the problem is that there is a fundamentally misplaced focus of efforts.

Identifying smuggled cash and other illegal products is technology, people and dogs intensive. It is possible to do but only at the expense of hugely intrusive inspections of people, luggage, shipments and packages. If there was profit in it, governments would fund it, even at the risk of public dissatisfaction.

Regulators who can set and keep their penalties have no problem devoting resources not to the prevention of illegal transactions but to compliance which is an essentially clerical function.

Identifying electronic transactions should not be a matter of compliance: failure to identify and report should be prosecuted. The fine should equate to the amount involved, etc. That should fund the FIU and related investigations.

Companies and directors should be liable. That would focus minds.