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Money laundering in cyberspace (English)

This Note is intended as a summary introduction to a few of the means, mechanisms and methods used by non-state actors to generate, and transfer wealth over the Internet. It identifies several vehicles that the Bank could use to enhance its present services. Trends in cyber crime reveal significant growth. Between 1999-2003 in the United States, attacks on computer servers increased by over 530 percent to 137,000 incidents. This is partly attributable to vulnerabilities in software code, which have grown from a total of 500 in 1995 to over 9000 in 2002 (CERT). Developing countries are also being targeted, even as leapfrog technology is implemented. Brazil has seen hacker attacks increase by at least 100 percent yearly since 2005.These growing numbers bear particular importance on the financial sector. The Internet's primary attributes are speed and convenience, which in turn cuts transaction costs and float time. These attributes are doubly attractive to illegal oriented entities, because it decreases exposure and risk. The paper provides an overview of electronic money laundering and its estimated annual volume, through the available means of electronic money laundering. It then reviews the United States initiatives to combat money laundering, and, the proposed action items to enhance anti-E-laundering efforts in the Bank, and terrorist financing, the harmonization and coordination of Regulation, and the Global Payments Systems Mapping Project.




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Kellermann, Tom

Money laundering in cyberspace (English). Washington, D.C. : World Bank Group.