Strategic Management to Prevent Money Laundering: The Role of Effective Communication

Abstract

Financial institutions take precautions to avoid money-laundering and financial crimes. Public became aware of the sanctions when HSBC has agreed to pay $1.92 billion dollars to state authorities in 2012 for transfering dollars illegally into US. Banks apply “Know Your Customer” procedures to avoid such risks. In relation with sanctions, SWIFT system will be defined, with application namely ‘KYC Registry’ which gives information about the customers in international trade, through cross borders. The reasons why this applicatiıon must be used, how risk will be mitigated, by sharing information with maximum transparency and SWIFT’s new KYC application will be defined.