An Exploration of Mechanisms and Countermeasures Shell companies, under a façade of legality, have the potential to act as facilitators in the money laundering process, obscuring asset ownership and complicating the tracing of illicit funds. This obfuscation raises substantial concerns…
A shell company is a business entity without significant assets or ongoing business activities. Shell companies can be set up for legitimate purposes, but they can also be used for illegitimate activities, such as money laundering, tax evasion, or fraud.…
Introduction Have you ever heard of Global Systemically Important Banks or G-SIBs? It may sound like a complex term, but in simple words, these are banks that play a crucial role in the global financial system. In this article, we’ll…
An exogenous reserve, in the context of banking, payments, and cryptocurrency, is a reserve or pool of funds that originates from an external source or authority, rather than being internally generated by the financial system or network itself. These reserves…
An endogenous reserve, in the context of banking, payments, and cryptocurrency, is a reserve or pool of funds that is generated from within a financial system or network itself, rather than being supplied or controlled by an external entity like…
“Pay as you go,” often abbreviated as “PAYG,” is a financial model or payment system where individuals or organizations are charged for goods or services based on their actual usage or consumption. This means that rather than paying a fixed…
Commingled Funds:Commingled funds, also known as pooled funds, refer to the aggregation of funds from multiple clients or sources into a single account. In the context of MSBs, these funds can be from various customers who are transferring money or…
The Consequences of Unlicensed Money Transmission: A Deep Dive into US Code 1960 In the age of digital transactions and online businesses, the importance of adhering to financial regulations cannot be overstated. One such regulation, the US Code § 1960,…
An “umbrella account” in the realm of money services, banking, cross-border payments, trade finance, and payments refers to a type of account that consolidates multiple sub-accounts under one main account. This structure allows for easier management and oversight of various…
A cash pool is a financial management system used by companies and financial institutions to optimize the balances of their internal bank accounts. It is a technique employed to manage and optimize the liquidity of a group of companies, usually…