Bank Obligations Regarding Fight Against Money Laundring
Bank Obligations Regarding Fight Against Money Laundring

Summary/Abstract: The development of the modern society, accompanied by the changes, which the industrial revolution with the new technologies, scientific discoveries and technical innovations brought with itself, the changes which globalization brings with it, has inevitably influenced on the shaping of a new banking organization which had to adjust to the modern social changes, not only in an organizational and functional sense, but in ethical as well. Expansion of international trade relations and the emergence of multinational (international) companies, which have expanded their business activities outside national economy borders, occurred in the second half of the 20th century. Forming such economic subjects which were, for the purpose of maximizing profits, oriented towards global international markets, since national markets became too small, had far-reaching consequences on the international economic flows, and thus onto the national banking systems. However, the expansion of international business relations and multinational companies brought with it the risk of conducting criminal activities which make exceptionally large sums of money, and which are illegitimately acquired possessions. Money laundering is carried out through banks, whereby legalizing illegitimately acquired money and in that way it is included into the legal financial flows. The fight against money laundering has always exclusively been in the jurisdiction of law enforcement. However, bank’s business activities practice in the XXI century has shown that the bank is the major place where one gains information on money laundering as a criminal activity category. Banks should develop principles for meeting clients, and according to that they should develop and form their own special registration standards and admission of client accounts, taking into consideration the risky profile of each client.

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