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One of the components of the practice of regulatory compliance is variety.  Variety in the procedures and the policies that are required by law of companies and firms.  Companies involved in the financial sector must have these practices set in place in order to meet the regulatory and the legislative laws that have been designed to deter the misuse of the financial systems of the country.

These involve mainly cases of terrorist financing and money laundering scams.  One of the most detrimental aspects of these crimes is the damage done to an institution when they are connected in any way to such crimes, be it knowingly or un-knowingly.  Not only the reputation is at stake, but legal action will be taken.  Especially during these times, if one’s business is connect to a terrorist act, they will lose credibility and eventually will need to close their doors.  For even if one is innocent, just having their names attached to such crimes will have serious consequences in the public eye.

Terrorist acts evoke images of carnage and death, and this will damage an institution tremendously.  These companies require assistance in ensuring that they are provided with the knowledge necessary to properly identity those that may be terrorists and to then exclude them from their list of clients.  Money laundering is the key for those wishing to fund criminal acts.

Money laundering is a crime that sits in the middle of a multi-faceted crime, for it is either the product or the means for and of criminal acts.  Either someone is seeking to distance themselves from a crime already committed such as embezzlement or drug trafficking, or they are seeking to distance themselves from a crime that they are about to commit, such as funding terrorists.  When institutions follow regulatory compliance, to such procedures as the suspicious activity reports and “know your customer”, they are ensuring that not only will they themselves remain protected, but that the people of world will protected as well.

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