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What Is The Interaction Between Solid And Lenient Law

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Interactions between Solid and Lenient Laws There is a relationship between lenient and solid standards, and they are built into the flow with the transnational legal standards. However, there are multiple levels of these standards. First, there is the interaction between the United Nations and the FARF recommendations; next is the main role played on a national level to enforce laws firmly. The first international treaty to be released as the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988. It was created to formally take measures against drug trafficking including provisions against money laundering. The 1988 Convention came to power in November of 1990. Bureau of Justice Statistics.…show more content…
banks in their dealings with foreign correspondent banks. The Act also strengthened laws responding to the problem of terrorist financing and its connection with money laundering and reinforced asset forfeiture laws in matters involving funding of terrorist activities.
Public and Private sectors
The communication between private and public sector helped to create some of the laws against money laundering, directed at the financial sector with the combination of national strategies from Switzerland, the United Kingdom, and the United States. One of the key issues to point out between sectors is that it is often assumed that the monitoring roles developed in the private sector might never be successfully accomplished directly by the states alone, and with so much assumption it leaves room for doubts. Banks careless associations with criminals have often undermined the public’s confidence in bank's stability of the entire financial system.
Although new laws were enforced, the creation of the patchwork only created an increase of competition and arbitrage between both sectors; as a result, this permits the money launderer to profit from these inconsistencies between the various financial centers. The miscommunication between public and private sectors during the 1970’s did not function well because every state wanted control over the policies.
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