Answer to Question #262852 in Computer Networks for Eulanda

Question

The system has been running

for five years now. Yesterday, the government banking watchdog approached you to ask some

questions about two suspicious transactions on your system that look like criminal money

laundering (where criminals put money through banks so that they look like legitimate

transactions and then transfer the funds to other accounts, sometimes internationally). You have

been told that each unreported transaction (of more than $5,000 deposit or transfer) will result in

a fine of $15,000. You have now checked your system and in fact you have identified more than

50,000 similar potentially illegal transactions. Checking the system software, you can see that a

line of code where the check is made and a message sent to the banks fraud squad has been

commented out.

Explain the consequences of each of the possible actions in this

scenario.

Answer 1

The money laundering consequences can cause damages to the financial sector institutions which are very critical for the growth of an economy as it promotes crime and corruption that can reduce the economic growth and efficiency in the sector of the economy. Thus the two major consequences for which the money laundering is taking in the scenario is for: drug trafficking and terrorist organizations.