News

The Cornerstone Report

Safeguarding America Through Financial Investigations

June 2009 - Table of Contents

The X Factor: The Attractiveness of Money Transfer Businesses

Using money transfer businesses (regulated or unregulated) enables a client to send money to the far end of the world, where it arrives within minutes, without going through elaborative administrative requirements. These transfers are based on mutual trust between the sender and the receiver. An important element in the attractiveness of the money transfer businesses is the fact that the transfers reach the most remote places, where no financial structure exists.

One important legitimate function of money transfer businesses is that immigrants worldwide rely on them for the financial support of family abroad. Unfortunately, the attractiveness of the money transfer businesses has also been discovered by criminals. They benefit from the speed in transferring money and the limited traceability of the originator and the receiver of the transfer.