Quote from: avikz on August 20, 2018, 09:32:22 AM

Quote from: Theb on August 17, 2018, 01:32:12 AM

Quote from the link provided :

Quote

An alert and active checking on cash transactions amounting to ten thousand euros has been implemented. This limit has been brought down from fifteen thousand euros. Any transactions exceeding the aforementioned threshold will be considered as obliged entities. This comes under the extended AML regulations that now place wider range of restrictions on monetary exchanges that are over a particular amount

The 10,000 is still a big amount and people could still fly under the radar with their cash transactions if they did small tranches of their real transaction multiple times below 10,000. What they will mostly do is instead of making a whole transaction worth 10,000 they will just do two 5,000 transactions in order to remain undetected. What if they just monitor or provide a cap on how many transactions you can do everyday it will be more effective compared to only doing the procedure on transactions above 10k.

That's correct! There will be loopholes in the system and criminals will be using those loopholes to stay undetected! They will just break down the total amount into smaller transactions and instead of doing two smaller transactions in one day, they will just increase the span and probably make two transactions in a week, so providing a cap on the number of transactions will not help either! Definitely it can reduce the numbers of illegal payments, but still the system is not full proof.

That's where AI can help us to detect illegal payments. AI can help to identify a pattern in criminal proceedings and to identify multiple payments from a single source to multiple destinations while the destination accounts are being operated from a single IP or from similar locations. That's far more complicated in nature. But putting ceiling in the amount or the number of transactions is an ineffective method as compared to today's technological prowess.

I think loopholes are everywhere. It is just the issue of implementation. If they want to do it they should be serious. Otherwise all effect will come on common man.

daviddaniels

Posts

Merits