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BANKING

The case Mossack Fonseca showed that there are no sys-
tems that are immune to this parasite that penetrates in
the tissue of the financial system and undermines it from
the inside, turning the financial institutions into instru-
ments for money laundering or for using money for il-
legal activities. A jurisdiction or a bank can implement
all possible protections, procedures and technologies,
however still there is no 100% guarantee that it won’t be
abused internally or externally in terms of money laun-
dering and terrorism financing

litically exposed persons); and by what means the banks and the oth-
7) policy in regard to the keeping of er entities mentioned in the law managed
to establish appropriate policies and pro-
records both about the client, as well as cedures that address the basic elements of
about each individual transaction. the system indicated above.

As it was previously indicated, the is- The case Mossack Fonseca showed
sue on prevention of money laundering that there are no systems that are im-
and terrorism financing is significantly mune to this parasite that penetrates in
regulated both by the Basel Committee on the tissue of the financial system and un-
Banking Supervision (BCSC), as well as by dermines it from the inside, turning the
FATAF, in terms of recommendations, as financial institutions into instruments
well as in terms of specific directions that for money laundering or for using money
refer to risk management, analysis of cli- for illegal activities. A jurisdiction or a
ents, shell banks etc. The importance of bank can implement all possible protec-
this matter is also perceived in the fact tions, procedures and technologies, how-
that the requirements for prevention of ever still there is no 100% guarantee that
money laundering and terrorism financ- it won’t be abused internally or exter-
ing are the 29th principle within the Basel nally in terms of money laundering and
principles on effective banking supervi- terrorism financing. A key moment for
sion. the level of how much an institution is
entrusted to conduct activities related to
All these international standards for prevention of money laundering and ter-
prevention of money laundering and ter- rorism financing are the capacity and the
rorism financing are transposed in the integrity of the employees of this institu-
regulatory framework of the Republic of tion and how much they are prone to use
Macedonia, with built capacities for their their position and to enable someone to
implementation in the regulatory institu- abuse the institution as an instrument
tions in accordance with the competen- for money laundering and for conducting
cies provided within the framework. Still, other illegal activities. Therefore, what is
the establishment of an effective money of vital importance for every institution,
laundering system does not depend only before it knows its clients, is to know its
on the capacity of the institutions that employees.
control the implementation of the law.
This mostly depends on how effectively

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