Anti-money laundering as a counterparty quality control measure

Abstract

Money Laundering (ML) is one of the most debatable issues nowadays since many criminals are getting more devious and the methods used are more sophisticated. As a result, ML has become a serious phenomenon that affects economical, social, and political aspects globally. Before discussing the importance of the Anti-money Laundering Policy (AML), it is reasonable to define ML and be aware of its definition. ML is an illegal process of making a significant amount of money using businesses or different institutions coming from illegally obtained money from drug trafficking or other serious criminal activities. The main responsibility that AML has is investigating the possible reports of suspicious money transactions from banks and to determine any money laundering activities. In Kazakhstan, there are a considerable amount of actions are taken to lower its vulnerability to money laundering. According to the Kazakh Financial Monitoring Committee, Kazakhstan has been implementing Financial Action Task Force (FATF) standards to most of the transactions, making the improvement in combating financial pyramids, support of terrorists, and any illegal cash flow. Research problems are to identify Anti-money laundering policies in the global world and Kazakhstan in particular. By this, it is meant that examining the policies connected to AML, their functions and impact on companies and countries as well as the risk assessment procedures are revealed in the study