Exam CAMS Topic 3 Question 443 Discussion

Alternative remittance, also known as underground banking or informal value transfer systems, is a method of transferring money or value without using formal financial institutions or channels. It is often used by migrant workers, refugees, or people who lack access to formal banking services. However, it can also be exploited by criminals and terrorists to move funds across borders without detection or regulation. The Wolfsberg Group, a group of leading international banks that promotes best practices in anti-money laundering and counter-terrorist financing, cited alternative remittance as one of the sectors and activities that are widely used for the financing of terrorism in its Statement on the Suppression of the Financing of Terrorism. The Wolfsberg Group recommended that financial institutions apply enhanced and appropriate due diligence to customers engaged in alternative remittance and report any suspicious transactions to the relevant authorities.
Reference:
Wolfsberg Group (2002). Wolfsberg Statement on Anti-Terrorism Financing1 Pieth, M. (ed.) (2002). Financing Terrorism. Springer, Dordrecht2 ACAMS (2020). CAMS Certification Package (6th Edition)3