Blog Post

12 Apr
By: Tanika Jones 0

MONEY TRANSFER AGENCIES TYPOLOGY 2016-2018

Globalization of financial services and the financial sector facilitated by rapidly advancing technology has resulted in the movement of funds across the world via Money Transfer Agencies (MTAs) to be quite seamless. Money Transfer Agencies, in this context, refer to entities which carry on the business of transferring sums of money electronically between persons locally and internationally. The speed with which money can be transferred, at relatively low cost, along with the MTAs’ accessibility and worldwide reach have made them a viable channel through which funds can be laundered. Our observation of a sample of MTA data over the period 2016-2018 provides indications that MTAs are being used to create layers of transactions, facilitating the distancing of illicit funds from its source through a series of complex transfers. Sending funds through MTAs, while acting in one’s own capacity or as a proxy, affords a criminal an opportunity to place illegitimately acquired money into the financial system; sometimes by direct credit of MTA transactions to accounts of the final recipient.

MTA Typology 2016 – 2018

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