The IVTS is a way of transferring money or other assets by exchanging debts.
The principal statutes that are used to punish those who finance terrorism via the IVTS include the two U.
As stated above, the principal statutes used to punish those who finance terrorism via the IVTS include the two U.
Finally, in most IVTS transactions, the criminal proceeds deposited never leave the host nation.
Although the traditional money laundering statutes are generally applicable to the IVTS context, the problems identified above significantly limit their reach.
93) MSBs, including those that are part of the IVTS, must also comply with the Suspicious Activity Reporting ("SAR") Requirements.
107) Terrorist financing via IVTS transactions that cross the U.
110) However, the application of these statutes is limited to situations involving "hybrid hawala dealers," leaving many normal IVTS dealers untouched.
115) Prosecutors can use [section] 5332, the bulk cash smuggling statute, if more than $10,000 is smuggled to equalize an IVTS transaction.
In sum, the federal statutes do, despite some limitations, successfully criminalize illicit use of the IVTS.
THE FEDERAL STATUTORY SCHEME WILL NOT DETER THE ILLICIT USE OF THE IVTS
First, because of the strong and legitimate demand for IVTS services, policies that outlaw the IVTS or create cumbersome regulations will only push the informal networks further underground, creating a highly profitable black market for IVTS services.