Australia’s Huge Financial Crime Problem

In this world full of terrorism and criminals, financial institutions have long struggled against pervasive money laundering and other financial crime. Even the banks we trust and depend on face significant security issues (one only has to look at the recent Wells Fargo scandal to see how far fraud and corruption can extend).

In Australia, a security issue has been discovered in one of the biggest financial institutions in Australia—the Commonwealth Bank of Australia (CBA). The bank has breached anti-money laundering regulations and is alleged to be aiding criminals and terror financiers in laundering millions of dollars through their ATMs. After CBA's deficiency, Australian regulators are changing their approach to the anti-money laundering compliance.

CBA Vulnerability and Exploitation

The AUSTRAC was forced to take unparalleled civil action against the Commonwealth Bank of Australia for large-scale anti-money laundering breaches. Through the CBA's Intelligent Deposit Machine (IDM) network, money launderers, such as drug cartels and terrorist financiers, were successfully moving cash.

Allegedly, AUD 9.8 billion was moved without any smart controls. A major system fault resulted in cartels taking advantage of IDMs that allowed customers to deposit cash without identity verification and without limits on cash deposits.

When criminal syndicates discovered the loophole, they cruelly exploited it. The increase of cash deposited in the IDM should have been a clear red flag. In June 2012, a total of AUD 89 million cash was deposited. After two years, AUD 3.35 billion cash was deposited. Although bank staff reported the suspicious activity internally, nothing was done.

Blockchain, the Fix for Australia’s Monetary Crimes

Banks are prime targets for hackers and criminals, but they’re supposed to be secure against criminals. However, a lack of transparency and accountability results in wide-scale fraud as criminals exploit the system.

The future of financial security does not lie with the banks - it lies with an entirely different platform: the blockchain.
Blockchain technology uses smart contracts that will extremely revamp the method in which we lend, send and spend. The blockchain technology could deliver a new found trust to the country while establishing a larger sense of security and reliability.

Fundamentally New Approach

One example of platforms like this currently in development is Etherecash. Etherecash provides secure and transparent transactions using the blockchain, providing more reliability and transparency to their clients.

Etherecash was built on the ethereum platform that uses smart contracts to facilitate intricate transactions. The transactions are then recorded on the ethereum blockchain, a decentralized public ledger that is tamper proof and irreversible. Etherecash focuses on delivering a complete ecosystem that provides fast and secure local and international payments, improving the spending capacity of cryptocurrencies in our daily lives.

Since it's decentralized, costs are lower, and transactions are more secure thanks to cryptography and secret codes. Two parties can transact directly, avoiding fees and delays.

This approach could greatly revolutionize the fight against financial crime, changing the way we view financial transparency and security in an age of fraud and money laundering.

Fighting fraud is within our grasp. Etherecash is working on providing a platform that will make money laundering and financial crime relics of the past. Invest in Etherecash today by participating in their limited time ICO.

Their industry-changing platform gives users peace of mind. Not only are your own finances safe, you can also rest assured that there are no opportunities for money launderers or cartels to interfere.

Purchase our Etherecash token through our ICO from October 25th 2017. Developed on the ERC20 blockchain technology with lawyer backed contracts, to make blockchain backed lending and fund management, private and seamless.

Buy our tokens now. Visit Etherecash.io.