Colin Watterson

91 Texas L. Rev. 711

PDF Document

In this Note, Mr. Watterson seeks to address problems associated with regulating informal value transfer systems (IVTS), particularly in the remittance context, by proposing that policy makers focus on encouraging consumers to use formal, transparent money transfer channels.  Reducing legitimate demand for underground services would decrease the popularity of underground firms and thus the opportunity for criminals to exploit them.  Further, if consumers have viable alternative options to underground firms, vigorous enforcement becomes far less problematic.  Ultimately resolving the challenges that these channels present is only possible if formal channels can compete with underground firms; otherwise, the demand for underground services will continue to undermine the U.S. anti-money laundering scheme.  This Note argues that the best approach to money laundering is making compliance easier and cheaper.  This Note proposes simplifying our current regulatory regime through the enactment of a national regulatory scheme that is charged with enacting policies that will make formal channels more competitive.