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Exotic Financial Instruments Should be Tested for Laundering Risks: Consultant
printLike pharmaceuticals, new financial instruments should be thoroughly tested for risks before allowed on the market, according to Paul Kay, founder and president of PMK Advisory, a Convent Station, New Jersey-based money laundering and fraud detection consultancy. Products that are not completely understood by regulators can be exploited by organized crime groups much in the way that prepaid cards are abused today, he said. In some cases, mobsters have pressured knowledgeable investors to help them use complex financial products to hide their illicit proceeds, said Kay, formerly a detective at the Office of the New Jersey Attorney General. Kay, who...
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