NICHe - MONEY LAUNDERING & FRAUD


HOW MUCH IS MONEY LAUNDERING LEGISLATION COSTING YOUR ORGANISATION?
  • It costs you loss of new investment clients if you run managed funds or if you are a stockbroker.
  • It adds to staff costs handling the problem= complying with the legislation
  • Reputedly it costs the world not billions, but trillions of dollars per annum.

So why not make a push to get governments to cut this cost? NICHe provides a solution for both Fraud and Money Laundering costs.
FRAUD AND MONEY LAUNDERING
NICHe – National Investment Clearing House: Enabling secure, fast, free, money transfers. Minimal administration. No fraud. Once in, no further repeat money laundering questions are needed. The source and the destination of the investment monies are both known. This can save the world a few trillions p.a. in administrative costs, fraud, and delays.

HOW IT WORKS
This proposal was pushed for debate by Hon John Redwood MP in the early 1990s. He convened a meeting of interested parties. But right afterwards there was a financial crisis and the main initiator (me) left the country. The idea was dropped.

One reason was that the larger institutions and stockbrokers felt that they were well able to provide security for client accounts and the addition of NICHE as an intermediary would be unnecessary and add to costs. But that was not a valid objection. Any stockbroker or other financial institution can apply for exemption and be listed as a NICHe-approved destination.

Since then the money laundering legislation has forced all of these institutions to waste money getting new investors onto their platform. 

As stated, the solution for them is to get approval from the administrators of NICHe (a government department) as a safe destination for client monies.

For the thousands of smaller investors and investment advisers NICHE simplifies everything. First the money is sent to NICHe where the money laundering issue is dealt with one time and for all time by NICHe. Thereafter, NICHe is instructed by the investor or by the investor's adviser on where the money is to be sent. The destination is checked against the approved list of destinations (a bank, a stockbroker, a managed fund, for example) and then sent there through the banking system. Whereas moving money to these places can take weeks on account of money laundering legislation, these deals can be done right away without any money laundering questions being asked.

And fraud by small investment advisers is prevented, reducing costs and worries for institutions. How is that? It is because all advisers are advised to inform all of their clients of the NICHe system and because they will be forbidden to handle client funds themselves.

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