When a financial institution is connected with terrorist financing, this will most likely be the end of that institution’s lifespan. In the world today, not only is there a legal response to acts of terrorism and those who provide the funds for those acts, but there is an emotional response as well. In the years following the terrorist attacks on New York City and the Pentagon, and the current times of the acts of terrorism in other countries being broadcast on the nightly news and spread across the Internet, the public is now more aware than any of the effects that corruption and terrorism has on human lives.
When an institution or a company is linked in any way to such activities it will have disastrous effects on their reputation, and on the country in which they are located as well. All those involved in having business relations with others, with strangers, need to be aware of the steps to take in order to ensure that this does not happen.
There are certain policies that all American banks and corporations follow such as the “know your customer” policy set up by the Foreign Corrupt Practices Act. And while the steps taken as laid out by the Act are considered to be policies and procedures, the act of not following the guidelines is a federal crime, punishable to the same extent of the law as are those who commit the acts of corruption themselves are. For when an institution fails to follow the concept of due diligence, if their employees become lazy in their efforts to fully examine those in which they are about to do business with, the ramifications are devastating. Innocent companies can meet their ruin by simply failing to do their jobs consistently and by not keeping accurate records of the transactions in which they are a part.