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| Opportunities & Exposures: Policy |
Consumed with Guilt
Gregg S. Robins
09/01/2005
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In other markets, individuals buying,
say, a new yacht or private plane will eventually find themselves subject to
stringent background checks. Even collectors of fine jewels will have to produce
background documentation. On June 3, the Financial Crimes Enforcement Network of
the Treasury Department issued mandates that require dealers in precious metals,
stones or jewels to establish anti–money laundering programs. I can foresee a
time when banks, real estate agents, auction houses and luxury retailers will
verify and investigate individual customers’ identities and backgrounds in
depth, in the way they now verify individual credit ratings. Vendors will pass
their additional compliance costs along to the buyers.
The identity
verification process critical to rooting out money launderers and terrorists
will present a further incentive for thieves to assume false identities. As a
result, screening tools will have to become much more sophisticated. The science
of confirming identity through biometric technology, which recognizes
characteristics such as fingerprints, faces or retinas, is already booming.
Cogent Systems, a biometric technology developer, recently headed a list
compiled by BusinessWeek of America’s fastest growing companies. The demand for
such technology is growing fast:
13 states have already introduced biometric
tests for those seeking to obtain a driver’s license.
 | Gregg S. Robins is a managing director of Netburn McGill,
a consulting firm,
and an executive fellow at the NYU Stern School of Business. |
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