The subject of this article is a specific problem in banking management - money laundering and financial institutions’ responsibility. Namely, at the beginning of the century, we were witnesses of global increase in money laundering. A lot of money earned by money laundering destroys the basic principles of economic activities. It is also a big threat to the financial institutions’ integrity making successful management impossible. Fundamental problems are as follows: “grey economy”, offshore countries and their financial institutions, corruption and alternative systems of transferring money. Therefore, their significance is emphasized in this article. All these dealings lead to general misuse of the financial systems. The connection between money laundering and financial terrorism is also considered. Terrorists’ needs can be classified to direct expenses connected to specific operations and to bigger organizing expenses for certain terrorist organizations as well as for the infrastructure maintenance in order to support the organization and promote the ideology of the particular terrorist organization. Money laundering can be used for these kinds of terrorist criminal activities. Some examples of misuse of banks, which were condemned for criminal acts, are also presented

SPORT WITHOUT GAME-MONEY LAUNDERING AbstractSport is firmly connected to politics in the whole world, the Republic of Serbia being no exception. Pronounced motives of profit in sport led to the appearance of new problems, like money laundering and business and moral unreliability of the participants. Some of anomalies are connected with politically exposed persons (PEP).Offering services within the banking industry, especially considering the private banking, entails a higher degree of discretion and confidentiality in comparison with the ordinary clients. Misuse of these business relationships by PEP has been identified. This paper surveys the statistically significant differences between domestic banks and the domestic banks with the foreign capital in relation to the groups of procedures concerning PEP based on the Recommendation 6 of the Financial Action Task Force on Money Laundering -FATF. Although the domestic banks with the foreign capital were obliged to apply the procedures related to the FATF's Recommendations to the same extent as the Main Office, significant differences between domestic and foreign banks were not found, in terms of Recommendation 6. Inadequacy of regulations and lack of enforcement procedures jeopardize the program of reforms, threatening, the privatisation in sports.