The enforcement of AML laws and the Risk-based Approach of banks may have unintended consequences on the remittances sector. There is a risk that the money remittance business will move underground thereby increasing the risk of:Group of answer choicesa) Banking collapsed) Money laundering through the banking systemb) Terrorist fundingc) ARS becoming extremely corrupt

The enforcement of Anti-Money Laundering (AML) laws and the Risk-based Approach by banks can indeed have unintended consequences on the remittances sector. The main concern is that these regulations could push the money remittance business underground. This could lead to several risks:

a) Banking collapse: If a significant amount of money starts flowing outside the regulated banking system, it could destabilize the system and potentially lead to a banking collapse.

b) Money laundering through the banking system: If the money remittance business goes underground, it could become a channel for money laundering. This is because transactions conducted outside the regulated banking system are harder to monitor and control.

c) Terrorist funding: Similar to money laundering, the underground money remittance business could also be used to fund terrorist activities. This is a significant concern for governments and international organizations.

d) ARS becoming extremely corrupt: ARS refers to the Automated Reporting System. If the money remittance business goes underground, it could lead to corruption in the ARS as it may become more difficult to accurately track and report transactions.

Therefore, while AML laws and the Risk-based Approach are necessary to prevent illegal activities, it's important to also consider their potential unintended consequences and find ways to mitigate these risks.