Something I always wonder when fraud occurs involving bank transfers - why can't the money be traced? The whole system works on computers, which are inherently good at keeping records. Even if multiple hops are involved, I see only one reason why law enforcement agencies should not be able to trace funds to their destination - the unwillingness of banks to cooperate.
There needs to be an international banking agreement that facilitates tracking. If some shady offshore bank refuses to sign on with the agreement, participating banks should refuse to transfer money to them.
The fact that such an agreement is not already in place points to the corruptness of our finanacial institutions. There is simply no motivation to impede movement of funds by criminals.