Financial Crime World

Combating Financial Crime: Public-Private Partnerships Crucial in French Southern Territories

Vienna, Austria - As the world grapples with the complex issue of financial crime, a recent meeting of the Private Sector Consultative Forum has highlighted the need for greater collaboration between public and private sectors to combat money laundering and terrorist financing.

A Call for Collaboration: The Private Sector Consultative Forum

The forum, hosted by the United Nations Office on Drugs and Crime (UNODC) in Vienna, brought together representatives from various industries, including:

  • Banks
  • Money remitters
  • Credit unions
  • E-money providers
  • Accountants
  • Lawyers
  • Trust practitioners
  • Real estate sector experts

The discussions centered around the challenges faced by these entities in sharing information and intelligence to prevent financial crimes.

The Gap Between Private Sector Expertise and Public Sector Support

According to Je-Yoon Shin, President of the Financial Action Task Force (FATF), banks have made significant investments in both people and IT, but governments have yet to adequately exploit this expertise by investing in law enforcement agencies and financial intelligence units. This has resulted in a dearth of skilled individuals who can effectively utilize this information.

The Issue of De-Risking

The meeting also touched on the issue of “de-risking,” where banks are increasingly avoiding relationships with customers that present high risks due to concerns about reputational damage and regulatory compliance. This has led to a shortage of access to financial services for certain groups, including terrorist organizations.

FATF’s Efforts to Combat Money Laundering and Terrorist Financing

To combat these challenges, FATF has developed a comprehensive system to combat money laundering and terrorist financing, which includes the development of effective measures to mitigate terrorist financing risks. The organization will continue to research and deepen its understanding of terrorist financing risks and work with international partners to share intelligence and best practices.

Successes and Challenges Ahead

The success of FATF’s efforts has been evident, with 198 jurisdictions committing to implement FATF standards and be assessed on the same basis under international procedures operated by FATF. However, it is essential that these measures are implemented properly, not only in high-risk jurisdictions but also in leading G20 economies.

A Commitment to Collaboration

In a statement, FATF emphasized its commitment to working with governments, financial institutions, and other stakeholders to prevent financial crime and protect global stability. The organization will continue to review and revise its recommendations as necessary to ensure that the global financial system remains resilient to threats from money laundering and terrorist financing.

By working together, we can combat financial crime and promote a safer, more stable global economy for all.