Financial Crime World

Combating Money Laundering and Terrorism Financing: A Global Effort

Introduction

The world is facing a significant challenge in combating money laundering and the financing of terrorism. These illicit activities have far-reaching consequences, from destabilizing economies to funding violent extremism. In response, international organizations and institutions are working together to prevent these threats.

Key Players in Combating Money Laundering and Terrorism Financing

The United Nations (UN)

  • Global Programme against Money Laundering (GPML): Headquartered in Vienna, Austria, the GPML operates a program to fight money laundering.
  • The UN plays a crucial role in setting international standards and promoting effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.

Financial Action Task Force (FATF)

  • International Standards: FATF sets international standards and promotes effective implementation of legal, regulatory, and operational measures.
  • Effective implementation of these standards is essential to prevent money laundering and the financing of terrorism.

Middle East and North Africa Financial Action Task Force (MENA FATF)

  • Established as a FATF Style Regional Body (FSRB) in 2004, MENA FATF fosters cooperation and coordination between countries in the MENA region.
  • Its primary goal is to establish an effective system of compliance with international standards against money laundering and the financing of terrorism.

Egmont Group of Financial Intelligence Units

  • A forum for Financial Intelligence Units (FIUs) to improve support for their national Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) programs.
  • The group coordinates AML/CFT initiatives and exchanges financial intelligence information to combat money laundering and terrorism financing.

The Urgent Need for International Cooperation

  • Estimated volume of proceeds from crime, including the financing of terrorism, laundered each year: between 2-5% of global GDP
  • Only a small percentage (approximately 2%) of criminal proceeds are seized by authorities, and even fewer ultimately end up being confiscated.

In conclusion, combating money laundering and the financing of terrorism requires a concerted effort from international organizations and institutions. By working together, we can prevent these threats and create a safer, more stable world for all.