Coordination Mechanisms for Countering Money Laundering and Terrorist Financing

Introduction

Countering money laundering and terrorist financing requires a coordinated effort across various countries. This article highlights the importance of interdepartmental committees, national threat assessments, and risk-based priorities in guiding the work and resource allocation of member agencies.

Coordination Mechanisms

Australia

• The Interdepartmental Committee is responsible for coordinating efforts to counter money laundering and terrorist financing.
• National threat assessments and risk assessments are used to set annual priorities for countering these risks.

New Zealand

• New Zealand formally joined the National Counter-Terrorism Committee of Australia in 2012, forming the Australia-New Zealand Counter-Terrorism Committee.
• The committee has established capabilities in areas such as crisis management, command and control, intelligence, and investigation.

European Union

• The European Commission has been mandated by directive (EU) 2015/849 to prepare a supranational money laundering and terrorist financing risk assessment.
• The Expert Group on Money-Laundering and Terrorism Financing and the European Union financial intelligence unit platform coordinate Member States’ responses to money laundering and terrorist financing risks.

Risk Assessment Approaches

Australia

• National threat assessments and risk assessments are used to guide priorities and resource allocation for countering money laundering and terrorist financing.

New Zealand

• The Australia-New Zealand Counter-Terrorism Committee uses capabilities such as crisis management, command and control, intelligence, and investigation to counter these risks.

European Union

• Member States’ responses to money laundering and terrorist financing risks are coordinated through the Expert Group on Money-Laundering and Terrorism Financing and the European Union financial intelligence unit platform.

Key Takeaways

• Effective coordination mechanisms are crucial for countering money laundering and terrorist financing.
• National threat assessments and risk assessments play a vital role in guiding priorities and resource allocation.
• Regional and supranational cooperation can enhance efforts to counter these risks.