Countries Urged to Boost Financial Investigations to Combat Crime
Combating Financial Crimes through Effective Strategies
In a bid to combat financial crimes, the Financial Action Task Force (FATF) has recommended that countries develop effective strategies to ensure that financial investigations become a routine part of all law enforcement inquiries related to crime with financial gain.
Key Recommendations from the FATF Report
- Develop an effective policy by:
- Releasing public statements
- Establishing strategic planning working groups
- Ensuring support from high-level officials
- Prioritize training for financial investigators who are experienced in financial investigation matters involving both domestic laws and international conventions and standards.
- Work closely with other competent authorities where specialized knowledge and expertise is required.
Importance of Parallel Investigations
The report stresses the importance of parallel investigations, which involve focusing on the predicate offense and the money laundering offense simultaneously. This approach brings together expertise from both investigative backgrounds, ensuring that offenses are fully investigated and preventing the infiltration of illegal profits into the legal economy.
Best Practices for Financial Investigators
- Identify the movement of money during the course of an offense
- Trace persons
- Provide information to address the issue of prolific and priority offenders where no previous method has been successful
- Share information, intelligence, and evidence obtained during parallel investigations to avoid duplication of services
Structuring Financial Investigations
To ensure effective financial investigations, countries are advised to include a checklist or outline of essential elements in their standard operating procedures for investigative agencies. This can help structure each financial investigation and serve as a guideline for investigators.
Assembling Multi-Disciplinary Teams
In large, complex financial investigations, multi-disciplinary groups or task forces should be assembled to ensure the effective handling of the investigation, prosecution, and eventual confiscation. These groups may comprise:
- Specialized financial investigators
- Experts in financial analysis
- Forensic accountants
- Forensic computer specialists
- Prosecutors
- Asset managers
Intra-Agency and Inter-Agency Cooperation
The FATF report emphasizes that countries must adopt a strategic approach to intra-agency and inter-agency cooperation in an effort to support information/intelligence sharing within and between agencies and with foreign counterparts. By doing so, countries can effectively combat financial crimes and disrupt criminal networks.
By implementing these recommendations, countries can enhance their ability to investigate and prosecute financial crimes, ultimately disrupting criminal networks and protecting the integrity of the financial system.