Global Effort to Combat Proliferation Financing Gains Momentum

As the world continues to grapple with the threat of weapons of mass destruction (WMD) and their devastating impact on global security, a crucial aspect of combating this menace is often overlooked: proliferation financing. The United Nations Security Council has been at the forefront of this fight, designating individuals and entities suspected of supporting WMD programs.

UNSC Resolutions 2231 and 1718

In October 2023, the UN Security Council adopted Resolution 2231, imposing sanctions on Iran in response to its nuclear program. The resolution designated several Iranian individuals and entities, freezing their assets and prohibiting the supply of arms and related materials to them. Similarly, UNSC Resolution 1718, adopted in 2006, imposed sanctions on North Korea for its nuclear and ballistic missile programs.

National Obligations

Countries have a critical role to play in combating proliferation financing. Under FATF Recommendations, nations are required to:

• Assess risks
• Apply a risk-based approach
• Ensure cooperation and coordination of anti-money laundering (AML), combating the financing of terrorism (CFT) and proliferation financing (CPF) policies
• Prevent, suppress, and disrupt WMD programs and their financing

Designation Criteria

The criteria for designation under UNSC resolutions are clear:

• Any person or entity participating in the financing, planning, facilitating, preparing, or perpetrating of acts or activities by, in conjunction with, under the name of, on behalf of, or in support of Al-Qaeda or its affiliates
• Any undertaking owned or controlled by designated individuals or entities

Global Cooperation

The fight against proliferation financing requires global cooperation. Countries must work together to:

• Identify and assess money laundering, terrorist financing, and proliferation financing risks
• Mitigate these risks through inter-agency coordination and information sharing

Customer Due Diligence

Financial institutions have a critical role to play in combating proliferation financing. Conducting customer due diligence (CDD) is a vital step in preventing the misuse of financial systems for WMD-related activities.

As the world continues to navigate the complex landscape of WMD proliferation, it is essential that countries and international organizations work together to combat the financing of these illicit activities. The designation of individuals and entities suspected of supporting WMD programs is a crucial aspect of this effort, and global cooperation is necessary to ensure its success.