Professional Money Launderers: A Threat to Global Finance
In an age where illegal activities have become increasingly sophisticated, professional money launderers are playing a crucial role in masking the origin and ownership of ill-gotten gains.
The History of Money Laundering
Al Capone, the notorious American gangster, is often credited with pioneering modern money laundering. His accountant, Meyer Lansky, allegedly siphoned off millions of dollars from illegal businesses into casinos and bank accounts in Hong Kong and South America. Despite his alleged involvement in organized crime, Lansky was never convicted and was said to be worth $100 million.
The Accounting Profession’s Vulnerability
The accounting profession is particularly vulnerable to money laundering due to its specialized expertise in creating complex schemes. Accountants act as “gatekeepers,” enabling them to create corporate vehicles, trusts, and other legal arrangements that facilitate illegal activities.
- As criminals move away from traditional financial institutions, accounting firms have a critical role to play in combating this menace.
- The Financial Action Task Force (FATF) has identified lawyers, notaries, and accountants as being increasingly used for money laundering operations.
The Fiji Connection
In Fiji, accountants are covered under the Financial Transactions Reporting Act (FTR Act) when providing various services, including:
- Buying or selling real estate
- Managing client assets
- Creating legal entities
When engaging clients for these services, accountants must conduct customer due diligence and report certain financial transactions as required by law.
Combating Money Laundering in Fiji
The battle against money laundering in Fiji is a collaborative effort involving:
- The Financial Intelligence Unit (FIU)
- Law enforcement agencies
- Financial institutions
The FIU plays a key role in providing AML regulatory, policy, and compliance framework, while the Reserve Bank of Fiji provides guidance on anti-money laundering regulations.
Conclusion
Money laundering is a global threat that requires a coordinated response from governments, financial institutions, and professionals. As the nature of crimes evolves, accounting firms must remain vigilant and proactive in identifying and reporting suspicious activities to help combat this menace.
In Fiji, the FIU, law enforcement agencies, and financial institutions are working together to protect the country’s financial system and prevent illegal activities from undermining its integrity.