Financial Crime World

Money Laundering and Terrorist Financing Regulations: Observations and Recommendations

This article discusses observations and recommendations regarding money laundering (ML) and terrorist financing (TF) regulations in a certain jurisdiction.

Criminalization of Money Laundering (ML)

  • The jurisdiction is currently non-compliant (NC).
  • Predicate offenses for ML need to cover all serious crimes, not just those under the Drugs Act.
  • Ancillary offenses and intentional elements should be criminalized.
  • Objective factual circumstances should allow for the inference of intentional elements.

Criminalization of Terrorist Financing (TF)

  • The jurisdiction is currently NC.
  • TF must be criminalized autonomously, including:
    • Provision and collection of funds for terrorist purposes
    • Use of funds for terrorist purposes
    • All acts in anti-terrorism instruments
    • Financing of individual terrorists and terrorist organizations
    • Attempt to commit a TF offense
  • Objective factual circumstances should allow for the inference of intentional elements.
  • Effective, proportionate, and dissuasive sanctions for legal entities should be allowed.

Confiscation, Freezing, and Seizing of Proceeds of Crime

  • The jurisdiction is currently NC.
  • Assets of every kind should be confiscable.
  • Property of corresponding value should be permissible for confiscation.
  • Property subject to confiscation can be frozen and seized with respect to all predicate crimes under the standard.

National and International Cooperation

There is a domestic cooperation mechanism dedicated to AML/CFT policy issues, but it has not yet delivered tangible results.

  • There is currently no legislative framework regulating mutual legal assistance and extradition.
  • The jurisdiction should increase the staff of relevant authorities.
  • Training for AML/CFT expertise, especially for investigations and supervision, should be provided.

Key Pieces of Legislation

  • Comprehensive AML/CFT legislation is necessary.
  • The draft revised Penal Code should be adopted.
  • Criminal procedure rules should be set out in law to enable authorities to fight ML and TF effectively.

General Observations

The jurisdiction needs to:

  • Increase overall staff for AML/CFT expertise.
  • Adopt legislative frameworks regulating mutual legal assistance and extradition.