Financial Crime World

Title: U.S. Treasury’s 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing

Subtitle: Significant Illicit Finance Threats and Changes to Risk Environment

The U.S. Department of the Treasury has released its 2024 National Risk Assessments (NRA) for Money Laundering, Terrorist Financing, and Proliferation Financing. These comprehensive reports outline the most significant illicit finance threats, vulnerabilities, and risks to the United States.

Money Laundering Risks

Money laundering schemes keep evolving, and criminals use both traditional and innovative methods to move and conceal illicit proceeds and fuel criminal activities harmful to Americans.

Key Money Laundering Risks

  • Misuse of legal entities
  • Lack of transparency in some real estate transactions
  • Insufficient coverage for certain sectors
  • Complicit merchants and professionals
  • Weaknesses in compliance and supervision

Significant Sources of Illicit Proceeds

  1. Fraud
  2. Drug trafficking
  3. Cybercrime
  4. Human trafficking and smuggling
  5. Corruption

Terrorist Financing Threats

Terrorist financing risks persist, with individuals in the U.S. soliciting and attempting to send funds to foreign terrorist groups using various means like cash, money services businesses, and virtual assets.

Notable Updates

  • Hamas’ exploitation of the international financial system
  • Growing threat of domestic violent extremist movements

Proliferation Financing Risks

Proliferation financing risks have amplified due to heightened threats from Russia and the Democratic People’s Republic of Korea (DPRK).

Key Proliferation Financing Risks

  • Russia’s expansion of efforts to obtain U.S.-origin goods with military applications
  • The DPRK’s exploitation of the digital economy
    • Hacking of virtual asset service providers
    • Overseas deployment of fraudulent information technology workers

These NRAs serve as crucial resources for the public and private sectors to understand the current illicit finance environment and shape their risk mitigation strategies. The Treasury is scheduled to release the 2024 National Strategy for Combatting Terrorist and Other Illicit Finance in the coming weeks, which will provide recommendations for addressing the highlighted issues.

Quote from Under Secretary Nelson

Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, stated, “Illicit finance is the common thread across our nation’s biggest national security threats, and Treasury remains committed to scrutinizing the global risk environment to safeguard the U.S. and international financial systems from abuse.”