GLOBAL WAR AGAINST MONEY LAUNDERING
As financial crime has become more complex, so "Financial Intelligence" has become more recognized in combating international crime and terrorism. Anti-money laundering (AML) refers to a set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. Though AML
laws cover only a relatively limited number of transactions and criminal behaviours, their implications are extremely far-reaching. For example, AML regulations require institutions issuing credit or allowing customers open accounts to complete due-diligence procedures to ensure that these institutions are not aiding in money-laundering activities. The onus to perform these procedures is on the institutions, not on the criminals or the government.
AML laws and regulations target activities that include market manipulation, trade of illegal goods, corruption of public funds and evasion of tax, as well as all activities that aim to conceal these deeds. Financial institutions are expected to comply with AML laws, make sure that clients are aware of these laws and guide them. Although the act of money laundering itself is a victimless white-collar crime it is often connected to serious and sometimes violent crime. Being able to stop money laundering is in effect, being able to stop the cash flows of international organized crime. In 1989, the G-7 countries formed an international committee called the Financial Action Task Force (FATF) in an attempt to fight money laundering on an international scale. It is headquartered in Paris. The FATF is an intergovernmental organization that designs and promotes policies and standards to combat money laundering. Recommendations created by the FATF target money laundering, terrorist financing, and other threats to the global financial system. In the beginning of the 2000's it was expanded to combating the financing of terrorism. Since 9/11, anti-money laundering and combating terrorism financing have become intertwined. International terrorism is a serious problem which has a strong money laundering component, hence the additional international scrutiny.
laws cover only a relatively limited number of transactions and criminal behaviours, their implications are extremely far-reaching. For example, AML regulations require institutions issuing credit or allowing customers open accounts to complete due-diligence procedures to ensure that these institutions are not aiding in money-laundering activities. The onus to perform these procedures is on the institutions, not on the criminals or the government.
AML laws and regulations target activities that include market manipulation, trade of illegal goods, corruption of public funds and evasion of tax, as well as all activities that aim to conceal these deeds. Financial institutions are expected to comply with AML laws, make sure that clients are aware of these laws and guide them. Although the act of money laundering itself is a victimless white-collar crime it is often connected to serious and sometimes violent crime. Being able to stop money laundering is in effect, being able to stop the cash flows of international organized crime. In 1989, the G-7 countries formed an international committee called the Financial Action Task Force (FATF) in an attempt to fight money laundering on an international scale. It is headquartered in Paris. The FATF is an intergovernmental organization that designs and promotes policies and standards to combat money laundering. Recommendations created by the FATF target money laundering, terrorist financing, and other threats to the global financial system. In the beginning of the 2000's it was expanded to combating the financing of terrorism. Since 9/11, anti-money laundering and combating terrorism financing have become intertwined. International terrorism is a serious problem which has a strong money laundering component, hence the additional international scrutiny.
The Financial Crimes Enforcement Network, FinCEN, is a network administered by the United States Department of the Treasury whose goal it is to prevent and punish criminals and criminal networks that participate in money laundering. FinCEN operates domestically and internationally, and it consists of three major players: law-enforcement agencies, the regulatory community and the financial-services community. By researching mandatory disclosures imposed on financial institutions, FinCEN tracks suspicious persons, their assets and their activities to make sure that money laundering is not occurring. FinCEN tracks everything from very complicated electronically based transactions to simple smuggling operations that involve cash. As money laundering is such a complicated crime, FinCEN seeks to fight it by bringing different parties together. The United Nations and the World Bank also maintain processes against money laundering.
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