Blacklists, Market Enforcement, and the Global Regime to Combat Terrorist Financing

2019 ◽  
Vol 73 (03) ◽  
pp. 511-545 ◽  
Author(s):  
Julia C. Morse
Keyword(s):  
International Organizations ◽  
Task Force ◽  
Terrorist Financing ◽  
International Banks ◽  
Global Regime ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
Market Enforcement ◽  
Market Pressure ◽  
Combat Money Laundering

AbstractThis paper highlights how international organizations can use global performance indicators (GPIs) to drive policy change through transnational market pressure. When international organizations are credible assessors of state policy, and when monitored countries compete for market resources, GPIs transmit information about country risk and stabilize market expectations. Under these conditions banks and investors may restrict access to capital in noncompliant states and incentivize increased compliance. I demonstrate this market-enforcement mechanism by analyzing the Financial Action Task Force (FATF), an intergovernmental body that issues nonbinding recommendations to combat money laundering and the financing of terrorism. The FATF's public listing of noncompliant jurisdictions has prompted international banks to move resources away from listed states and raised the costs of continued noncompliance, significantly increasing the number of states with laws criminalizing terrorist financing. This finding suggests a powerful pathway through which institutions influence domestic policy and highlights the power of GPIs in an age where information is a global currency.

scholarly journals Pakistan on FATFs Grey List: Terrorist Financing Perspective

2019 ◽  
Vol IV (IV) ◽  
pp. 281-290
Author(s):  
Abid Hussain
Keyword(s):  
Task Force ◽  
Financial System ◽  
Legal Framework ◽  
Multiple Sources ◽  
Financial Action Task Force ◽  
Terrorist Financing ◽  
Terrorist Groups ◽  
Financial Action Task ◽  
Financing Of Terrorism

Pakistan is facing great challenges of terrorism which have posed serious threats towards integrity and stability of the country. It is unanimously agreed that finance serves as lifeline for execution of terrorist activities. Terrorist groups generate funds through multiple sources and transfer them by exploiting the loopholes existing in financial system. Despite, Pakistan has taken sufficient steps to counter the financing of terrorism (CFT), nonetheless, money is still transmitting due to some regulatory flaws of the financial system. Owing to terrorist financing related deficiencies, Pakistan has been placed on the Financial Action Task Force (FATF) “Grey list”. FATF has warned Pakistan to be blacklisted if precipitate actions to address TF related deficiencies are not taken until February 2020. The paper evaluates the present CFT legal framework and recommends certain legal initiatives required to be taken by Pakistan prior dead line of February 2020.

scholarly journals The Formal, Financial and Fraught Route to Global Digital Identity Governance

2021 ◽  
Vol 4 ◽  
Author(s):  
Malcolm Campbell-Verduyn ◽  
Moritz Hütten
Keyword(s):  
Media Studies ◽  
Money Laundering ◽  
International Organizations ◽  
Task Force ◽  
Centralized Control ◽  
Digital Identity ◽  
Financial Flows ◽  
Intergovernmental Organization ◽  
Financial Action Task ◽  
Financing Of Terrorism

How can we understand the progressive, piecemeal emergence of global digital identity governance? Examining the activities of the Financial Action Task Force (FATF) - an intergovernmental organization at the center of global anti-money laundering and counter-the-financing of terrorism governance-this paper advances a two-fold argument. First, the FATF shapes how, where and who is involved in developing key standards of acceptability underpinning digital identity governance in blockchain activities. While not itself directly involved in the actual coding of blockchain protocols, the FATF influences the location and type of centralized modes of control over digital identity governance. Drawing on the notion of protocological control from media studies, we illustrate how centralized control emerging in global digital identity governance emanates from the global governance of financial flows long considered by international organizations like the FATF. Second, we suggest that governance by blockchains persistently shapes the ability of the FATF to stem illicit international financial flows. In highlighting both the influence of FATF on blockchain governance and blockchain governance on the FATF, we draw together two strands of literature that have been considered separately in an analysis of the formal, financial and fraught route to global digital identity governance.

scholarly journals France

2019 ◽  
Vol 19 (326) ◽  
Author(s):  
Keyword(s):  
Real Estate ◽  
Service Providers ◽  
Task Force ◽  
Technical Note ◽  
Terrorist Financing ◽  
Assessment Program ◽  
Cross Border ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
Made In

This technical note (TN) sets out the findings and recommendations made in the Financial Sector Assessment Program (FSAP) for France in the areas of anti-money laundering and combating the financing of terrorism (AML/CFT). The TN summarizes the findings of a targeted review of France’s AML/CFT framework with respect to measures to prevent and combat terrorist financing (TF), risk-based supervision of banks, real estate agents, company service providers and lawyers, measures to tackle cross-border crimes, and fintech. It provides a factual update on the key measures taken by the authorities since France’s previous assessment against the Financial Action Task Force (FATF) standard during 2010-2011. The TN is not, in any way, an evaluation or assessment of France’s AML/CFT system. France is scheduled to undergo a comprehensive assessment against the prevailing standard during 2020–2021 by the FATF.

Measures to combat money laundering and terrorist financing in Palestine

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murrar Firas
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Evaluation Process ◽  
Vital Role ◽  
Assessment Process ◽  
National Committee ◽  
Content Type ◽  
Terrorist Financing ◽  
Mutual Evaluation ◽  
Combat Money Laundering

Purpose The purpose of this paper is to analyse the evolution of anti-money laundering/combating the financing of terrorism (AML/CFT) procedures in Palestine since 2004 in accordance with the standards issued by the Financial Action Task Force (FATF). Design/methodology/approach This study is qualitative in nature and involves studying the most important improvements made by Palestinian authorities in the state’s legislative and institutional frameworks to enhance the AML/CFT regime. Findings Palestine has established the necessary legal basis to combat money laundering and terrorist financing crimes. At the institutional level, the Financial Follow-up Unit was granted all the required powers of Financial Intelligence Units. The National Committee for Combating Money Laundering and Financing Terrorism has also played a vital role in issuing policies and plans to respond to the outcomes of the National Risk Assessment process. In contrast, a number of challenges still exist mainly with respect to the political factors and their expected consequences on the process of preparing for and conducting the mutual evaluation process for Palestine. Originality/value This study focusses on the AML/CFT efforts in Palestine owing to the nature and specificity of the Palestinian situation, as Palestine’s AML/CFT procedures have not been subject to any previous mutual evaluation process by the MENAFATF. Such efforts have rarely addressed the Palestinian case, making this study important to researchers and those interested in this field.

Who's the Legislator Anyway? How the Fatf's Global Norms Reshape Australian Counter Terrorist Financing Laws

2017 ◽  
Vol 45 (1) ◽  
pp. 127-151 ◽  
Author(s):  
Doron Goldbarsht
Keyword(s):  
Task Force ◽  
International Standards ◽  
Soft Law ◽  
Evaluation Report ◽  
Financial Action Task Force ◽  
Terrorist Financing ◽  
Decisive Influence ◽  
Financial Action Task ◽  
Global Norms ◽  
Mutual Evaluation

This article focuses on the Australian implementation of the Financial Action Task Force (FATF) Recommendations, so-called ‘soft law’ instruments, which represent the international standards in Counter Terrorist Financing (CTF) but which force legislators to conform. The article will fill the gaps existing in the literature today by focusing on the origins and motives of broad CTF legislation in Australia, then detailing each of the FATF's CTF Recommendations and the ways in which they are implemented in Australia. This approach differs significantly from other literature in the field, which deals solely with Australian implementation of one of the FATF's components. The current paper's examination will reveal the CTF regime in Australia, a decade after the FATF's first CTF Mutual Evaluation Report on Australia, and its decisive influence.

Prospects for Pakistan in 2020

2019 ◽  
Keyword(s):  
Task Force ◽  
Financial Action Task Force ◽  
Content Type ◽  
Terrorist Financing ◽  
Financial Action Task

Subject Prospects for Pakistan in 2020. Significance In early 2020, Pakistan will again face a challenge to convince the intergovernmental Financial Action Task Force (FATF) that it has strengthened its measures against terrorist financing. Islamabad wants to avoid being put on the organisation’s ‘blacklist’, which would expose it to a risk of sanctions at a time when it is trying to spur an economic revival. Meanwhile, Pakistan is looking to bolster its relations with allies as tensions with enemy India simmer over the disputed Kashmir region.

Prospects for Pakistan to end-2019

2019 ◽  
Keyword(s):  
Task Force ◽  
Financial Action Task Force ◽  
Content Type ◽  
Terrorist Financing ◽  
Financial Action Task ◽  
The Imf

Subject Prospects for Pakistan to end-2019. Significance Key challenges for Pakistan in the second half of this year include finalising its latest loan programme with the IMF and extricating itself from the intergovernmental Financial Action Task Force (FATF) ‘grey list’. While the IMF bailout will require consent from Fund executives in Washington, Islamabad will need to convince the FATF that it has taken steps to crack down on terrorist financing.

Transnational regulatory networks: a study in compliance and legitimacy in counter-terrorist financing

2020 ◽  
Vol 27 (3) ◽  
pp. 855-870
Author(s):  
Doron Goldbarsht ◽  
Hannah Harris
Keyword(s):  
Regulatory Network ◽  
Design Methodology ◽  
Regulatory Networks ◽  
Task Force ◽  
Necessary Condition ◽  
Content Type ◽  
Terrorist Financing ◽  
Actual Compliance ◽  
Financial Action Task ◽  
Informal Cooperation

Purpose This paper aims to explore the case of counter-terrorist financing (CTF) within the transnational regulatory network (TRN) of the Financial Action Task Force (FATF). The paper demonstrates how the structure and operation of the FATF reflect those of a TRN and shows how the FATF has been successful in securing formal compliance with CTF policies. Design/methodology/approach The paper stresses that formal compliance does not guarantee actual compliance or effective enforcement. It is argued that the FATF and the CTF regime must balance concerns for legitimacy with those of flexibility and efficiency. Traditionally, TRNs have focused on flexibility, efficiency and informal cooperation over legitimacy. This paper demonstrates that legitimacy concerns cannot be ignored. Findings A lack of legitimacy may ultimately result in non-compliance and ineffectiveness. On this basis, current efforts to build legitimacy through the FATF are noted but deemed insufficient. If this balance is not struck, the FATF may be doomed to failure through an overreliance on coercive methods. Particularly in the case of CTF, coercion is insufficient for meaningful compliance. Global enforcement by diverse states is a necessary condition for the success of the regime. Originality/value This paper will fill the gaps existing in the literature by examining CTF, as well as the FATF as an example of TRN. This approach differs from other literature in the field, which deals solely with the effectiveness of the FATF and the global CTF without considering the effect of legitimacy on compliance.

scholarly journals FATF Guidance on Effective Oversight in the AML/CFT System

2018 ◽  
Vol 3 (2) ◽  
pp. 190 ◽  
Author(s):  
Andronov M.Y. ◽  
Leonov P.Y.
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Limited Resources ◽  
Financial Action Task Force ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
The One ◽  
Financial Monitoring ◽  
Fourth Round ◽  
Oriented Approach

Fourth round of mutual evaluations of the FATF (financial action task force on money laundering, the Financial Action Task Force on Money Laundering, FATF) was held already in 38 countries around the world. In 2018 Russia will be cheсked.One of the elements of anti-money laundering system is the oversight activities. FATF gives guidance on its effective building. It should be provided with the risk-oriented approach. On the one hand, in order to apply its limited resources to the most dangerous areas. On the other hand, does not interfere the development of legal entrepreneurs with redundant oversight actions.The purpose of this article is to attract attention of specialists for financial monitoring to Guide FATF on the application of risk-oriented approach to oversight for AML/CFT purposes. Keywords: Legalization, countering the financing of terrorism, supervision in the sphere of AML, risk-oriented approach

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