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.

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.

International commercial arbitrator addressing money laundering sua sponte

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Todor Kolarov
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Task Force ◽  
Legal Basis ◽  
Practical Application ◽  
Commercial Arbitration ◽  
Financial Action Task Force ◽  
Content Type ◽  
International Commercial Arbitration ◽  
Financial Action Task

Purpose The purpose of this paper is to evaluate the existing legal basis, and its practical application, of an arbitrator’s competence to raise on her own initiative money laundering issues. Design/methodology/approach The research focusses on presenting the essence of the problem through evaluation of the legal basis for the arbitrators to raise money laundering concerns on their own initiative and the examples of so being done in international commercial arbitration. Findings This paper concludes that arbitrators do not presently have a solid legal basis that authorises them to act sua sponte against money laundering. Originality/value The originality and value of this paper lies in its emphasis on theoretical and practical issues related to money laundering in international commercial arbitration. It argues in favour of an explicit recommendation to be incorporated in the 2012 Recommendations of the Financial Action Task Force (FATF) that international commercial arbitrators address money laundering on their own initiative.

New developments in Hong Kong’s anti-money laundering laws

2016 ◽  
Vol 19 (3) ◽  
pp. 291-297 ◽  
Author(s):  
David Kwok
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Design Methodology ◽  
Task Force ◽  
Case Law ◽  
New Developments ◽  
Content Type ◽  
Proceeds Of Crime ◽  
Financial Action Task ◽  
Law And Legislation

Purpose The purpose of this paper is to discuss briefly new developments in Hong Kong’s (HK) Anti-Money Laundering (AML) laws, both in terms of case law and legislation. Design/methodology/approach In terms of case law, the author discusses two decisions given by HK’s Court of Final Appeal relating to the dealing of proceeds of crime offence. Also, a guideline case on sentencing is also examined. In terms of legislation, the author briefly outlines the main provisions of the newly enacted AML and Counter-Terrorist Financing (Financial Institutions) Ordinance. Findings As suggested by the Financial Action Task Force, new measures need to be put in place. The AML laws, as they presently stand, need further improvement. Originality/value A good AML regime is necessary as HK continues to thrive as a major financial/banking centre in Asia. This paper seeks to encourage more discussion on the topic.

The financial action taskforce and money laundering: critical analysis of the Panama papers and the role of the United Kingdom

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aisha Hassan Al-Emadi
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Task Force ◽  
Content Type ◽  
The United Kingdom ◽  
Rapid Changes ◽  
Financial Action Task ◽  
The Uk ◽  
Desk Review

Purpose This paper aims to study the effectiveness of the implementation of the Financial Action Task Force (FATF) recommendations in the UK in an attempt to combat the laundering of proceeds of corruption. Design/methodology/approach A desk review of secondary resources was conducted to analyze available literature to examine the research topic. Findings The leakage of 11.5 million documents, known as the Panama papers, has revealed that the UK functioned as a safe haven for illicit and corrupt money. In an attempt to address this, the country called for a public registry of beneficial owners to disclose the identities of the owners of the incorporated corporations and to extend them to individuals abroad holding UK property. The FATF report recognizes the UK’s far-reaching regulation. Despite the measures taken, UK still faces serious risks with regard to the laundering of criminal proceeds, which demonstrates that technical compliance with FATF rules is not enough to effectively curb money laundering. Originality/value This study suggests that FATF rules’ effectiveness in identifying instances of laundering the proceeds of corruption is limited because of the deeply rooted system vulnerabilities and the rapid changes in money laundering trends.

Qatar’s progress towards preventing terror finance through the abuse of charitable status and the financial sector

2016 ◽  
Vol 19 (4) ◽  
pp. 500-516 ◽  
Author(s):  
Jon Truby
Keyword(s):  
Design Methodology ◽  
Task Force ◽  
Financial Sector ◽  
Financial Action Task Force ◽  
Content Type ◽  
Financial Regulations ◽  
Novel Approach ◽  
Financial Action Task ◽  
Mutual Evaluation

Purpose This paper aims to track Qatar’s progress in preventing abuse of charitable status or of its financial regulations to prevent terror finance. Design/methodology/approach Qatar’s progress towards meeting the demands of the Central Themes will thus be summarised and explored. This paper tracks its history in response to evolving Financial Action Task Force (FATF) standards, and considers how Qatar can take measures to enhance their reputation. Findings Qatar’s efforts were found to be sustained but these still fall short of emerging standards. This paper advocates for higher standards. Originality/value This original paper and novel approach is useful to policymakers and researchers of AML/CTF law. It is particularly timely in advance of the 2017 mutual evaluation of Qatar. It advances the findings of on another article written by the author.

Legitimacy of the Summer 2017 GCC crisis and Qatar’s AML framework

2017 ◽  
Vol 20 (4) ◽  
pp. 405-416 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
United Nations ◽  
Money Laundering ◽  
Task Force ◽  
Financial Sector ◽  
Content Type ◽  
Terrorist Financing ◽  
The World ◽  
Regulatory Bodies ◽  
Financial Action Task ◽  
Mutual Evaluation

Purpose In June 2017, members of the Gulf Cooperation Council (GCC) ended diplomatic ties with Qatar. There is a legitimate concern about the accusation levied on Qatar. This paper aims to analyse the progress Qatar’s financial system has made with respect to its anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, which further serves as the country’s effort to combating the financing of terrorism (CTF). The paper further wishes to advance the discussion by considering the legitimate goals of the aforementioned bodies and their discourse on creating national and international obligations towards reducing terrorist financing through robust AML frameworks. Design/methodology/approach The paper analyses Qatar’s legislative and regulatory overhaul following the Financial Action Task Force’s Mutual Evaluation Report. Qatar had distinctively strengthened its approach against Money Laundering and Terrorist Financing. The paper takes an ex ante approach by understanding Qatar’s “strategic deficiencies” before the FATF’s mutual evaluation. Subsequently, the paper studies independent international evaluations of Qatar’s AML/CTF legislation and regulation. Findings The paper finds Qatar in significant compliance to the recommendations of the various international bodies, including the Financial Action Task Force (FATF), Basel AML Index, IMF’s financial sector reviews, United Nations and independent reports on AML progress from regulatory bodies around the world. None of these organizations present obligatory rules but have set and determined and international standard for AML/CTF laws. Originality/value The primary aim is to draw parallels between Qatar’s regulatory AML and CTF efforts through the country’s compliance with international initiatives, such as the FATF guidelines, Basel AML Index, IMF’s financial sector reviews, United Nations and independent reports on AML progress from regulatory bodies around the world.

Designating lawyers as reporting entities under the Kenya’s anti-money laundering regime

2020 ◽  
Vol 23 (3) ◽  
pp. 637-649
Author(s):  
Kennedy Otieno Pambo
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Task Force ◽  
Confidential Information ◽  
Content Type ◽  
Practical Solution ◽  
Legal Professionals ◽  
Legislative Framework ◽  
Financial Action Task ◽  
Apparent Conflict

Purpose Kenya has made little progress in its endeavor to categorize lawyers as designated non-financial businesses and professionals (DNFBPs), despite making spirited attempts in 2007, 2018 and lately in 2019. The legal professionals are, therefore, not bound by the reporting and other stringent obligations imposed by the Financial Action Task Force (FATF) to deter possible misuse by money launderers. The purpose of this paper, therefore, is to enumerate the ongoing efforts toward designating lawyers as DNFBPs in Kenya. The paper also assesses the institutional and legislative incentives (as well as barriers) for imposing the anti-money laundering (AML) duty thereto. Design/methodology/approach The paper provides a qualitative review of Kenya’s AML legislative framework and the potential support/hindrance to imposing the AML duty on lawyers. Also, this paper provides a suggestion for possible solutions. Findings The legislative framework in Kenya has outlawed money-laundering, and lawyers can be compelled to disclose confidential information observed in the course of employment if it embodies crime or fraud. Thus, imposing the AML obligation on lawyers is nothing out of the ordinary, rather a mere creation for a formal disclosure mechanism. However, this paper also revealed divergent views that merit reconciliation for the seamless designation of lawyers. Originality/value To enhance the legislative framework in Kenya, the paper borrows from the FATF’s Interpretive Note to Recommendation 23 and suggests a practical solution to the apparent conflict between the legal professional privilege and the AML duty.

Pakistan will be pragmatic on Lashkar-e-Taiba

2020 ◽  
Keyword(s):  
Task Force ◽  
Financial Action Task Force ◽  
Content Type ◽  
Plenary Meeting ◽  
Terrorist Financing ◽  
Financial Action Task ◽  
Militant Groups ◽  
To Come ◽  
The Military ◽  
Made In

Subject Pakistan's relationship with Laskhar-e-Taiba. Significance The intergovernmental Financial Action Task Force (FATF) at a plenary meeting last week decided to keep Pakistan on its ‘grey list’ of jurisdictions which have weak measures against terrorist financing, although it acknowledged the progress it has made in improving safeguards. As part of its attempts to come off the grey list, Pakistan has jailed Hafiz Saeed, leader of the Lashkar-e-Taiba (LeT) militant group. Pakistan’s politically powerful military has long leveraged LeT as a proxy. Impacts Some Pakistan-based militant groups may begin targeting the Pakistani state if deprived of outlets in Afghanistan and Kashmir. Islamabad is unlikely to be taken off the FATF grey list after the body’s next plenary meeting in June, but it may be later in the year. Pakistan will face immense external criticism if there are signs of the military tightening rather than loosening relations with militants.

Comprehensive cross-border declaration system as money-laundering prevention mechanism

2017 ◽  
Vol 20 (3) ◽  
pp. 292-300
Author(s):  
Salwa Zolkaflil ◽  
Normah Omar ◽  
Sharifah Nazatul Faiza Syed Mustapha Nazri
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Task Force ◽  
Asia Pacific ◽  
Evaluation Report ◽  
Content Type ◽  
Cross Border ◽  
Future Improvement ◽  
Financial Action Task ◽  
Mutual Evaluation

Purpose This study aims to discuss the Financial Action Task Force (FATF) Special Recommendation IX (SR IX) and the importance of complying with the recommendation, which focuses on cross-border declaration or disclosure with the objective to detect and prevent illicit cross-border transportation of cash and bearer negotiable instruments (BNIs). This study also looks into compliance ratings of Asia Pacific Group (APG) 40 countries on the FATF SR IX. Design/methodology/approach This study reviews the mutual evaluation reports issued by APG on money laundering from 2006 to 2012. Based on the mutual evaluation reports, this study also looks into recommendations and comments given by respective panels. The compliance ratings together with panel’s recommendations and comments compiled in this study will be helpful to relevant authorities for future improvement. Findings Complying to FATF SR IX helps relevant authorities in detecting and preventing illicit from cross-border transportation of cash and BNIs. Out of 40, only two countries received compliant rating, which shows the need of improvement to ensure that the country is compliant on FATF SR IX. Research limitations/implications This study is limited to the panel’s reviews and recommendations on mutual evaluation report and only focuses on FATF SR IX. Originality/value This paper analyzes the compliance characteristics of countries based on their FATF mutual evaluation report. It highlights the comments and recommendation for future improvement to ensure that these countries will comply with FATF SR IX.

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