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.

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.

Role of FATF on financial systems of countries: successes and challenges

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nankpan Moses Nanyun ◽  
Alireza Nasiri
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Evaluation Process ◽  
Peer Pressure ◽  
Policy Framework ◽  
Financial Systems ◽  
Content Type ◽  
Secondary Sources ◽  
Adoption And Implementation ◽  
Successes And Challenges

Purpose This paper aims to examine the extent of successes and challenges of adoption and implementation of Financial Action Task Force (FATF) codes in member states by highlighting the influence of the FATF anti-money laundering policy framework on money laundering (ML) and the way forward in heightening the fight against the fast-evolving nature of ML and terrorist financing activities. Design/methodology/approach This paper, based on a purely qualitative desktop study, is drawn on historical information from FATF’s recommendations, its periodic reports, publications and other secondary sources such as books, journal articles on financial systems and scholarly literature. Findings The challenges found include difficulty in domestic coordination, capacity constraints of countries, inadequate operational resources and assessment complexities in the implementation of FATF standards. Nonetheless, FATF has chalked some successes such as the harmonization of legislation and enforcement efforts through the provision of coordination points. Other successes include flexibility in response to new threats, adoption of the mutual evaluation process, which advanced peer pressure on defaulting members, enhancement of the international financial space and the enhancement of the legitimization of FATF’s processes. Originality/value This paper provides a description of the successes and challenges of the FATF’s 40 + 9 recommendations since its establishment. The outcome would alert countries and players within the international financial space to invest more in capacity building and the entrenchment of the recommendations into their domestic laws.

Updates on Hong Kong’s anti-money laundering laws 2020

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Foster Hong-Cheuk Yim ◽  
Ian Philip Lee
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
High Standard ◽  
Case Law ◽  
Evaluation Report ◽  
Content Type ◽  
Financial Centre ◽  
Salient Points ◽  
Financing Of Terrorism ◽  
Mutual Evaluation

Purpose The purpose of this paper is to discuss the latest developments of anti-money laundering (AML) laws in terms of case law and to give meaningful response in relation to certain key findings (KFs) and recommendations by the financial action task force contained in its mutual evaluation report dated September 2019. Design/methodology/approach In terms of AML case law, the authors analyse the latest judgment from the Hong Kong (HK) court of final appeal. In terms of the evaluation report, the authors outline salient points from the KFs and recommendation, commenting on their likelihood of success. Findings With the developments in AML case law and the KFs identified, HK is expected to maintain its high standard in AML/counter financing of terrorism (CFT) compliance. Originality/value A robust AML/CFT regime is the bedrock of HK’s reputable status as an international financial centre. This study seeks to illicit meaningful interactions amongst all stakeholders.

Identifying and reducing the money laundering risks posed by individuals who have been unknowingly recruited as money rules

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ehi Eric Esoimeme
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Task Force ◽  
The United States ◽  
Close Attention ◽  
Content Type ◽  
Terrorist Financing ◽  
Medium Risk ◽  
Bank Accounts ◽  
The Uk

Purpose This paper aims to help build awareness with financial institutions about the money laundering risks posed by individuals who have been unknowingly recruited as Money Mules and theme assures that financial institution scan adopt to detect illicit funds which are being received into the bank accounts of low risk or medium risk customers who are unknowingly recruited as “Money Mules”. Design/methodology/approach The research took the form of a desk study, which analysed various documents and reports such as a 2019 report on Money Mules by the European Union Agency for Law Enforcement Cooperation (EUROPOL); a 2019 and 2020 report on Money Mules by the Federal Bureau of Investigation (FBI) and the Better Business Bureau (BBB); the Financial Action Task Force Guidance on the Risk Based Approach to Combating Money Laundering and Terrorist Financing (High Level Principles and Procedures) 2007; the Financial Action Task Force Recommendations 2012; the United Kingdom’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017; the United States Federal Financial Institutions Examination Council Bank Secrecy Act/Anti-Money Laundering Examination Manual 2014; Transparency International Corruption Perceptions Index 2018; The UK Proceeds of Crime Act 2002 (as amended); the Joint Money Laundering Steering Group JMLSG, Prevention of money laundering/combating terrorist financing: Guidance for the UK financial sector Part I June 2017 (Amended December 2017); the United States Codified Bank Secrecy Act Regulations (31 CFR); the Nigerian Money Laundering Prohibition Act 2011 (as amended); and the Joint Money Laundering Steering Group JMLSG, Prevention of money laundering/combating terrorist financing: Guidance for the UK financial sector Part II: Sectoral Guidance June 2017 (Amended December 2017). Findings This paper determined that financial institutions may be able to prevent proceeds of crime from being laundered by individuals who have been unknowingly recruited as Money Mules if they focus monitoring resources on the emotionally vulnerable customers like newcomers to the country, unemployed people who may have lost their jobs because of a pandemic like COVID-19, students and those in economic hardship; pay very close attention to the country of origin where the funds emanate from; pay very close attention to the country where the funds are being transferred to; and pay close attention to frequent large cash deposits followed by wire transfers. Originality/value While most articles focus on the money laundering risk(s) associated with Money Mules and the measures that individuals can use to ensure that their bank accounts are not used by criminals to launder illicit funds, this paper focuses on the different mechanisms that banks can use to detect illicit funds which are being received into the bank accounts of low risk or medium risk customers who are unknowingly recruited as “Money Mules”. This paper recommends a proportional approach that balances anti-money laundering measures, financial inclusion and human rights. The mechanisms/measures which have been extensively discussed in this paper will help banks to identify, assess and understand their money laundering and terrorist financing risks as it relates to Money Mules and take commensurate measures to mitigate them.

Updates on Hong Kong’s anti-money laundering laws

2018 ◽  
Vol 21 (3) ◽  
pp. 290-296 ◽  
Author(s):  
Foster Hong-Cheuk Yim ◽  
Ian Philip Lee
Keyword(s):  
Hong Kong ◽  
Money Laundering ◽  
Task Force ◽  
Case Law ◽  
Content Type ◽  
Legislative Council ◽  
Salient Points ◽  
Financial Action Task ◽  
Mutual Evaluation ◽  
International Financial Center

Purpose The purpose of this study is to discuss the latest developments of anti-money laundering (AML) laws in terms of case law and intended legislation amendments. Design/methodology/approach In terms of AML case law, the authors analyze three judgments from the Hong Kong Court of Final Appeal. In terms of the intended legislation amendments, the authors outline salient points from the two amendment bills submitted to the Legislative Council of Hong Kong. Findings With the developments in AML case law and the intended legislation amendments, Hong Kong is expected to have a positive result in the Financial Action Task Force Mutual Evaluation in October/November 2018. Originality/value A robust AML/counter-terrorist financing regime is the bedrock of Hong Kong’s reputable status as an international financial center. This paper seeks to illicit meaningful interactions amongst all stakeholders.

Combating the financing of proliferation: challenges and new tools

2020 ◽  
Vol 27 (4) ◽  
pp. 1107-1121 ◽  
Author(s):  
Ian John Stewart ◽  
Andrea Viski ◽  
Jonathan Brewer
Keyword(s):  
Private Sector ◽  
Money Laundering ◽  
Task Force ◽  
National Level ◽  
Weapons Of Mass Destruction ◽  
Original Research ◽  
Financial Crime ◽  
Task Force Report ◽  
Content Type ◽  
Terrorist Financing

Purpose This paper aims to examine why most governments appear to attach less importance to countering proliferation finance than they do to countering money laundering or terrorist financing. Design/methodology/approach The paper examines this question from a number of perspectives including a definitional perspective, a national regulatory perspective and a private sector implementation perspective. Findings It is shown that there are presently significant gaps in counter proliferation finance implementation at the national level, with follow-on implications for private sector compliance. Research limitations/implications A key finding is that most governments do not address the issue of proliferation finance as distinct from other forms of financial crime such as terrorist financing or money laundering. Practical implications Practical opportunities for improved financial sector implementation of counter proliferation finance controls are identified, but it is argued that it is states that must do more to meet their obligations for improvements to be realised. Social implications The risk of not doing so is that the financial system will continue to be misused to finance the proliferation of weapons of mass destruction. Originality/value The study seeks to fill a gap in existing academic literature on the question of why proliferation finance receives less attention than other forms of financial crime. The study builds on original research undertaken by the authors including the typologies of proliferation finance, which were later incorporated into an updated Financial Action Task Force report on this topic, as well as events organised by the authors to explore the topic of proliferation finance implementation with governments and the private sector.

Asset recovery practices in combating money laundering: evidence from FATF mutual evaluation report of FATF member countries of Asia pacific region

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salwa Zolkaflil ◽  
Sharifah Nazatul Faiza Syed Mustapha Nazri ◽  
Normah Omar
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Evaluation Report ◽  
Content Type ◽  
Management Framework ◽  
Recovery Mechanism ◽  
Asset Recovery ◽  
Current Asset ◽  
Recovery Management ◽  
Mutual Evaluation

Purpose This study aims to understand the member countries’ current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework. Design/methodology/approach Content analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries. Findings The result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets. Research limitations/implications This study is limited to information mentioned in the FATF MER. Practical implications This study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement. Originality/value FATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries’ discretion. Therefore, this study aimed to understand the member countries’ current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework.

Deficient regimes of anti-money laundering and countering the financing of terrorism

2020 ◽  
Vol 23 (3) ◽  
pp. 663-675
Author(s):  
Sisira Dharmasri Jayasekara
Keyword(s):  
Economic Impact ◽  
Money Laundering ◽  
Risk Premium ◽  
Task Force ◽  
Short Term ◽  
Economic Implications ◽  
Content Type ◽  
Financing Of Terrorism ◽  
Mutual Evaluation

Purpose The purposes of this paper are to discuss the short-term economic impact of the jurisdictions that have been identified as deficient countries in terms of the regime of anti-money laundering and countering the financing of terrorism and to identify the probable reasons for the poor results of mutual evaluation reports of the deficient countries. Design/methodology/approach This study uses a case study approach to discuss the short-term economic impact of the countries that are under the International Co-operation Review Group (ICRG) process due to poor results of mutual evaluation reports. The sample of countries for the study was selected based on the Financial Action Task Force (FATF) listing as of November 30, 2019. The objectives of the study are expected to be achieved by discussing the issues of these jurisdictions based on publicly available information. However, this study will not consider the long-term economic impact on the countries due to the observed short-term nature of the ICRG process. Findings This analysis reveals that the ICRG process affects countries in two different perspectives. First, there are implications on the financial system of a deficient country as a result of identifying it as a high-risk country. Second, there are some other forms of economic implications due to the rigorous ICRG process. The downgrading of the sovereign rating by international and credit rating agencies is one of such implications that result in adding a risk premium to the country. This results in increased transaction costs and borrowing costs of deficient countries. Besides, it appears that the ICRG process impacts the capital and currency markets of deficient countries as a result of enhanced due diligence process on fund transfers and limitations in corresponding banking relationships. However, despite these difficulties, some countries have been identified more than once for the ICRG process. Therefore, such countries have to take measures to strengthen the anti-money laundering and countering the financing of terrorism (AML/CFT) regime to avoid future listing. However, long-term sustainability of the countries that were removed from the FATF grey-listing is also questionable under the current FATF methodology of evaluating countries because of the level of effectiveness depends on the judgment of assessors on the risk and context of countries rather the technical compliance. Research limitations/implications This study was limited to the countries that were in the grey list as of November 30, 2019. The countries exited from the list have not been considered for the study. Originality/value This paper is an original work done by the author by discussing the issues of the ICRG process in respect of deficient countries in view of strengthening the AML/CFT regimes of such countries.

The viability of recent enforcement mechanism to combat money laundering and financial terrorism (AML/CFT) in Nigeria

2019 ◽  
Vol 22 (3) ◽  
pp. 417-433
Author(s):  
Maruf Adeniyi Nasir
Keyword(s):  
Money Laundering ◽  
Qualitative Methodology ◽  
Task Force ◽  
Research Strategy ◽  
Content Type ◽  
Clear Cut ◽  
Terrorism Financing ◽  
To Come ◽  
Enforcement Mechanisms ◽  
Combat Money Laundering

Purpose This paper aims to evaluate the recent steps and enforcement mechanisms employed in Nigeria to combat money laundering and terrorism financing to give a clear and deeper insight to the potential that it portends and locate its workability by combing through various policies that are adapted to reinforce the existing anti-money laundering/combating financing terrorism (AML/CFT) legal and regulatory framework in Nigeria. The paper, therefore, provides a comprehensive assessment of these measures to exhume necessary reinforcement elements required to achieve the desired result by exploring developments from other jurisdictions that have surpassed the country in the AML/CFT crusade. Design/methodology/approach This study adopted qualitative research methodology. It is structured in such a way that mixed qualitative methodology approach as a research strategy is employed. This is achieved by putting into use the combination of doctrinal and non-doctrinal research methods. Descriptive, interpretative and content analysis methods are used to analyse various AML/CFT government policies along with the existing AML/CFT laws. Judicial pronouncements, various scholarly opinions, along with the anti-money law (AML/CFT) within the Nigeria context are analysed in line with the 40 “Recommendations” of the Financial Action Task Force which depicts the acceptable legislative and regulatory precedent and an international standard to measure the adequacy or otherwise of any national or local laws on money laundering. Findings Factors that were militating against the effectiveness and positive performance of Nigeria government to combat money laundering-related matters were identified. A clear-cut amendment to the existing provisions of law that will address the issue is suggested to enhance the effectiveness and combat other similar challenges that are likely to come out of these policies, otherwise more problems would be created than could be solved. Originality/value This paper exposes deficiencies in the present mechanism adopted to combat money laundering in Nigeria and proffers necessary antidote to facilitate the effectiveness of the legislation. It provides necessary information that could facilitate amendments and new legislation(s) to curb the defects by the lawmakers and could serve as a veritable source of information to law students, legal practitioners and academia.

The problem of regulating the easy way out – EU money laundering regulation

2019 ◽  
Vol 22 (4) ◽  
pp. 666-677 ◽  
Author(s):  
Kalle Johannes Rose
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Regulatory Focus ◽  
Design Methodology ◽  
Law And Economics ◽  
Vital Role ◽  
Economic Conditions ◽  
Content Type ◽  
Definition Of ◽  
Combat Money Laundering

Purpose Current research within law and economics focus on money laundering as an externality problem caused by financial institutions. Thus, when existing research and legislation place the responsibility on financial institutions, it creates a void where it is neglected that clients of financial institutions may, in fact, play a vital role in the problem of externality. However, based on the definition of money laundering, this paper aims to examine and analyze the need to focus on the clients as part of the externality problem with regard to money laundering. Design/methodology/approach This paper examines how a lack of regulatory focus on the clients of financial institutions lead to inefficient anti-money laundering regulation. Through a functional approach of law and economics, it analyzes the externality problem of money laundering based on both the legal definition and the economic conditions of the problem. Findings Based on the fourth anti-money laundering directive, the paper argues that present regulation has a tendency to focus on financial institutions, thereby not considering the entire scope of the externality problem in money laundering. For regulation to efficiently combat money laundering, it is necessary to place some responsibility on the clients of financial institutions and not solely on the financial institutions. Nevertheless, the inclusion of client responsibility might lead to some legal or economic complications, which need to be subject to further research. Originality/value The paper identifies the need for a fundamental change in the perception of the externality problem of money laundering, and thus, presents the required approach to reach an efficient solution.

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