Muna2014

Next MUNA conference:
February 6, 7 & 8, 2019
Issues

The question of combating money laundering and the financing of terrorism

Issue in Economic and Social Council

Money laundering and financing terrorism are, in themselves, already a danger to society but when they are combined, they make up a fatal duo; laundering money in order to finance terrorism.

Money laundering is the act in which one moves illegally obtained money through banks and other businesses to make it seem like it has been obtained legally. The financing of terrorism raises money to support terrorist activities.

The International Monetary Fund (IMF) has been actively working to expand its work on anti-money laundering (AML) and since the tragic events of 11 September 2001, the IMF has also included combating the financing of terrorism (TF) into the AML.

The practice of financing terrorism has several commonly known methods, these include: misuse of clients accounts, purchase of real property, setting up and the managing of charities and the management of trusts and companies.

The problem arises when criminals use money laundering in order to finance terrorist activities. This may lead to an increase in terrorist acts. Though numerous financial institutions have addressed the problem, this issue has still played an active role in recent terrorist attacks. It is an urgent problem we have to take measures in.

Since smaller and more fragile economies are more prone to money laundering, member states could organise an institution for helping the weaker economies. This would also include preventing and combating money laundering and the financing of terrorism.


Useful links

http://www.fatf-gafi.org/media/fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf

https://blogs.imf.org/2017/07/26/stepping-up-the-fight-against-money-laundering-and-terrorist-financing/

https://www.imf.org/external/np/leg/amlcft/eng/aml1.htm

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