Home
Publications
Catalog
Online Publications
Document
Anti-Money Laundering Toolkit
Background![]() What is Money Laundering and Terrorism Financing?Briefly described, money laundering is the process by which proceeds from a criminal activity are disguised to conceal their illicit origin. Money laundering has commonly been associated with drug trafficking where drug proceeds are laundered through the financial system or other means. It extends beyond drug trafficking (or drug money laundering) when proceeds of other criminal activities are laundered, such as illegal arms sales and human trafficking. Terrorist financing, on the other hand, is the provision or collection of funds for the support, advancement or perpetration of acts of terrorism. Such funds include legitimate funds as well as proceeds of criminal activities. International Law and StandardsThe principal initatives in the development of international law and standards involve the work of the United Nations ("UN") and the Financial Action Task Force on Money Laundering ("FATF"). In anti-money laundering and combating the financing of terrorism ("AML/CFT"), the key instruments are:
While the FATF 40+9 Recommendations do not have the same status as international law instruments such as the UN conventions and the UN Security Council resolutions, and are therefore not legally binding, there are substantial linkages in the themes and underlying policies of the UN instruments and the FATF 40+9 Recommendations. Additionally, there has been significant emphasis on the implementation of the FATF 40+9 Recommendations through their endorsement by more than 170 countries around the world and by the Executive Boards of the International Monetary Fund (IMF) and the World Bank. This is reinforced through the undertaking of mutual evaluations by the FATF and FATF-styled regional bodies ("FSRBs") and though assessments by the IMF and the World Bank. Consequently, in considering AML/CFT international law and standards, it is important to have regard to both UN conventions and UN Security Council resolutions and the FATF Recommendations. Further details on the above instruments can be found in the website of the Global Programme on Money Laundering of the United Nations Office on Drugs and Crime*. Key Aspects of the International Law and StandardsCountries are expected to have adequate AML/CFT legal frameworks, adequate institutional regimes for implementing AML/CFT requirements, and procedures in place for supporting international cooperation. Specifically they are required to:
International Organizations*
|
| © 2009 Asian Development Bank Privacy | Terms of Use |
|