Anti-Money Laundering/Combating Terrorist Financing (AML/CFT)

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.

ADB's objectives

ADB's AML/CFT work seeks to advance the following critical objectives:

  • Policy makers, officials, and civil society to understand the negative impact on an economy from money laundering and terrorism
  • Introduce and implement AML/CFT measures to meet the Financial Action Task Force (FATF) 40 + 9  recommendations
  • Delivery of public awareness programs
  • Support mutual aid mechanisms to share information and legal assistance

ADB helps advance these objectives by providing capacity-building, technical assistance, and support to assist countries carry out priority tasks efficiently and effectively.