ANTI MONEY LAUNDERING

Anti Money Laundering

Anti Money Laundering

Introduction:

The main aim of the research is to discuss critically, the money screamed across the wires its provenance fading in a maze of electronic transfer, which shifted it, hid it, broke it up into manageable wads, which would be withdrawn and re-deposited elsewhere, obliterating the trail (Nest of Vipers by Linda Davies 1994). In light of FATF's review and the quotation above, research identifies and illustrates all the extent to which AML typologies and techniques have changed and developed since 1994. The Financial Action Task Force (FATF) regularly reviews the 40+9 recommendations to respond to emerging typologies and technologies. FATF is currently undertaking such a view of standards. The Financial Action Task Force (FATF) or Financial Action Task Force (FATF) is an intergovernmental body to fight against money laundering and terrorist financing.

Financial Action Task Force on Money Laundering:

The FATF has emerged as the preeminent international body for developing and promoting AML and CFT controls. A self-described policy-making body works to generate the political will to bring legislative and regulatory reforms. The task force was established in 1989 by a G-7 summit in Paris convened to address mounting concerns about money laundering, and was given the responsibility of examining ML trends and setting out actions that needed to be taken to combat it (Webb 2004 3, p. 67). The FATF's vital role is to set global AML/CFT standards and ensure the effective implementation of these standards in all jurisdictions. This standard ends the task force nomenclature that suggests a temporary body, but that in reality is a standing inter-governmental collaboration issued 40 Recommendations in 1990 to serve as a comprehensive plan for states to combat ML. In 2003, the FATF membership has expanded from the original 16 to 36 states16, revised the 40 Recommendations substantially. The AML recommendations can be informally grouped into several broad categories, dealing with: the legal system; preventative measures for financial institutions and designated non-financial businesses and professions; institutional and other systemic measures; and national and international cooperation.

The FATF's emergence as a valuable advocate of strong global AML/CFT controls, and its success in raising awareness regarding the dangers of ML and TF and in convincing states to improve in these areas is a tremendous achievement. Scholars have asserted that the FATF's mutual evaluation process appears to have an empirically noticeable impact with respect to improving banking systems and regulations (Subbotina 2009, p. 19). It estimated that about 130 jurisdictions representing 85 per cent of the world population and about 90-95 percent of global economic output. It has made at least a political commitment to implementing FATF recommendations. However, while nobody would argue that developing countries have especially robust comprehensive controls or that there are not significant gaps that need to be addressed, there is nevertheless a danger that the level of compliance among these countries is overstated. It is necessary to delve deeper into the different FATF Recommendations and exactly what goes into building a strong domestic AML/CFT ...