Sample Essay on Efforts Made By International Institutions in Establishing Global Anti-Money Laundering Standards

Introduction

Laundering of money is an illegal activity that entails concealing origins of money that is gained after engaging in criminal acts such as corruption and trafficking of drugs. Globally, the society in general, has tried to curb the act of money laundering. In addition to this, it has been classified as a terrorist act and it has threatened the international community at large[1]. This has been international organizations to come together to build efforts that are aimed to achieve certain goals that could help in reducing the threat. Some of these goals include ensuring that the financial system used by the international bodies and organizations are protected[2]. For instance, these efforts are aimed at ensuring that there is liberty application in the rates used for exchange of currencies of countries against those of other countries. Resources made available to terrorists are cut off and this ensures that there are no profitable acts that terrorists are able to engage in. Some of the international bodies that are involved in fighting this act include IMF, World Bank and FATF, UN, IMF and EU[3].

Efforts that have been made by these international organizations to fight the act include ratifying instruments that are used for terrorism among countries[4]. To make sure that the effort bears some good results with immediate effect, there has been implementation of the UN fighting body that ensures that those instruments used in the criminal act of terrorism are not in existence. The body has established an international convection to suppress the act. The bodies have established national ways of reporting any acts that people suspect that could involve terrorism as well as the organizations that engage in the acts. This effort has been implemented by confiscating and criminalizing those assets that terrorists use to get finances[5]. There has been campaigns to emphasize on mutual help and coordination from member countries of these organizations to support in investigating and prosecuting those who engage in terrorism. There has been establishment of financial as well as non-financial entities that are charged with the responsibility of offering services to transmit money as well as value to all those countries that are recommended by the organizations[6]. This ensures that finances reach to the right hands and are used for the roles that are designed for. All the financial organizations involved are to practise integrity a well as diligence to ensure that security measures are taken on the member countries as well as clients that fail to provide their full details such as originator details.

Implementation of these efforts have been successful because of the cooperation that member countries have had towards the efforts. For instance, countries have decided that they should not allow transportation of money that is obtained from acts of terrorism across their borders[7]. This will enhance in eliminating these acts in respective countries. Those terrorists that hide in respective countries will be identified and through the methods of prosecutions that have been defined by the organizations, dealing with those identified will be easy. This is a sign that the organizations have been able to implement their efforts successfully. However, implementation of these efforts has been faced with certain challenges. The biggest among them is the uncooperative and unsupportive countries that have failed to mutually offer help in implementing them[8]. Some countries are not members of these organizations and thus have kept themselves away from the issue. This has made terrorists escape to the countries making it a difficult task for the organizations to fight money laundering. To implement the efforts of these organizations to fight money laundering activities, the member states have formed sub-organizations that have been charged with specific roles in the fight. There are those associate members that play the role of laying strategies to be used to implement the efforts defined for the fight. Observer bodies include those organizations that make observations on the success of the strategies laid down by the associate organizations. The last group is the organizations that are made up by other bodies that aim at offering supplement help to the other two bodies[9]. For instance, the other bodies find relevant information that could be relevant to the other two groups of organizations.

Conclusion

Despite the efforts that may be applied to fight money laundering, there needs some cooperation from all the counties across the globe. This is because the problem that requires global attention. Once some of the countries are supportive of the implementation of the efforts and others are not, it will not lead to good results. However, with the different levels of development different counties have, there should be some measures to protect the sovereignty of each country[10]. This will ensure that some countries that fear losing their sovereignty will not shy away from involving themselves in the fight. In addition to this, various private organizations that countries, specifically from countries that have not been involved in the fight should be brought to the bracket to ensure that more complex networks to implement the efforts are established.

 

Bibliography

Boister, Neil. 2012. An introduction to transnational criminal law. Oxford, U.K.: Oxford University Press.

Chaikin, D., and J. Sharman. 2009. Corruption and Money Laundering A Symbiotic Relationship. New York: Palgrave Macmillan.

Chatain, Pierre-Laurent. 2009. Preventing money laundering and terrorist financing: a practical guide for bank supervisors. Washington (DC): World Bank.

Commonwealth Secretariat. 2006. Combating money laundering and terrorist financing: a model of best practice for the financial sector, the professions and other designated businesses. London: Commonwealth Secreteriat.

Das, Udaibir S., Marc Quintyn, and Kina Chenard. 2004. Does Regulatory Governance Matter for Financial System Stability? an Empirical Analysis. Washington: International Monetary Fund.

Durrieu, Roberto. 2013. Rethinking money laundering & financing of terrorism in international law: towards a new global legal order.

Great Britain. 2009. Money laundering and the financing of terrorism: 19th report of session 2008-09. Vol. 2, Vol. 2. London: Stationery Office.

Koh, Jae-myong. 2006. Suppressing terrorist financing and money laundering. Berlin [etc.]: Springer.

Mitsilegas, Valsamis. 2003. Money laundering counter-measures in the European Union: a new paradigm of security governance versus fundamental legal principles. The Hague [etc.]: Kluwer Law International.

Ryder, Nicholas. 2011. Financial Crime in the 21st Century Law and Policy. Cheltenham: Edward Elgar Pub.

Schott, Paul Allan. 2006. Reference guide to anti-money laundering and combating the financing of terrorism. Washington, DC: World Bank

Stessens, Guy. 2000. Money laundering a new international law enforcement model. Cambridge [etc.]: Cambridge University Press.

United States. 1997. Law enforcement efforts to combat international money laundering through black market peso brokering. Washington, DC: U.S. G.P.O.

World Bank. 2009. Combating money laundering and the financing of terrorism: a comprehensive training guide. Washington, D.C.: World Bank.

[1] Great Britain. Money laundering and the financing of terrorism: 19th report of session 2008-09. (London: Stationery Office, 2009) 103.

[2] Koh. Suppressing terrorist financing and money laundering. (Berlin [etc.]: Springer, 2006) 112.

[3] Das, Marc and Kina. Does Regulatory Governance Matter for Financial System Stability? an Empirical Analysis. (Washington: International Monetary Fund, 2004) 190.

[4] Boister. An introduction to transnational criminal law. (Oxford, U.K.: Oxford University Press, 2012) 178.

[5] Chatain. Preventing money laundering and terrorist financing: a practical guide for bank supervisors. (Washington (DC): World Bank, 2009) 109.

[6] World Bank. Combating money laundering and the financing of terrorism: a comprehensive training guide. (Washington, D.C.: World Bank, 2009) 102.

[7] Commonwealth Secretariat. Combating money laundering and terrorist financing: a model of best practice for the financial sector, the professions and other designated businesses. (London: Commonwealth Secreteriat, 2006) 126.

[8] United States. Law enforcement efforts to combat international money laundering through black market peso brokering. (Washington, DC: U.S. G.P.O., 1997) 209.

[9] Schott. Reference guide to anti-money laundering and combating the financing of terrorism.( Washington, DC: World Bank, 2006) 104.

[10] Ryder. Financial Crime in the 21st Century Law and Policy. (Cheltenham: Edward Elgar Pub, 2011) 123.