1351. The Fight Against Money Laundering and Terrorist Financing
- Author:
- Jeremy Lin
- Publication Date:
- 10-2019
- Content Type:
- Commentary and Analysis
- Institution:
- The Geneva Centre for Security Policy
- Abstract:
- The Financial Action Task Force (FATF) fulfills a critical role in international financial governance as the global standards-setter for antimoney laundering and combating the financing of terrorism (AML/CFT). Money laundering and terrorist-financing challenges are evolving, particularly as AML/CFT regimes in developed countries become more robust and illicit financial flows move deeper into primarily cash-based informal economies. Recent political maneuvering by FATF member states to influence the organization’s decisions and global AML/CFT standards-setting has demonstrated that the FATF and AML/CFT policymaking are vulnerable to individual state interests and that the organization’s political independence needs to be strengthened. To more effectively address the above challenges, the FATF should establish an independent oversight function, provide clearer guidance and technical support to countries with deficient AML/CFT regimes, and expand the diversity of its membership.
- Topic:
- Security, Terrorism, Monetary Policy, Governance, and Financial Crimes
- Political Geography:
- Global Focus