Curbing the Menace of Money laundering - International Initiatives (By Dr.Sudarshan Nimma)

[1]The Asian Development Bank (ADB) has established a trust fund to strengthen assistance to its developing member countries in fighting against money laundering and financing terrorism.

See generally http://www.iadb.org/idbamerica/index.cfm?thisid=3593

[3]Basel Committee on Banking Supervision: Consultative Document Guidelines Revised “Annex on correspondent” November 2016. Final version of June 2017 @ http://www.bis.org/bcbs/publ/d405.htm

[1]Julian, A. Francis, International Banking and the Third World Debt: A Study on State Insolvencies, Dissertation submitted for SJD Degree, Tulane University School of Law, New Orleans, USA (1984). p.44.

[1] Gururaj, B.N., Commentaries on FEMA, Money Laundering Act and COFEPOSA, Wadhwa, Nagpur, (2005) p.803.

[1]Zenobia Sethna, Money Laundering:

A Historical Perspective, (June 2016) https://imarticus.org/money-laundering-a-historical-perspective/

[1]In 1996, a spokesperson for the IMF estimated that 2–5% of the worldwide global economy involved laundered money."Money Laundering: the Importance of International Countermeasures--Address by Michel Camdessus". IMF. Retrieved 2018-04-10;The Financial Action Task Force on Money Laundering (FATF), an intergovernmental body set up to combat money laundering stated that it is absolutely impossible to produce a reliable estimate of the amount of money laundered and therefore the FATF does not publish any figures in this regard; Financial Action Task Force. "Money Laundering FAQ". Retrieved 20 March 2017.

[1]Friedrich Schneider, Money laundering and financial means of organised crime: Some preliminary empirical findings, Global Business and Economics Review 10(3):309-330 · February 2008@ https://www.researchgate.net/publication/227358325_

[1]According to UNDCP estimates, about 70% of the governments do not have effective legislation in place; Gururaj, B.N., Commentaries on FEMA, Money Laundering Act and COFEPOSA, Wadhwa, Nagpur, (2005) p.803.

[1]www.un.org.treaty_adherence_convention_1988.pdf; Since money laundering is an international phenomenon, transnational co-operation is of critical importance in the fight against this menace. A number of initiatives are taken to touch upon the matter at the international level. The major international agreements embrace the global organization Convention against Illicit Trafficking in medicinal drugs and psychedelic Substances, popularly called the Austria (Vienna) Convention,[1] and the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime.

[1] Ibid. note supra

[1]A.Francis Julian, The Global Legal Regime on Anti-Money Laundering, published in ‘Prevention of Money Laundering-Legal and Financial Issues’ (Ed) K.N.Chandrasekharan Pillai & A. Francis Julian, The Indian Law Institute, New Delhi (2008) pp 1-9.

[1]Cryer, Robert, “Prosecuting International Cro,e: Selectivity and the International Criminal Law Regime”, Cambridge Studies on International and Comparative Law Series No. 41, Cambridge University Press, London (2005). P. 1.25

[1]The term ‘networks’ normally refers to relatively loosely coordinated arrangements across borders between and among

like agencies that seek to respond to global issues. The term ‘government networks’ means networks of regulatory agents and agencies that reach out to their homologues and other regulators across national borders and state jurisdictions.

[1]Slaughter, Anne-Marie, “A New World Order”, Princeton University Press, Princeton, New Jersey, USA (2004); and Anderson-Kenneth, Squaring the Circle? Reconciling Sovereignty and Global Governance through Global Government Networks, 118 Harvard Law Review, 1255.

[1] is that the main task of the Programme. It encompasses activities of making awareness, institution building and training.

[1]aims at providing States key info to higher perceive the development of money laundering and to modify the international community to plot a lot of economical and effective countermeasure strategies.

[1]to support the establishment of financial investigation services for raising the overall effectiveness of law enforcement measures. MONEY LAUNDERING IN INDIA1 National Judicial Academy, www.nja.nic.in/4.1.%20Paper%20Money%20Laundering_1_%20Paridhi%20Saxena.pdf

[1]at its twentieth special session for all States to adopt legislation that gives effect to the universal legal instruments against money-laundering and countering the financing of terrorism

[1]and the provisions contained in the measures for countering money-laundering adopted by the General Assembly at its twentieth special session

[1]to extend the specialized experience and skills of criminal justice officers within the investigation and

prosecution of complicated money crimes, particularly with regard tothe financing of terrorism.

[1]to deal effectively with money-laundering and also the funding of terrorist act Through the worldwide Programme, UNODC encourages States to develop policies to counter money-laundering and the funding of terrorist act, monitors and analyses related problems and responses, raises public awareness about money-laundering and the financing of terrorism, and acts as a coordinator of initiatives carried out jointly by the United Nations and other international organizations.

[1]It additionally provides Governments, law enforcement authorities and financial intelligence units with strategies to counter money-laundering, advises on improved banking and financial policies and assists national financial investigation services.

[1]https://www.unodc.org/unodc/en/money-laundering/programme objectives. htmlref=menuside

[1] (Source: A. (Francis Julian, The Global Legal Regime on Anti-Money Laundering, in Prevention of Money Laundering-Legal and Financial Issues, (Edited) by K.N.Chandrasekharan Pillai, A. Francis Julian, The Indian Law Institute, New Delhi 2008; p. 11)

[1]The Convention came into force with effect from November 11, 1990. The ‘Preamble of the Convention’ warns the increasing I`roads into various social groups made by illicit traffic in narcotic drugs and psychotropic substances and focuses on to deprive persons engaged in illicit traffic of the issue of their criminal activities and to eliminate the foundation reason behind the matter of the abuse of narcotic medication and mind-expanding substances; Dr. Shamsuddin, Commentary on the Prevention of Money Laundering Act, 2002, (2018) Commercial Law Publishers (India) Pvt. Ltd. Delhi.

[1]The revised set of twenty-nine Core Principles has also been reorganized to foster their implementation through a more logical structure, highlighting the difference between what supervisors do and what they expect banks to do: Principles 1 to 13 address supervisory powers, responsibilities and functions, focusing on effective risk-based supervision, and the need for early intervention and timely supervisory actions. Principles 14 to 29 cover supervisory expectations of banks, emphasizing the importance of good corporate governance and risk management, as well as compliance with supervisory standards.; https://www.bis.org/publ/bcbs230.htm

[1]United Nations Convention Against Illicit Traffic In Narcotic Drugs And Psychotropic Substances, 1988 available at http://www.unodc.org/pdf/convention_1988_en.pdf (last accessed on May 24, 2015

[1]or property the value of which corresponds to such proceeds; This convention in 1990 establishes a common policy on money laundering. It sets out a common definition of money laundering and common measures for dealing with it. The Convention lays down the principles for international cooperation among the member states, which may also include states outside the Council of Europe. One of the purposes of this convention is to facilitate international cooperation as regards investigative assistance, search, seizure and confiscation of the proceeds of all types of criminality, particularly serious crimes such as drug offences, arms dealing, terrorist offences etc. and other offences which generate large profits.

[1]This Convention aims to facilitate international co-operation and mutual assistance in investigating crime and tracking down, seizing and confiscating the proceeds thereof; to assist States in attaining a similar degree of potency even within the absence of full legislative harmony.

[1]In pursuance of the object of International co-operation, the Convention provides for – i) various kinds of investigative assistance like, assistance in procuring evidence, transfer of information to another State without a request, adoption of common investigative techniques, lifting of bank secrecy etc; ii) provisional measures like freezing of bank accounts, seizure of property to prevent its removal; and iii) measures to confiscate the proceeds of crime: enforcement by the requested State of a confiscation order made abroad, institution by the requested State, of domestic proceedings leading to confiscation at the request of another State.

[1] “The Member States of the Council of Europe and the other States signatory hereto, considering that the aim of the Council of Europe is to achieve a greater unity between its Members, convinced of the need to pursue a common criminal policy aimed at the protection of society, considering that the fight against serious crime, which has become an increasingly international problem, calls for the use of modern and effective methods on an international scale; basic cognitive process that one amongst these ways consists in depriving criminals of the yield from crime, considering that for the attainment of this aim a well-functioning system of international co-operation also must be established.”

[1]It needs the member state to adopt such legislative and different measures as could also be necessary to confiscate instrumentalities and yield or property the worth of that corresponds to such properties.(Art. 2 (1) of the Convention) Further, each party shall ensure that it is able to search, trace, identify, freeze, seize and confiscate property of a licit or illicit origin, used or allocated to be used by any suggests that, in whole or partially, for the finance of act of terrorism, or the yield of this offence, and to produce co-operation to the present finish to the widest attainable extent.(Art. 2 (2) of the Convention)

[1]Art. 2,8,9 and 10 of the Convention

[1]or an act intended to cause death or bodily injury to any person not actively involved in armed conflict in order to intimidate a population or compelling any government or any international organisation to do or abstain from doing any act.

[1]www.unoodc.org; www.wikipedia.org

[1]Kathryn L. Gardner, Fighting Terrorism the FATF Way, Lynne Rienner Publishers, Vol. 13, No. 3 (July–Sept. 2007), pp. 325-345.

[1]The United Nations Office on Drugs and Crime (UNODC) established in 1997 with headquarters in Vienna, operating 20 field offices, as well as liaison offices in New York and Brussels, is a global leader in the fight against illicit drugs and international crime, prevention of terrorism and money laundering.[1]https://www.unov.org/unov/en/unodc.html’ The international community confronts a host of menaces, including illicit drugs, threats to security and health and new and emerging crimes.UNODC has free a replacement . Menu of Services revealed in Gregorian calendar month 2010, which provides a detailed overview of how clients can access targeted assistance or the range of publications and online tools available.

[1]The enforcement, Organized Crime and Anti-Money-Laundering Unit of UNODC is responsible for carrying out the Global Programme against Money-Laundering, Proceeds of Crime and the Financing of Terrorism, in response to the mandate given to UNODC through the global organization Convention against Illicit Traffic in Narcotic medication and psychoactive Substances of 1988.https://www.unodc.org/unodc/en/about-unodc/index.html?ref=menutop

[1]https://www.unodc.org/unodc/en/money-laundering/technical-assistance.html

[1]therefore the finance of act of terrorism and to help them in detection, seizing and confiscating illicit proceeds, as required pursuant to global organization instruments and different globally accepted standards, by providing relevant and appropriate technical assistance upon request.https://www.unodc.org/unodc/en/money-laundering/index.html?ref=menuside

[1]in setting up their AML-CFT legislation fully compliance with the international legal instruments, particularly the 40+9 FATF Recommendations, the 1988 UN Convention against illicit Traffic in Narcotic Drugs and Psychotropic Substances and theU.N. Convention against Transnational Organized Crime, 2000. See Appendix – VII of Ch.16 of the Book

[1]https://www.unodc.org/ddocuments/money-laundering/2005/

[1]https://www.unodc.org/documents/moneylaundering/Model_Provisions_2009_Final.pdf

[1] in joint collaboration with the Commonwealth Secretariat, IMF and by a panel of experts from common law countries.

[1]https://www.britannica.com/topic/Interpol; terrorism and crimes against people and property, including crimes against children, trafficking in human beings, illegal immigration, automobile theft, and art theft; economic, financial, and computer crimes, including banking fraud, money laundering, corruption, and counterfeiting; and illegal drugs and criminal organizations, including organized crime. Interpol has been playing an active role in investigating money laundering at the global level working closely with other international organizations to foster international awareness on the importance utilising financial investigative techniques against organized criminal activities including money laundering.

[1]http://www.interpol.int/Public/FinancialCrime/MoneyLaundering/Unit.asp

[1]FATF: “Methodology for Assessing Compliance with the FATF 40 Recommendations and the FATF 9 Special Recommendations”, FATF/OECD (2004); and also The World Bank, Global Monitoring Report 2006 – p.179.

[1]http://w.if.org/external/np/fsap/fsap.asp

[1]OFC program initiated in June 2000 considering the potential vulnerabilities stemming from the weaknesses in the financial systems of offshore centre.

[1]http://w.if.org/external/np/fsap/fsap.asp

[1] in joint collaboration with the Commonwealth Secretariat, IMF and by a panel of experts from common law countries.http://www.imf.org/external/np/exr/glossary/showTerm.asp#76

[1]and also the panel report on the money laundering case against Colombia-Indicative Prices `and Restrictions on Ports of Entry.

[1]Kathryn L. Gardner, Fighting Terrorism the FATF Way, Lynne Rienner Publishers, Vol. 13, No. 3 (July–Sept. 2007), pp. 325-345.To become a member, a country must be considered strategically important (large population, large GDP, developed banking and insurance sector, etc.), must adhere to globally accepted financial standards, and be a participant in other important international organizations. Once a member, a country or organization must endorse and support the most recent FATF recommendations, commit to being evaluated by (and evaluating) other members, and work with the FATF in the development of future recommendations.https://www.investopedia.com/terms/f/financial-action-task-force-fatf.asp

[1]Ibid. supra note.

[1]Appendix – V of Chapter 16 of the Book

[1]Refer:http://www.fatfgafi.org/publications/fatfrecommendations/documents/the40recommndationspublishedoctober2004.html

[1]FATF Annual Report 2004-05, p.7

[1]http://ww.fatfgafi.org/media/fatf/documents/recommendations/pdfs/FATF_Recommendations.pdf: p.13)

[1]with the objective to reduce the vulnerability of the financial system to money laundering by ensuring that all financial centres adopt and implement measures for the prevention, detection and punishment of money-laundering according to internationally recognized standards.

[1]http://www.oecd.org/daf/anti-bribery/newantimoneylaunderingstandardsreleased.htm

[1]https://www.investopedia.com/terms/f/financial-action-task-force-fatf.asp

[1]The FATF's 40 recommendations are the principal standards to combat these crimes.http://www.apgml.org/fatf-and-fsrb/page.aspx?p=94065425-e6aa-479f-8701-5ca5d07ccfe8

[1]https://www.bis.org/bcbs/ Further, metropolis III is Associate in Nursing internationally united set of measures developed by the metropolis Committee on Banking direction in response to the monetary crisis of 2007-09. The measures aim to strengthen the regulation, supervision and risk management of banks. Like all metropolis Committee standards, Basel III standards are minimum requirements which apply to internationally active banks. Members are committed to implementing and applying standards in their jurisdictions within the time frame established by the Committee.[1] The Basel Committee's approach to policy development relies on the coordinated work of its varied operating teams and task forces, a wide and open consultation process, and cooperation with international institutions. The Committee additionally strives to review the implementation of its standards so as to contribute to A level taking part in field among internationally active banks.Policy Development is fostered by The Committee's work largely organised around groups, working groups and task forces. Any member organisation will join these teams to participate within the policy development method.

[1]Refer to: Statement on the Prevention of criminal use of the Banking System for the Purpose of Money Laundering;

and also http://www.bis.org/publ/bcbss137.pdf.

[1]which aims at encouraging the banking sector to adopt common position in order to ensure that banks don't hide or launder funds non-inheritable through criminal activities. The Basle Statement of ‘Principles on the Prevention of Criminal Use of the Banking system for the purpose of Money Laundering’ is a significant breakthrough to control and check money laundering on global level, and the same is not confined to drug-related money but encompass all aspects of money laundering through banking system i.e.the deposit, transfer and/or concealment of money derived from illicit activities whether robbery, terrorism, fraud or drugs.

[1]The revised Core Principles offer a comprehensive customary for establishing a sound foundation for the regulation, supervision, governance and risk management of the banking sector. The Preamble to the Basle Convention against money laundering clearly stipulates that Banks and other financial institutions may be unwittingly used as intermediaries for the transfer or deposit of funds derived from criminal activity, and the Criminals and their associates use the national economy to create payments and transfers of funds from one account to another; to cover the supply and useful possession of money; and to provide storage for bank-notes through a safe-deposit facility.These activities are commonly referred to as money-laundering. Para.1 of the Preamble to the Prevention of Criminal Use of the Banking System For The Purpose of Money Laundering (1988).

[1]It seeks to deny the banking system to those involved in money laundering by the application of the four basic principles namely, identifying the customer, compliance with the laws, cooperation with Law Enforcement Agencies and adherence to the Statement.;Para.6. of the Preamble to 1988 Convention.

[1]The OGBS would also participate with relevant international organizations concerned in setting up and promoting international standards for cross border supervision and for combating money laundering and terrorist financing. OGBS also encourages its members to apply high standards of supervision based on internationally accepted principles.

[1]The Egmont cluster provides support to member FIUs by: increasing and systematizing international cooperation within the reciprocal exchange of data, increasing the effectiveness of FIUs by providing coaching and promoting personnel exchanges to boost the experience and capabilities of personnel utilized by FIUs, fostering higher and secure communication among FIUs through the appliance of technology, like the Egmont Secure internet (ESW), fostering magnified coordination and support among the operational divisions of member FIUs, promoting the operational autonomy of FIUs, and promoting the institution of FIUs in conjunction with jurisdictions with an AML/CFT program in situ, or in areas with a program within the early stages of development. https://www.revolvy.com/topic/Egmont%20Group%20of%20Financial%20Intelligence%20Units;

[1]https://www.fincen.gov/resources/international/egmont-group-financial-intelligence-units

[1]Since its beginning, The Egmont cluster has fully grown dramatically from fourteen units in 1995 to a recognized membership of 159 FIUs The FIUs of Cambodia, Cuba, Nepal, and Niger were admitted to the Egmont cluster in 2015. The FIU of Syrian Arab Republic was reinstated.[1] The goal of the Egmont cluster is to produce a forum for FIUs round the world to boost cooperation within the fight against concealment and funding of coercion and to foster the implementation of domestic programs during this field.

[1]https://www.fincen.gov/resources/international/egmont-group-financial-intelligence-units

[1]The member countries are obligated to prove FIUs with power to have access directly or indirectly, on a timely basis to the financial, administrative, and law enforcement information that they require to properly undertake their functions.

[1]The Asian Development Bank (ADB) has established a trust fund to strengthen assistance to its developing member countries in fighting against money laundering and financing terrorism.

See generally http://www.iadb.org/idbamerica/index.cfm?thisid=3593

[1] Ibid supra note.

[1]Basel Committee on Banking Supervision: Consultative Document Guidelines Revised “Annex on correspondent” November 2016. Final version of June 2017 @ http://www.bis.org/bcbs/publ/d405.htm

Curbing the Menace of Money laundering - International Initiatives (By Dr.Sudarshan Nimma)

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Curbing the Menace of Money laundering - International Initiatives (By Dr.Sudarshan Nimma)

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[1]Zenobia Sethna, Money Laundering:

A Historical Perspective, (June 2016) https://imarticus.org/money-laundering-a-historical-perspective/