Dirty money - The evolution of international measures to counter money laundering and the financing of terrorism

Anti-money laundering and countering the financing of terrorism (AML/CFT) continues to be a dynamic subject area. Dirty money has again been revised and expanded to keep pace with international developments over recent years, and this is the fourth edition. Since the third edition, all countries in the Financial Action Task Force (FATF) and MONEYVAL, the Council of Europe's primary AML/CFT monitoring arm, have been subject to detailed evaluation under the 2003 FATF recommendations. This edition explains how the interdependent network of global assessment bodies works to identify countries which pose threats to the global financial system. The European Union's third directive has been brought into force since the last edition and its provisions are fully analysed. This edition also explains how the most recent Council of Europe treaty in this area, the Warsaw convention, which came into force in 2008, can assist states to achieve more effective money laundering investigations and prosecutions, as well as deterrent confiscation orders. This book, as with the previous editions, is designed for a wide audience, not only actors in national AML/CFT systems in both the public and private sectors, but also all those who simply wish to be better informed about how the international community continues to fight these truly global threats.

Acknowledgements Foreword Chapter I - Transnational and organised crime: the contours of the problem The context The strategy Chapter II - Money laundering: an overview of the process Introduction The money laundering process The stages of the process Money laundering techniques The context Deposit-taking institutions Non-bank financial institutions Non-financial institutions "Gatekeepers" The emergence of new challenges Conclusions Chapter III - Global responses to money laundering The United Nations Introduction: the focus on drugs Major provisions of the 1988 UN convention Money laundering and confiscation Other important provisions Conclusions The UN conventions on transnational organised crime and corruption The 1999 UN International Convention for the Suppression of the Financing of Terrorism Supportive UN activities Global law enforcement co-operation The Egmont Group Chapter IV- The Financial Action Task Force The background The structure and purpose of the FATF The 1990 FATF recommendations The context The nature of the 1990 recommendations The general framework of the 1990 recommendations Improvement of national legal systems Enhancement of the role of the financial system Strengthening of international co-operation The 1996 revised FATF recommendations The context The 1996 revisions The 2003 revised FATF recommendations The context The 2003 revisions Chapter V - The Financial Action Task Force and the financing of terrorism Background and context The aftermath of 11 September 2001 The UN Security Council The Financial Action Task Force Conclusions Chapter VI - The continuing work of the Financial Action Task Force Mandate and priorities Monitoring implementation by FATF members Reviewing developments in money laundering methods and countermeasures The FATF external relations activities The strategy in overview The NCCT initiative and its progeny Future challenges Chapter VII - Pan-European responses to money laundering The context Money laundering initiatives The context The 1990 Council of Europe convention The 2005 Warsaw convention The human rights dimension MONEYVAL Chapter VIII - Action within the European Union The context The 1991 Directive Background and development The requirements of the 1991 Directive and their implementation The 2001 Directive The 2005 Directive Extraterritorial issues The strategy of prevention: associated initiatives Other relevant EU actions Chapter IX – Conclusions Appendices Appendix I The 1990 recommendations of the FATF on money laundering Appendix II The 1996 revised FATF recommendations Appendix III The 2003 revised FATF recommendations and interpretative notes Appendix IV The 2001 FATF Special Recommendations on Terrorist Financing and interpretative notes Appendix V The 2005 Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism Appendix VI Resolution CM/Res(2010)12 on the Statute of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) Appendix VII Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing