Money Laundering is defined as “the process by which the proceeds of crime are converted into asset
including bank or other deposits so that they may be retained permanently or use the fund for further crime.
Money Laundering generally refers to ‘washing’ of the proceeds or profit generated from:
• Drug Trafficking
• People Smuggling
• Arms, antique, gold smuggling
• Prostitution rings
• Financial frauds
• Corruption, or
• Illegal sale of wild life products and other specified predicate offences.
International Anti-money Laundering Initiatives
• The United Nations
• G-7 (Presently G-8) Summit in Paris in 1989 established the Financial Action Task Force (FATF)
• The Basel Committee on Banking Supervision
• The International Organization of Securities Commissions
• The International Association of Insurance Supervisors
• G-7 (Presently G-8) Summit in Paris in 1989 established the Financial Action Task Force (FATF)
• 40 (forty) Recommendations on Money Laundering.
• 9 (nine) Special Recommendations on Terrorist Financing.
• Now 40 (forty) Recommendation for both ML & CF merging (40+9) recommendations since 2012.
• Monitoring Members Progress.
• Methodology for AML/CFT Assessments.
• List of Non-cooperative Countries and Territories (NCCT).
• The Basel Committee on Banking Supervision
– Prevention of Criminal use of Banking system for the purpose of Money Laundering (December,
1988)
– Core Principles for effective Banking Supervision (September, 1997)
– Core Principles Methodology (October, 1999)
– Customer Due Diligence (October, 2001)
Stages
