Money laundering threatening global financial systems – Report

Money Laundering, Terrorist Financing and the Proliferation of Weapons of Mass Destruction (ML/TF&P) pose serious risks to the global financial systems, peace and development, the National Anti-Money Laundering and Countering the Financing of Terrorism and Proliferation (AML/CFT&P) policy – (2019 -2022), has said.

The policy published by the Bank of Ghana on Wednesday, September 25, 2019 said the growing diversification and complexities used in perpetrating these financial crimes requires national governments to improve effectiveness of prevention and detection systems into regulatory governance and supervision of sectors at risk of abuse, as well as improve law enforcement tools and systems to trace and prosecute illicit activities that have been detected.

It said: “These strategies and actions by officials must keep pace with the criminals exploiting these new technologies to conceal illicit proceeds.

“The fight against financial crimes has moved beyond national borders as criminals have taken advantage of the rapid advancement in technology, increased call for acceleration in removing international trade barriers and free movement of persons.

“The increased needs for Foreign Direct Investment by developing countries have also contributed significantly to creating a fertile ground for criminals to successfully launder their illicit funds.”

It added : “Terrorism and terrorist financing activities have in the recent past become prevalent within the West African sub-region. No country can effectively combat organised crime (including Terrorism and Terrorism Financing) by itself due to their complexity and international ramifications.

“Combatting money laundering and terrorist financing has become a higher national priority for Ghana, not only to protect Ghana, its citizens and its government, but also to contribute Ghana’s experience to the global knowledge in dealing with these activities, including the effective implementation of prevention and detection mechanisms within the context of Ghana, the West African sub-region, Africa and the global community.

“In response to the threat of ML/TF & P to the global economy, the Financial Action Task Force (FATF), an inter-governmental body established in 1989 by the G7 countries, set standards to promote the effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation and other related threats around the world.

“FATF, in collaboration with its regional bodies including the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) work to identify and mitigating national-level risks with the aim of protecting the international financial system from misuse. This work is critically important because in global terms ‘the chain is only as strong as its weakest link’.”