Fighting financial crime

Money Laundering (ML) is the process by which criminals attempt to hide and disguise the true origin and ownership of the proceeds of their criminal activities and thereby have these funds enter the normal economy to make it seem as if they have been obtained legitimately.

There are three stages of money laundering.

1. Placement into the financial system of criminal monies.
2. Layering: moving money in the financial system to disguise its criminal origin.
3. Integration: money is absorbed into the financial system, appearing legitimate.

Major controls include:

• Name screening
• Transaction monitoring
• Customer Due Diligence (CDD)
• Training and awareness
• Governance, culture and resources
• Investigations and disclosures
• Risk assessment
• Independent assurance

The last decade has seen a spike in illegal wildlife trafficking globally. Despite increased efforts to protect animals, the traffickers are still winning – conservation efforts alone will not be enough.

By following the money, financial institutions can:

1. Build a better picture of the finances behind the trade
2. Identify and map criminal networks
3. Provide evidence to support investigations and prosecutions

Now the financial sector is coming together to use the power of financial intelligence to turn the tide through the United for Wildlife Financial Taskforce.

This delivers conservation intelligence, makes the issue a priority within member institutions, leverages members’ expertise in fighting financial crime, and better utilises existing partnerships among law enforcement, financial institutions, regulators and NGOs.

But there is still more to do to reduce the demand for illegal wildlife, increase the seizure of illegal goods and illicit financial assets, and help bring traffickers to justice and advocate for appropriate punishment.

Terrorist groups utilise multiple methods to raise, store and use funds. Sources can include taxation and extortion, theft and donations, as well as private funds and card or loan fraud.

Financial institutions use risk categories to help support legitimate customers and stop the flow of money to terrorist groups.

Customer risk

• Charities and not-for-profits
• Money service businesses
• Unregulated MSBs, including money mules
• New payment method providers

Product and channels risk

• New payment methods, including prepaid cards

Geographies risk

• Sanctioned countries
• Countries with significant terrorist activity
• Conflict countries or those bordering conflict countries
• Countries with repressive regimes

Major controls include:

• Training and awareness
• Transaction screening
• CDD and transaction monitoring
• Investigations and disclosures
• External partnerships
• Intelligence operations
• Name screening