Money Laundering which leads to terrorists financing in some instances is a major issue under scrutiny across many parts on the globe.
The classification processes to determine which acts and offences to be classified as Money Laundering, is even more complicated, and this is due to international laws, jurisdictional order disparities, regional and national laws and regulatory differences. A situation which is leading to internal tension in many countries, especially on the African continent, and accountable institutions are at the receiving end to deal with many of the excesses, to which they don’t have the solutions.
Money Laundering will triumph when there is a deliberate creation of a financial system and Money operation businesses to attract illegal monies, and investments.
Weak anti-money legislation and policies, non-performance of law enforcement agencies and awkward actions of political actors, is another level of redflag to be watched. Lack of motivation to implement existing Money Laundering laws, especially the ones in direct relation to prosecution and seizure of proceeds from illegal incomes, are major areas of redflag concerns.
Another area of critical concern is what is typically known as source of funds, and beneficial ownership phenomenon. While some nations have strict laws which preciseky deals with this phenomenal, others nations could not be bothered. This sends mix feelings and misinterpretation of global laws on the subject of money laundering, creating the needed space for illegal businesses to truimph in their Money Laundering activities, disregarding the negative effects on national economies.
We will have to leave the rest for the gods, and stay alert to identify the redflags which will be cordially passed on unto the appropriate authorities for action.
Financial management inconsistencies, poor economic performances and liquidity issues for nations, could be as a result of capital flight, a close financial cousin of Money Laundering, a scheme which is well-rehearsed and operated over the years by high-level Money Laundering criminals.
See something, say something. Money Laundering is a national security threat, and an economic crisis indicator.
By Richard Kumadoe, Fraud Preventions Expert and Security Consultant.