Money laundering

 

Corruption and money laundering are intrinsically linked. Corruption offences, such as bribery or theft of public funds, are generally committed for the purpose of obtaining private gain.  Money laundering is the process of concealing illicit gains that were generated from criminal activity. By successfully laundering the proceeds of a corruption offence, the illicit gains may be enjoyed without fear of being confiscated.

 

The Financial Action Task Force (FATF) is the international standard setter in the development and promotion of national and international policies to combat money laundering and terrorist financing. The recommendations published by the FATF are designed to combat money laundering and terrorist financing but, when effectively implemented, they can also help combat corruption by:

  • safeguarding the integrity of the public sector
  • protecting designated private sector institutions from abuse
  • increasing transparency of the financial system,
  • facilitating the detection, investigation and prosecution of corruption and money laundering, and the recovery of stolen assets.

A proper culture of compliance with standards of anti-money laundering creates an environment in which it is more difficult for corruption to thrive undetected and unpunished.

 

     

FATF resources

FATF International Standards on combating money laundering and the financing of terrorism and proliferation

FATF Reference Guide and Information note on the use of the FATF Recommendations to support the fight against Corruption (pdf)

FATF mutual evaluations

FATF report on laundering the proceeds of corruption

Specific Risk Factors in the Laundering of Proceeds of Corruption - Assistance to reporting institutions

More FATF work on corruption

 

 

The OECD’s work on tax crime and money laundering is designed to complement that carried out by FATF. This work is being pursued in a variety of ways including typologies exercises, developing practical guidance on detection of money laundering for tax auditors, examining key risk areas and reviewing current country practices for sharing information between tax and anti-money laundering authorities.

 

     

OECD resources

OECD Recommendation to Facilitate Co-operation between Tax and Other Law Enforcement Authorities to Combat Serious Crimes 

Money Laundering Awareness Handbook

OECD portal on tax and crime 

 

 

The UNODC's Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism works to strengthen the ability of countries to implement measures against money laundering and the financing of terrorism and to assist them in detecting, seizing and confiscating illicit proceeds.

 

 

 

 

 

   

UNODC resources

UN Convention against Corruption

UN Convention against Transnational Organized Crime

UN TRACK - Tools and resources for anti-corruption knowledge

UNODC and IMF Model Legislation on Money Laundering and Financing of Terrorism

Model Provisions for Common Law Legal Systems on Money Laundering, Terrorist Financing, Preventive Measures and the Proceeds of Crime

UNODC Manual on the Risk of Money Laundering through Financial Instruments, Users and Employees of Financial Institutions

International Money Laundering Information Network (IMoLIN)/Anti-Money Laundering International Database (AMLID)