Our experts debunk the myths surrounding Anti Money Laundering and Counter Terrorism Financing.
Detainees tend to engage in money laundering activities after their release
TRUE
“The debts incurred within custodial and largely administered within the illicit economic system result in monetary obligation that follows detainees outside the jail in the post release environment ”
It is not possible to regulate the cryptocurrencies ecosystem
FALSE
“The FATF recommendations has issued global, binding standards to prevent the misuse of virtual assets for money laundering and terrorist financing. The EU Global Facility has been supporting partner countries in their efforts to regulate (or ban) virtual assets.”
Terrorist financing comes primarily from oil money
FALSE
“Contrary to the common perception that terrorists raise most of their funds from oil proceeds, in reality are from conflict looting (eg: civil wars and conflicts in Irak, Syria, …) ”
Money laundering mostly happens through offshore accounts
FALSE
“When people think of ML, they think of Swiss bank accounts. Whilst this is still the case, in reality, money laundering is largely done through cash transported around the world in suitcases.
By only using cash, terrorist cells can operate covertly, without being traceable through wire transfers and other online banking actions.”
Not for Profit Organisations are increasingly used by money launderers and terrorists for financing
TRUE
“In the past, money laundering was explicitly tied with the financial and banking sectors. However, the increasingly comprehensive regulation in these sectors have coerced the money launderers to become more sophisticated. They started penetrating non-financial sectors such as tourism and hospitality, Non-Governmental Organisations, art markets, etc… ”
Terrorist financing only originates from illegitimate sources
FALSE
“Terrorist funds may come from legitimate sources, or from criminal activities (looting, extortion, robbery of economic assets and natural resources, exploiting non-profit organizations, Kidnapping for Ransom, cash smuggling…).”
Trade of stolen artefacts stopped after the collapse of ISIS
FALSE
“Reports indicate blood antiquities to be the third largest illicit trade in Europe (though conclusive estimates are difficult).
Surfing on the ever increasing wave of the international market for art and cultural property, terrorist groups have largely used what some call “cultural genocide” as a weapon of war.”
Combating money laundering and the financing of terrorism cannot be done by one institution alone
TRUE
“AML/CFT necessarily involves the implication of many actors, both public and private. Terrorist financing and money laundering can only be properly tackled if analysed in a broad framework that considers the close links that exist between the financing of terrorism and criminal activity related to organised crime.”
Social media can never be used as evidence in terrorism financing cases
FALSE
“Whilst social media can be a source of evidence in terrorist financing cases, retrieving content can prove difficult. Intercepting communications may require a pre-authorisation from the court or be more complicated in foreign jurisdictions. Besides, social media content may not always be admissible in court.”
Microfinance is mainly used by women
TRUE
Women make-up 80% of borrowers around the world nowadays. They turn to small-time lending due to their limited/lack of collateral or access to bank loans.
This project is funded by the European Union.