Money laundering is a global issue with crime generating trillions of dollars in illicit revenues annually
The Financial Action Task Force (FATF), a global organisation created to fight financial crimes, has launched a Money Laundering National Risk Assessment toolkit to help countries enhance their risk-based approach to combating financial crime.
In a press statement, FATF says that this new set of practical resources is designed to assist nations in assessing their money laundering risks in alignment with FATF Standards.
The statement adds that money laundering is a global issue with crime generating trillions of dollars in illicit revenues annually. These funds, once laundered, are funnelled back to criminals, enabling activities such as corruption, drug trafficking and fraud that harm societies by eroding essential services, destroying lives and wiping out family savings.
FATF says that the toolkit offers countries cross-border risk insights including estimates of crime proceeds and common predicate offences linked to money laundering domestically and internationally. This helps governments and the private sector focus on the highest risks with the goal of ensuring crime does not pay.
According to the statement, it emphasises the transnational nature of money laundering, facilitated by technology that allows rapid fund transfers across jurisdictions.
FATF says that covering four priority areas, corruption, virtual assets and service providers, legal entities and arrangements and the informal economy, the toolkit addresses challenges due to data gaps, evolving typologies and interconnected risks.
“To effectively fight financial crime, we need to have a clear understanding of the risks we face. This is the essential first step to taking a risk-based approach which is the centrepiece of the FATF’s approach to safeguarding against crime. A risk-based approach ensures smart prioritisation of resources to combat financial crime where it is really hurting our communities. It also means a proportionate response which means that activity is not driven into the dark where we cannot see it. I encourage everyone to make use of this new toolkit to improve our collective understanding of money laundering risks,” says Elisa de Anda Madrazo, President, FATF.