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Dirty Money: The Evolution of Money Laundering Counter- Measures

NCJ Number
W C Gilmore
Date Published
318 pages
This book describes international measures to counter money laundering adopted and implemented by various international forums such as the Council of Europe, the United Nations, the European Union, and the Financial Action Task Force.
The first chapter provides an overview of the problem, as it notes that estimates of money from criminal activities range from 300 to 500 billion U.S. dollars annually, money that is available for laundering. Such quantities of money, often linked with organized crime, threaten the stability of financial institutions and, ultimately, democracy and the rule of law. The international community has slowly reacted to this threat by taking several measures to counter money laundering. After providing an overview of the money laundering process, a chapter reviews the relevant work of the United Nations and global law enforcement cooperation. Another chapter focuses on the work of the Financial Action Task Force (FATF), which is the only international body that specializes in and concentrates solely on countering money laundering. The FATF focuses its efforts primarily at the policy level, and it has had a significant influence on the evolution of countermeasures within the international community since its establishment in 1989. The chapter explains the structure and purpose of the FATF, the recommendations of the FATF, and the continuing work of the FATF. A chapter on the western European responses to money laundering considers the relevant actions of the Council of Europe and action within the European Union. This is followed by chapters on money-laundering countermeasures in central and eastern Europe as well as the Caribbean basin. Overall, the author identifies three interconnected components of the international strategy to counter money laundering: enhancement of domestic criminal justice systems to increase the law enforcement risk for money laundering; preventive measures that involve private-sector actors; and enhanced levels of international cooperation. Chapter notes and appended 1988 UN Convention, the 1990 recommendations of the FATF, the 1990 Council of Europe Convention, and the 1991 European Communities Directive