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New Challenges in Combating Money Laundering, Terrorist Financing and Corruption

NCJ Number
Internal Security Volume: 3 Issue: 2 Dated: July-December 2011 Pages: 181-200
Wieslaw Jasinski
Date Published
December 2011
20 pages
Money laundering, terrorist financing and corruption are connected mutually threats to democratic society and economic systems. It is obvious that it must be countered internationally. The article deals with issues related to basic changes in area of counteracting of these threats.
These changes are results of III Directive of October 25, 2005, on the prevention of the use the financial system for the purpose of money laundering and terrorist financing. This act established risk based approach (RBA). The article presents rules of RBA in fighting against money laundering and terrorist financing. By adopting a risk-based approach (RBA), competent authorities and financial institutions are able to ensure that measures to prevent or mitigate money laundering are commensurate to the risks identified. This will allow resources to be allocated in the most efficient ways. As a result this approach is more effective selection of suspicious transactions, increasing effectiveness of detecting money laundering and terrorist financing and saving of private entities which cooperate with law enforcement agencies. The article deals also with links between money laundering and corruption and new legal construction - politically exposed person and solution which have to limit usage of political position for criminal purposes. Usage of these instruments is an important challenge for all private entities and government but establishing these solutions is very difficult. What is more the article underlines the necessity of undertaking specific initiatives that will harmonize the praxis of money laundering detection in different countries, such as e.g. confiscation of property count to the group of key measures to combat money laundering and other serious offences, reconstruction the model of money laundering detection and evaluation of the FIUs activities. (Published Abstract)