In Pursuit of Dirty Money: Identifying Weaknesses in the Global Financial System

Abstract

Over the last two years a number of initiatives have been brought to the attention of the financial regulators sectors of the global financial system most at risk from money laundering. The Durban Declaration called for the return of wealth plundered by corrupt leaders. The Financial Action Task Force (FATF), the Financial Stability Forum (FSF) and the OECD all identified countries with unregulated or poorly regulated financial systems which encourage money laundering and the US Senate identified problems with correspondent banking. This added attention has encouraged more countries to join the anti‐money laundering movement and there are now 116 member countries in anti‐money laundering groups in Europe, Asia, South America and Africa. However, until their legislation is effectively implemented and the remaining countries join the global anti‐money laundering movement there is unlikely to be any significant reduction in the amount of money being laundered.