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laundering.
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EYe
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In response to pressure from delegates and official bodies represented
at the Conference it has been decided that a second ‘STOP
Money Laundering!’ conference will be held again soon.
We would be able to send you more information when
available on your e-mail.
Communique
The total of the sums involved in money laundering
is huge and stands in the way of the economic development of many countries.
The Conference underlined the importance of fighting Money Laundering
which is also recognised as a major source of terrorist funding.
This communique, based on the recommendations of the Conference’s
participants, is addressed to all those involved in the regulation and
prevention of money laundering, namely:
the United Nations, FATF, IMF, World Bank, Governments, Ministries
of Finance, Central Banks, Commercial Bankers’ Associations and
other national and international organisations and regulatory and control
bodies.
Taking into consideration the fact that different states around the
world have varied political and economic systems and levels of social
development, each country may have a different approach to fighting
money laundering. The discussions showed that the definition of ‘money
laundering’ / ‘economic crime’ is not the same in all
countries.
There are cases when the controlling authorities make mistakes in blocking
or freezing accounts suspected of being involved in money laundering
activities. Where it is found that the suspects are not involved in
money laundering activities there should be compensation for the aggrieved
parties.
Some progress has already been
made
The banking system of the Russian Federation
has achieved significant results in achieving further transparency and
in anti-laundering activities.
It was recognized by the Conference’s participants that the Ukraine
is making progress in the fight against money laundering. Illustration
from some recent investigations carried out by the Ukrainian Tax Police
show that the Ukraine is fulfilling FATF’s obligations in combating
money laundering. Significant arrests and the freezing of suspect accounts
in the Ukraine and abroad are examples of international co-operation in
the fight against money laundering. Taking into consideration the efforts
of the Ukraine and the practical results achieved, it was felt that its
position on FATF’s black list was due for examination and reconsideration.
The return of stolen funds
All laws and regulations that inhibit the restitution
of money which has been stolen and laundered must be revised.
All governments, and in particular in those countries which have suffered
badly from the theft of national funds, should pass legislation to make
it increasingly difficult for such monies to be lodged in any bank in
the world.
All the monies stolen from countries like Nigeria, Democratic Republic
of Congo, Zimbabwe etc. should be returned to these countries forthwith
after the due process of law has been followed. Legal delays must be
reduced and the whole process accelerated.
The developed countries should not hide under the due process of law
as a reason for delay before returning stolen money to the appropriate
third world countries.
Changes which need to be implemented
The global co-operation that is being
advocated in all the money laundering seminars should not just be left
as spoken or written words but should be acted upon and put into practice.
Established cases of financial crime must be dealt with promptly and severely.
We all know that without justice there will be no real peace.
All legislation that tends to encourage the receiving of dirty money into
countries, particularly the developed countries, should be amended and
make it increasingly difficult to bring in such money.
There should be enhanced co-operation between the developed countries
and the developing countries in expediting the return of laundered money
to the people from whom it was stolen.
It is clearly felt by some nations, and in particular by the African countries,
that the West is being hypocritical in criticising them for being the
source of money which is laundered, when it is the West which is to blame
for facilitating money laundering by accepting the funds in the first
place. The West should change its approach by showing genuine concern
for anti-money laundering particularly as it concerns developing countries.
Positive actions which should be
taken
The international banking community should progress
from the recommendation stage to the stage of providing banking standards
and requirements.
There is an urgent need to make banking instructions and other documentation
of leading Western banks and controlling authorities more readily available
to the Central banks of the emerging markets.
The training of bank officials should be organised on a multi-lateral
level with participation of IMF, BIS and FATF.
Correspondence banking relationships must be reviewed taking into consideration
not only the requirements of ‘know your customer’ but also
‘know the underlying transactions’. The international community
cannot afford to pay mere lip service to financial crimes because the
consequences can be very grave.
Monetary teams should be set up to improve compliance with money laundering
rules and regulations, especially in the financial tribunals. Membership
of the teams must be worked out later. There must be equitable representation.
More seminars and conferences in the future with participation of the
leading organisations such as FATF, UN, World Bank, IMF etc. should
be set up without further delay.
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