Niall Hearty of Rahman Ravelli considers the claim by the head of the Financial Action Task Force.
The President of the Financial Action Task Force (FATF) has said that most nations are failing to effectively confiscate criminal assets.
Elisa de Anda Madrazo has said that, as a result, criminal activity is unhindered and allowed to thrive, with consequences for both justice around the world and global security.
Ms De Anda is head of FATF – the intergovernmental anti-money laundering agency – from July 2024 to June 2026. She paints a pretty grim picture where almost 80% of countries are "at a low or moderate level of effectiveness on asset recovery'' and less than 2% of the proceeds of crime around the world are currently being confiscated.
Such a statement could be viewed as over-the-top rhetoric if it came from a politician looking to persuade others of the value of a certain course of action. But the head of the global body that promotes policies to combat money laundering and terrorist financing saying four out of five countries are failing in their duty has to be a cause for concern.
In an era where there is no lack of awareness of the cross-border nature of crime and arguably no shortage of anti-money laundering legislation around the globe, FATF believes the vast majority of criminals are able to move their ill-gotten gains with impunity.
The FATF President has talked of the need to work collectively to generate a worldwide culture of asset recovery. Under her leadership, FTAF has stated that asset recovery should be a main part of every country's line of attack when it comes to money laundering. FATF's member states are expected to implement measures that strengthen their asset recovery powers.
But it appears that FATF's role as an overseer and encourager of collaboration is not, at present, producing the desired outcomes. Member nations must continue to educate each other by sharing their national goals and communicating their successes in the area of asset recovery. There has to be a huge collaborative effort to ensure that we have a well-regulated worldwide financial system.
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