The Nature of Money Laundering; Money Laundering as an Emerging Security Threat and How Money Laundering Affects National Economies
THE NATURE OF MONEY LAUNDERING; MONEY LAUNDERING AS AN EMERGING SECURITY THREAT AND HOW MONEY LAUNDERING AFFECTS NATIONAL ECONOMIES.
By FREMPONG-ANSAH FIIFI Institution: The Kofi Annan International Peacekeeping Training Centre, Ghana Email: fiifi.ansah@hotmail.com Contact Number: 024-424-3064
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Introduction There has been immense growth of financial services worldwide in the past few decades. This globalisation has led to increased cross-border activities enhancing global financial intermediation. Unfortunately, this development has been accompanied by a spate of transnational financial crimes. Financial crimes involve prohibited acts yielding financial benefit or the unlawful conversion by the wrongdoer of the ownership of property belonging to another person to the wrongdoer’s own personal use and benefit (Osei, 2013). The most prominent form of financial crimes that has attracted the attention of policy and law makers alike in recent times is Money Laundering.
Money laundering affects whole economies adversely and works against the economic, political and social development of economies worldwide. It has thus become pressing among the needs for countries to have strong antimoney laundering mechanisms coupled with the enhancement of transparent financial integrity to check the proliferation of this illegal act.
The Intergovernmental Action Group against Money Laundering in West Africa (GIABA) has been created by the Economic Community of West African States (ECOWAS) Authority of Heads of State and Government as a major response and contribution of the ECOWAS to the fight against money laundering. Ghana’s enactment of the Anti-Money Laundering Act, 2008 (Act 749), together with the ECOWAS initiative illuminate further, the effort of countries in the sub-region in joining in the global effort to minimise the scourge of money laundering.
This paper seeks to examine the causes and nature of money laundering as an organised
By FREMPONG-ANSAH FIIFI Institution: The Kofi Annan International Peacekeeping Training Centre, Ghana Email: fiifi.ansah@hotmail.com Contact Number: 024-424-3064
Intentionally Left blank
Introduction There has been immense growth of financial services worldwide in the past few decades. This globalisation has led to increased cross-border activities enhancing global financial intermediation. Unfortunately, this development has been accompanied by a spate of transnational financial crimes. Financial crimes involve prohibited acts yielding financial benefit or the unlawful conversion by the wrongdoer of the ownership of property belonging to another person to the wrongdoer’s own personal use and benefit (Osei, 2013). The most prominent form of financial crimes that has attracted the attention of policy and law makers alike in recent times is Money Laundering.
Money laundering affects whole economies adversely and works against the economic, political and social development of economies worldwide. It has thus become pressing among the needs for countries to have strong antimoney laundering mechanisms coupled with the enhancement of transparent financial integrity to check the proliferation of this illegal act.
The Intergovernmental Action Group against Money Laundering in West Africa (GIABA) has been created by the Economic Community of West African States (ECOWAS) Authority of Heads of State and Government as a major response and contribution of the ECOWAS to the fight against money laundering. Ghana’s enactment of the Anti-Money Laundering Act, 2008 (Act 749), together with the ECOWAS initiative illuminate further, the effort of countries in the sub-region in joining in the global effort to minimise the scourge of money laundering.
This paper seeks to examine the causes and nature of money laundering as an organised
References: Deitz.A. & Buttle. J., (2008) Anti-Money Laundering Handbook. Sydney: Thomson Lawbook Co Pg.4. FATF-GAFI, Financial Action Task Force on Money Laundering. “Basic Facts about Money Laundering”, see www.oecd.org/fatf Fiorentini, G. and S. Peltman. (1997). The Economics of Organized Crime. Cambridge: Cambridge University Press. International Monetary Fund and World Bank: Enhancing contributions to combating money laundering,” April 2001, and “Financial System Abuse, Financial Crime and Money Laundering,” February 2001, atwww.imf.org Levi, Michael (2002b) “Money Laundering and its Regulation”. Oxford University Press. Osei, JA, Aduama KN. (2013) Judicial Power in the Recovery and Management of Proceeds of Financial Crime, [Lecture at a symposium organised by the Department of Finance, University of Ghana]. 27 February. Schwartz, David Brian, (2009) Deficiencies in regulations for anti-money laundering in a cyber-laundering age including COMET: Central Online AML Merchant Enforcement Tool Iowa State University. The International Monetary Fund and the World Bank, (2005), “Anti-Money Laundering and Combating the Financing Terrorism.” United Nations (1988) Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.