Sample Law Essay on Global Anti-Money Laundering Framework

Global Anti-Money Laundering Framework

Money laundering is where the proceeds of crime are made to appear as genuine money. Anti-money laundering is therefore the legal controls to prevent the crime.[1] Fight against money laundering has been fought both local among individual states and internationally. The international regime is a legal framework or a formula easily agreed to by the states as a guideline to municipal laws.[2] There is a very close association of money laundering and terrorism, and the recently experienced financial meltdowns of 2008.[3] The ripple effects of the moneys so laundered were so extreme that there was concerted effort among nations to try and approach it globally.[4] This is where we had the compliance industry which was mandated to ensure that the laws are formulated and followed to curb money laundering.

Various challenges face the compliance officers face different challenges in streamlining the anti-money laundering laws. The compliance industry provides training and guidelines to implementing good laws. There are varying degrees of compliance depending on the unique circumstances of a state. However several bodies have tried to ensure that the laws on money laundering are elaborate and effective.  The Financial Action Task Force since the 90’s has consistently set up standards  on combating terrorist financing by money laundering to asses member country compliance with its recommendations.[5] This has greatly set a standard and ensured that countries comply with the law. The Financial Action Task Force was an initiative of the United Nations Security Council.[6] The UN also created the Global Program against Money Laundering (GPML) under the United Nations Office OF Drugs and Crime (UNODC).[7] All these were part and parcel of the United Nations effort in the development of the compliance industry.

Linking up with Interpol has also greatly helped in the efforts to deal with money laundering crimes decisively. The Interpol has been able to arrest runaway criminals and deported them to their nations of origin to face criminal charges related to their crimes. Interpol therefore serves as an international police.[8]

Whereas there are few negative effects resulting from the growth of the international anti money laundering initiatives by the compliance industry, the negatives are so significant it greatly matters to individual states. States have been unable to exercise their full sovereignty.[9] Some of these compliance authorities have assumed legislative authority of member states. Whereas therefore there are benefits to the globalization of anti money laundering imitative, states have had to endure external pressure.[10]The British parliament has long complained that the European Union is usurping its sovereignty too its legislative assembly in Brussels.[11]

Countries have also had to suffer huge financial burdens due to their inability to implement the laws. States have been isolated or faced too much pressure and in the process neglecting other sectors of its economy. The Financial Action Taskforce for example has put so much pressure on states to implement AML laws irrespective of their unique circumstances.[12]

The international laws should be crafted in a way that the laws have a better working relationship with individual states. Laws that are aggressive or deprive a state of its sovereignty do not receive the necessary good will and therefore face obstacles from individual states. Recovered state items from money laundering should also be returned to the original state party promptly.

 

 

 

 

 

Bibliography

Durrieu Roberto. Rethinking Money Laundering & Financing of Terrorism in International Law: Towards a New Global Legal Order. , 2013.

Gilmore, William C. Dirty Money: The Evolution of Money Laundering Counter-Measures. Strasbourg: Council of Europe Press, 2000.

Guillermo, Artemio R. Historical Dictionary of the Philippines. Lanham, Md: Scarecrow Press, 2012.

Johnson, Tana. Organizational Progeny: Why Governments Are Losing Control Over the Proliferating Structures of Global Governance. , 2014.

Mugarura, Norman. The Global Anti-Money Laundering Regulatory Landscape in Less Developed Countries. Farnham, Surrey, England: Ashgate, 2012.

Muller, Wouter H, Christian Kalin, and John G. Goldsmith. Anti-money Laundering: International Law and Practice. Chichester, England: John Wiley & Sons, 2007.

Ryder, Nicholas. Financial Crime in the 21st Century: Law and Policy. Cheltenham: Edward Elgar Pub, 2011.

Schipke, Alfred, Nita Thacker, Alfred Schipke, and Aliona Cebotari. The Eastern Caribbean Economic and Currency Union: Macroeconomics and Financial Systems. Washington, D.C: International Monetary Fund, 2013.

Schott, Paul A. Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism. Washington, DC: World Bank [u.a., 2006.

Sirkeci, Ibrahim, Jeffrey H. Cohen, and Dilip Ratha. Migration and Remittances During the Global Financial Crisis and Beyond. Washington, D.C: World Bank, 2011.

Sperling, James. Handbook of Governance and Security. , 2014.

Verdugo, Yepes C, and Yepes C. Verdugo. Compliance with the Aml/cft International Standard: Lessons from a Cross-Country Analysis. Washington, D.C: International Monetary Fund, 2011.

 

 

 

 

 

[1] Paul A Schott. Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism. Washington, DC: World Bank [u.a., 2006.

[2] Wouter H Muller, Christian Kalin, and John G. Goldsmith. Anti-money Laundering: International Law and Practice. Chichester, England: John Wiley & Sons, 2007.

[3] Ibrahim Sirkeci, Jeffrey H. Cohen, and Dilip Ratha. Migration and Remittances During the Global Financial Crisis and Beyond. Washington, D.C: World Bank, 2011

[4]Nicholas  Ryder. Financial Crime in the 21st Century: Law and Policy. Cheltenham: Edward Elgar Pub, 2011.

[5] James Sperling. Handbook of Governance and Security. , 2014.

[6] Artemio R Guillermo. Historical Dictionary of the Philippines. Lanham, Md: Scarecrow Press, 2012.

[7] Roberto  Durrieu. Rethinking Money Laundering & Financing of Terrorism in International Law: Towards a New Global Legal Order. , 2013.

[8]Tana Johnson. Organizational Progeny: Why Governments Are Losing Control Over the Proliferating Structures of Global Governance. , 2014.

[9] Yepes C Verdugo and Yepes C. Verdugo. Compliance with the Aml/cft International Standard: Lessons from a Cross-Country Analysis. Washington, D.C: International Monetary Fund, 2011.

[10] Norman Mugarura. The Global Anti-Money Laundering Regulatory Landscape in Less Developed Countries. Farnham, Surrey, England: Ashgate, 2012.

[11] Alfred Schipke, Nita Thacker, Alfred Schipke, and Aliona Cebotari. The Eastern Caribbean Economic and Currency Union: Macroeconomics and Financial Systems. Washington, D.C: International Monetary Fund, 2013.

[12]William C Gilmore. Dirty Money: The Evolution of Money Laundering Counter-Measures. Strasbourg: Council of Europe Press, 2000.