Sample Paper on Anti-Money Laundering Legal Framework

Abstract

There has been debate on how to effectively implement an effective anti money laundering regime or legal framework. Most of these proceeds have been legitimized in so many countries albeit innocently. There were no laws to effectively counter this criminal activity. Several countries have tried to implement various laws that are meant at countering this crime.

Economies allover the world has been largely affected by the lack of proper policies or systems that are effective enough. Some of the huge economic meltdowns have been attributed to money laundering. Most proceeds of money laundering have been used for terrorist activities and a perfect example is the bombing of the world trade centre.[1]

This research will focus on an effective legal regime implemented by some countries or country with a comparative study of nations that have effectively combated money laundering. An evaluation of the framework in meeting intended roles. Sound financial policies are also important in implementing an anti-money laundering regime.

 

Anti-Money Laundering Legal Framework

Anti money is a process where laws or legal regimes are put in place to regulate and stop illegal generation of money. The United Nations has been encouraging nations to deal decisively.[2] An intergovernmental taskforce, The Financial Action Task Force (on Money Laundering) (FATF) which was set up to have its headquarters in had the sole mandate of setting up effective policy framework to be used in fighting this crime France.[3]Several nations have not had an effective legal regime to effectively deal with money laundering. There has been need for global co-operation in countering money laundering crimes and illegal embezzlement of money across borders.

Money laundering was not considered a crime anywhere among countries until 1985. There were no treaties or any other mechanisms to deal with this crime.[4] However after this period this crime was discovered it caused financial instability of several nations. Most nations were therefore forced to come up with effective regimes to deal with the crime effectively. Several countries have attributed financial meltdowns to money laundering. Terrorism has also benefited immensely from dirty money. This research will delve on the development of the anti money laundering regime and how the laws have been formulated and implemented.

This paper shall look in detail at the Philippines Anti-Money Laundering regime. The Philippines is one good choice because it is outside Europe and has been able to come up with a good AML regime. The need for an anti-money laundering law was prompted by the thriving illegal drug trade, which was very rampant. The fact that the Philippines is bordered by countries prone to money laundering like China and Taiwan made the situation dire.

The Philippines anti money laundering law was enacted in 2001 through the Anti-Money Laundering Act of 2001.[5]FATF had blacklisted the Philippines for non co-operation in its war on money laundering.[6] The act put in place some strict measures in place. The Philippines anti money laundering act required that all financial records be kept for at least five years. The sole intention was to be able to trace the sources and channel if need be.[7] The Financial Action Task Force in Paris has been monitoring closely the Philippines law via its arm, the Anti Money Laundering Council, this kind of co-operation intents to make sure that thee is no financial risk posed to other countries in its implementation of the law.[8] This research shall delve further on this kind of international co-operation and its rationale.

The IMF launched the Financial Action Taskforce of 1989 with the intention of standardizing Anti-Money Laundering regimes on the global scale.[9] This regime had the intention of giving an effective framework that will be used by countries to stop the crimes.

The United Kingdom effectively implemented a system that effectively dealt with the money laundering regimes. The Financial Service Act 2001 established the financial Services Authority.[10] The UK government restructured the FSA to make it more effective.[11] This research shall also look at how the FSA was restructured and what role the Bank of England played in countering money laundering.[12]

The Money Laundering Regulations 2007 made sure that information was shared with the authority.[13] There has been a strong need to also make countering of terrorism a sub part of the anti money laundering laws. The American government, for example, associated terrorism and money laundering and therefore made its laws to try to counter terrorism.[14] This paper shall examine the American law and how it deals with money laundering. The American government saw a relation between escalation of money laundering and its weak banking system.[15]

Methods and Materials

This research shall be compiled using various materials in the library on money laundering. These books shall give an insight on authoritative scholarly material. The web and internet sources shall also come in handy in exploring the most written materials on the topic. Finally the written laws of various countries including the Philippines and other legal materials shall be important in compiling the final research paper.

Research design

This research shall limit itself to the Anti-money laundering framework with special attention to the Philippines and its money laundering law. There shall be a brief introduction and an overview of the development of antimony laundering regimes. The roles played by international bodies and other organizations in developing an effective regime shall be scrutinized.

This research paper shall also have a comparative study with special focus to countries that have made most laws and been able to deal with this crime. This shall then be compared to the Philippines law noting its weaknesses in combating the crime. Several offences shall be discussed and how the law deals with them.

A critique and the efficacy of the laws and possible recommendations on weaknesses and areas that need further reforms or improvement.

 

Bibliography

Beare, Margaret E, and Stephen Schneider. Money Laundering in Canada: Chasing Dirty and Dangerous Dollars. Toronto: University of Toronto Press, 2007.

Bhargava, Vinay K, and Emil P. Bolongaita. Challenging Corruption in Asia: Case Studies and a Framework for Action. Washington: World Bank, 2004.

Chatain, Pierre-Laurent. Protecting Mobile Money against Financial Crime: Global Policy Challenges and Solutions. Washington, D.C: World Bank, 2011.

Eu Legislative Initiatives in Response to the Financial Turmoil: Report with Evidence. London: TSO, 2008

Fast-track Legislation: Constitutional Implications and Safeguards : 15th Report of Session 2008-09. London: Stationery Office, 2009.

Forest, James J. F. Homeland Security: Protecting America’s Targets. Westport, Conn: Praeger Security International,

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

Kenadjian, Patrick S. Too Big to Fail – Brauchen Wir Ein Sonderinsolvenzrecht Für Banken?Berlin: Walter de Gruyter, 2011.

Lilley, Peter. Dirty Dealing: The Untold Truth About Global Money Laundering, International Crime and Terrorism. London [u.a.: Kogan Page, 2003.

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

Proceeds Of Crime Act 2002, http://www.legislation.gov.uk/ukpga/2002/29/part/7

Spedding, Linda S. Due Diligence Handbook: Corporate Governance, Risk Management and Business Planning. Amsterdam: CIMA, 2009.

The Joint Money Laundering Steering Group (2007) \’Prevention of Money Laundering / Combating Terrorist Financing: Guidance for the UK Financial Sector Part 1\’

The Money Laundering Regulations 2007. http://www.legislation.gov.uk/uksi/2007/2157/contents/made

Themes and Trends in Regulatory Reform: Ninth Report of Session 2008-09. London: Stationery Office, 2009.

 

[1] Junji Nakagawa. International Harmonization of Economic Regulation. Oxford [etc.: Oxford University Press, 2011.

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

[3] The Joint Money Laundering Steering Group (2007) \’Prevention of Money Laundering / Combating Terrorist Financing: Guidance for the UK Financial Sector Part 1\’ .

[4] Margaret E Beare and Stephen Schneider. Money Laundering in Canada: Chasing Dirty and Dangerous Dollars. Toronto: University of Toronto Press, 2007.

[5] Peter Liley. Dirty Dealing: The Untold Truth about Global Money Laundering, International Crime and Terrorism. London [u.a.: Kogan Page, 2003.

[6] Vinay K Bhargava, and Emil P. Bolongaita. Challenging Corruption in Asia: Case Studies and a Framework for Action. Washington: World Bank, 2004.

[7] Pierre-Laurent Chatain. Protecting Mobile Money against Financial Crime: Global Policy Challenges and Solutions. Washington, D.C: World Bank, 2011.

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

[9] Linda S Spedding. Due Diligence Handbook: Corporate Governance, Risk Management and Business Planning. Amsterdam: CIMA, 2009.

[10] Themes and Trends in Regulatory Reform: Ninth Report of Session 2008-09. London: Stationery Office, 2009.

[11] Eu Legislative Initiatives in Response to the Financial Turmoil: Report with Evidence. London: TSO, 2008

[12] Kenadjian, Patrick S. Too Big to Fail – Brauchen Wir Ein Sonderinsolvenzrecht Für Banken?Berlin: Walter de Gruyter, 2011.

[13] Money laundering regulations 2007, S. 31. http://www.legislation.gov.uk/uksi/2007/2157/pdfs/uksi_20072157_en.pdf

[14] Fast-track Legislation: Constitutional Implications and Safeguards : 15th Report of Session 2008-09. London: Stationery Office, 2009.

[15]  James J. F Forest. Homeland Security: Protecting America’s Targets. Westport, Conn: Praeger Security International, 2006.