Arguments Against Money Laundering

1. INITIATIVES AGAINST MONEY LAUNDERING oney laundering is a parasite which sucks the economy and counters affects the true economic evolution. To curb these activities following initiatives was taken;
3.1.1 FINANCIAL ACT TASK FORCE (FATF) of USA
The Financial Act Task Force on Money Laundering (FATF), which has been established at the G-7 Economic Summit in Paris in 1989, was an inter-governmental body whose purpose is the improvement and promotion of policies to fight against money laundering. In 1990, the FATF issued (40) Recommendations to fight this phenomenon. The Recommendations has revised in 1996 to reflect changes in money laundering trends. These recommendations are designed to stop proceeds of crime from being utilized in future

This work resulted in the June publication of a report allowed Review to Identify Non-Cooperative Countries and Territories: rising the Worldwide Effectiveness of Anti-Money Laundering Measures*. This report describe the process and provides summaries of jurisdictions considered to be of worry. The aim of the work was to improve the level of protection for the world’s financial system and to stop the circumvention of the anti-laundering measures introduced more than the last ten years. To guarantee transparency and sound operation in the international financial system, it was desirable that all financial centers across the world had comprehensive controls, regulations and supervisory arrangements in place and that all financial agents take for granted anti-money laundering

Throughout 2000, the Ad Hoc Group on NCCTs met in the margins of all FATF Plenary meetings, and separately on May 24-25, 2000 in Paris. After the FATF has adopted criteria for defining non-cooperative countries and territories, 29 jurisdictions are chosen for review in February 2000. The assessments take place between February and June. 15 of those counties (Bahamas, Cayman Islands, Cook Islands, Dominica, Israel, Lebanon, Liechtenstein, Marshall Islands, Nauru, Niue, Panama, Philippines, Russia, St. Kitts and Nevis and St. Vincent and the Grenadines) were known in the report as having serious deficiencies in their anti-money laundering systems and thus name "non-cooperative." Immediately following the issuance of the June NCCT report, the G-7 members issued advisories to their financial institutions recommend increased study of transactions involving these jurisdictions. A number of other FATF members follow with similar