Topic 14
The FATF holds its global typologies exercise each year, which include active participation by the APG (The Asia/Pacific Group on Money Laundering) and other regional anti-money laundering bodies. Arising from its yearly typologies exercise, the FATF publishes a yearly typologies report to consider priority topics in detail.
Typologies work is the study of methods, techniques and trends of money laundering and terrorist financing. The APG undertakes detailed and relevant typologies research to better understand the money laundering and terrorist financing environment in the Asia/Pacific region. Findings provide decision makers and operational experts with up-to-date empirical information in order that they may target policies and strategies to combat these threats.
Some of the features that have long characterised the securities sector, including its speed in executing transactions, its global reach, and its adaptability, can make it attractive to those who would abuse it for illicit purposes, including money laundering and terrorist financing. Moreover, this sector is perhaps unique among industries in that it can be used both to launder illicit funds obtained elsewhere, and to generate illicit funds within the industry itself through fraudulent activities. Transactions and techniques associated with money laundering and the specific predicate securities offences are often difficult to distinguish, which is why specific indicators and case studies for insider trading, market manipulation and securities fraud are relevant and included in this study.
In the past two decades, football has changed from a popular pastime into a global industry. With the growing economic importance of football along with other sports, the investment of money into the sector has increased exponentially, and some of this has criminal connections. Despite the rapid growth and high visibility of the football sector, however, football’s regulatory structure has not yet caught up with some of the risks that come with these changes.
The vulnerability of casinos for money laundering (ML) and terrorist financing (TF) was recognised in the revision of the FATF 40 Recommendations, with obligations on casinos being significantly enhanced. The report considers vulnerabilities from gaps in domestic implementation of anti-money laundering / combating the financing of terrorism (AML/CFT) measures and discusses a number of policy implications. Overall, there is significant global casino activity that is cash intensive, competitive in its growth and vulnerable to criminal exploitation.
Criminals have shown adaptability and opportunism in finding new channels to launder the proceeds of their illegal activities and to finance terrorism. As the Internet becomes more and more a worldwide phenomenon, commercial websites and Internet payment systems are potentially subject to a wide range of risks and vulnerabilities that can be exploited by criminal organizations and terrorist groups.
The adaptability and opportunism shown by terrorist organisations suggests that all the methods that exist to move money around the globe are to some extent at risk. The study highlights the importance of links between financial tools and wider counter-terrorist activity to combat terrorist financing: the effectiveness of authorities at both detecting and investigating terrorist activity is significantly enhanced when counter-terrorist intelligence and financial information are used together. Looking ahead the study identifies four areas which could be the focus of efforts to further strengthen counter-terrorist financing efforts: (1) action to address jurisdictional issues including safe havens and failed states, (2) outreach to the private sector to ensure the availability of information to detect terrorist financing, (3) building a better understanding across public and private sectors and (4) enhanced financial intelligence to exploit the value of financial investigation as a tool in fighting terrorism.