MODULE CONTENTS
This module presents the crucial issues involved in combating money laundering and the financing of terrorism (AML/CFT). It explains how criminal activities generate illegal funds which are reintroduced into the legal economy through various methods, such as the famous example of casinos. The module also looks at the evolution of criminal practices with the rise of financial technologies, the use of crypto-currencies and complex financial arrangements. It highlights European regulations, which have been tightened and broadened to include more sectors, requiring increased vigilance on the part of many economic players.
LEARNING OBJECTIVES
The fight against money laundering and terrorist financing (LCB-FT)
Money laundering is the reintroduction into the legal economy of funds derived from criminal activities such as drug trafficking or tax fraud. This process involves a variety of methods, such as the classic example of casinos, where dirty money is exchanged for chips, only to be recovered in the form of "clean" money. The fight against money laundering and the financing of terrorism (LCB-FT) aims not only to prevent these criminal activities, but also to guarantee the stability and integrity of the financial system.
In response to this threat, European regulations have evolved. It has widened its scope of application, strengthened sanctions and imposed greater obligations on member states. International cooperation is now paramount, and the harmonization of rules at European level enables more coordinated action. The regulations also take account of cybercrime, as the methods of financial criminals have evolved with the rise of digital technologies, crypto-currencies and complex financial structures.
Various sectors are particularly exposed to the risks of money laundering and terrorist financing: the banking and finance sector, real estate intermediaries, the legal and accounting professions, the gaming sector, and traders in high-value goods. These players must be extremely vigilant to prevent tax fraud, scams and even the financing of terrorist activities.
In conclusion, AML/CFT is a major challenge for companies and financial institutions, who must remain alert in the face of increasingly sophisticated criminal activities. The fight against money laundering and the financing of terrorism must be at the heart of organizations' risk management strategies.
