The threat posed by illicit finance is neither new nor limited to state actors. In fact, it is illicit finance that allows criminals to profit from heinous crimes and finance terrorism. It can cause significant economic and human harm to individuals, communities, taxpayers, governments and wider society. The most vulnerable people, such as those living in poverty or in jurisdictions ravaged by corruption, are often at greatest risk. Moreover, the scope of illicit finance is wide-ranging. This includes corruption, money laundering, terrorist financing, fraud and more, and the statistics paint a frightening picture. The United Nations Office on Drugs and Crime estimates that the amount of money laundered worldwide each year is between 2% and 5% of global GDP, or between $1.9 trillion and $4.9 trillion.
Despite these systemic challenges, there is a growing consensus among policymakers, regulators, law enforcement, and the private sector that system-wide reform is essential. New laws, policy changes, and public and private sector partnerships are creating a shift in sentiment and momentum for change around the world. Despite the challenges, policymakers, regulators, law enforcement, and the private sector have recently made some progress in developing solutions.
The global response to illicit finance is at a turning point. As the scale and impact of illicit financial activity grows, and the scant success achieved against the resulting threats, more needs to be done. A whole-systems approach is needed that enables all stakeholders in the ecosystem – regulators, supervisors, law enforcement and policy makers – to maximize their impact in delivering outcomes against criminals. Recommendations for changes include: Prioritize clear systems leadershipThis means we have system leaders who can bring the entire ecosystem together to create cross-industry responses to cross-industry problems, while working together to advance towards agreed goals. . Improved information sharing Not only among law enforcement officials but also among public and private stakeholders. enable faster action By reducing duplicate processes. Strengthen public sector funding.Improved asset recovery rateFinally, by bringing on board investigators with high-end skills, including forensic accounting, asset tracking, cyber, and the ability to access and analyze open source intelligence. Enhance transparency in registry data sharing.
