A crowd forms on Wall Street during the Panic of
Among the goals of this effort are: The IMF's unique blend of universal membership, surveillance functions, and financial sector expertise make it an integral and essential component of international efforts to combat money-laundering and the financing of terrorism.
The IMF is especially concerned about the possible consequences of money laundering and the financing of terrorism on its members' economies. These include risks to the soundness and stability of financial institutions and financial systems, increased volatility of international capital flows, and a dampening effect on foreign direct investment.
The IMF is contributing to the international fight against money laundering and the financing of terrorism in several important ways, consistent with its core areas of competence. As a collaborative institution with near universal membership, the IMF is a natural forum for sharing information, developing common approaches to issues, and promoting desirable policies and standards -- all of which are critical in the fight against money laundering and the financing of terrorism.
What is Money Laundering? Criminal activities, such as drug trafficking, smuggling, human trafficking, corruption and others, tend to generate large amounts of profits for the individuals or groups carrying out the criminal act.
However, by using funds from such illicit sources, criminals risk drawing the authorities' attention to the underlying criminal activity and exposing themselves to criminal prosecution. In order to benefit freely from the proceeds of their crime, they must therefore conceal the illicit origin of these funds.
Briefly described, "money laundering" is the process by which proceeds from a criminal activity are disguised to conceal their illicit origin.
More precisely, according to the Vienna Convention and the Palermo Convention provisions on money laundering, it may encompass three distinct, alternative actus reas: The international standard for the fight against money laundering and the financing of terrorism has been established by the Financial Action Task Force FATFwhich is a member organization with primary responsibility for developing a world-wide standard for anti-money laundering and combating the financing of terrorism.
What is Financing of Terrorism? Terrorist financing involves the solicitation, collection or provision of funds with the intention that they may be used to support terrorist acts or organizations.
Funds may stem from both legal and illicit sources. More precisely, according to the International Convention for the Suppression of the Financing of Terrorisma person commits the crime of financing of terrorism "if that person by any means, directly or indirectly, unlawfully and willfully, provides or collects funds with the intention that they should be used or in the knowledge that they are to be used, in full or in part, in order to carry out" an offense within the scope of the Convention.
The primary goal of individuals or entities involved in the financing of terrorism is therefore not necessarily to conceal the sources of the money but to conceal both the financing and the nature of the financed activity.
Money laundering is the process of concealing the illicit origin of proceeds of crimes. Terrorist financing is the collection or the provision of funds for terrorist purposes.
In the case of money laundering, the funds are always of illicit origin, whereas in the case of terrorist financing, funds can stem from both legal and illicit sources.
The primary goal of individuals or entities involved in the financing of terrorism is therefore not necessarily to conceal the sources of the money but to conceal both the funding activity and the nature of the funded activity.IFS (International Financial System) is a software application developed by the Postal Technology Centre to address problems often encountered with traditional money .
Economists define money as a: a. medium of exchange, i.e. a payment instrument. An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between nation states.
It should provide means of payment acceptable to buyers and sellers of different nationalities, including. International Monetary Fund and World Bank Table of Contents There were extensive IMF negotiations regarding how to divide the total amount of money the IMF would have among the meets twice yearly to provide advice on the international monetary and financial system to the IMF's staff.