Table of Contents

Handbook of Global Research and Practice in Corruption

Handbook of Global Research and Practice in Corruption

Elgar original reference

Edited by Adam Graycar and Russell G. Smith

Corruption is a global phenomenon with costs estimated to be in the trillions of dollars. This source of original research and policy analysis deals with the most important concepts and empirical evidence in foreign corrupt practices globally.

Chapter 18: Applying Anti-money Laundering Laws to Fight Corruption

Louis de Koker

Subjects: economics and finance, economic crime and corruption, law - academic, corruption and economic crime, terrorism and security law, politics and public policy, terrorism and security


Louis de Koker INTRODUCTION In July 1989 the G7 meeting in Paris, joined by the President of the Commission of European Communities, expressed concern about the devastating proportions of the drug problem and urged all countries to support the fight against drug trafficking and the laundering of its proceeds. To assist in that regard, they convened a financial action task force. This task force was mandated to (1) assess the results of co-operation already undertaken in order to prevent the abuse of the banking system and other financial institutions for money laundering and (2) to consider additional preventive efforts in this field, including adapting legal and regulatory systems to enhance multilateral judicial assistance (G7, 1989, par. 52–53). The task team’s report (Financial Action Task Force, 1990) contained 40 recommendations on preventive steps and these were endorsed by the G7 meeting in Houston in July 1990 as part of its narcotics strategy. The participants in that meeting also committed their countries to a full implementation of all the recommendations without delay and invited other countries to do the same (G7, 1990, p. 78; Pieth, 1999, p. 531; Shams, 2001, pp. 111–112; Gilmore, 2004, pp. 89–98). Two decades later this task force (generally known as the Financial Action Task Force or FATF) and its Forty Recommendations, since supplemented by Special Recommendations on Terrorist Financing, lie at the core of an international framework that combats the laundering of proceeds of crime and financing of terrorists. The Recommendations are recognized as...

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