An analysis by consultants at Forensic Risk Alliance (FRA) of anti-money laundering (AML) trends and challenges has identified trade-based money laundering (TBML) and the illegal wildlife trade (IWT) as two of the four money laundering typologies that have recently received more attention from regulators and appear to be increasing in prominence.
Published in Global Investigations Review, Anti-Money Laundering Trends and Challenges, also considers the impact of sanctions imposed on Russia in the wake of its invasion of Ukraine and the resultant capital flight from Russia to Europe, the Middle East and beyond.
TBML and IWT
Analysis of TBML in the report briefly summarises and references recent findings of the Financial Action Task Force (FATF), Wolfsberg Group, BAFT and the International Chamber of Commerce.
Similarly, analysis of IWT cites the FATF’s landmark report, Money Laundering and the Illegal Wildlife Trade, and notes that in the EU, environmental crime, including IWT, is now captured by a directive as a predicate offence to money laundering.
Ransomware alongside human trafficking and modern slavery were identified by the FRA consultants as the other two of the four money laundering typologies that have recently drawn increasing attention from regulators and appear to be increasing in prominence.
Enforcement and penalties
Despite a global decrease in 2021 in AML enforcement actions and penalties, they more than tripled in the Europe, the Middle East and Africa (EMEA) region from the year before according to the analysis.
It says the increase in the region is due to some EMEA countries maintaining momentum in regulatory activity and the continued extraterritorial reach of the US, despite the covid pandemic.
FRA credentials
London-headquartered FRA works with global corporations and their counsel to identify, analyse and mitigate the risks associated with transactional compliance obligations, litigation and investigations.
The firm has around 250 staff working from locations in Europe, Canada, Dubai and the US.
Anti-Money Laundering Trends and Challenges published in Global Investigations Review can be found here.
The FATF report, Money Laundering and the Illegal Wildlife Trade can be found here.
Categories: Trade Based Financial crimes News
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