Anti-money laundering news 22/11/08 Counter terrorist finance practice in credit crunch

American counter terrorist finance experts from the Washington Institute for Near East Policy have released a message that the global downturn in finance has both positive and negative effects on combating international crime.

Its positive effect, according to the report, is that money laundering activity will face tougher scrutiny as part of the greater control on all financial transactions. However, the Institute warns that the temptation for regulated firms to reduce expenditure in monitoring and reporting on suspicious activity may be a negative corollary.

Matt Levitt, one of the authors, told Reuters that I think its going to end up being a net plus, for trying to make the international financial system more secure.

The report admits that scepticism regarding the value of anti-money laundering activity exists, based on the fact that terrorist attacks have been shown to be relatively cheap, but argues that preventing the proceeds of crime from reaching international criminals has been a powerful tool. Not only have al-Qaeda pleas for more funds been widely circulated, but UK money laundering regulations have been shown to have contributed to the foiling of a 2006 plot to blow aeroplanes up.

It also includes recommendations made directly to President-Elect Obama, encouraging him to seek co-operation and support in international efforts to counter terrorist finance operations.

News « Thinktank reports on counter terrorist finance

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