Ant i-Money-Launder ing and Combat t ing the Financing of Ter ror ism in 2032

AML/CFT IN 10 YEARS

‍

Money laundering and the financing of terrorism remain significant risks and concerns for the integrity of the global financial system, nations and the security of their citizens.

According to Europol, as much as 0.7-1.28% of the EU’s annual GrossDomestic Product (about 180 billion EUR) is suspicious financial activity[1].

The International Monetary Fund (IMF) indicates that every year, up to 2 trillion USD is laundered through financial systems globally, even though all such estimates are heavily contested due to the underground nature of these markets. Still, ML is considered to be one of the world’s largest markets. Despite the sheer scale of the phenomenon, the UNODC estimates that only 0.2% of ML activities can be detected[2]. As money launderers seek to legitimise the illicit proceeds of various criminal activities (e.g. drug and human trafficking, tax evasion) so that such proceeds can be enjoyed freely across jurisdictions, money laundering finds itself at the epicentre of fuelling and maintaining criminality.

‍

In this white-paper, a multi-national group expert representing different actors of the AML/CFT scheme has come together to contemplate and discuss how the AML/CFT practice will look in 10 years. Starting from the widely accepted concepts of today's workflows, hints of change have been researched. Following the research, possible scenarios are built for the potential future of the year 2032. Each expert then provided insight into how their daily tasks will change, what are the potential improvements, and new risks that will arise. Finally, everyone commented on the necessary steps that must be taken today for a better future for the fight against financial crime. The studies are mostly inspired by the methodologies defined in [3] by Jane McGonigal, who is a designer of alternate-reality computer games.

‍

[1] EUROPOL (2017). FROM SUSPICION TO ACTION Converting financial intelligence into greater operational impact. Retrieved on28 June 2020 from https://www.europol.europa.eu/publications-documents/suspicion-to-action-converting-financial-intelligencegreater-operational-impact

[2] UNODC. (2011). Estimating Illicit Financial Flows Resulting from Drug Trafficking and Other Transnational Organized Crimes.Vienna: United Nations Office on Drugs and Crime.

[3] McGonigal, J. (2022). Imaginable, How to See the Future Coming and Feel Ready for Anything-Even Things That SeemImpossible Today, Spiegel & Grau

‍

‍

Selected by Virginie GASTINE MENOU