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- Title
Money Laundering and Financing Terrorism (at EU level).
- Abstract
For most countries, money laundering and terrorist financing raise significant issues with regard to prevention, detection and prosecution. Sophisticated techniques used to launder money and finance terrorism add to the complexity of these issues. Such sophisticated techniques may involve different types of financial institutions; multiple financial transactions; the use of intermediaries, such as financial advisers, accountants, shell corporations and other service providers; transfers to, through, and from different countries; and the use of different financial instruments and other kinds of value-storing assets. In this article the author deals with money laundering and financing terrorism at EU level and Republic of Serbia. The techniques used to launder money are essentially the same as those used to conceal the sources of, and uses for, terrorist financing. Funds used to support terrorism may originate from legitimate sources, criminal activities, or both. Nonetheless, disguising the source of terrorist financing, regardless of whether the source is of legitimate or illicit origin, is important. If the source can be concealed, it remains available for future terrorist financing activities. Similarly, it is important for terrorists to conceal the use of the funds so that the financing activity goes undetected. By their very nature, money laundering and terrorist financing are geared towards secrecy and do not lend themselves to statistical analysis. Launderers do not document the extent of their operations or publicize the amount of their profits, nor do those who finance terrorism. Moreover, because these activities take place on a global basis, estimates are even more difficult to produce. In this article the author deals with definitions and explanations regarding money laundering and terrorist financing, the link between the two, the processes (placements, layering, integration), methods and typologies. The stages of terrorism financing are also the same as money laundering but there are also some differences which the author of this article stress. The author also deals with the instruments for cooperation in combat against money laundering and financing terrorism at EU level and in the relation between EU and USA. Money laundering and the financing of terrorism more often than not take place in an international context. Measures adopted solely at national or even Community level, without taking account of international coordination and cooperation, would have very limited effects. Cooperation at EU level has been based on cooperation with the FATF and other international bodies. There are also other relevant EU measures - the Protocol to the Convention on Mutual Assistance in Criminal Matters and the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism--the Warsaw Convention. It is the first comprehensive international treaty covering both the prevention and control of money laundering and the financing of terrorism.
- Subjects
MONEY laundering; TERRORISM; CORRUPT practices of financial institutions; EUROPEAN Union
- Publication
Novi Sad Faculty of Law: Collected Papers / Zbornik Radova: Pravni Fakultet u Novom Sadu, 2009, Vol 43, Issue 3, p195
- ISSN
0550-2179
- Publication type
Article