What are preventive actions against money laundering?

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As far as preventive actions against money laundering are improving, methods and ways of laundering also developing. At a time when Europe is emerging from the economy crisis, the planned change of banknotes looks rather symbolic. Along with banknotes 5 and 10 euro, which are already being produced, new variant of 20 euro banknote was demonstrated to Europeans.

Countries must use the notion of money laundering crime to all serious crimes in order to cover the broader circle of main crimes, as reported by the Financial Action Task Force on Money Laundering (FATF).

FATF is an intergovernmental organization setting standards, developing and supporting the policy on money laundering and terrorism financing in future. Now it consists of 33 members: 31 countries and governments with 2 international organizations as well as more than 20 observers. In its Recommendation FATF is supported by UN Convention on fight against corruption.

UN Convention on fight against corruption.

UN Convention has the following goals:

  • To promote implementing and strengthening of measures aiming at more effective and efficient prevention of corruption and strugglingagainst it;
  • To promote facilitating and support of international cooperation and technical assistance in corruptionpreventing and fighting, including measures on assetsreturn;
  • To promote integrity, accountability and proper management of public affairs and public property.

MEASURES ON PREVENTION OF MONEY LAUNDERING (from UN Convention against corruption)

  1. Every Member Country:

1.1 sets universal inner management and control regime in relation to banks and non-banking financial institutions, as well as persons or entities, providing official or non-official services of money or assets transfer. Besides, in appropriate cases, other authorities, that are of particular weakness from the viewpoint of money laundering within their competence in order to prevent and find out all forms of money laundering.

Besides, this regime is based primarily on requirements concerning client`s personality identification and, in certain cases, beneficiary owner, accounting and providing reports on shady transactions;

1.2 without prejudice to Article 46 of this Convention, ensure that administrative, regulatory, law enforcement and other authorities dedicated to money laundering fighting  (including cases when it falls under domestic law) can cooperate and exchange information at the national and international levels under conditions prescribed by its domestic law, and for these purposes considers the question of establishment the subdivision on financial current information that will serve as a national center for the collection, analysis and circulation of information regarding potential money laundering cases.

  1. Member countries consider the question of implying practically all possible measures of disclosing available funds transfer through its borders, and such transfer controls considering warranties for ensuring proper information use and not creating any restrictions on legal funds transfer. Such measures may include the requirement on individuals and businesses to inform about cross-border transfers of large fund amounts and delivery of corresponding negotiable instruments.
  2. Member countries are considering a question of using proper and possible measures for setting a demand for financial establishments, including those engaged in money transfer, to:

3.1 include exact and meaningful information about the sender in paper forms for e-transfer of money and related notifications;

  • save such information on all chain of making payments; and
  • make perfect check-out of funds in case of absence of full information about the sender.
  1. While setting of inner management and control regime according to the provisions of this article and without prejudice to any other article of this Convention, Member Countries are guided by the relevant initiatives of regional, interregional and multilateral organizations fighting money laundering.
  2. Member Countriesaim at developing and promoting global, regional, sub regional and bilateral cooperation between judicial, law enforcement and financial regulatory authorities in order to fight money laundering.

Cancelling of 500 euro banknote

A number of German experts urged the European Central Bank (ECB) to decline the largest banknote in Euro zone- 500 euro. Only in 2014 the amount of counterfeit euro banknotes,which were disposed,increased by 25% as compared to 2013.
The 20 euro banknote is the most popular with false-coiners. 60% of all disposed currency banknote are 20 euro bills. It is followed by 50 euro – 26% of all counterfeits.

One of the main innovation introduced in 5 and 10 euro banknotes, is a portrait drawing of Europe, a character from Greek mythology. The European Central Bank has signed a memorandum of understanding with the European partners on the ensuring of ATMs and other devices readiness to the implementation of the new banknotes of 20 eurostarting from 25 November 2015.

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