Methodology for Assessing Compliance with Anti-Money Laundering and Combating the Financing of Terrorism Standard

Pages:114-119

Page 114

2.1 CRIMINAL JUSTICE MEASURES AND INTERNATIONAL COOPERATION

I. Criminalisation of ML and FT

1. The jurisdiction should have ratified and fully implemented the UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988 (Vienna Convention), the UN International Convention for the Suppression of the Financing of Terrorism 1999, and the UN Convention Against Transnational Organized Crime 2000 (Palermo Convention), as well as other regional AML/CFT conventions (e.g. the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime), where applicable. Countries should also immediately implement the United Nations resolutions relating to the prevention and suppression of the financing of terrorist acts, particularly United Nations Security Council Resolution 1373. (see FATF 1, 35, I).1

2. Each jurisdiction should criminalise money laundering on the basis of the Palermo and Vienna Conventions (see FATF 4).

2.1 The offence of ML may extend not only to those persons who have committed ML, but also to persons who have committed both the laundering and the predicate offence.

2.2 It should not be necessary that a person be convicted of a predicate offence to establish that assets were the proceeds of a predicate offence and to convict any person of laundering such proceeds.

2.3 Predicate offences for ML should extend to all serious offences, including drug trafficking and FT offences. (see FATF 4, II) It is possible to identify ML predicate offences by list or generically, including by length of penalty.

2.4 The offence of ML should extend to any type of property that directly or indirectly represents the proceeds of crime. Page 115

2.5 The predicate offences for ML should extend to conduct that occurred in another country, and which would have constituted a predicate offence had it occurred domestically.

3. FT should be criminalised on the basis of the Convention for the Suppression of the Financing of Terrorism (see FATF II).

3.1 The FT offence should also apply when the terrorists or terrorist organisations are located in another jurisdiction or when the terrorist acts take place in another jurisdiction (see FATF II).

4. The offences of ML and FT should apply at least to those individuals or legal entities that knowingly engage in ML or FT activity. Laws should provide that the intentional element of the offences of ML and FT may be inferred from objective factual circumstances. (see FATF 5).

4.1 If permissible under the jurisdiction's legal system, the offences of ML and FT should extend to legal entities (e.g., companies, foundations) (see FATF 6).

5. Laws should provide for effective, proportionate and dissuasive criminal, civil or administrative sanctions for ML and FT.

6. Legal means and resources should be adequate to enable an effective implementation of ML and FT laws.

II. Confiscation of proceeds of crime or property used to finance...

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