Money laundering is an expanding and increasingly international phenomenon, according to a new report by Moneyval, Europe’s money-laundering watchdog. Current estimates of the amount of money laundered world-wide range from $500 billion to a staggering $1 trillion, with disastrous effects on the global economy, especially on vulnerable, developing economies. The prevalence of money laundering has plagued banks worldwide. For internal audit shops, particularly those at banks and companies in industries that are vulnerable to money laundering, it might be time to audit the anti-money laundering (AML) program.
“We have witnessed money laundering scandals that make the headlines almost on a daily basis. Countless cases of grand corruption and money laundering are brought to the attention of the general public,” wrote Daniel Thelesklaf, President of Moneyval, in his introduction to the report. “Major strides in technology continue to facilitate the concealment and disguise of ill-gotten funds. The alarming deterioration of the rule of law and democracy in certain quarters of our own region encourages criminals to act with impunity. One would be forgiven for believing that not only has the laundering of proceeds of organized criminality, corruption, tax fraud, and other major proceeds-generating crimes not declined but it has actually intensified.”
