The Fight against Money Laundering intensifies, but criminals stay one step ahead
Humankind’s unending battle against money laundering has intensified in recent years. Many European countries, including Belgium, have made this fight a top priority. Following is a deeper dive into this complex issue.
The primary goal is to quickly identify suspicious financial activity. Authorities became even more determined in this pursuit after the devastating attacks on our city on March 22, 2016. The investigation of these horrible events revealed a chilling discovery: both attacks were partially financed through money laundering.
In response, there’s been a swift shift in their approach. What was once a simmering concern on the political agenda has suddenly become a burning issue requiring immediate action. A new law has recently been introduced, bolstering both anti-money laundering and anti-terrorist financing laws. “It accelerated things and also placed emphasis on both anti-money laundering and anti-terrorist financing,” explains Sabrina Scarna, a tax lawyer.
These efforts mark a decisive shift.
“We really put money laundering and the financing of terrorism on an equal footing. And so it is really a law which aims to fight against both. Clearly since the attacks in Paris and Brussels, the emphasis has also been placed on this aspect of things, “Adds Sabrina Scarna
Further, banks play a vital role in detecting fraud attempts. According to Isabelle Marchand, spokesperson for Febelfin, the anti-money laundering concept necessitates financial institutions to know their customers. “Anti-money laundering legislation requires banks to identify their clients,” she confirms. “Customers will be asked to identify themselves and their transactions will be monitored. For example, banks may ask their customers about the origin of certain funds.”
The results are starting to show. Surprisingly, the increase in reported cases shows that this battle against money laundering goes hand in hand. The number of reports of potential money laundering by credit institutions has skyrocketed from 21,624 in 2021 to more than 40,000 last year. And gaming establishments have seen a rise in reports to a staggering 322 in 2023.
But criminals remain cunning adversaries. Despite these efforts, eradicating money laundering completely is a monumental task. “Drug traffickers, for example, and a whole series of criminals are often one step ahead and today use money laundering professionals. These are people who will help drug traffickers in particular to launder their money by creating false companies, issuing false invoices and a whole series of things to allow the money to be reinjected into the circuit” continues Sabrina Scarna.
The International Monetary Fund estimates that the funds laundered or destined for financing terrorism represent whims tithe enormous sums, possibly between 400 and 1000 billion euros – emphasizing the need for ongoing vigilance. The battle against financial crime demands persistent and innovative strategies to stay ahead.
Is the “war” on money laundering truly a losing battle, given the ever-evolving tactics of criminals?
## The Fight Against Money Laundering: A Losing Battle?
**Host:** Welcome back to the show. Today we’re diving deep into the complex world of money laundering and the intensifying global fight against it. Joining us is Sabrina Scarna, a tax lawyer with extensive experience in this field. Sabrina, thank you for being here.
**Sabrina Scarna:** Thank you for having me.
**Host:** Let’s start with the basics. What exactly is money laundering and why is it such a serious issue?
**Sabrina Scarna:** Money laundering is essentially the process of disguising illegally obtained money to make it appear legitimate. [1] It’s a critical component of many criminal activities, from drug trafficking and human smuggling to terrorism.
**Host:** And you mentioned that the fight against money laundering has intensified in recent years. What’s driving this?
**Sabrina Scarna:** Several factors are at play. One major catalyst has been the growing awareness of the link between money laundering and terrorist financing. The horrific attacks in Brussels in 2016, which were partially funded through money laundering, served as a stark reminder of the devastating consequences.
**Host:** So, are authorities making progress?
**Sabrina Scarna:** While there have been significant advancements, such as stronger laws and increased international cooperation, criminals are constantly adapting their tactics to stay ahead. It’s a constant cat-and-mouse game.
**Host:** What can be done to truly stem the tide of money laundering?
**Sabrina Scarna:** It requires a multi-faceted approach. We need robust regulations, sophisticated technology to detect suspicious transactions, and greater international collaboration to track funds across borders.
**Host:** It sounds like a monumental task.
**Sabrina Scarna:** It certainly is. But the stakes are incredibly high. Failure to effectively combat money laundering not only empowers criminals but also undermines the integrity of our financial systems and poses a serious threat to national security.
**Host:** Sabrina Scarna, thank you for your insights. This is certainly a crucial issue that deserves our attention.
