Global Measures on ML/FT : United Nations- UNODC

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 United Nations Office on Drugs and Crime(UNODC)

 The United Nations Office on Drugs and Crime (UNODC) is a United Nations office that was established in 1997 as the Office for Drug Control and Crime Prevention by combining the United Nations International Drug Control Program (UNDCP) and the Crime Prevention and Criminal Justice Division in the United Nations Office at Vienna. It is a member of the United Nations Development Group and was renamed the United Nations Office on Drugs and Crime in 2002. The agency is headquartered in Vienna, Austria.

These are the main themes that UNODC deals with: Alternative Development, Corruption, Criminal Justice, Prison Reform and Crime Prevention, Drug Prevention, -Treatment and Care, HIV and AIDS, Human Trafficking and Migrant Smuggling, Money Laundering, Organized Crime, Piracy, Terrorism Prevention. The Law Enforcement, Organized Crime and Anti-Money-Laundering Unit of UNODC is responsible for carrying out the Global Programme against Money-Laundering, Proceeds of Crime and the Financing of Terrorism, which was established in 1997 in response to the mandate given to UNODC through the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988. The Unit's mandate was strengthened in 1998 by the Political Declaration and the measures for countering money-laundering adopted by the General Assembly at its twentieth special session, which broadened the scope of the mandate to cover all serious crime, not just drug-related offences. The broad objective of the Global Programme is to strengthen the ability of Member States to implement measures against moneylaundering and the financing of terrorism and to assist them in detecting, seizing and confiscating illicit proceeds, as required pursuant to United Nations instruments and other globally accepted standards, by providing relevant and appropriate technical assistance upon request

International efforts to curb money laundering and the financing of terrorism are the reflection of a twofold strategy: 

1. attacking the economic power of criminal organizations and individuals in order to weaken them by preventing them benefiting from, or making use of, illicit proceeds and,

 2. forestalling the evil effects of the "criminal businesses" on the legal economy.

Sub-Programme 2, in line with the UNODC mandate in Anti-Money-Laundering/Countering the Financing of Terrorism (AML/CFT) implements capacity building activities that cover both traditional and new means of money-laundering techniques and illicit financial flows including  prevention of the abuse of money or value transfer services (MVTS) (e.g. hawala and other similar service providers" (HOSSPs), investigation of the misuse of cryptocurrencies, blockchain, Darknet, contactless payments, disruption of illicit financial flows and others.  Furthermore, SP 2 provides advisory services to States and supports the development of regional synergies among financial intelligence units (FIUs) through regional FIU to FIU meetings, the strengthening of a regional AML group of experts as well as through supporting the signing of memorandum of understanding (MoU) on anti-money laundering/countering the financing of terrorism (AML/CFT).

Model Law provided by UNODC under IMF from Commonwealth secretariat

These model legislative provisions relating to money laundering, terrorism financing, proceeds of crime, civil forfeiture and sanctions are the outcome of a collaboration between the Commonwealth Secretariat, the International Monetary Fund (IMF) and the United Nations Office on Drugs and Crime (UNODC). The model provisions form a starting point for states to evaluate the measures that should be incorporated into their domestic law to prevent, detect and effectively sanction money laundering and terrorism financing and to recover the proceeds of crime, with the overall objective of maintaining compliance with the revised Financial Action Task Force (FATF) Recommendations. Using the model legislative provisions The model legislative provisions aim to assist states in reviewing or updating their legislative framework so that it conforms with international standards. The model provisions revise and update the Common Law Model Provisions Joint Project of the IMF, UNODC and the Commonwealth Secretariat of April 2009 and are based upon the relevant international instruments concerning money laundering and terrorism financing, including confiscation and forfeiture, as set out in the FATF 40 Recommendations of 2012 and FATF Best Practices. The model legislative provisions now include at Part XI legislative provisions for implementing United Nations (UN) financial sanctions under the Al-Qaida and 1988 sanctions regimes. It should be borne in mind that there are also United Nations Security Council Resolutions (UNSCRs) related to the prevention, suppression and disruption of proliferation of weapons of mass destruction and its financing which, under FATF Recommendation 7, require implementation in the same manner. Jurisdictions considering these legislative provisions should take care to adapt the underlying concepts and specific language to accord with constitutional and fundamental legal principles in their systems and to ensure that the provisions are compatible with other legal concepts and existing legislation. These provisions can be supplemented with additional measures that jurisdictions consider are suited to recovering the proceeds of crime, money laundering and terrorism financing in the national context. The various parts of the model legislative provisions are intended to be free-standing modular units, although there is a degree of interdependence. Taken together they present a comprehensive legal framework. Definitions appear at the beginning of each part. If only selected parts are used, adjustments to definitions may be necessary

The model legislative provisions provide for the criminalisation of money laundering and terrorism financing and related offences, for the recovery of proceeds and instrumentalities of crime, for preventive and investigative measures, for the establishment of a financial intelligence unit (FIU), for the detection of cross-border transportation of cash and bearer negotiable instruments, for the implementation of international obligations in relation to financial sanctions, and for ancillary purposes. The model legislative provisions also set out two separate mechanisms for depriving criminals of the proceeds and instrumentalities of crime:

 first, through confiscation following a criminal conviction; and, second, through non-conviction based measures pursuant to civil process, also referred to as civil forfeiture.

However, the scope of these model legislative provisions does not extend to the following FATF 40 Recommendations:

(i)                 FATF Recommendation 6 pertaining to the requirements under UNSCR 1373 and successor resolutions to apply targeted financial sanctions related to terrorism and terrorism financing;

(ii)               FATF Recommendation 7 pertaining to targeted financial sanctions related to proliferation of weapons of mass destruction;

(iii)             FATF Recommendations 24 and 25 on transparency of legal persons and legal arrangements;

(iv)             FATF Recommendation 8 relating to non-profit organisations;

(v)               FATF Recommendation 14 pertaining to money and value transfer services; and

(vi)             A comprehensive framework for mutual legal assistance and extradition as required under FATF Recommendations 36–40. Included, as an annex, is a suggested constitution for an FIU

UNODC  assists countries in developing and implementing AML/CFT legislation and institutions, providing guidance on best practices. UNODC also supports initiatives to address the broader nexus between organized crime and terrorism, recognizing the interconnected nature of these threats. The Global Programme against Money Laundering, Proceeds of Crime and the financing of Terrorism (GPML) is a global programme providing in-depth assistance to countries to build and strengthen their anti-money laundering and countering financing of terrorism (AML/CFT) capacity.

GPML is mandated to assist Member States - via their legal, financial, law enforcement and judicial authorities - to develop effective and comprehensive domestic AML/CFT legal and regulatory frameworks, as well as the institutional infrastructures and practitioner skills needed to implement them, in accordance with UN instruments and international standards. GPML is committed to promoting national coordination and regional and international cooperation on issues concerning money laundering and terrorism financing.

GPML has specifically been tasked by the United Nations General Assembly, most recently in resolutions 74/177 (2019), 73/186 (2018), 72/196 (2017), and 71/209 (2016) to:

“…continue providing technical assistance to Member States to combat money laundering and the financing of terrorism in accordance with United Nations related instruments and internationally accepted standards, including, where applicable, recommendations of relevant intergovernmental bodies, inter alia, the Financial Action Task Force on Money Laundering, and relevant initiatives of regional, interregional and multilateral organizations against money laundering.”


International Money Laundering Information Network (IMoLIN)

 The International Money Laundering Information Network (IMoLIN), a one-stop AML/CFT research resource, was established in 1998 by the United Nations on behalf of a partnership of international organizations involved in anti-money laundering. The Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML) of the United Nations Office on Drugs and Crime (UNODC) now administers and maintains IMoLIN on behalf of the following 11 partner organizations: the Asia Pacific Group on Money Laundering (APG), the Caribbean Financial Action Task Force (CFATF), the Commonwealth Secretariat, the Council of Europe — MONEYVAL, the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), the EuroAsian Group (EAG), the Financial Action Task Force (FATF), the Financial Action Task Force on Money Laundering in South America (GAFISUD), the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Interpol, and the Organization of American States (OAS/CICAD). In the first half of 2004, GPML relaunched IMoLIN, after completing an extensive renovation of the site's 'look and feel' and its content, in collaboration with UNODC's IT Section. This multi-faceted website serves the global anti-money laundering community by providing information about national money laundering and financing of terrorism laws and regulations and contacts for inter-country assistance. Inter alia, it identifies areas for improvement in domestic laws, countermeasures and international co-operation. Policy practitioners, lawyers and law enforcement officers all regularly use IMoLIN as a key reference point in their daily work. The information on IMoLIN is freely available to all Internet users, with the exception of AMLID, which is a secure database

The FATF standards draw on and complement a wide range of United Nations (UN) conventions and resolutions that promote international cooperation in preventing and containing drug trafficking, organized crime, corruption, and efforts to finance terrorism. In addition, all financial supervisory standards have core principles to enhance know your-customer (KYC) rules, suspicious transactions reporting, and other due diligence requirements that help to support AML–CFT regimes.

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Formerly Faculty for Finance & Associate Dean, IBS-Kochi MBA (Banking & Finance – CUSAT);CFA. Accredited Management Teacher from CME of AIMA, Delhi has been in Management Education from 1988. Exposure is in the field of Mutual Funds, Market Research, Project Report preparation & evaluation, Advertising & NGO Activities. This Chief Manager, UTI Asset Management Co Pvt. Ltd(1992-2003), Mumbai. Undergone training in Case Study method of teaching under Mr. Trevor Williams and Mr. Scott M Andrews conducted by the ECCH, UK . Published Books & Book Review, Series of academic articles and maintains a column on MFs under "Fund scan" in Business Manorama since January 2007,Contributes "Portfolio Doctor" column for 'Sampadyam' a wealth mgt publication in Malayalam from manorama group since February 2007, Listed her case studies at asiacase.com.Presented papers in national & international conferences on Mutual Funds. Faculty Member @ ASIET, Kalady from 2010 to June 2019. Dean @ SNGIST, N Paravur, Ernakulam from Sep 2019 -Jan 2021, I continue my efforts to spread the knowledge in area of Finance and contribute to Management Education

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