Weapons Proliferation Financing on the Rise, but Hard for Banks to Spot, Says FATF

By Brian Monroe

An arms trafficker uses two front companies and several banks with weak money laundering and terrorist financing controls to skirt customs laws, eventually moving $4 million worth of apparently innocuous magnets. What wasn't declared on shipping manifests: the magnets can be used to make massive bombs. That's just one of the ways that arms "proliferators whether their medium is chemical, biological or nuclear" acquire financing and move the core components to create weapons of mass destruction, according to report released Wednesday by the Financial Action Task Force (FATF). The Paris-based group, which sets global anti-money laundering standards, stated in a...