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...
The U.S. State Department imposed economic sanctions on companies in China, Russia and Venezuela for allegedly selling components that could help Iran, North Korea and Syria develop weapons of mass destruction.
A government indictment released Wednesday charging an international network with sending electronics that can be used for weapons to Iran puts more pressure on banks to ensure their customers aren't aiding terrorism.
Ron King, vice president and chief anti-money laundering officer for Toronto-based Scotiabank, talks with reporter Larissa Bernardes about how banks can detect the financial transactions of weapons facilitators, the subject of an upcoming FATF report.
Financial institutions should search for transactions tied to the proliferation of weapons of mass destruction by using many of the same tactics they use to investigate money laundering and terrorist financing schemes, FATF said in guidance clarifying a United Nations Security Council rule.