A symposium by the Qatar Chamber discusses the economic implications of combating money laundering and terrorist financing

Mohammed Al-Shayazami-Doha

If the annual money laundering and terrorist financing crimes have significant economic impacts on the security and stability of the financial sector of countries, then effective legislative systems are unable alone to address the traditional and new methods of camouflaging, with which such crimes are continuously recited.

These were the most prominent summaries of a symposium organized by the Qatar Chamber in cooperation with the International Refinitiv Foundation today, entitled "The Economic Implications of Combating Money Laundering and Terrorist Financing," to discuss the latest developments in global compliance with anti-money laundering and terrorist financing standards.

The seminar highlighted the best practices used in this regard, how to spread the required approach to combat the phenomenon effectively, and to discuss the best solutions to reduce the risks associated with them in light of the recent technological revolution.

She also touched on the role of legal legislation and its strict application to end money-laundering crimes, stop the bleeding it inflicts on the national and global economy, and the need to integrate roles between institutions locally and with other organizations involved in tracking and law enforcement mechanisms.

This year is important for Qatar, as its efforts will be evaluated by the Financial Action Task Force (FATF), an intergovernmental body tasked with preparing and developing policies related to combating money laundering and terrorist financing worldwide.

Traditional and innovative means
Money laundering is an old phenomenon that aims to hide the true source of money acquired through illegal means such as corruption, and to legalize these funds or their assets, to show them as if they were obtained from legitimate sources, and use them for circulation in the economic cycle, and include transfer and transfer across the world.

In this context, the Secretary-General of the Qatar Chamber, Khaled Al-Hajri, said that international efforts to address the effects of money laundering are constantly evolving, despite the challenges that accompany the coloration of this type of crime and the development of its methods.

He added - in a statement to Al Jazeera Net - that Qatar had enacted strict legislation to combat illicit financing in all its forms, in line with updated international standards and approved by major international organizations, including the Financial Action Group (FATF), an intergovernmental body, created in 1989 , To ensure the effective implementation of legal, regulatory and operational measures to combat money laundering and terrorist financing.

Money laundering operations take many forms, mixing traditional methods with the use of modern technology, and aim to launder money collected in illicit forms, especially from drug and arms trade and human trafficking, through the use of financial institutions to provide legal cover, as well as through leasing of real estate and loans, and the purchase of stocks and bonds .

Economic threat
Money laundering and terrorist financing continue to cripple the economies of the world, as it is estimated that crimes related to money laundering incurred the global economy losses of no less than two trillion dollars annually, constituting between 2 and 5% of the total global output, knowing that about $ 1.2 trillion is money They come from organized crime, and are laundered with the equivalent of 60% of the total money laundered annually.

Banks and banks around the world are often accused of not being strict in applying international and domestic legislation that stops the economic bleeding caused by money laundering crimes, and their impact on market stability and weakening competitiveness.

In this regard, Mohamed Daoud, Director of Business Development and Governance, Risk and Compliance expert at Refinive International, said that many banks in the MENA region closed bank accounts for individuals and companies who refused to give clear information and details about their money transfers, and that during The past three years have closed about two hundred thousand bank accounts in the Middle East and North Africa only, and there are more than three hundred blacklists issued by various international bodies from individuals, destinations and institutions involved in these practices.

Qatar in the Basel index
Qatar ranked first in the Gulf and second in the Middle East and North Africa region in the Basel Anti-Money Laundering and Terrorist Financing Risks Index for the year 2017, and the regulatory laws of the National Anti-Money Laundering and Terrorist Financing Committee have also occurred to achieve greater efficiency and efficiency.

The Basel Anti-Money Laundering Index is a standalone annual classification that assesses the risks of money laundering and terrorist financing worldwide, and relies on highly documented sources, such as Mutual Evaluation Reports of the Financial Action Team, as well as a set of individual indicators, transparency, and the rule of law.

The index - issued by the Basel Institute for Governance in Switzerland and includes 149 countries - consists of ten degrees, where the zero represents the least dangerous and the tenth most dangerous, and the classification works to assess the risks of countries in the field of money laundering and terrorist financing by assessing the level of their control in the state, and other factors of Relationship, including financial transparency and the effectiveness of the judicial system in the country.