In this paper we discuss the challenges posed by bribery and corruption, on global, regional and national levels, and identify different initiatives and regulatory responses to tackle the menace.
The implications of stricter legal obligations, in terms of anti-bribery and corruption, and anti-money laundering compliance are also highlighted.
In this paper, we argue it is important for UK-based financial sector and designated non-financial businesses and professions (DNFBPs), to conduct enhanced due diligence (EDD) when entering into business relationships with high net worth (HNW) individuals and entities, and Politically Exposed Persons (PEPs) from high risk jurisdictions.
As well as the threat from corruption, money laundering (ML), terrorist financing (TF), weak governance and rule of law deficiencies, we make a case for a robust EDD program to be used as a defence mechanism against the risk of criminal attempts to abuse the global financial system for illicit gains.
A new legislative proposal from the European Commission (EC), which updates the existing Third Anti-Money Laundering Directive (AMLD), suggests stepping-up international efforts to deal with evolving money laundering and terrorist financing threats. The proposed directive categorically states that “money laundering and terrorism financing create high risks to the integrity, proper functioning, reputation and stability of the financial system, with devastating consequences for the broader society.”