Economically, globalization may appear beneficial in that it enhances trade between men and generates growth. Many of its adverse effects are, however, the game of criminal organizations. Indeed, with the rise of movements of people, goods and capital, globalization tends to increase the capacity of individuals and businesses to overcome the state borders. Therefore, the process of globalization now relies on global financial integration and creates a single market of capital operating on a global scale and suitable for a mixture of financial flows from criminal activities (drug trafficking, weapons, corruption, etc) with the legal economy.
Financial globalization has been greatly enhanced by several factors. Firstly, the liberalization of capital movements, since the late 1980s, out of national or international control and also the dematerialization of financial transactions, accelerated by technological communications revolution, and the reliability increased by a global archipelago of places specialized in the management tolerated financial crime havens. Given the liberalization of capital movements, the fight against money laundering faces several challenges such as banking secrecy and the transfer of funds from one country to another.
These factors affect the freedom of movement of capital. These foundations of economic liberalism thus become formidable obstacles to tracking down financial criminals. How does organized crime use this financial system to launder the profits generated by their various illegal activities? What are the mechanisms put in place to fight against the laundering of money, which can also be a source of terrorist financing? What are the consequences on the economies and their people?
This paper will therefore analyze how financial globalization has given rise to many tax havens, as well as terrorist groups who take advantage of this unregulated market to finance their activities. Then, it will highlight a fight against money beset by many difficulties.
The globalization of economic and financial activities has made the world a homogeneous space, where money flows freely to circulate. However, this internationalized financial system and open plan offered greater prosperity for money laundering. To conceal the criminal origin of funds exchanged, money launderers are, in fact, using a set of techniques and processes including legal and fiscal investments in tax havens.
Tax havens that proliferate especially in the 1990s are indeed jurisdictions that offer financial services that are out of control. Globalization has facilitated access to "paradise" protectors of capital and people. Indeed, international criminal organizations take advantage of the gaps and contradictions of judicial standards between the countries of the world.
Tags: Money laundering; financial havens; consequences on the economy; financial havens used by organized crime and terrorist groups
[...] Tax havens and offshore centers: new spaces of lawlessness Tax havens that proliferated in the 1990s are jurisdictions that offer financial services beyond control. Globalization has facilitated access to "paradise" protectors of capital and people. International criminal organizations take advantage and take full advantage of the gaps and contradictions of judicial standards between countries. Tax havens are well structured today with the operation of trade and international finance. Therefore, the rule Laundering is to imitate as much as legal and financial operations possible of the legal economy. [...]
[...] It also led to the financing of several terrorist activities. B. The issue of terrorist financing and its difference with the money The events of September caused a general mobilization of Western governments against the support of international terrorism. Initial reactions, were performed on the financial plan to freeze terrorist funds and their structures, those who supported and harbored them. Therefore, a dramatic shift took place in the U.S. position before the attempted could relieve the pressure on offshore centers in the name of economic liberalism. [...]
[...] Filmography ROBERT, Denis; LORENT, Pascal, concealers, Contrechamp The Factory The Financial Action Task Force (FATF) on money laundering is an independent international body, founded in 1989 by the G7 countries and whose secretariat is hosted by the OECD. This is a mission of prevention for banks, financial crime. Non-Cooperative Countries and Territories (NCCT) list prepared by the FATF Ludovic FRANÇOIS, Pascal CHAIGNEAU, Marc CHESNAY, Financial Crime, Editions d'Organisation, Paris ROBERT, Denis; LORENT, Pascal, concealers, Contrechamp The Factory European Societies clearing, that is to say an organization that transfers of money, stocks or bonds by wire transfers thus avoiding to move and leads to more security and speed of transfers. [...]
[...] They denounced States clutching their judicial sovereignty, while conversely they delegated readily economic sovereignty. Such a situation favored largely transnational crime. Similarly, before the creation of the FATF in 1989, money laundering was relatively easy. It decided to start an exchange of information between member countries on detected cases and launderers' procedures to determine the three major focuses of struggle against money laundering: prevention (including knowledge of customer "Know Your Customer" detection (identification of transactions without economic foundations and declarations to appropriate authorities) and repression (the efforts devoted to police and judicial cooperation).The idea here was to create mechanisms between finance practitioners and law enforcement and judicial authorities to repress and punish money laundering. [...]
[...] However, both had well designed to conceal the source, in order to avoid the police and judicial authorities from tracing them. These funds too will use the same arrangements for money (use opaque structures such as trusts, nominees, the shell companies and inviting jurisdictions such as Non-Cooperative Countries and Territories ).The criteria for designation of these NCCT are among other things, the establishment of lax policies for granting banking licenses, authorization of anonymous bank accounts. Also there are no obligations for local banks to verify the identity of their clients, or insufficient identification of the directors of financial institutions domiciled in their territory. [...]
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