The International Monetary Fund’s involvement in combating money laundering and the financing of terrorism

Abstract

Traces how the role of the International Monetary Fund (IMF) in money laundering/combating terrorist financing has developed, its competence and the instruments it uses. Explores its interactions with the Financial Action Task Force (FATF), especially the quest for a “comprehensive common methodology” with the FATF as standard bearer. Explains its surveillance function, which involves intensive exchange with each member country on its economic and financial system ‐ for instance, whether is unsustainable external debt, and hazards of capital movements. Outlines three specific IMF initiatives: the Financial Sector Assessment Program, the Reports on Observance of Standards and Codes, and the Offshore Financial Center assessments. Concludes that the IMF’s involvement in anti‐money laundering has been fast, intensive and important for its members.

Citation

Holder, W.E. (2003), "The International Monetary Fund’s involvement in combating money laundering and the financing of terrorism", Journal of Money Laundering Control, Vol. 6 No. 4, pp. 383-387. https://doi.org/10.1108/13685200310809716