Mapping the laws on anti-money laundering and combating financing terrorism to determine appraisal skills of accountable institutions

Abstract

In this paper evidence is offered to show that the national legislation on Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) are too many, and therefore difficult to operationalize. An assessment was carried out to determine if the practitioners and the personnel of the “Accountable Institutions” could appraise AML and CFT events to be able to identify when such activities are initiated by their customers. The mapping of national legislation on AML and CFT was carried out. A comparison of the national legislative framework on AML/CFT against that of the international legal framework on AML and CFT was done to identify similarities between them. Literature review was carried out to assess the control mechanisms against money laundering and financing of terrorism in other jurisdictions. The result shows that the legal framework for AML and CFT is expansive, needs concerted effort on the part of all the stakeholders to intercept activities under AML and CFT. Perhaps, those without legal skills and prior knowledge about the legislation that are implicated in AML and CFT would not be able to appraise situations involving AML or CFT activities. Recommendations are made to inform policy and empower the first responders.

Keywords: Anti-Money laundering legislation, concealment of financial offences,conversion of tainted money or property