[box type=”info” style=”rounded” border=”full”]This paper was presented at the International Judicial Conference, held in Islamabad from April 13-15 by the Law and Justice Commission of Pakistan.[/box]
“Money laundering and the financing of terrorism are financial crimes with economic effects.
They can threaten the stability of a country’s financial sector or its external stability more generally.
Effective anti-money laundering and combating the financing of terrorism regimes are essential to protect the integrity of markets and of the global financial framework as they help mitigate the factors that facilitate financial abuse.
Action to prevent and combat money laundering and the financing of terrorism thus responds not only to a moral imperative, but also to an economic need.” – Min Zhu, Deputy Manager Director of IMF
Summary Terrorism and money laundering, intrinsically linked, pose considerable threats to global peace and security as well as destabilise political and financial stability of many nation States.
This twin menace assumed dangerous proportions in the wake of the ghastly incident of 9/11 in New York.
Since then the whole world has been suffering from what great psychologist, psychoanalyst, sociologist and humanistic philosopher Erich Fromm termed as the ‘2Fear of Freedom’ – terrorists have managed to create an atmosphere of uncertainty and fear while the international community is struggling without much success in eliminating their financial lifeline – ie dirty money.
Enormous funds are generated by terrorist networks – through legal as well as illegal sources, concealed and laundered using the existing legal financial framework or unlawful networks.
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