Terrorist Financing and Money Laundering

Abstract

The core aim of this study is to propose an approach to quantitate estimation of indices-based information subject to necessities of the National Risk Assessment (NRA) of money laundering and terrorist financing (ML/TF) risks. Mathematical formalization analysis for Ukraine based on 11 indices and indicators for years 2011-2015 subject to core areas of the overall situation in a country considered within its National Risk Assessment was carried out. Authors' contribution covers scientific novelty that is a first-time analysis of a general situation in a jurisdiction in light of the National Risk Assessment's requirements based on joint consideration of various indices and setting priority to areas of the overall country's situation in the framework of conducted calculations. It was concluded that proposed approach is a valuable instrument for assessing priority of areas of the overall situation in the country for the National Risk Assessment's purposes through a formalized mechanism ensuring high objectiveness. Practical significance of this study is a possibility to reach higher efficiency in allocation of available r e-sources for the participants of the National Risk Assessment, to reduce some costs considering flexibility of the approach allowing consideration of significant volumes of information, its updating and comparison. This research could become a starting point for further research. Considering complexity of existing indices, there is a necessity to study a mechanism of their correlation and mutual influence, analyze elasticity and joint behavior, and discover the areas of preferable influence on large range of purposes not only limited to the MRA of ML/TF risks.

Money laundering through gambling devices

“…It is also apparent that ML must receive increased attention at the international level for combative measures to be successful"), ML through gambling activities remains an important focus for governments. A number of other authors (Nelen, 2004;Taka¨ts, 2011;Krieger and Meierrieks, 2011;Chong and Lopez-De-Silanes, 2015;Omar et al, 2015) reinforce this view of increased concerns for national security due to the now strong links between ML and terrorism. Further reinforcement of this link comes from Unger (2009, p. 807) who states that:…”

“…money, material goods, prestige, sexual gratification, domination of others)". Existing empirical studies on terrorism fit into rational choice theory, although institutional and political factors far outweigh economic ones (Krieger and Meierrieks, 2011).…”

Examining the practical viability of internationally recognised standards in preventing the movement of money for the purposes of terrorism

“…However, to recognise funds as those funding terrorism requires knowledge of the ultimate intention. Therefore, to support CTF, a broad and sophisticated approach is required to detect financial flows directed towards terrorist cells all around the world (Krieger and Meierrieks, 2011). However, this remains difficult -as shown in Figure 3 because the terrorist financing process in many instances is straightforward, blending effortlessly into formal-and legitimate-appearing routine practices.…”

Money laundering and terror financing: issues and challenges in Pakistan

“…Meanwhile, terror financing is monetary assistance provided to terrorists or to their abettors. Krieger and Meierrieks (2011) emphasized the huge costs of terrorism to society. There are few differences between money laundering and terror financing, as the methods used in the former are similar in spirit to those used to conceal the means and sources of the latter.…”