Reminder – illicit money is a corruption driver
This article, from the Foundation for Defense of Democracies, reminds us that illicit and shadowy money funds not only are bad for our economies but are dangerous to our rule of law systems. It is noted that “[d]rug lords, corrupt dictators and terrorists are all eager to launder their money within our borders, relying on American shell companies’ anonymity and our ask-no-questions professionals — lawyers, accountants, art dealers and more — who lack even the most basic client due-diligence requirements.” This is an ongoing problem for governments, as facilitation is not pursued by governments as often as it should be, since money laundering can move quite easily and is difficult to detect.
What needs to be done? The most obvious action in this area would be stronger enforcement mechanisms, similar to the Foreign Corrupt Practices Act, which in the past made senior private sector workers worry about finding themselves in prison. Presently there are many laws in many jurisdictions of developed countries, which address the crimes of facilitation, yet most facilitators know that they still can avoid prosecution quite easily. To that end, governments and civil society must be vigilant and publicize impunity when they see it. A few lawyers behind bars would help end facilitation.
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