By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The United Kingdom (UK), France, Japan and five (5) other international donor countries has pledged to support the fight against money laundering and combating the financing of terrorism.
This is coming on the heels of a session Tuesday by the International Monetary Fund’s (IMF) technical assistance in Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) in Washington DC.
The other donor countries supporting the fight against money laundering and financing terrorism are Switzerland, Luxembourg, Norway, the Netherlands and Saudi Arabia.
Others that have indicated interest are in contributing to the Trust Fund, including Qatar and Korea.
According to the IMF, the $18.9 million is to strengthen the second five-year phase of the global AML/CFT program, which will begin operations on May 1, 2014.
The IMF said phase two (2) of the Trust Fund builds on the momentum of the successful first phase, which began in April 2009. ‘’Since that time, 69 projects have started, including focused bilateral engagements, regional workshops, and appointing advisers,’’ the IMF affirmed.
The IMF said an independent evaluation conducted in early 2012 gave high marks to the Trust Fund. ‘’Similar to Phase One, the design of the program for Phase Two will concentrate on longer-term and more focused work in selected countries to deliver sustainable results,’’ the IMF said.
According to Sean Hagan, General Counsel and Director of the Legal Department of the IMF, the successful round of pledges from donors is a strong endorsement of the work and its quality, effectiveness and management, under this Trust Fund since 2009.
‘’Anti-money laundering and combating terrorist financing efforts remain of real importance to financial stability. Demand for our services remains very high, and the second phase of this Trust Fund will enable us to maintain our important and valued capacity development efforts.” Hagan said.
On her part, Sharmini Coorey, Director of the IMF’s Institute for Capacity Development said the vote of confidence in the Trust Fund is greatly appreciated. ‘’Our capacity development efforts are augmented and expanded when we work in partnership with donors towards shared ends.” She said.
According to Coorey, in an increasingly interconnected world, financial stability is closely linked with financial integrity. Money laundering and terrorist financing activities can undermine the soundness and stability of financial institutions and systems, discourage foreign investment, and distort international capital flows.
Also, she said problems in one country can quickly spread to other countries in the region or in other parts of the world. ‘’Individual countries benefit from robust AML/CFT regimes, as enhanced financial sector integrity and stability facilitates their integration into the global financial system. They also contribute to more transparent governance and effective fiscal administration. The integrity of national financial systems is thus essential to financial sector and macroeconomic stability both on a national and international level,’’ Coorey said.
Contributors to Phase One of the Trust Fund were: Canada, France, Japan, Korea, Kuwait, Luxembourg, Norway, Netherlands, Qatar, Saudi Arabia, Switzerland and the United Kingdom.
