HomeNewsBriefG8 Countries Commit to Tackling Money Laundering
BRIEF

G8 Countries Commit to Tackling Money Laundering

MONEY LAUNDERING / 20 JUN 2013 BY JAMES BARGENT EN

The G8 summit has concluded with a statement promising a coordinated international effort to crack down on money laundering, although history suggests it will take more than promises to address one of organized crimes most insidious facets.

Leaders of the eight countries agreed to a raft of commitments targeting opaque financial arrangements that facilitate money laundering and tax evasion.

Among them were plans to demand greater transparency over the ownership and financial structures of companies, in particular shell companies used to channel funds that may have illicit origins.

The countries committed to pursuing regulations which are "robustly enforced" and backed by "effective, proportionate and dissuasive sanctions."

Each of the countries will now publish a national action plans providing concrete details of what action it will take to meet the commitments laid out in the statement.

InSight Crime Analysis

Money laundering is a truly international crime facilitated by globalization and trade liberalization so, although none of the G8 countries are Latin American, any action they take to clamp down on laundering will undoubtedly affect the region's organized crime groups.

The plans themselves are welcome measures to increase standards of accountability and close down the gaping loopholes that for too long countries have been too happy to ignore. However, any optimism should be tempered by realism.

Prosecution of individuals for money laundering remains extremely rare, even in the United States, which has the most resources and expertise at its disposal. The complexity of untangling illegal financial webs means it is often far easier to attack organized crime groups from other angles, and this is unlikely to change even if the new proposals are implemented.

Prosecution of financial institutions is even rarer, and has proved to be an area where governments have consistently placed economic concerns over security. The recent case of HSBC, which saw the bank escape with nothing more than a $1.9 billion fine for ignoring $60 trillion of suspicious financial transactions, is a perfect example of how state rhetoric over tackling financial crimes is rarely backed by action.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

ARGENTINA / 6 JUN 2018

The widow and son of the infamous drug lord Pablo Escobar as well as a former soccer star are accused…

COSTA RICA / 14 MAY 2015

Over $4 billion is laundered in Costa Rica every year, according to a government official, where a high degree of…

BELIZE / 10 AUG 2021

The leader of a transnational money laundering network cleaned drug money through a scheme that included casinos, a seafood export…

About InSight Crime

THE ORGANIZATION

Apure Investigation Makes Headlines

22 OCT 2021

InSight Crime’s investigation into the battle for the Venezuelan border state of Apure resonated in both Colombian and Venezuelan media. A dozen outlets picked up the report, including Venezuela’s…

THE ORGANIZATION

InSight Crime Tackles Illegal Fishing

15 OCT 2021

In October, InSight Crime and American University’s Center for Latin American and Latino Studies (CLALS) began a year-long project on illegal, unreported, unregulated (IUU) fishing in…

THE ORGANIZATION

InSight Crime Featured in Handbook for Reporting on Organized Crime

8 OCT 2021

In late September, the Global Investigative Journalism Network (GIJN) published an excerpt of its forthcoming guide on reporting organized crime in Indonesia.

THE ORGANIZATION

Probing Organized Crime in Haiti

1 OCT 2021

InSight Crime has made it a priority to investigate organized crime in Haiti, where an impotent state is reeling after the July assassination of President Jovenel Moïse, coupled with an…

THE ORGANIZATION

Emergency First Aid in Hostile Environments

24 SEP 2021

At InSight Crime's annual treat, we ramped up hostile environment and emergency first aid training for our 40-member staff, many of whom conduct on-the-ground investigations in dangerous corners of the region.