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.

Compartir icon icon icon

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.

Related Content

CHEPE DIABLO / 17 APR 2017

José Adán Salazar Umaña, alias "Chepe Diablo," has been accused of laundering money via shell companies in Panama, a reminder…

COLOMBIA / 1 OCT 2018

Authorities in Colombia have seized the first set of assets allegedly linked to a dissident ex-FARC mafia network, providing further…

MEXICO / 16 AUG 2018

The United States and Mexico have announced plans for renewed cooperation on combating Mexico-based drug trafficking groups. But although the…

About InSight Crime

THE ORGANIZATION

We Have Updated Our Website

4 FEB 2021

Welcome to our new home page. We have revamped the site to create a better display and reader experience.

THE ORGANIZATION

InSight Crime Events – Border Crime: The Northern Triangle and Tri-Border Area

ARGENTINA / 25 JAN 2021

Through several rounds of extensive field investigations, our researchers have analyzed and mapped out the main illicit economies and criminal groups present in 39 border departments spread across the six countries of study – the Northern Triangle trio of Guatemala, Honduras, and El…

BRIEF

InSight Crime’s ‘Memo Fantasma’ Investigation Wins Simón Bolívar National Journalism Prize

COLOMBIA / 20 NOV 2020

The staff at InSight Crime was awarded the prestigious Simón Bolívar national journalism prize in Colombia for its two-year investigation into the drug trafficker known as “Memo Fantasma,” which was…

ANALYSIS

InSight Crime – From Uncovering Organized Crime to Finding What Works

COLOMBIA / 12 NOV 2020

This project began 10 years ago as an effort to address a problem: the lack of daily coverage, investigative stories and analysis of organized crime in the Americas. …

ANALYSIS

InSight Crime – Ten Years of Investigating Organized Crime in the Americas

FEATURED / 2 NOV 2020

In early 2009, Steven Dudley was in Medellín, Colombia. His assignment: speak to a jailed paramilitary leader in the Itagui prison, just south of the city. Following his interview inside…