Recognizing that the problem of laundering of money derived from illicit trafficking in narcotic drugs and psycho-tropic substances, as well as from other serious crimes, has expanded internationally to become such a global threat to the integrity, reliability and stability of financial and trade systems and even government structures as to require coun-termeasures by the international community as a whole in order to deny safe havens to criminals and their illicit pro-ceeds,
Recalling the provisions of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988, according to which all parties to the Convention are required to establish money-laundering as a punishable offence and to adopt the measures necessary to enable the authorities to identify, trace and freeze or seize the proceeds of illicit drug trafficking,
Recalling Commission on Narcotic Drugs resolution 5 (XXXIX) of 24 April 1996,(21) in which the Commission noted that the forty recommendations of the Financial Action Task Force established by the heads of State or Gov-ernment of the seven major industrialized countries and the President of the European Commission remained the stand-ard by which the measures against money-laundering adopted by concerned States should be judged, as well as Economic and Social Council resolution 1997/40 of 21 July 1997, in which the Council took note with satisfaction of the document entitled “Anti-drug strategy in the hemi-sphere”, approved by the Inter-American Drug Abuse Con-trol Commission of the Organization of American States at its twentieth regular session, held at Buenos Aires in Octo-ber 1996 and signed at Montevideo in DecemOcto-ber 1996, and urged the international community to take due account of the anti-drug strategy in the hemisphere as a significant contribution to the strengthening of the Global Programme of Action adopted by the General Assembly at its seventeenth special session,(22)
Recognizing the political will expressed by the international community, especially as reflected in such initiatives as the Convention on Laundering, Search, Seizure and Confisca-tion of the Proceeds from Crime, adopted in 1990 by the Committee of Ministers of the Council of Europe, the Min-isterial Communiqué of the Summit of the Americas Con-ference Concerning the Laundering of Proceeds and Instrumentalities of Crime, held at Buenos Aires in
Decem-• United Nations convention against Transnational organized crime, 2000
Article 6. Criminalization of the laundering of proceeds of crime
1. Each State Party shall adopt, in accordance with funda-mental principles of its domestic law, such legislative and other measures as may be necessary to establish as crimi-nal offences, when committed intentiocrimi-nally:
(a) (i) The conversion or transfer of property, knowing that such property is the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the property or of helping any person who is involved in the commission of the predicate offence to evade the legal consequences of his or her action;
(ii) The concealment or disguise of the true nature, source, location, disposition, movement or owner-ship of or rights with respect to property, knowing that such property is the proceeds of crime;
(b) Subject to the basic concepts of its legal system:
(i) The acquisition, possession or use of property, knowing, at the time of receipt, that such property is the proceeds of crime;
(ii) Participation in, association with or conspiracy to commit, attempts to commit and aiding, abet-ting, facilitating and counselling the commission of any of the offences established in accordance with this article.
2. For purposes of implementing or applying paragraph 1 of this article:
(a) Each State Party shall seek to apply paragraph 1 of this article to the widest range of predicate offences;
(b) Each State Party shall include as predicate offences all serious crime as defined in article 2 of this Convention [i.e. offences punishable by a maxi-mum prison sentence of at least 4 years] and the offences established in accordance with articles 5 [participation in organized crime group], 8 [cor-ruption] and 23 [obstruction of justice] of this Convention. In the case of States Parties whose legislation sets out a list of specific predicate offences, they shall, at a minimum, include in such list a comprehensive range of offences associated with organized criminal groups;
(c) For the purposes of subparagraph (b), predicate offences shall include offences committed both within and outside the jurisdiction of the State Party in question. However, offences committed outside the jurisdiction of a State Party shall con-stitute predicate offences only when the relevant nalize the laundering of money derived from
seri-ous crimes in order to provide for the prevention, detection, investigation and prosecution of the crime of money-laundering through, inter alia:
(i) Identification, freezing, seizure and confisca-tion of the proceeds of crime;
(ii) International cooperation; and mutual legal assistance in cases involving money-laundering;
(iii) Inclusion of the crime of money-laundering in mutual legal assistance agreements for the purpose of ensuring judicial assistance in investigations, court cases or judicial proceedings relating to that crime;
(b) Establishment of an effective financial and regula-tory regime to deny criminals and their illicit funds access to national and international financial tems, thus preserving the integrity of financial sys-tems worldwide and ensuring compliance with laws and other regulations against money-launder-ing through:
(i) Customer identification and verification requirements applying the principle of “know your customer”, in order to have available for competent authorities the necessary information on the iden-tity of clients and the financial movements that they carry out;
(ii) Financial record-keeping;
(iii) Mandatory reporting of suspicious activity;
(iv) Removal of bank secrecy impediments to efforts directed at preventing, investigating and punishing money-laundering;
(v) Other relevant measures;
(c) Implementation of law enforcement measures to provide tools for, inter alia:
(i) Effective detection, investigation, prosecution and conviction of criminals engaging in money-laundering activity;
(ii) Extradition procedures;
(iii) Information-sharing mechanisms;
3. Calls upon the United Nations Office for Drug Control and Crime Prevention to continue to work, within the framework of its global programme against money-laundering, with relevant multilateral and regional institutions, organizations or bodies engaged in activities against money-laundering and drug traf-ficking and with international financial institutions to give effect to the above principles by providing train-ing, advice and technical assistance to States upon request and where appropriate.
transfer of substantial quantities of cash and appropriate negotiable instruments.
3. In establishing a domestic regulatory and supervisory regime under the terms of this article, and without preju-dice to any other article of this Convention, States Parties are called upon to use as a guideline the relevant initia-tives of regional, interregional and multilateral organiza-tions against money-laundering.
4. States Parties shall endeavour to develop and promote global, regional, subregional and bilateral cooperation among judicial, law enforcement and financial regula-tory authorities in order to combat money-laundering.
• United Nations convention against corruption, 2003
Article 14. Measures to prevent money-laundering
1. Each State Party shall:
(a) Institute a comprehensive domestic regulatory and supervisory regime for banks and non-bank finan-cial institutions, including natural or legal persons that provide formal or informal services for the transmission of money or value and, where appro-priate, other bodies particularly susceptible to money laundering, within its competence, in order to deter and detect all forms of money-laundering, which regime shall emphasize requirements for customer and, where appropriate, beneficial owner identification, record-keeping and the reporting of suspicious transactions;
(b) Without prejudice to article 46 of this Convention, ensure that administrative, regulatory, law enforce-ment and other authorities dedicated to combating money-laundering (including, where appropriate under domestic law, judicial authorities) have the ability to cooperate and exchange information at the national and international levels within the conditions prescribed by its domestic law and, to that end, shall consider the establishment of a financial intelligence unit to serve as a national centre for the collection, analysis and dissemination of information regarding potential money-laun-dering.
2. States Parties shall consider implementing feasible meas-ures to detect and monitor the movement of cash and appropriate negotiable instruments across their borders, subject to safeguards to ensure proper use of information and without impeding in any way the movement of legit-imate capital. Such measures may include a requirement that individuals and businesses report the cross-border transfer of substantial quantities of cash and appropriate negotiable instruments.
conduct is a criminal offence under the domestic law of the State where it is committed and would be a criminal offence under the domestic law of the State Party implementing or applying this article had it been committed there;
(d) Each State Party shall furnish copies of its laws that give effect to this article and of any subsequent changes to such laws or a description thereof to the Secretary-General of the United Nations;
(e) If required by fundamental principles of the domes-tic law of a State Party, it may be provided that the offences set forth in paragraph 1 of this article do not apply to the persons who committed the predi-cate offence;
(f) Knowledge, intent or purpose required as an element of an offence set forth in paragraph 1 of this article may be inferred from objective factual circum-stances.
• United Nations convention against Transnational organized crime
Article 7. Measures to combat money-laundering
1. Each State Party:
(a) Shall institute a comprehensive domestic regulatory and supervisory regime for banks and non-bank financial institutions and, where appropriate, other bodies particularly susceptible to money-laundering, within its competence, in order to deter and detect all forms of money-laundering, which regime shall emphasize requirements for customer identification, record-keeping and the reporting of suspicious transactions;
(b) Shall, without prejudice to articles 18 and 27 of this Convention, ensure that administrative, regula-tory, law enforcement and other authorities dedi-cated to combating money-laundering (including, where appropriate under domestic law, judicial authorities) have the ability to cooperate and exchange information at the national and interna-tional levels within the conditions prescribed by its domestic law and, to that end, shall consider the establishment of a financial intelligence unit to serve as a national centre for the collection, analy-sis and dissemination of information regarding potential money-laundering.
2. States Parties shall consider implementing feasible meas-ures to detect and monitor the movement of cash and appropriate negotiable instruments across their borders, subject to safeguards to ensure proper use of information and without impeding in any way the movement of legit-imate capital. Such measures may include a requirement that individuals and businesses report the cross-border
State Party or on its own initiative, of the identity of particular natural or legal persons to whose accounts such institutions will be expected to apply enhanced scrutiny, in addition to those whom the financial institutions may otherwise identify.
3. In the context of paragraph 2 (a) of this article, each State Party shall implement measures to ensure that its financial institutions maintain adequate records, over an appropriate period of time, of accounts and transactions involving the persons mentioned in paragraph 1 of this article, which should, as a minimum, contain informa-tion relating to the identity of the customer as well as, as far as possible, of the beneficial owner.
4. With the aim of preventing and detecting transfers of proceeds of offences established in accordance with this Convention, each State Party shall implement appropri-ate and effective measures to prevent, with the help of its regulatory and oversight bodies, the establishment of banks that have no physical presence and that are not affiliated with a regulated financial group. Moreover, States Parties may consider requiring their financial in-stitutions to refuse to enter into or continue a correspond-ent banking relationship with such institutions and to guard against establishing relations with foreign financial institutions that permit their accounts to be used by banks that have no physical presence and that are not af-filiated with a regulated financial group.
5. Each State Party shall consider establishing, in accord-ance with its domestic law, effective financial disclosure systems for appropriate public officials and shall provide for appropriate sanctions for non-compliance. Each State Party shall also consider taking such measures as may be necessary to permit its competent authorities to share that information with the competent authorities in other States Parties when necessary to investigate, claim and recover proceeds of offences established in accordance with this Convention.
6. Each State Party shall consider taking such measures as may be necessary, in accordance with its domestic law, to require appropriate public officials having an interest in or signature or other authority over a financial account in a foreign country to report that relationship to appro-priate authorities and to maintain approappro-priate records related to such accounts. Such measures shall also provide for appropriate sanctions for non-compliance.
Article 54. Mechanisms for recovery of property through international cooperation in confiscation
1. Each State Party, in order to provide mutual legal assist-ance pursuant to article 55 of this Convention with re-spect to property acquired through or involved in the com-mission of an offence established in accordance with this Convention, shall, in accordance with its domestic law:
3. States Parties shall consider implementing appropriate and feasible measures to require financial institutions, including money remitters:
(a) To include on forms for the electronic transfer of funds and related messages accurate and meaning-ful information on the originator;
(b) To maintain such information throughout the pay-ment chain; and
(c) To apply enhanced scrutiny to transfers of funds that do not contain complete information on the originator.
4. In establishing a domestic regulatory and supervisory regime under the terms of this article, and without preju-dice to any other article of this Convention, States Parties are called upon to use as a guideline the relevant initia-tives of regional, interregional and multilateral organiza-tions against money-laundering.
5. States Parties shall endeavour to develop and promote global, regional, subregional and bilateral cooperation among judicial, law enforcement and financial regula-tory authorities in order to combat money-laundering.
Article 52. Prevention and detection of transfers of proceeds of crime
1. Without prejudice to article 14 of this Convention, each State Party shall take such measures as may be necessary, in accordance with its domestic law, to require financial institutions within its jurisdiction to verify the identity of customers, to take reasonable steps to determine the iden-tity of beneficial owners of funds deposited into high-val-ue accounts and to conduct enhanced scrutiny of accounts sought or maintained by or on behalf of individuals who are, or have been, entrusted with prominent public func-tions and their family members and close associates. Such enhanced scrutiny shall be reasonably designed to detect suspicious transactions for the purpose of reporting to competent authorities and should not be so construed as to discourage or prohibit financial institutions from do-ing business with any legitimate customer.
2. In order to facilitate implementation of the measures provided for in paragraph 1 of this article, each State Party, in accordance with its domestic law and inspired by relevant initiatives of regional, interregional and mul-tilateral organizations against money-laundering, shall:
(a) Issue advisories regarding the types of natural or legal person to whose accounts financial institu-tions within its jurisdiction will be expected to apply enhanced scrutiny, the types of accounts and transactions to which to pay particular attention and appropriate account-opening, maintenance and recordkeeping measures to take concerning such accounts; and
(b) Where appropriate, notify financial institutions within its jurisdiction, at the request of another
Article 51 - towards an Integrated and Balanced Strategy to counter the World Drug Problem
Art. 51. Member States should continue to foster interna-tional cooperation by implementing the provisions against money-laundering contained in all relevant international and multilateral instruments, such as the 1988 tion, the Organized Crime Convention and the Conven-tion against CorrupConven-tion and, in accordance with naConven-tional legislation, the Financial Action Task Force Recommenda-tions on Money Laundering, and also by:
(a) Establishing new or strengthening existing domes-tic legislative frameworks to criminalize the laun-dering of money derived from drug trafficking, precursor diversion and other serious crimes of a transnational nature in order to provide for the prevention, detection, investigation and prosecu-tion of money-laundering by, inter alia:
(i) Widening the scope of predicate crimes for money-laundering to include all serious crimes, giving due consideration to crimes related to the misuse of new technologies, cyberspace and elec-tronic money transfer systems and to transnational cash smuggling;
(ii) Adopting or strengthening legal measures pro-viding for the identification, freezing, seizure and confiscation of the proceeds of crime and consider-ing, where compatible with fundamental principle of domestic law, nonconviction-based confisca-tion;
(iii) Promoting the use of internationally accepted asset-sharing procedures in international confisca-tion cases, such as the Model Bilateral Agreement on the Sharing of Confiscated Proceeds of Crime or Property, adopted by the Economic and Social Council in its resolution 2005/14;
(iv) Ensuring that legal provisions in compliance with due process of law, such as banking secrecy laws, do not unnecessarily impede the effectiveness of their systems for countering money-laundering and do not constitute
grounds for the refusal of mutual legal assistance;
(v) Granting the widest range of mutual legal assistance in investigations, prosecutions and other judicial proceedings related to money-laundering and confiscation cases;
(vi) Ensuring that the crime of money-laundering is covered by mutual legal assistance agreements for the purpose of ensuring judicial assistance in inves-tigations, court cases and other judicial proceedings relating to that crime;
(vii) Making money-laundering an extraditable offence, in accordance with national legislation;
(a) Take such measures as may be necessary to permit its competent authorities to give effect to an order of confiscation issued by a court of another State Party;
(b) Take such measures as may be necessary to permit its competent authorities, where they have jurisdic-tion, to order the confiscation of such property of foreign origin by adjudication of an offence of money-laundering or such other offence as may be within its jurisdiction or by other procedures authorized under its domestic law; and
(c) Consider taking such measures as may be necessary to allow confiscation of such property without a criminal conviction in cases in which the offender cannot be prosecuted by reason of death, flight or absence or in other appropriate cases.
2. Each State Party, in order to provide mutual legal assist-ance upon a request made pursuant to paragraph 2 of article 55 of this Convention, shall, in accordance with its domestic law:
(a) Take such measures as may be necessary to permit its competent authorities to freeze or seize property upon a freezing or seizure order issued by a court or competent authority of a requesting State Party that provides a reasonable basis for the requested State Party to believe that there are sufficient grounds for taking such actions and that the prop-erty would eventually be subject to an order of confiscation for purposes of paragraph 1 (a) of this article;
(b) Take such measures as may be necessary to permit its competent authorities to freeze or seize property upon a request that provides a reasonable basis for
(b) Take such measures as may be necessary to permit its competent authorities to freeze or seize property upon a request that provides a reasonable basis for