Global dirty money watchdog revamps rules to battle weapons financing

Global dirty money watchdog revamps rules to battle weapons financing
An Iranian missile being fired as part of an exercise in an unidentified location in the country. (AFP)
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Updated 24 October 2020

Global dirty money watchdog revamps rules to battle weapons financing

Global dirty money watchdog revamps rules to battle weapons financing
  • Steven Mnuchin, US Treasury Secretary: ‘The collaboration of the FATF is vital to addressing global illicit financial activity’

WASHINGTON: A global dirty money watchdog agreed to revamp its standards to beef up monitoring of financing aimed at evading US and United Nations sanctions and proliferating weapons of mass destruction, the US Treasury Department said.

Endorsement of the new standards by the Financial Action Task Force (FATF) at its meeting this week would strengthen the global response aimed at curbing the proliferation of such weapons, Treasury said in a statement.

It said North Korea and Iran had established complex and elaborate networks, including front and shell companies incorporated in many FATF member countries, to evade US and UN sanctions and move funds to “further their dangerous purposes.”

Washington began pushing for the changes when it headed the global watchdog in 2018-2019. Germany currently leads the body, which was set up in 1989 and currently includes 37 member jurisdictions and two regional organizations, the European Commission and the Gulf Cooperation Council.

“The collaboration of the FATF is vital to addressing global illicit financial activity, including fraud associated with the COVID-19 pandemic, proliferation financing risk, and other (anti-money laundering and counterterrorist) priorities,” US Treasury Secretary Steven Mnuchin said in a statement.

The change requires countries and the private sector to assess and mitigate proliferation financing risks related to the “potential breach, non-implementation or evasion of UN financial sanctions.”

Treasury said US financial institutions and other US businesses were generally already assessing and mitigating the risk of sanctions evasion, but it remained challenging to disrupt sophisticated networks set up by Iran and others.

It said the enhanced FATF standards would allow FATF members to arm their financial institutions and other entities with targeted information to crack down on shell companies and other individuals or entities acting on behalf of sanctioned persons.

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Financial Action Task Force

The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog.


Saudi Public Prosecution says giving false impression of capital market is ‘serious crime’

Engaging in any action or behavior aimed at creating a false or misleading impression indicating active trading transaction on a specific security, which is contrary to the truth is also illegal. (File/Shutterstock)
Updated 04 December 2020

Saudi Public Prosecution says giving false impression of capital market is ‘serious crime’

Saudi Public Prosecution says giving false impression of capital market is ‘serious crime’

Saudi Arabia’s Public Prosecution affirmed that it is prohibited by law to intentionally take any action that creates a false or misleading impression about the capital market, prices, or value of any security or to induce third parties to buy, sell, or subscribe to this security.

It stated in a tweet that this is one of the serious crimes that require arrest, according to the Public Prosecutor's decision No. (1) dated 1/1/1442.

The following actions are considered fraudulent:

Engaging in any action or behavior aimed at creating a false or misleading impression indicating active trading transaction on a specific security, which is contrary to the truth.

Performing a series of transactions on a specific security to influence on a particular stock.

Conducting a series of trades on a specific security, such as buying and/or selling a security, with the aim of price stabilization.

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