Although financial institutions process information that may be useful to the authorities in the fight against money laundering, the capacity of the entities is limited by not having the appropriate feedback and guidance to focus their efforts on the latent risks for money laundering. capitals, according to an analysis by the Wolfsberg Group.
According to the organization, which brings together 13 global banks to develop standards against money laundering, so that the information processed by financial entities can be more useful against money laundering, it is necessary to strengthen public-private partnerships to focus on the real risks of money laundering.
“Financial institutions are in a unique position to identify customers and activities that may present money laundering and terrorist financing risks and have created large financial crime compliance programs to do so,” the group noted.
“However, they generally lack consistent feedback from national authorities on the usefulness of the information they provide to relevant government agencies (including law enforcement) through reports and on the financial crime risk areas they should prioritize. “, he added.
For the Wolfsberg Group, financial institutions lack a clear framework for exchanging information with government authorities, as well as with other participants in the financial system, which limits their ability to contribute elements in the fight against money laundering.
“Financial institutions are hampered in their ability to assist law enforcement effectively,” the agency noted in its Effectiveness Through Collaboration report.
In Mexico, the Financial Intelligence Unit (UIF) of the Ministry of Finance is the entity that receives the information from the subjects bound by the money laundering prevention regulatory framework, such as financial entities, supervised by the National Banking and Security Commission. Securities, and vulnerable activities, which are monitored by the Tax Administration Service.
According to figures from the FIU, from 2004 to last April this instance received more than 288 million reports, in different categories, by the financial system; while, in terms of notices of vulnerable activities, from November 2013 to April this year, the unit received more than 45 million.
Although the volume processed by the FIU is considerable, organizations such as the Financial Action Task Force (FATF) against money laundering and financing of terrorism have pointed out its lack of effectiveness in terms of asset recovery and sentences for the crime of money laundering. .
Strengthen mechanisms
In the document, the Wolfsberg Group suggested a series of actions so that the information from financial entities has more impact in the fight against money laundering.
According to the analysis, it is necessary to carry out a risk-based approach in order to define the priorities regarding the information that is processed. “This national priority setting process must also recognize that not everything can be a priority and some lower value items can and should be deprioritized.”
For the agency, it is necessary that the communication of the authorities with the financial entities contain the following elements to have a greater impact:
- Active participation and sponsorship of high-level figures from the public sector.
- Regular meetings, with established structure and membership.
- Inclusive and multidisciplinary membership.
- Share actionable information.
- Have a legal framework that supports the exchange of information.
- Exchange of information with a multidirectional approach.
- Mechanisms to evaluate work and operation.
“A public-private partnership can help public and private sector participants improve their effectiveness in combating money laundering, its associated crimes and terrorist financing risks, as well as reduce unnecessary de-risking.” and widespread,” the agency said.