Random posts on all sorts of things designed to inform and provoke.
The International Monetary Fund (IMF) has blamed the United States for not implementing regulations that would stop the use of shell and front companies as recommended by the Financial Action Task Force (FATF) eight years ago.
While crediting Washington for increasing investigations into illicit movement of funds, and generating higher receipts for itself, the IMF has said that lack of regulations on limiting the use of front companies “may curtail how effective the authorities can be in pursuing criminally persons who misuse US corporations to launder proceeds generated domestically as well as abroad or to trace and recover their illicit assets.”
Unfortunately, existing global financial regulations reflect each nations interests and, therefore, they are, at best, ineffective and, at worst, contradictory thus allowing indidivuals and entities to continue their deeds with little consequence. This is why the U.S., as the world’s lone true superpower, needs to implement regulations that limit such actions.
Furthermore, Washington has more at stake in this issue because a majority of terrorist actions are directed aganinst the U.S. and its interests, and any action that starves these plots by denying it money will only make the United States safer.
Given all these incentives, it may surprise readers to know that opposition to these regulations is likely coming from legitimate companies (and their lobbyists) and the intelligence community (IC).
Companies fear further government intrusion into their activities (justified in a number of cases) and since they use all available avenues to limit their financial exposure, any regulation that opens a door into that room is resisted by them. Conseqeuntly, it is the job of their lobbyists to ensure that such intrusive regulations either don’t make it out of committee or are so toothless so as to be ineffective.
Joining these paragons of free enterprise are intelligence agencies who, because of their very nature, like to work in the darkness. In addition, these agencies are probably already collecting this data and any regulation that tells them what to (and what not to) collect only limits their ability to effective.
Regulators, therefore, don’t face a lot of pressure to develop and implement these regulations.
Finally, since most of them are running for public office, it’s unlikely that anything effective will be implemented into law any time soon.