Preventing and controlling economic and financial crimes

The Bank of Mozambique is in the process of moving from direct controls, particularly credit ceilings, to indirect instruments of monetary policy such as a more effective use of compulsory reserves, the rediscount rate and a money market.

The Baltic States committed themselves to develop and enact relevant legislation to ensure sustainability of financial controls and the integrity of financial institutions.

A multi disciplinary mechanism task force needs to be established as the Financial Intelligence Unit to monitor, regulate, and control the trans frontier movement of funds.

The cocoa sector is dominated by organizations that IMF labels as quasi fiscal agencies.

These requirements are enforced through internal controls, compliance functions and external review by the Central Bank, the FIU, Auditors, CFATF and the World Bank IMF.

Control over cross border cash movements is a valuable complement to enhancing measures in the financial sector.

The Act on Preventing Money Laundering established a normative framework against money laundering, including the control of financial transactions.

Improved financial controls and reporting systems.

International Financial System and Development

National financial and monetary systems

Section 14 of the Anti Money Laundering Act (2005) sets out the duties of banks and other financial institutions in the prevention and control of money laundering activities.

Has served in the field of public sector reform, restructuring and regulation of the financial services sector, development and implementation of national anti money laundering controls.

Establishment of a financial investigation unit to monitor illicit financial transactions.

To the extent possible, there should be cross training of financial regulatory experts, financial investigators, FIU personnel and prosecutors.

Financial mechanisms and market based instruments

The present international financial and monetary system

Is Financial Repression Here to Stay?

Containing Financial Turmoil

The Age of Financial Repression

The FIU is responsible for investigating money laundering operations, through the financial system, using the mandatory reports submitted by financial entities concerning individuals who may be involved in such activities.

To rein in rising house prices and pre empt the inflationary impact of the strongly expansionary fiscal and monetary policies implemented during the global financial crisis, China s monetary authorities began to tighten financial conditions in January 2010.

The efficiency of financial intermediation has improved, facilitated by the entry of new financial institutions and the privatization of the two former state banks.

Another recent development which the Financial Services Commission is working on is to introduce legislation to regulate and supervise money transmission services.

But controls beyond the banking sector are more difficult to implement and enforce and are arguably as important.

These programmes included restrictive monetary and fiscal policies, financial sector consolidation and structural reform.

As a result, any reform of regulation and supervision will fail to control bubbles and excesses unless several other fundamental aspects of the financial system are changed.

TD B COM.1 9 Linkage with financial mechanisms

China s financial system is failing in that respect, owing to frequent administrative and political intervention. As a result, Shanghai has been restricted from making the best of its financial functions, and Hong Kong, Asia s acknowledged financial center, from assisting China s financial modernization.

But progress has been slow, because China s politicians have put nurturing financial centers which should be the objective of local governments at the heart of the country s financial development. Indeed, equating financial liberalization with privileges for cities designated as financial centers undermines the very goals of liberalization namely, to reduce government control and to accelerate the development of financial markets.

It needs to rethink how to address financial stability in its day to day work with members. Financial sector analysis should become fully integrated into the IMF s surveillance activities.

Effective safeguard mechanisms must be implemented to ensure that financial openness would not result in the marginalization of domestic financial institutions and the destabilization of the financial system.

The FIU collaborates with domestic financial sector regulators to supervise financial institutions in accordance with the Money Laundering and Financing of Terrorism (Prevention and Control) Act, Cap.

Thereafter, the Committee will consider the Convention for the Suppression of Terrorist Bombing.

(b) Establishment of an effective financial and regulatory regime to deny criminals and their illicit funds access to national and international financial systems, thus preserving the integrity of financial systems worldwide and ensuring compliance with laws and other regulations against money laundering through

Under Section 19 of the Prudential Regulation 2002, which deals with on site examination of financial institutions the Financial Institutions Supervision Division of the Royal Monetary Authority, as part of its vigilance and surveillance system, conducts frequent on site visits of the financial institutions to specifically check and verify their financial operations.

Conduct of periodic evaluations of the national financial system.

(b) International financial system and development

Financial intermediary and auxiliary financial services

In the short term, namely, when countries faced crises in their financial sector, an effective and predictable legal framework was necessary, in particular in terms of enforcement of financial claims, to assist the banks and other financial institutions in controlling the deterioration of their claims through quick enforcement mechanisms and to facilitate corporate restructuring by providing a vehicle that would create incentives for interim financing.

19. The banking commission transmitted all declarations and observations received from the controlling bodies to the financial analysis unit.

There also exist controls governing the movement of cash and precious stones and metals, inasmuch as the Central Bank of Libya alone is authorized to import raw gold and to control the movement of cash from and to the Libyan Arab Jamahiriya.

This requires strong regulation, with a sensible rulebook for financial markets and institutions. And, to ensure that everyone plays by the rules, financial institutions must be supervised intensively.

The prevention of financial crises will require enhanced early warning mechanisms, including improved and effective surveillance of national and international financial market developments.

The SRCF consists of grant resources that would be under the control of the GM, but fiduciary responsibility (accounting, disbursement, etc.) would be vested with IFAD.