Anti-Money Laundering and Combating of the Financing of Terrorism - Focus on Zimbabwe

Abstract

Efforts to launder money and finance terrorism have been evolving rapidly in recent years in response to heightened counter-measures. As a result, banks and other various financial organizations must be aware of risks of being used, intentionally or unintentionally for criminal activities. This paper seeks to contribute to the already existing literature on how banks and other various financial institutions should suppress Money Laundering (ML) and Financing of Terrorism (FT) through their overall risk management strategies.

Part A of this paper defines Anti-Money Laundering and Financing of Terrorism (FT). Part B discusses the processes of Money Laundering. It also identifies their adverse consequences on the development of a country. Part C discusses the instruments that fight these activities (ML and FT). Part D concludes and suggests possible risk management strategies concerning the topic in question.

Keywords: Anti-money launderring, Terrorist financing

JEL Classification: Y90