The Financial Action Task Force (FATF) has published “Complex Proliferation Financing and Sanctions Evasion Schemes”. This report is an essential resource that promotes public and private sector understanding of the threats posed by the proliferation of weapons of mass destruction (WMD), as well as their implications for international security and the stability of the financial system.
The publication analyses methods by which states, state-supported entities, and non-state actors seek to circumvent sanctions and finance WMD proliferation through complex financial and procurement schemes. The document also highlights key vulnerabilities in the financial system and provides practical risk indicators that can help identify such activities in a timely manner.
"The FIU notes that the information included in the FATF report may be particularly useful in assessing the application of European Union sanctions against Russia. We also draw attention to the fact that Russia’s cooperation with the Democratic People’s Republic of Korea is a factor that must be taken into account when assessing proliferation financing (PF) and sanctions evasion risks."
IN BRIEF
To circumvent sanctions and PF-related export controls, complex schemes are used. Based on information submitted by the FATF Global Network, the report highlights four main typologies:
The report describes challenges and good practices related to the detection, investigation, and prosecution of PF and sanctions evasion, as well as domestic coordination and cooperation, and international collaboration with regards to PF and sanction evasion.
FATF is an international organisation that sets and monitors standards to prevent money laundering, terrorism and proliferation financing (AML/CFT/CPF).
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