Today, the Treasury Department issued its 2022 strategy for combating terrorist financing and other illicit funding.
Recent risk assessments highlighted threats posed by the abuse of legal entities, the complicity of professionals that misuse their positions or businesses, small-sum funding of domestic violent extremism networks, the effective use of front and shell companies in proliferation finance, and the exploitation of the digital economy. To combat these issues, the Treasury’s strategy identifies four priorities to address the most significant illicit finance threats to the U.S. financial system.
The recommendations are to: close legal and regulatory gaps in the U.S. anti-money laundering framework that are used to anonymously access the U.S. financial system through shell companies and all-cash real estate purchases; make the U.S. anti-money laundering/counter terrorism financing regulatory framework for financial institutions more efficient by providing clear compliance guidance, sharing information appropriately, and fully funding supervision and enforcement; enhance the operational effectiveness of law enforcement, other U.S. government agencies and international partnerships; and better enable technological innovation to stay ahead of new avenues for abuse through virtual assets and other new financial products, services and activities.
“We need to close loopholes, work efficiently with international partners, and leverage new technologies to tackle the risks posed by corruption, an increase in domestic violent extremism, and the abuse of virtual assets,” said Elizabeth Rosenberg, the Treasury’s assistant secretary for terrorist financing and financial crimes.