World Bank and IMF Initiatives to fight Money Laundering and Terrorist Financing
Despite the fact that the World Bank and the International Monetary Fund (IMF) have different missions, they have united to work jointly to fight money laundering and terrorist financing.
The co-operation of the World Bank and the IMFÂ started in April 2001, when the two Boards of Executive Directots of the World Bank and the International Monetary Fund realized that money laundering has become a global problem that affects both smaller and major financial markets. The World Bank recognized that, taking into consideration devastating economic, social and political potential of money laundering, it could impose big costs upon developing countries. The IMF recognized that money laundering could cause destructing macroeconomic consequences such as unpredictable changes in currency demand and vulnerability of international capital flow.
After the events of 9/11, both organizations adopted action plans to enhance their efforts for anti-money laundering and terrorist financing.
In 2002, the organizations recognized the 40 Recommendations on Money Laundering and Special Recommendations on Terrorist Financing issued by the FATF as the relevant international standards.
In November 2002, the World Bank and the IMF started a 12-month pilot program to conduct assessments in 33 jurisdictions, and FATF and FATF-style regional bodies conducted assessments in 8 jurisdictions. The outcome of the pilot program was reviewed in March 2004.
Following the successful pilot program, the organization decided to include anti-money laundering and combating terrorrist financing in their permanent activities, to continue co-operating with the FATF and to develop and revise standards and methodology of this matter.