15 May, 2020

COVID-19-related Money Laundering Financing

FATF members, observers and open sources indicate that criminals have attempted to profit from the COVID-19 pandemic through increased fraudulent activities.

COVID-19-related Money Laundering Financing

Criminals have attempted to profit from the COVID-19 pandemic through exploiting gaps and weaknesses in AML/CFT systems…while they assume resources are focused elsewhere. Meanwhile financial behavior has changed and remote transactions have tremendously increased.

  • Criminals contact individuals (in person, email or telephone) and impersonate government officials with the intent of obtaining personal banking information or physical cash.
  • In some scenarios, victims were asked to make payment in advance via bank transfers and then directed to collect goods they never get delivered.
  • Fundraising for fake charities.
  • The United Nations has warned that threats related to terrorism remain and that terrorist.
  • Groups may see opportunities for increased terrorist financing activities.

The European Banking Authority encourages the use of responsible digital identity and other innovative AML solutions for identifying customers at onboarding and while conducting transactions (Digital ID Guidance (FATF, 2020[23]).

COVID-19-related Money Laundering Financing,FATF, May 2020