The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the 16th of which is “Peace, Justice and Strong Institutions,” namely: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Under this major goal, there are 12 targets, the 16.4 of which is “By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.”

●Current Situation

The World

Large-scale illicit financial flows threaten sustainable development, but countries are making progress

In 2023, Afghanistan, Bangladesh, Colombia, Ecuador, Maldives, Mexico, Myanmar, Nepal and Peru have produced the first-ever national estimates of illicit financial flows (IFFs) related to drug trafficking, trafficking in persons and smuggling of migrants with the support of the UN Office on Drugs and Crime (UNODC).

IFFs can take many forms and use different channels and are therefore very difficult to track and estimate. But countries can’t afford to stand by and do nothing, as IFFs threaten sustainable development. They deprive countries of revenue to finance investments in critical programs such as education, health, gender inclusion and poverty eradication. Also, IFFs may fuel organized crime and corruption, thus undermining the rule of law and the functioning of institutions and the justice system.

IFFs can result from various illicit tax and commercial practices, illegal markets, corruption and exploitation, draining state revenues and fueling illegal activities. They are directly associated with the violation of human rights, such as in the cases of trafficking in persons and smuggling of migrants. IFFs can also be observed in commercial activities. For example, UNCTAD’s pilot study shows that estimates in Burkina Faso found IFFs in gold exports between the country and Uganda, as well as with Switzerland.

A recent UN General Assembly resolution recognized the significant progress achieved in the global fight against IFFs, while encouraging 193 member states to report data on SDG indicator 16.4.1, using the statistical concepts and methods provided by UNCTAD and UNODC. These globally agreed-upon concepts and tested methods help enhance the capacities of relevant officials to track IFFs. Until June. 8th, 2023, 22 pilot countries have benefited, as they bring together statistical offices, customs, tax authorities, central banks, financial intelligence units, law enforcement agencies, national ministries, and other key agencies to analyze existing administrative and transactions data to track IFFs.

Moreover, a four-year global capacity-enhancing project is underway, coordinated by the UN Economic Commission in Africa (ECA) with support from UNCTAD, UNODC and all other regional economic commissions. This project will support interested countries to track IFFs, use the estimates to shape policies, as well as report data on the related SDG indicator.

Source: United Nations

China

PBC's anti-money laundering investigation has been effective

In 2023, the People's Bank of China actively carried out anti-money laundering investigation and coordination, cooperated with relevant departments to strengthen the fight against money laundering and terrorist financing crimes. In conjunction with the Ministry of Public Security and 10 other departments, a three-year campaign was carried out to crack down on money laundering crimes.

Remarkable results were achieved in many fields, such as anti-gang crime, anti-terrorism, anti-corruption, anti-narcotics, anti-tax evasion, and crackdown on underground banks.

The PBC's branches received more than 13,000 clues on key suspicious transactions, carried out more than 6,200 anti-money laundering investigations on clues that required further investigation, and transferred more than 6,300 clues to investigation and supervision organs. They assisted the investigation and supervision organs in carrying out more than 25,000 anti-money laundering investigations in more than 2,600 cases and assisted in cracking more than 1,600 suspected money laundering and other cases.

Source: The People's Bank of China

The World

Jumio: Identity verification, eKYC and compliance solutions powered by AI

To protect against fraud and financial crime, businesses online need to know and trust that their customers are who they claim to be — and that these customers continue to be trustworthy. Jumio uses the power of AI, biometrics, machine learning and state-of-the-art liveness detection to help you rapidly convert more customers, stop fraudsters from infiltrating online ecosystems and get in compliance with KYC/AML.

Jumio protects the ecosystems of businesses through the Jumio KYX Platform, a unified, end-to-end identity verification and eKYC platform offering a range of identity proofing services to accurately establish, maintain and reassert trust from account opening to ongoing monitoring. Customers, users, patients, employees … whoever the “X” is in the business, the Jumio KYX Platform delivers the assurance needed to know, then trust.

Jumio has processed over 1 billion transactions from over 200 countries and territories from real-time web and mobile transactions. Jumio’s solutions are used by leading companies in the financial services, sharing economy, digital currency, retail, travel and online gaming sectors.

Based in Sunnyvale, California, Jumio operates globally with offices and representation in North America, Latin America, Europe, Asia Pacific and the Middle East.

Source: Jumio

BlackRock’s approach to compliance with the anti-money laundering legislation

BlackRock requires all investors who apply to invest into a BlackRock fund, directly and including where they do so through a financial adviser, to complete the Investor Identification Form which forms part of the application form for each fund.

During the lifetime of a BlackRock investment, BlackRock may request identification/verification documentation or other information to verify information in compliance with the anti-money laundering legislation. BlackRock reserves the right to seek out additional information/documents as it believes necessary in order to comply with the anti-money laundering legislation.

Where documentation provided is not in English, an English translation from a NAATI accredited translator must be provided.

BlackRock is required to verify the identity of legal representatives and agents appointed to act on behalf of an investor. They cannot proceed to act on the instructions of a nominated legal representative until such time as BlackRock verifies the identity of that representative. Appointed legal representatives include, but are not limited to, executors of estates, attorneys (appointed under power of attorney) and nominated representatives.

China

Industrial and Commercial Bank of China has promoted the standardization of anti-money laundering due diligence (KYC) for its overseas institutions, standardized its overseas institutions’  methods of the money laundering risk assessment for  customers, enriched overseas anti-money laundering management tools, held online training courses on overseas anti-money laundering practices, and strengthened the training of core anti-money laundering personnel of its overseas institutions in performing their duties.

Source: ICBC

In cooperation with Shenzhen Public Transport Media, the headquarters of Guosen Securities launched the “Guosen Securities ‘Anti-Money Laundering’ Theme Bus” publicity campaign in June 2023 to actively build a mobile front line of popularizing the law. The campaign involved six “anti-money laundering” theme buses in six downtown trunk bus lines, passing through Shennan Avenue, Shenzhen Bay Park, Sea World, and other core urban areas with large passenger flow. To promote the concept of anti-money laundering to the citizens, each “anti-money laundering” theme bus was printed with catchy anti-money laundering slogans, and the company’s Golden Sun cartoon figure “Yangyang” promoted anti-money laundering concepts with lively and lovely, rich and colorful body language. The project made full use of the bus routes’ advantages of large coverage area, strong mobility and wide audience, so that the general public could understand anti-money laundering knowledge and enhance anti-money laundering awareness when waiting for and taking buses.

Source: Guosen Securities

●Background

Sustainable Development Goals (SDGs) initiated by the United Nations

On January 1, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change while ensuring that no one is left behind.