World Economic Forum issues guide to combat financial crime

“The types of activities that enable the movement or investment of illicit funds may also closely resemble standard day-to-day work for professional [intermediaries],” the WEF said. 

“Perfectly legal transactions, such as purchasing a home, investing in art, or creating a new corporation for a client, may aid illicit activities by coating their proceeds with the gloss of legitimacy.

“Absent proper knowledge, policies and procedures, it is often difficult for individual professionals to identify, act upon, or report clients or transactions intent on furthering corrupt behaviour,” it added.

Based on the three principles of integrity, transparency and accountability, the framework consists of five core practices to be applied. They are:

• Establish clear, concrete and up-to-date policies;

• Promote effective due diligence on their client network and the source of their clients’ assets;

• Create a culture of integrity through training and incentives;

• Foster a ‘speak-up’ culture; and

• Collaborate across industries and sectors.

“While no replacement for binding regulation, value-centred, self-regulation is essential for the realisation of true integrity, transparency and accountability above and beyond compliance,” the Switzerland-based think tank stated.

The framework was designed by gatekeepers for gatekeepers, said the WEF which gives accountants, art advisers, bankers, corporate service providers, lawyers, luxury goods dealers, notaries, private wealth managers and real estate agents as examples.