5. Value of enforcement costs and associated privacy concerns

The financial services industry has become more vocal about the rising costs of anti-money laundering regulation and the limited benefits that they claim it brings. One commentator wrote that "[w]ithout facts, [anti-money laundering] legislation has been driven on rhetoric, driving by ill-guided activism responding to the need to be "seen to be doing something" rather than by an objective understanding of its effects on predicate crime. The social panic approach is justified by the language used—we talk of the battle against terrorism or the war on drugs". The Economist magazine has become increasingly vocal in its criticism of such regulation, particularly with reference to countering terrorist financing, referring to it as a "costly failure", although it concedes that other efforts (like reducing identity and credit card fraud) may still be effective at combating money laundering.

There is no precise measurement of the costs of regulation balanced against the harms associated with money laundering, and given the evaluation problems involved in assessing such an issue, it is unlikely that the effectiveness of terror finance and money laundering laws could be determined with any degree of accuracy. The Economist estimated the annual costs of anti-money laundering efforts in Europe and North America at US$5 billion in 2003, an increase from US$700 million in 2000. Government-linked economists have noted the significant negative effects of money laundering on economic development, including undermining domestic capital formation, depressing growth, and diverting capital away from development. Because of the intrinsic uncertainties of the amount of money laundered, changes in the amount of money laundered, and the cost of anti-money laundering systems, it is almost impossible to tell which anti-money laundering systems work and which are more or less cost effective.

Besides economic costs to implement anti-money-laundering laws, improper attention to data-protection practices may entail disproportionate costs to individual privacy rights. In June 2011, the data-protection advisory committee to the European Union issued a report on data protection issues related to the prevention of money laundering and terrorist financing, which identified numerous transgressions against the established legal framework on privacy and data protection. The report made recommendations on how to address money laundering and terrorist financing in ways that safeguard personal privacy rights and data protection laws. In the United States, groups such as the American Civil Liberties Union have expressed concern that money laundering rules require banks to report on their own customers, essentially conscripting private businesses "into agents of the surveillance state".

6. Fighting against money laundering

Fighting against money laundering is an important aspect of global relationships in general. It is so for many reasons. Firstly, money laundering is damaged global economy every year for huge amount of money. Secondly, because of money laundering international terrorist organizations have easy supply chain. Thirdly, money laundering is contributed to the development of the crime all around the world, because without opportunity to launder money crime will face difficulties to survive. Every country which involved in global economy has this problem. Each country has their own methods and strategy for fighting against money laundering, but since 1989 when FATF (Financial Action Task Force) was founded by countries of G7, fighting against money laundering became international, global issue. FATF (Financial Action Task Force) “The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.” The members of FATF. FATF comprises 34 members and 2 regional organizations which represented two main financial centers. Table 1 contain full list of members FATF. Associate members. An important role in the global distribution of international standards of fighting against money laundering and terrorist financing, play regional groups established by FATF in different regions of the world. The main task of these agencies is the implementation of anti-money laundering and terrorist financing in their respective regions, in particular through mutual assessments of national systems of its members in accordance with international standards for combating money laundering (in particular, the FATF 40 +9 Recommendations) and research trends and methods (typologies) of money laundering and terrorist financing, specific to the region. FATF and regional FATF-style group together form a single international system (network) for the distribution and implementation of international standards to combat money laundering and terrorist financing, as well as monitoring their implementation at the national level.