Interpol steps up its fight against financial crime and corruption

Paris, 15 Mar Interpol announced on Tuesday the launch of its Center Against Financial Crime and Anti-Corruption (IFCACC) as a global response to the exponential growth of such crime at the transnational level. His work will focus on combating money-laundering and the use of virtual assets to keep track of organized crime financially, he said in a statement. The International Criminal Police Organization attributed the growth of crime to globalization and digitization. “Criminals are able to commit crimes with increasing efficiency and sophistication, undermining global financial systems, impeding economic growth and causing huge losses to businesses and individuals around the world,” he added. A survey conducted in 2020 by the consultancy firm PwC of companies in 99 countries showed that almost half of the respondents had been victims of financial crimes in the previous two years, with losses reaching 42 billion dollars (around 38.3 billion euros). In some countries it is the most common form of crime. According to a study by Interpol, its member countries reported that financial crime and corruption were among the three main threats they faced today. The organization assured that corruption is inevitably linked to these financial crimes and that similar mechanisms are used to move and launder illegal funds, in which transnational organized groups are increasingly involved. “The pandemic has demonstrated the speed at which criminal groups can modify their methods to take advantage of new opportunities to defraud individuals and businesses and steal millions of dollars every day,” said Interpol Secretary General Jürgen Stock. IFCACC will work jointly with the International Financial Action Task Force (FATF), FATF-type regional bodies (FSRBs), the Egmont Group of Financial Intelligence Units, law enforcement agencies, law enforcement organizations and the financial sector. The centre will coordinate operations aimed at combating cyber financial crime (HAECHI). The last two involved law enforcement agencies from 20 member countries, resulting in thousands of arrests and the interception of more than 100 million dollars (about 91.3 million euros) in illicit funds. In the second phase, a global cessation mechanism, known as the Rapid Response Protocol against Money-Laundering (ARRP), was tested. This allows more member countries to submit and process requests to track, intercept or provisionally freeze proceeds of crime. The centre will also coordinate operations against telecommunications fraud and other types of social engineering scams and corruption in sport, as well as environmental or human trafficking related crimes.