80% of countries are losing the battle against criminal wealth

The shocking revelation from FATF President T. Raja Kumar de Anda underscores a glaring weakness in the global fight against financial crime: 80% of countries lack the ability to effectively confiscate criminal assets.?

This statistic is more than a number—it is a call to action for governments, financial institutions, and compliance professionals to strengthen asset recovery mechanisms.?

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Why confiscation matters?

Confiscating criminal assets is a cornerstone of effective anti-money laundering (AML) enforcement. Without it:?

• Criminals keep the rewards: Profits from fraud, corruption, and money laundering remain in the hands of offenders.?

• Deterrence is weakened: When illicit gains are left untouched, it sends a message that crime pays.?

• Funds fuel further crimes: Retained assets can bankroll future illegal activities, perpetuating a vicious cycle.?

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What is behind this global weakness??

1. Ineffective Legislation: Many countries lack robust laws to allow the freezing and confiscation of assets.?
2. Resource Constraints: Asset tracing and recovery require specialised expertise and financial resources that are often scarce.?
3. Cross-Border Challenges: International cooperation is critical but difficult, as criminal networks span multiple jurisdictions.?
4. Complex Ownership Structures: Shell companies, trusts, and other legal vehicles make it hard to trace true asset ownership.?

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FATF’s call for action?

The FATF has been vocal in urging countries to:?

• Strengthen Legal Frameworks: Implement and enforce comprehensive asset recovery laws.?

• Invest in Skills and Technology: Train investigators and adopt advanced tools to trace and confiscate assets.?

• Foster Global Cooperation: Share intelligence, harmonise regulations, and collaborate on cross-border cases.?

• Promote Public Accountability: Ensure transparency in asset recovery and redistribution to earn public trust.?

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How businesses can contribute?

Businesses, especially in the financial sector, play a vital role in asset recovery:?

• Enhance Transaction Monitoring: Flag suspicious activities early to prevent laundering.?

• Collaborate with Authorities: Share insights and data to assist investigations.?

• Promote a Culture of Compliance: Train employees to detect red flags and follow reporting protocols.?

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The inability to confiscate criminal assets undermines the integrity of global financial systems. To close this gap, we need collective action: governments must lead, institutions must adapt, and citizens must demand accountability.?

Author (REN) Renjith Chief Executive - ReTRRAC Global

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