The report highlights major vulnerabilities across the global financial system in countering the Proliferation Financing (PF).
- PF involves raising, moving or making available funds, other assets or resources to persons or entities for the purposes of Weapons of Mass Destruction (WMD), posing a serious threat to global security and international financial system.
Key Findings
- Global Risks: Current risk environment is characterized by state- and non-state actors acquiring and/or sourcing dual-use goods, technology, and knowledge through the use of procurement networks.
- Global Gaps: Only 16% of countries effectively implement targeted UN sanctions to stop WMD proliferation.
- Techniques Used by Illicit Actors:
- Use of Intermediaries to evade sanctions: Networks use front/shell companies, financial facilitators, and third-country routes to hide end-users.
- Concealing Ownership: Falsifying beneficial ownership obscures true parties, especially through digital means, complicating detection.
- Using Virtual Assets: Sanctioned actors exploit virtual currencies and new technologies to bypass sanctions, moving funds directly or through non-compliant countries.
- Exploiting Maritime Sector: The complex shipping industry, including the “dark fleet,” is exploited to disguise vessels and evade sanctions.
- For instance, Indian investigators confirmed a mis-declared dual-use equipment on a Pakistan-bound ship.
Recommendations of the Report
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