The US Department of the Treasury has issued its 2022 National Risk Assessments (NRAs) on Money Laundering (NMLRA), Terrorist Financing (NTFRA) and Proliferation Financing (NPFRA). These NRAs can help the public and private sectors to understand the current illicit finance environment and better design their risk mitigation strategies.
The NMLRA revealed that fraud, drug trafficking and cybercrime top the list of crimes that lead to the largest amount of laundered illicit proceeds in the US. The NMLRA further revealed that pertinent ML risks in the US are related to the misuse of legal entities, the lack of transparency in some real estate transactions, merchants and professionals that misuse their positions, etc.
The NTFRA suggests that the most common form of TF from US individuals is sending small sums abroad on behalf of ISIS, Al-Qaida and Hizballah. The 2022 NTFRA also discusses the methods that fund domestic violent extremists. Note that in the case of many such extremists, the attacks are self-funded. However, funds may also come from supporters, business ventures or criminal activity.
The 2022 NPFRA points out that North Korea and Iran pose significant proliferation finance threats. Proliferation financing (PF) tactics include the misuse of banks and the use of multiple front and shell companies to carry out financial transactions. Those involved in PF misuse the digital economy and the cryptocurrency sector too.
Source: US Department of the Treasury