In recent years the twin menace of Money Laundering and Terrorist Financing (ML/TF) have
assumed alarming proportions putting at risk the global Financial Systems. Criminals over
the years have concealed their illicit proceeds by investing in legitimate businesses through
a number of schemes in the Bank Financial Institutions and Non-Bank Financial
Institutions (FIs) and the Designated Non-Financial Businesses and Professions (DNFBPs).
It is estimated by the International Monetary Fund (IMF) that the magnitude of money
laundered in the world is about 2-5% of the world’s Gross Domestic Product (GDP) (source:
IMF Report, 2008).

The Financial Action Task Force (FATF) 40 Recommendations set out a comprehensive and
consistent framework of measures which countries should implement in order to combat
ML/TF as well as the financing of proliferation of weapons of mass destruction. Countries
have diverse legal, administrative and operational framework and different financial
systems and so cannot implement the same measures to counter these threats. The FATF
Recommendations, therefore, set an international standard, which countries should
implement through measures adapted to their peculiar circumstances (Revised FATF
Recommendations 2012). National Risk Assessment On Money Laundering And Terrorist Financing-2016