MINISTERIO DE COMERCIO EXTERIOR / colombia
Combating the financing of
terrorists
Angela María Orozco
Minister of Foreign Trade
We cannot talk about financing of
terrorists without mentioning a greater
global problem:
NARCOTRAFFICKING
11th of September events faced us with
this REALITY
NARCOTRAFFICKING EFFECTS
Prod. Countries
delinquency
corruption
guerrillas
kidnapping
Cons. Countries
yes
yes
no
no
NARCOTRAFFICKING EFFECTS
Prod. Countries
Cons. Countries
Terrorism
yes
Govern. Instability
no
assasination and kidnapping of
judges,policemen, military, politicians,
reporters,etc.
Dutch disease
no
Danger to the youth
yes
HOW TO COUNTERACT IT
– Production
– Trafficking
– Conssumption
– ASSET AND MONEY LAUNDERING
– Arms’ smuggling
– Chemical precursors
smuggling
HOW TO COUNTERACT IT
ASSET AND MONEY LAUNDERING IS ONE
OF THE KEY ELEMENTS TO COUNTERACT
NARCOTRAFFICKING AND THE TERRORISM
BEHIND IT
TO ATTACK IT IS AS FUNDAMENTAL AS
FIGHTING AGAINST ANY OTHER ACTIVITY
IN THE DRUG TRAFFICKING CHAIN
HOW TO COUNTERACT IT
THERE IS SHARED RESPONSIBILITY
BETWEEN PRODUCING AND
CONSUMING COUNTRIES
Let´s see now costs and actions in
Colombia:
COST OF TERRORISM IN
COLOMBIA
2.0%
%GDP
1.5%
1.0%
0.5%
0.0%
1991
1992
1993
1994
1995
1996
1997
1998
Excess of Militar Expenditure
Health
Human Lives
Infraestructure
People displaced
Kidnapping, robery & extortion
Combating the financing
of terrorists
1.
ACTION PLAN
– Initiative against narcotraffic ( Special aid for
Colombia)
– Fight against Kidnapping
– Fight against asset laundering (Law 526 / 1999)
Initiative against
narcotraffic
Three actions towards
Social
Action
•Infraestructure
•Alternative
crops
•Increase
productivity
Interdiction
•Terrestrial
•Aerial
•Fluvial
•Maritime
Forcibly
Eradication
Fight against kidnapping
10
9
Kidnappings
x100,000 hab
8
7
6
5
4
3
2
1
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Fight against kidnapping
Unknown
23%
Selfdefense
groups
5%
Common
delinquency
13%
Guerrilla
59%
FIGHT AGAINST MONEY
LAUNDERING
Colombia has been a leader in the fight
against money laundering since it has
always been a key element in drug
trafficking:
Since 1993 the financial sector
cooperate with information; there is a
law for asset laundering since 1996
and it was improved in Law 599 of 2000
FIGHT AGAINST MONEY
LAUNDERING
Integral system against money laund.:
•
•
•
•
•
•
Colombian Financial Intelligence Unit
(Ministry of Finance and Public Credit)
Ministry of Justice
National Narcotics Administration
Military and Police Forces
National District Attorney and Judges
Financial sector
Fight against money
laundering
Crimes Against the
Public Administration*
Racketeering
Narcotraffic
Agreement to
Commit an Offense*
Asset Laundering
in Colombia
Extorsion
Arm Smuggling*
Rebellion or
Mutiny
Extorsive
Kidnaping
Law 599 of July 24, 2000, art. 323*
Crimes Against the
Financial System*
Fight against asset
laundering
14,000
12,468
12,000
Report of Suspicious Operations
10,000
8,807
8,000
6,000
5,696
4,000
2,000
1999
2000
2001
Challenges in the system
• State of the art technology for the unit; design of
mathematical, statistical, tax and financial models
coupled with strategic and operational cross
referencing of information from databases;
Incorporating new economic sectors such as
precious stones and car dealers, etc.
• Most importantly, coordinating with other
financial intelligence units to share information,
reciprocal legal support among countries and
collaboration from tax and or financial havens
Combating the financing
of world terrorism
2. INTERNATIONAL COOPERATION
Adoption of Financial Action Task Force
40 recomendations (GAFI)
Member of Southamerican Financial
Action Group (GAFISUD)
Andean Plan against Drugs and related
Crimes
CHALLENGES in
cooperation
• Combating narcotrafficking and
money laundering is a shared cause
• We must move then from
UNILATERAL AID to MULTILATERAL
COOPERATION
CHALLENGES in
cooperation
• NARCOTRAFFICKING AND ASSET
LAUNDERING WILL NOT BE
ELIMINATED WITH AID BUT WITH
INTEGRAL COOPERACION
– AID: unilateral and voluntary
– COOPERATION: multilateral, mandatory,
between parties equally burdened by a
problem
CHALLENGES
It is more than controlling production,
trafficking and conssumption:
• No more laxity in the control of
financial entities and fiscal and
banking paradises (asset laundering)
• No more chemical inputs produced
and sold without control
• No more arms manufactured and
sold illegally or without control
CHALLENGES
THE MONEY INVOLVED IN ILLEGAL
DRUG TRAFFICKING BECOMES THE
SEED OF TERRORISM:
REMEMBER THE WORD
NARCOTERRORISM
CHALLENGES
AND TERRORISM HAS NO
BOUNDERIES:
TODAY IS A COUNTRY PROBLEM
TOMORROW , IT WILL BE A WORLD
DISASTER
MINISTERIO DE COMERCIO EXTERIOR / colombia