Mr. Speaker, a major element of the illicit narcotics trade and its partner, transnational crime, is the phenomenon of money laundering. It has been estimated by the United Nations drug control program that the annual amount of money laundered as a result of narcotic drug trafficking alone is in the order of $400 billion U.S.
Money laundering is a major international problem not only because of the magnitude of the sums involved but also because of the affect those sums have on the macro economy and on the financial sector, particularly financial institutions.
There is a continuing concern that financial crimes and money laundering are occurring with varying degrees of regularity and that some affected or vulnerable governments have still not criminalized this illicit activity.
International standards against money laundering require comprehensive legislation, financial regulation and law enforcement mechanisms to combat the problem. Experience shows that effective action can and must be taken now.