21St Parliamentary Intelligence-Security Forum – Illicit Finance
Mr. Hamad Alhelal addressed the critical issue of illicit financial flows and the challenges of combating money laundering globally. He elucidated that illegal funds, originating from activities such as drug trafficking and human trafficking, are frequently channeled through shell companies with concealed ownership, facilitating the laundering of approximately one trillion dollars worldwide. While some small businesses adhere to transparency requirements, many owners remain anonymous, rendering it challenging to trace ultimate beneficiaries. This anonymity enables criminals, including drug traffickers and terrorists, to conceal illegal cash and evade taxes. Alhelal emphasized that the complexity of international corporate structures, varying laws across jurisdictions, and sophisticated concealment strategies pose significant obstacles for law enforcement. In the United States, he noted, there is currently no public registry of beneficial owners, which restricts oversight. He referenced the Panama Papers as an example of how whistleblower data unveiled the complexity of hidden ownership, with 90% of reports involving foreign banks and incomplete transaction information. To enhance enforcement, he underscored the necessity for full transparency of corporate ownership across all entities, enabling institutions and authorities to more effectively combat money laundering.
