Illicit finance and safeguarding financial integrity

Honorable Michael McCaul opened by thanking Congressman Pittinger and the organizers for convening international parliamentarians, highlighting the forum as an important venue to discuss emerging global risks and shared challenges. He provided historical context on illicit finance, explaining its evolution from a focus on drug money laundering in the 1980s and 1990s to a broader national security concern post-9/11, including terrorist financing, proliferation finance, and systemic financial risks. He emphasized the private sector’s role in compliance and prevention, noting that technology, cryptocurrencies, and new payment systems have added complexity to tracking illicit activity.
McCaul urged stronger international cooperation, advocating for shared law enforcement, intelligence, and regulatory capabilities, and the use of AI and other technologies to trace and prevent illicit financial flows. He stressed the need to address systemic issues such as corruption and kleptocracy while isolating and disrupting illicit actors, all while enabling legitimate financial activity. He concluded by noting that illicit finance is central to economic security, governance, and statecraft, emphasizing continuous effort and vigilance in safeguarding financial integrity.