Doing more to combat money laundering

Lung-chu Chen

The trend toward globalization has eased the movement of goods, people, capital and information across national boundaries and geographical divides. As the interdependent relations between countries have grown closer, nations have used dialogue and cooperation to handle security problems and establish an international security system. The Sept. 11 terrorist attacks on the US caused every nation to recognize that international security is not only a burden that nations must share, but also something that forces nations to cooperate.

Investigations after Sept. 11 showed that international terrorist organizations have close financial ties with money-laundering organizations. Western countries immediately opened investigations and froze the assets of organizations involved in terrorist activities. Preventing international criminal organizations from laundering money through normal channels has become a particularly important issue worldwide.

Since money-laundering is by nature an international crime, it can only be effectively prevented through international cooperation. Each government must sign cooperative treaties with foreign governments, agencies, or other international organizations to prevent money laundering. Although Taiwan has already joined two such organizations -- the Asia/ Pacific Group on Money Laundering and the Egmont Group -- it hasn't joined the world's most influential anti-money-laundering organization, the Financial Action Task Force on Money Laundering.

Taiwan's government has taken swift action to combat international criminal organizations with such measures as the collection and exchange of intelligence and the investigation of financial accounts used by terrorist organizations.

The Ministry of Justice and the Ministry of Foreign Affairs have begun joint efforts to seek opportunities to participate in international anti-money-laundering organizations under the name of "Taiwan." In these ways, the government is working to make space for itself in the international arena.

The prevention of money-laundering is intimately related to each country's political, economic and social functioning. Through cooperative relationships, Taiwan can establish partnerships with other countries to prevent crime, fulfil its international responsibilities, promote mutual security and help establish a safe international order. This is yet another aspect of Taiwan's active participation in international affairs.

Chen Lung-chu is chairman of the New Century Foundation.