MONEYVAL Report on Money Laundering Risks from Conflict Proceeds
Summary
The FIAU Malta has published a MONEYVAL report detailing risks and trends associated with money laundering, terrorist financing, and proliferation financing derived from conflict proceeds. The report identifies vulnerabilities in financial systems exploited by criminals using complex schemes and highlights the need for enhanced international cooperation.
What changed
The Financial Intelligence Analysis Unit (FIAU) in Malta has disseminated a new typologies report from MONEYVAL, the Council of Europe's anti-money laundering and counter-terrorist financing monitoring body. This report, titled 'Money Laundering, Terrorism Financing and Proliferation Financing Risks and Trends Linked to Proceeds Obtained from Conflicts,' examines how illicit proceeds generated in conflict zones are laundered and used to finance terrorism and weapons proliferation. It details the exploitation of weakened state control, destabilized markets, and vulnerabilities within financial and regulatory systems through methods like shell companies and virtual assets.
Subject persons in Malta, including financial advisers, fund managers, and insurers, should review this report to understand emerging risks and trends in laundering proceeds from conflicts. While non-binding, the insights provided are crucial for enhancing anti-money laundering and counter-terrorist financing (AML/CTF) controls. Understanding these typologies will help entities identify and mitigate risks associated with complex criminal schemes and international cooperation efforts to combat financial crime originating from conflict areas.
What to do next
- Review the MONEYVAL report on risks from conflict proceeds
- Assess current AML/CTF controls for vulnerabilities related to conflict financing
- Enhance due diligence procedures for transactions potentially linked to conflict zones
Source document (simplified)
MONEYVAL Report on Money Laundering, Terrorist and Proliferation Financing Risks from Conflict Proceeds
March 16, 2026
The Financial Intelligence Analysis Unit (FIAU) would like to inform subject persons that the Council of Europe’s anti-money laundering and counter-terrorist financing monitoring body, MONEYVAL has published a new typologies report entitled, ‘ Money Laundering, Terrorism Financing and Proliferation Financing Risks and Trends Linked to Proceeds Obtained from Conflicts’.
This report examines how illegal proceeds which arise from regions affected by armed conflicts are laundered and used to finance terrorism and the proliferation of weapons of mass destruction. The report also identifies relevant patterns, trends, and vulnerabilities to strengthen the fight against money laundering, terrorism financing, and proliferation, whilst enhancing international co-operation.
The report highlights how weakened state control and destabilised markets in conflict areas lead to environments susceptible to complex, interconnected criminal economies, where illicit proceeds are generated, laundered and reinvested in ways that promote violence and further destabilisation.
The report also explains how conflict areas enable criminals to exploit vulnerabilities in financial and regulatory systems by using complex schemes such as shell companies, third-country intermediaries, and virtual assets to conceal the illicit origin, movement and purpose of funds.
Interested parties may access the publication directly from MONEYVAL’s website **** or from the FIAU’s website under the tab “MONEYVAL”.
MONEYVAL
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