Counter Illicit Financing

International money laundering, drug trafficking and financing of terrorist activities is a real challenge in today 's world and several countries have responded to this threat of illicit financing by putting in place stringent prohibitive measures aimed at deterring the perpetrators of such dubious businesses from achieving their goals (Biersteker & Sue 2008).

Most notably, the United States of America has been on the forefront in the counter illicit trade war as evidenced by the passage of International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, by the congress to prevent, detect and prosecute the international money launderers and financiers of terrorism. To achieve its objectives, the United States works in close collaboration with other countries more especially the European Union which is also deeply engaged in the prevention of illicit financing.  

The United States imposes specific measures against individuals and institutions suspected of engaging in illegal financing.  One such measure is the strengthening of the banking rules against money laundering, more especially on the international stage.

The United States has also put up mechanism that allow for easier communication between financial institutions and law enforcement agencies so that the agencies are tipped quickly in case the financial institutions detect a suspicious deal. Another strategy that countries employ in fighting illicit financing is freezing of assets and accounts of all those individuals and organizations accused of perpetrating the said crimes (Drohan, nd).

This measure has actually seen several bank accounts closed down in Europe countries that are suspected of engaging in or supporting the financing of terrorist activities and the US. Besides, the United States and other countries impose trade sanctions against those countries that engage in or support the financing of terrorism activities. The trade sanctions make it difficult for those countries and institutions to operate foreign bank accounts and consequently they cannot conduct international trade (Naylor, nd).

In its own right the US imposes travel bans on individuals suspected of perpetrating corruption and various other forms of illicit trade. The travel bans deter these individuals from setting foot on the American soil and by extension bars them from conducting any activity in America be it by proxy.