Proliferation
About Proliferation Financing
The proliferation of weapons of mass destruction pose a significant threat to international peace and security, as identified by relevant United Nations Security Council Resolutions (UNSCRs). FINCARR Recommendations require countries and the private sector to: identify, and assess the risks of potential breaches, non-implementation or evasion of the targeted financial sanctions related to proliferation financing, and take appropriate mitigating measures commensurate with the level of risks identified This will ensure that private sector entities and their supervisors are aware of the risks involved in their businesses and professions, and do not unwittingly support or become part of proliferation financing networks or schemes, in contravention of the relevant obligations. This will also ensure appropriate allocation of resources by countries and private sector entities, which is commensurate with the level of proliferation financing risks faced.
Methods of Proliferation Financing
| Method | Description |
|---|---|
| State-Sponsored Financing | Governments or state actors may finance the development or acquisition of weapons of mass destruction. |
| Private Sector Involvement | Private individuals or entities may provide financial support, either knowingly or unknowingly, to entities engaged in proliferation activities. |
| Disguised Transactions | Funds may be moved using complex financial schemes, often through shell companies or offshore accounts, to conceal their true purpose. |
| Illicit Networks | Networks of individuals or companies may be used to facilitate the procurement and financing of materials or technology related to weapons proliferation. |