The MONEYVAL has published typologies report on “Money Laundering, Terrorist and Proliferation Financing Risks from Conflict Proceeds”, which examines the growing risks associated with illicit funds generated in conflict-affected areas and their potential use within the global financial system.

The report highlights that conflict environments create significant opportunities for criminal activity, including trafficking, illegal resource exploitation, and sanctions evasion, with proceeds often channelled through both formal and informal financial systems. It further underscores the links between such proceeds and terrorist and proliferation financing, as well as the increasing use of complex methods to conceal and move funds across borders.

The project aimed to identify relevant patterns, trends and vulnerabilities in order to strengthen the fight against money laundering and the financing of terrorism and proliferation, while also enhancing international co-operation.

The report also emphasises the growing sophistication of illicit financial mechanisms used to circumvent targeted financial sanctions, particularly in relation to proliferation financing. Conflict-affected environments enable criminals to exploit vulnerabilities in financial and regulatory systems, using complex schemes involving shell companies, third-country intermediaries, and virtual assets to conceal the origin, movement, and purpose of funds.

Read the full MONEYVAL report here