Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

According to international standards, how should countries treat money laundering?

1. As a civil offense only

2. As a criminal offense

3. As a regulatory issue

4. As an extraditable offense

The correct answer is: As an extraditable offense

The ideal approach to money laundering, according to international standards, is to treat it as a criminal offense. This perspective is reinforced by various international conventions and frameworks, such as the Financial Action Task Force (FATF) recommendations, which emphasize that countries should criminalize money laundering activities to effectively combat them. By categorizing money laundering as a criminal offense, jurisdictions can implement appropriate legal frameworks to investigate, prosecute, and impose penalties on offenders, thereby deterring such activities. The classification of money laundering as a civil offense would limit the legal actions that could be taken against perpetrators, diminishing the severity of the consequences and, potentially, encouraging such crimes. Viewing it merely as a regulatory issue might lead to inconsistent enforcement and a lack of criminal sanctions, which could result in insufficient deterrence against money laundering. Lastly, regarding extradition, while it is crucial for international cooperation in tackling transnational crime, it does not capture the essence of how countries should fundamentally treat money laundering offenses at the domestic level. Thus, framing money laundering as a criminal offense aligns with international expectations for effective management and deterrence of this crime.