How Can Qatari Anti-Money Laundering Law and Anti-Terrorism Law Be Modified to Meet New Challenges - Thesis Proposal Example

Your Lecturers 10 September, Introduction This paper is a short exegesis on the outline of a PhD thesis in Law. The motive is to juxtapose and synthesize the Qatari Anti-Money Laundering Laws with the American Anti-Money Laundering legal system with a view of making recommendations on how Qatar can remain the least corrupt country in the Middle East and North Africa. Background “Money laundering is the process of integrating the proceeds of crime into the legitimate stream of finance by masking its origins” (Odeh 1). This implies that money laundering is concerned with the fact that people attempt to use means of presenting money earned through criminal activities as legitimate. This is done by find ways of lodging them in legal bank accounts and assets to prevent people from tracing those funds to the crime from which they were realized. Odeh continues to summarize that the essence of money laundering is to make illegitimate funds appear as legitimate (1). Many nations have different approaches to dealing with this problem. In nations with legal systems that can be traced to English Law, there are numerous attempts to criminalize money laundering and force various players in the financial industry like bankers, accountants and lawyers to blow the whistle on persons suspected of taking part in money laundering (Carringto & Seba 24). In the United States, the Bank Secrecy Act of 1970 marked the beginning of the effort to deal with money laundering in modern times (Odeh 2). New laws like Money Laundering Control Act 1986 were enacted to directly deal with the crime of money laundering. Money Laundering consists of three main stages (Carrington & Seba 25). First of all, the perpetrators introduce bulk cash from criminal activities into the financial system. Then they proceed to separate the proceeds into various financial sub-units through different complex transactions. Then from there, they integrate the funds into individual accounts which serve their need. The internationalization and globalization of the world have made this idea complicated. This is because different nations have different levels of laxity in terms of dealing with money laundering. Hence, some countries can conveniently be used as points for money laundering. Also, the presence of organized crime makes cross-border money laundering very difficult to control and deal with. This is because these people can easily get accomplices who can not be dealt with easily. However, global efforts through the IMF and other international groupings make it possible for money laundering and funds from the drug trade to be dealt with. A variable that was introduced after the events of September 11th, which was the financing of terrorist activities led to the United States to enact the PATRIOT Act in 2001. This Act aims at helping the United States and other connected nations to control the movement of funds to support criminal activities as well as terrorism. The success of this has been attained through the cooperation of friendly nations in the Middle East and North Africa (MENA). Qatar has been rated by Transparency International as the least corrupt country in the MENA for several years running(Brunn 310). In response to the demands for global partnership in countering terrorism and money laundering, Qatar enacted the Law Number 4. The Law was to empower the Qatari government and key players in the security services and financial industry to deal with issues relating to money laundering. Like other Qatari Laws, it is set out in the form of a decree. This gives room for several possible interpretations which can lead to overrides of the system. Also, with the complications of globalization and the improvement of the technology, it is difficult to guarantee that any legal code like Law Number 4 is foolproof and would remain as such. Hence, there is the need to examine the law in greater depth. Research Framework The research will answer the question How can the Qatari Anti-Money Laundering Law and Anti-Terrorism Law be modified to ideally meet new challenges in the increasingly complicated world of Global crime. In attaining this end, the research will address the following issues: 1. An assessment of the root of the money laundering and terrorist funding problem and how laws have evolved in nations and globally to deal with them. 2. An examination of the Qatari Law Number 4, meant to deal with money laundering and an assessment of the weaknesses and limitation of the Qatari Law. 3. Analysis of the evolution of money laundering laws in America, the Patriot Act and related anti-terrorist funding laws and how they are operated effectively in America. 4. A synthesis of the American Law and Qatari law to culminate in a set of recommendations that will result in the evolution of a robust legal system that will enable Qatar to maintain the highest standards of anti-corruption and proactive anti-money laundering systems. Research Methodology The research will include a blend of secondary sources, interviews and case analyses. This will provide an assessment of the current position of the Qatari AML system. The approach will be in line with legal research. The main end of the research will be to identify the best legal framework that can evolve into the Qatari legal on the basis of American AML laws and structures. Hence the research will examine important laws and legal frameworks that define the American legal system. With this, there can be comparison with the Qatari AML system and structures and from there, conclusions can be drawn on how to come up with a legal framework that will help Qatar to combat money laundering and the sponsorship of terrorists. The research will be done in three phases to show the parallels with the three objectives identified above. Chapter Synopsis. There will be six chapters in all. Each chapter will form a framework for analysis and interpretation of issues relevant to thee research. Chapter 1 : This will give an introduction to the research. It would involve the analysis of the work to be done in the project. In this chapter, a short examination of the background of money laundering, cross border crime, organized crime, funding of terrorism will be discussed. This will give impetus for discussions of the importance of the research and provide an outline of the ends that the rest of the research would do. Chapter 2 : This will give an exegesis to the theoretical frameworks and legal system. In this chapter, important theories of the key concepts, money laundering, sponsorship of terrorism, organized crime and cross-border crime will be examined in detail. This will build on points raised in Chapter 1. In this section, there will be discussions on the global effort to deal with these issues in money laundering and anti-terrorism funding issues. Chapter 3: The Qatari legal position on money laundering and the countering of terrorism funding will be examined in this chapter. The first section will discuss the mutual legal treaties that Qatar has signed to prevent money laundering and terrorism, like the FAFT and FAFT MENA. The requirements of these treaties will be examined. The second section will deal with Law Number 4 of Qatar and its applicability. This will involve an evaluation of the law in light with new trends in globalization and technological advancement. The loopholes in the legal system will be identified. This will be exploited in the comparative analysis of Chapter 5 which will juxtapose the Qatari AML Laws against American laws. Chapter 4: In this chapter, emphasis will then be placed on Americas legal system. The important laws on Money Laundering and Mutual Legal Treaties of America will be examined. A sample of cases will also be discussed to provide an understanding of how the US has been dealing with money laundering. This will lead to discussions on how effective their laws are and how they can be adapted into other legal systems. Chapter 5 : This chapter will be involve the synthesis necessary to define an ideal legal framework that Qatar can adopt to deal with money laundering and terrorism financing. In doing this, the strength of the American legal system will be woven into the Qatari legal system with a view of forming the best legal system to deal with money laundering and terrorist financing. This Chapter will conclude with recommendations on the ideal legal system that can be instituted to deal with issue in Qatar which will have a lasting effect as the American system. Chapter 6: Based on the findings, recommendation and practical limitations, Chapter 6 will usher in a conclusion on the discussion. This conclusion will be based on how best to formulate and implement a legal system that will be robust enough to deal with money laundering. Works Cited. Brunn, Stanley. Cities of the World New York: Rowmann & Littlefield. Carrington, Ian & Shams Heba. “The Elements of Effective Anti-Money Laundering/Counter Terrorism Financing Framework: Legal, Regulatory & Best Practices to Present Threats to Financial Stability & Integrity” Monetary & Financial Law Journal Washington DC pp23 – 27. 2007. Journal. Odeh, Ismail. Anti-Money Laundering & Countering Terrorism Financing. New York: Dorrance Publishing. 2010. Print. Further Readings & Critical Reviews Anti-Money Laundering Charter, 2003 (Saudi Arabia) Anwar Habiba, & McCrum Philip. Qatar Business Environment. Berlin: GMB Publishing. 2009. Print. Bank Secrecy Act 1970 (USA) Boughizala Mongi, & Saidene Dhafer. “Liberalization of the Banking Sector in the Middle East” Savings & Development Vol. 31 No2 pp217 – 334. 2007. Journal. Drug Control Act, 1986 (United Kingdom) International Monetary Fund. Qatar: Detailed Assessment Report on Anti-Money Laundering & Combating Terrorism Washington DC: IMF. 2008. Journal. Misuse of Drugs Act 1971 (United Kingdom) Money Laundering Control Act, 1986 (USA) Oxford Business Group. The Report: Qatar 2008. Oxford: Oxford Business Group. 2008. Print. Pines, Daniel. “Amending The Foreign Corrupt Practices Act to Include a Private Right of Action” California Law Review. Vol 82 No1 pp185 – 229. 1994. Journal. Qatari Law Number 4. Combating Money Laundering & Terrorism Finance (2010) Report: United Nations Convention Against Transnational Organized Crime, 2000,(Palermo Convention). Uniting & Strengthening America by Providing Appropriate Tools Required to Intercept (PATRIOT Act). Read More