Money laundering and the illicit tobacco trade

Given its cash-intensive and profitable nature, the illicit trade in tobacco is prone to money laundering. But according to the Financial Action Task Force (FATF), jurisdictions tend to predominantly investigate and prosecute the predicate off ence only and very few money laundering and/ or terror fi nancing cases can be associated with the illicit tobacco trade. Th is needs to change and we need to recognize that it is a signifi cant money laundering and terror fi nancing threat, says FATF, the world’s fi nancial crime watchdog.