What is Proliferation Financing?

There is no international definition of proliferation financing. However, the FATF produced a working definition of proliferation financing based on UNSCR 1540, which reads as follows:

"Proliferation financing" refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.

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Proliferation of weapons of mass destruction (WMDs), nuclear, biological, and chemical weapons, represents the most serious threat to global security and challenges the entire international community. To circumvent international restrictions and sanctions, states and non-state actors are able to procure components and technology through proliferators, that can then be used to build a weapon. Proliferators use a number of evasive techniques and tactics to circumvent the financial sanctions restrictions applied against them, providing them access to the financial system. Proliferation risks expand further than just those emanating from specific countries, such as North Korea (DPRK) or Iran. There are also non-state actors that can attempt to obtain proliferation-sensitive goods.

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Criminal Conduct

What is Proliferation Financing?

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