Combating the financing of proliferation: challenges and new tools
| Pages | 1107-1121 |
| DOI | https://doi.org/10.1108/JFC-06-2019-0082 |
| Date | 11 March 2020 |
| Published date | 11 March 2020 |
| Author | Ian John Stewart,Andrea Viski,Jonathan Brewer |
| Subject Matter | Financial crime,Accounting & Finance,Financial risk/company failure |
Combating the financing of
proliferation: challenges
and new tools
Ian John Stewart
Department of War Studies, King’s College, London, UK
Andrea Viski
Strategic Trade Research Institute, Washington, District of Columbia, USA, and
Jonathan Brewer
Department of War Studies, King’s College, London, UK
Abstract
Purpose –This paper aims to examine why most governments appear to attach less importance to
counteringproliferation finance than they do to countering moneylaundering or terrorist financing.
Design/methodology/approach –The paper examines this question from a number of perspectives
including a definitional perspective, a national regulatory perspective and a private sector implementation
perspective.
Findings –It is shown that there are presently significant gaps in counter proliferation finance
implementationat the national level, with follow-on implicationsfor private sector compliance.
Research limitations/implications –A key finding is that most governments do not addressthe issue
of proliferation finance as distinct from other formsof financial crime such as terrorist financing or money
laundering.
Practical implications –Practical opportunitiesfor improved financial sector implementation of counter
proliferation finance controls are identified, but it is argued that it is statesthat must do more to meet their
obligationsfor improvements to be realised.
Social implications –The risk of not doing so is that the financial system will continueto be misused to
finance the proliferationof weapons of mass destruction.
Originality/value –The study seeks to fill a gap in existing academic literature on the question of why
proliferation finance receives less attention than other forms of financial crime. The study builds on original
research undertaken by the authors including the typologies of proliferation finance, which were later
incorporated into an updated FinancialAction Task Force report on this topic, as well as events organised by the
authors to explore the topic of proliferationfinance implementation with governments and the private sector.
Keywords Financial Action Task Force, Proliferation finance, Sanctions
Paper type Research paper
Introduction
The proliferation of weapons of mass destruction (WMD) poses a major threat to
international peace and security. WMD proliferation involves the acquisition of nuclear,
This paper was not directly funded by any specific grant, but did benefit from US Department of
State grants to King’s College London related to proliferation finance typologies and training material
development.
Combating the
financing of
proliferation
1107
Journalof Financial Crime
Vol.27 No. 4, 2020
pp. 1107-1121
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-06-2019-0082
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