The International Legal Framework for Combating Money Laundering and Terrorist Financing: An Analytical Study in Light of International Conventions and Standards

Abstract

Money laundering and terrorist financing have become among the most serious transnational financial crimes due to their impact on the economic, financial, and security stability of nations, and their connection to organized crime networks, corruption, illicit trafficking, and other criminal activities. Combating these crimes is no longer a purely domestic matter limited to national legislation; it now requires an international legal framework based on cooperation between states, information exchange, legal and judicial assistance, and the freezing, confiscation, and recovery of assets. This study aims to analyze the international legal system for combating money laundering and terrorist financing by examining key international agreements, legal instruments, and standards. It also explores the role of the United Nations, the Security Council, and the Financial Action Task Force (FATF) in developing this system, in addition to analyzing mechanisms for financial, banking, judicial, and security cooperation. Furthermore, the study examines the Libyan experience by analyzing the national legislative framework, particularly Law No. (2) of 2005 concerning combating money laundering, and assessing the extent to which national legislation aligns with international trends in combating money laundering and terrorist financing. The study concludes that the international legal system has witnessed significant development in confronting these crimes, but its effectiveness does not depend solely on the existence of international agreements and standards, but is linked to the degree to which states implement their obligations, the efficiency of their national institutions, the effectiveness of international cooperation, and their ability to confront modern technological and financial developments.