Internationalization And Evolution Of Major Frameworks In Combating Money Laundering (ML) And Terror Financing (TF): A Historical And Legal Analysis

Abstract

Money laundering (ML) and terror financing (TF) pose significant threats to global financial stability, security, and economic development. The scale of the challenges has made it necessary to take substantive steps in many legal and regulatory attempts to combat crime at both international and national levels, in particular, anti-money laundering (AML) and counter-terrorism financing (CFT) international regulations have evolved through a complex network of legal frameworks designed to protect financial systems from abuse. These frameworks aim to harmonize national laws, facilitate international cooperation, and ensure consistent enforcement across jurisdictions. This study examines the historical[1] and legal progression of AML and CFT frameworks and analyzes the internationalization of key frameworks in combating illicit financial activities. Central to this analysis is the evaluation of major periods that led to the foundation of global AML and CFT efforts, shaping national policies, and enforcement mechanisms. This study identified four core elements that regulate AML and CFT national laws in accordance with international standards. These core elements created legal obligations, boosted financial oversight, improved cross-border cooperation and dismantled illicit financial activities. Despite substantial endeavors, the persistence of fragmentation, varying enforcement standards, and jurisdictional complications obstruct the unification of AML and CFT initiatives. This study recommends continuous legal evolution, stronger institutional collaboration, and enhanced enforcement regulation through historical and legal analyses of Internationalization of major frameworks in combating ML and TF.