The Council of Europe’s anti-money laundering and counter-terrorist financing monitoring body, MONEYVAL, has today published a typologies report on money laundering, terrorist financing and proliferation financing risks and trends linked to proceeds obtained from conflicts. 

This typology research examines how conflicts create conditions for generating illicit proceeds, and how these funds are subsequently laundered or used to finance terrorism and the proliferation of weapons of mass destruction. The project aimed to identify relevant patterns, trends and vulnerabilities in order to strengthen the fight against money laundering and the financing of terrorism and proliferation, while also enhancing international co-operation.

The analysis underscores that weakened state control and destabilised markets in conflict zones create environments conducive to complex and interconnected criminal economies. In such contexts, illicit proceeds can be generated, laundered, and reinvested in ways that sustain violence and destabilisation. 

The report also emphasises the growing sophistication of illicit financial mechanisms used to circumvent targeted financial sanctions, particularly in relation to proliferation financing. Conflict-affected environments enable criminals to exploit vulnerabilities in financial and regulatory systems, using complex schemes involving shell companies, third-country intermediaries, and virtual assets to conceal the origin, movement, and purpose of funds.