TRANSNATIONAL CRIMINAL LAW: CHALLENGES IN COMBATING MONEY LAUNDERING AND TERROR FINANCING

Abstract

The increasing interconnectivity of global financial systems has intensified the challenges of combating money laundering and terror financing under the framework of transnational criminal law. This study explores the evolution of legal frameworks, investigative techniques, and cross-border cooperation mechanisms developed to address these threats. It analyzes how differing domestic laws, regulatory loopholes, and jurisdictional conflicts complicate enforcement efforts (1). International institutions, such as the Financial Action Task Force (FATF), United Nations conventions, and regional initiatives, play a crucial role in harmonizing standards and enhancing compliance mechanisms (2). However, gaps persist in areas such as beneficial ownership transparency, cryptocurrency regulation, and real-time intelligence sharing, which criminals exploit to launder illicit proceeds and finance terrorism (3).

The research also evaluates the role of mutual legal assistance treaties (MLATs), extradition frameworks, and international courts in overcoming procedural barriers to prosecution (4). Emerging technologies, including blockchain analytics and artificial intelligence, are reshaping investigative methodologies but require strong legal and ethical safeguards to prevent misuse (5). The paper argues for a comprehensive, multi-layered approach that combines stringent regulatory measures, advanced investigative tools, and stronger international cooperation to ensure the effectiveness of transnational criminal law in curbing money laundering and terror financing (6).