Anti-money laundering

We recognise the broad range of threats posed by money-laundering and the need for investors such as CDC to engage in the fight against money laundering and terrorist financing.

CDC defines money laundering as the process by which the true origin and ownership of the proceeds of criminal activities are disguised so that it can be used without creating suspicion. It can take many forms including:

  • trying to turn money raised through criminal activity into ‘clean’ money;
  • handling the benefit of acquisitive crimes such as theft, fraud and tax evasion;
  • being directly involved with any criminal or terrorist property, or entering into arrangements to facilitate the laundering of criminal or terrorist property; and
  • criminals investing the proceeds of their crimes in the whole range of financial products.

Just like any commercial operation, criminal organisations and terrorist organisations require working capital to function and just like any business, disruptions in the flow of this capital damages their operations and so helps reduce crime.

CDC Requirement

In its agreement with fund managers CDC requires that they adopt and implement know-your-customer and anti-money laundering policies, procedures and controls. Similarly, when making our own direct investments CDC ensures that we 'know our customer'.

Find out more

More information about how to introduce good systems that combat money-laundering is available in CDC’s Toolkit for Fund Managers.