LETTER FROM THE EXECUTIVE BOARD

Dear Delegates,

It gives us great honor and immense pleasure to welcome you all to the Economic and
Financial Council (ECOFIN) at DELMUN 2019. As representatives of member nations of the
ECOFIN, you are tasked towards debating, deliberating and reaching a consensus on the
agenda at hand.

As you are aware, the committee will be discussing the agenda of “Discussing the efforts to
combat money laundering and other Transaction Organized Crimes”. This background guide
has been designed to help you get started on your research. However, this document
shouldn’t be your only source of research. Building upon the outlook presented by this guide,
you are expected to carry out your own research through authentic sources and make sure to
engage in comprehensive and pragmatic debate throughout the sessions.

The Executive Board will not interfere in the flow of debate unless absolutely required.
Therefore, the onus to ensure that the committee does not stagnate lies on the delegates. We
strongly believe that with good research, the delegates will be able to steer the committee in
the right direction.

Please do not hesitate to get in touch with the Executive Board at any time prior to or during
the conference in case you have any queries about the agenda or the rules of procedure. We
are here to help you during the conference at all times.

We request the delegates to not view this conference as a zero-sum-game. Model UN

conferences are collaborative in nature rather than competitive and we would like to keep this
spirit alive during our committee. Our goal isn’t to solve the world’s problems in three days,
but rather to educate ourselves about them, thereby ensuring that we go on to become a
generation of sensitized leaders, equipped with the skills and will to make our world a better
place.

With that being said, we wish you all good luck and eagerly look forward to the conference.

With warm regards,

Deveeka Ravi Divith Chowdhary

Co-Chairperson Co-Chairperson

(E):deveekaravi.304@gmail.com (E):divithchowdhary92@gmail.com
 CONTENTS

1. Introduction to Model UN

2. How to Research

3. Nature and Proof of Evidence

4. History of the Economic and Financial Committee

5. Mandate of ECOFIN

6. Limitations of ECOFIN

7. Introduction to the agenda

8. .

9. .

10. Measures to prevent money laundering and Solutions

11. Questions a resolution must answer (QARMA)

12. References
 INTRODUCTION TO MODEL UNITED NATIONS

MANDATE

The mandate of a committee refers to the extent of powers that the committee can exercise.
Although the agenda is vast, the mandate of the ECOFIN is narrow and mostly limited to
recommendatory powers in almost all cases. To this end, delegates are encouraged to find
innovative solutions that lie within the mandate and are pragmatic.

PROCEDURE

It is important for the committee to have proper rules of procedure enforced to ensure
conducive flow of debate. The committee will be following United Nations Association of
the United States of America (UNA-USA) Rules of Procedure. The delegates are expected to
adhere to the rules at all times and maintain the decorum of the committee.

FOREIGN POLICY

Foreign policy is mostly unique to each country and delegates are expected to thoroughly
research as well as adhere to the foreign policy of the nation they are representing. Violations
of foreign policy will take note by the Executive Board.

LOBBYING

Lobbying involves the art of negotiating and convincing the other members working
alongside you in the committee. This may be considered as the most crucial part of a Model
UN conference and in tradition, is what sets it apart from general competitive debate. The art
of lobbying is an important skill that delegates should to put to use in the committee.

DECORUM

Decorum refers to the etiquette that is to be maintained in the committee. In a Model UN

committee, you represent the interests of a nation in the capacity of a diplomat and are
thereby supposed to behave in a manner that is strictly professional at all times during the
committee sessions. No delegate shall cause disturbance or flout any rules of procedure.
HOW TO RESEARCH

Delegates are requested to take note of the following points while planning their research

1. Make sure you are thorough with the Rules of Procedure (in this case the UNA-USA
RoP). The long form of the Rules of Procedure can be found at https://unausa.org/model-
un/

2. Research on the foreign policy of your allocated nation, their interests, allies, remarks by
heads of states, policies pertaining to the agenda and general information as well

3. Read the UN Charter and treaties, conventions and past actions by the committee
pertaining to the agenda at hand.

4. Put your analytical thinking skills to test to come up with comprehensive and pragmatic
solutions that ensure a solution oriented approach to the committee

5. Usage of internet is prohibited in committee. However, hard copies, downloaded copies

and offline saved links shall come in handy.

6. Ensure you put the art of lobbying to good use in committee to gather support from co-
delegates.

NATURE AND PROOF OF EVIDENCE

Documents from the following sources will be considered as credible proof for any
allegations made in committee or statements that require verification:
• Reuters: Appropriate Documents and articles from Reuters News agency will be used to
corroborate or refute controversial statements made in committee.
• UN Documents: Documents by all UN agencies will be considered sufficient proof.
Reports
from all UN bodies including treaty-based bodies will also be accepted.
• National Government Reports: Government Reports of a given country used to
corroborate
an allegation on the same aforementioned country will be accepted as proof.
The documents stated above will hold a binding nature of establishment. Other sources like
Wikipedia, Amnesty International, or newspapers like the Guardian, so on and so forth will
not be accepted as credible proof; but may be used for better understanding of any issue and
even be brought up in debate, if the information given in such sources is in line with the
beliefs of a government or a delegate.
HISTORY OF ECOFIN
Second of the six committees of United Nations General Assembly, ECOFIN was formed
after the completion of the Second World War, in the year 1945. The committee first met in
April 25th, 1945 at San Francisco. ECOFIN stands for, The Economic and Financial
Committee. This committee is focused at globalized economy, International supply markets,
macroeconomics policy shaping and supporting nations financially.

It’s membership is open to all member nations of UN. There are a total of 193 nations that are
members of the ECOFIN. Specialty of this committee being the equal representation and
voting rights. Resolutions passed by the committee are not enforceable and binding. The
nations can adopt these resolutions by enforcing the same in their nations.

ECOFIN has several economic accomplishments, from which the major ones being the recent
definitive stance on several key issues in the Middle East: Israel and Palestine. Over the
course of time, ECOFIN has helped developing countries thrive economically through
financial assistance and the opportunity to prosper. This committee specially helps
developing countries to spur growth and prosper through its foreign aid programs, ECOFIN’S
set goals in lowering poverty and decreasing economic strain on countries facing large
amounts of debt or countries that are in need of financial remapping.

Recently, ECOFIN has called for various cease of human right violations across the Middle
East, due to the prevailing economic hardships that the political, military and social situation
has brought upon the affected people. When the committee first sat in San Francisco, the
agendas always aimed at starting with information and communication technologies for
development and goes all the way to permanent sovereignty in conflict and post-conflict
regions’ economies. The committee meets once every year in October for 4-5 week session.
MANDATE OF THE COMMITTEE

In recent times, the millennium development goals along with special situations related to
least developed countries and developing countries has been an area of concern for the
committee. Specially, the land locked developing countries, South-East Asian countries and
countries in severe crisis which needs immediate reconstruction in the aftermath of the 2008
financial crisis for example.

The committee is run by one chairperson, three vice chairpersons and one rapporteur,
allowing intense debate and regular updates in its approach.

The mandate of the committee includes discussing issues of growth and development with
regard to macroeconomic aspects, international policies, external debt sustainability, security
financing for sustainable development, poverty eradication being one of the base goals of
ECOFIN, globalization, grouping of nations such as least developed countries to encourage
regional growth and support for all nations, Information and communication technologies for
development, follow-up to and implementation of the outcomes of the International
conferences on Financing for development and interdependence.

LIMITATIONS

When we consider the other United Nations General Assembly councils, ECOFIN can only
propose the solutions and can put forward the recommendations in its draft resolution. The
mandate of the committee doesn’t guarantee implementation or imposition of any of the
decisions taken by the committee.

The authority of implementation, as always lies only with the United Nation Security Council
(UNSC).

As the agendas for discussion more or less is concerned with growth and development of
nation’s economic well-being, depending upon the agenda, ECOFIN has to coordinate with
other committees such as UNDP, UNEP and UNODC etc. for tackling the concerned agenda
or issue at hand.

ECOFIN collaborates with international organizations such as WTO, ILO, GMG,IMF and the
World Bank.
INTRODUCTION TO THE AGENDA:

Professional money launderers (PMLs) specialise in ensuring that criminals evade anti-
money laundering and counter terrorist financing laws in order to enjoy the profits from
illegal activities. A “professional” money launder can be individuals, organisations and
networks that are involved in third-party laundering for a fee or commission.
PMLs provide services to criminals and organised crime groups by laundering the profits of
their illegal activities to offshore accounts or tax heavens. PMLs provide expertise to disguise
the nature, source, location, ownership, control, origin and/or destination of funds to avoid
detection. PMLs generally do not differentiate between criminals, with a need to move or
conceal ill-gotten gains and those with genuinely good and legally sound reasons to move
money. These are all potential PML clients. PMLs operate under a number of business
models and may be individuals; criminal organisations with a clear structure and hierarchy;
or networks of loosely affiliated members using tactics such as Shell Corporations or Multi
Routing schemes providing services to criminals and organised crime groups.
These PMLs provide a range of generally applicable services, with the result that the same
laundering techniques may be used for the benefit of multiple organised crime groups without
raising suspicion. As such, professional money laundering networks may act transnationally
in order to exploit vulnerabilities in countries and their domestic laws and particular
businesses, and financial institutions. PMLs, themselves, pose a threat to the financial system,
as they facilitate money laundering and criminality more broadly, while profiting from these
illegal activities.
Drug traffickers and other criminals throughout the world use the banking system to channel
the proceeds of illegal transactions, usually by routing the money multiples times or putting it
under the name of shell corporations or moving it offshore to tax heavens, into the economy.
All such tactics ensure to make the money look like it has been acquired and channelled
legally.
Money laundering is the activity whereby an individual or legal entity acquires or receives for
itself or others' gains from a criminal offence according to the General Penal Code or other
legislation. It is also regarded as money laundering if an individual or legal entity undertakes
to convert, transport, send, store, assist in delivering, conceal such gains or information
pursuant to its origins, nature, location, disposal or transport of such gains or in any similar
manner participates in ensuring other parties gains from such criminal offences.
Terrorist financing refers to the collection of funds with the intention that they be used, or the
knowledge that they are to be used, to carry out an offence punishable under subparagraphs
(a) to (c) of Article 100 of the General Penal Code.
MEASURES TO PREVENT MONEY LAUNDERING:
One of the key conditions for detecting money laundering and terrorist financing is to ensure
the traceability of transactions in order to establish the origin of funds.
All business transactions, regardless of the amount, must therefore be recorded in such a
manner as to ensure traceability. For this reason, the following information must be made
available:
a) names of customers and their addresses, as well as the names of the authorised signatories
and proxies involved in the transaction in the case of a legal entity;
b) legal domicile / residence;
c) identity number and other personally identifiable information;
d) information on the type and nature of the transaction;
e) information on the amounts of the transactions and the currencies concerned;
f) information on what accounts were used for the transactions;
g) point in time of the transactions; and,
h) name of the recipient of funds, if applicable.

SOLUTIONS:
1. Money is usually routed through multiple banks across nations. Auditing transparency of
such banks needs to be done and countries need to maintain transparency and knowledge
sharing of such records.
2. TOC countering tactics which involves war on drugs, rehabilitation and free and fair trail
to accused gang members so as to ensure they don’t go back to their original ways.
3. Ensuring cutting down of terror financing by strengthening audit systems and Porous
borders.
4. Having regular cross communication, that is, to have regular meetings where banks and
law enforcement can keep each other up to date, verify any suspicions, identify possible
networks, and enhance the public-private partnership, creating a united front against money
launderers.
5. By integrating due diligence technology with people training and a robust partnership with
law enforcement. For example banks like TCF can more effectively combat the increasingly
sophisticated money launderers in the United States and abroad, helping prevent criminal
activity from continuing on their watch.
The above mentioned are some of the measures and possible solutions adopted to ensure
money laundering and transactional organized crime are mitigated. Although there exists
certain loopholes which the delegates need to come up with possible frameworks in order to
cover these loopholes.
QUESTIONS A RESOLUTION MUST ANSWER (QARMA):
REFERENCES: