World Bank

World Bank (WB) is a universal organization founded in accordance with the agreement adopted at the UN International Monetary and Financial Conference in July, 1944 in Breton-Woods (USA). It came into force in December 1945. Officially WB is considered as specialized financial institutions of United Nations Organization (UN). WB Group includes International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) and International Center for Settlement of Investment Disputes (ICSID). 184 states are the members of WB.

The basic direction of the World Bank activity is decrease in level of poverty on a global scale and rendering of the technical help to the states in various spheres: from education and public health services to financial stability. The World Bank provides financing of the efforts applied by the governments of developing countries in the course of social and economic development, promoting building of schools and establishments of public health services, supply of the population by water and electric power, struggle against diseases and preservation of the environment.

Goals of WB:

• Cooperation in development of member-states’ economies including encouragement of production resources development in the less progressed states;
• Stimulation of foreign investments by representing guarantees or participation in loans and another investments given by private investors;
• Cooperation in balanced growth of international trade and support of balance of payments equilibrium;
• Granting of loans or their guarantees for realization of most useful and urgent projects.

WB and International Monetary Fund (IMF) are closely connected with each other. According to item 1 article ІІ of the Agreement on IBRD only members of IMF can be members of the bank.

In April, 2001 Chief executives of IMF and WB recognized that money-laundering represents the global-scale problem influencing on both large and small financial markets. Considering that money-laundering potentially conducts to destructive economic, political and social consequences for the countries which are in process of development of national economy and formation of financial institutions, WB ascertained that money-laundering can cause the considerable economic damage to developing countries.

After events on September11th, 2001 Councils of chief executives of IMF and WB have accepted plans of action on strengthening of counteraction to money-laundering and terrorism financing. Besides, in July and August, 2002 Boards of governors recognized 40+8 FATF recommendations as the international standards in the sphere of counteraction to legalization (washing up) of the incomes received by criminal way and terrorism financing.

Within 2002 IMF and WB closely cooperated with FATF, Egmont Group, Basel committee on bank supervision and other international bodies when working out universal full-scale methodology of the estimation of counteraction to money-laundering and terrorism financing, approved on FATF plenary session in October, 2002

During realization of the 12-month's experimental program on use of the specified universal methodology IMF and WB estimated 33 countries (FATF and RGPF– 8).

1) Make work on counteraction to money-laundering and terrorism financing as a constant component of IMF and WB activity;

2)continue cooperation with FATF;

3) approve the new methodology of the estimations based on Recommendations reconsidered in June, 2003 with FATF;

4) allocate additional resources for the further work in this direction.

Within the limits of the activity the World Bank also renders technical assistance to member-states in the sphere of counteraction to legalization of criminal incomes which basically consists in the organization of various modes of study for employees of interested national state structures and organizations of private sector with attraction of international experts in the specified area.

The World Bank also carries out estimation of financial sectors of the participating-states and in its frameworks it checks the conformity of national systems of counteraction to washing up of criminal incomes and terrorism financing to corresponding international standards.

Since 1996 the World Bank also realizes 600 programs concerning fight against corruption and initiatives on management efficiency increase almost in 100 countries-clients. These initiatives provide acceptance of various measures: from filling of declarations with incomes by civil servants, property and their origin till increase of qualifications of judges and training of journalists by carrying out of journalistic investigations. Now almost one quarter of all new projects include the components concerning the State expenditure and financial reform.

Detailed information you can find on the official site of the World Bank (www.worldbank.org)