Money Laundering Regulation Research Articles

Money Laundering Regulation in Nigeria: The Problems with Enforcement, the British Connection & Global Efforts

Money Laundering Regulation in Nigeria: The Problems with Enforcement, the British Connection & Global Efforts

The EU's Anti Money Laundering Agenda - Built on Risks

The Third Money Laundering Directive introduces not only a risk-based approach to the fight against dirty money but includes also the financing of terrorism within its scope. The legal basis for such inclusion is Art 95 EC and Art 47 (2) EC and the establishment of the internal market. This contribution aims to explore the implications of EC risk assessment in the area of the EU’s anti money laundering and terrorism financing regulation as justification for harmonization.

On International Economic Crime Regulation Governed by the Administration : A Review for Studies on Money Laundering Regulation

On International Economic Crime Regulation Governed by the Administration : A Review for Studies on Money Laundering Regulation

Money laundering regulation and risk‐based decision‐making

Purpose – The current emphasis in anti‐money laundering (AML)/ counter terrorist financing (CTF) regulation on “risk‐based” strategies means that regulatory, law enforcement and reporting agencies need to respond to money laundering and terrorist‐financing threats in ways that are proportionate to the risks involved. However, the way that risk is conceptualized remains vague, and the requirements on agencies imposed by the risk‐based approach involve a significant element of uncertainty. The paper addresses these issues.Design/methodology/approach – This paper examines the attributes of risk as it applies to AML/CTF strategy in the context of regulatory risk and related forms of risk assessment, and argues that there are a number of conditions that must be met if risk‐based decision‐making for AML/CTF is to work effectively.Findings – This paper argues that there are a number of conditions that must be met if risk‐based decision‐making is to work effectively. Three of the most important conditions are tha...

Money Laundering and its Regulation

The recent wave of terrorist attacks has increased the attention paid to money laundering activities. Using several methodologies, this paper investigates empirically the determinants of money laundering and its regulation in over 80 countries by assembling a cross-country dataset on proxies for money laundering and the prevalence of feeding activities. The paper additionally constructs specific money laundering regulation indices based on available information on laws and their mechanisms of enforcement and measures their impact on money laundering proxies. The paper finds that tougher money laundering regulations, particularly those that criminalize feeding activities and improve disclosure, are linked to lower levels of money laundering across countries; the results are robust to potential endogeneity of money laundering regulation. The relevance of historical factors in explaining the variation of money laundering regulation across countries sheds light on theories of institutions and provides room for further action, particularly in the areas of the law that improve the impact of criminalization, including liability of intermediaries, reductions of the burden of proof and better disclosure.

False and Reluctant Friends? National Money Laundering Regulation, International Compliance and Non-Cooperative Countries

In the aftermath of September 11th, growing attention has been paid to the role of Non-Cooperative Countries and Territories (NCCT) in money laundering and terrorist financing. The paper, applying the new political economy approach in the law and economics field, provides a model to describe, through the policymaker payoff maximization, the relationships between specific country features and endowments, on the one hand, and lax financial regulations, on the other hand. Given that in the real world relatively lax regulation means a non-cooperative attitude in the international fight against money laundering and terrorist financing we empirically test the above theoretical relationship in the case of the NCCT jurisdictions. The policy consequences on the pros and cons of international blacklisting procedures are discussed.

Compliance and reporting issues arising for financial institutions from money laundering regulations: a preliminary cost benefit study

Explores views on the costs and benefits of financial institution compliance with money laundering regulations as a precursor to a full cost benefit study. Notes that there is very little information on the costs and benefits of money laundering, which is linked with the difficulties of estimating the volume of money laundering that is occurring. Deals with attempts to measure money laundering; the problems involved in this have resulted in a system and procedure based approach which focuses on input rather than output and is clearly inferior. Looks at the costs and benefits for private compliance with money laundering regulation. Moves on to the UK’s money laundering control system, which is based on the Financial Services Authority; financial institutions have to file suspicious activity reports (SAR( and to know their customer, but it is not clear that statistics on these activities show more than the companies’ compliance. Concludes that the industry regards these duties, ie of policing the regulations on behalf of the government, as a burden, and that if this is regarded as excessive, there will be a deterrent to cooperation.

It takes two to tango: international financial regulation and offshore centres

Focuses on the features of some countries that make them more likely to offer money laundering services, arguing that these tax havens are structurally different from other countries: they lack significant resources for trading internationally, which pushes them to generate income through a lax supervisory regime, yet their smallness makes them less attractive to criminal organisations. Takes a relational approach which focuses on the exchange between the centre and its criminal customers, developing a supply and demand schedule for money laundering regulation and a game structure (with mathematics) for the relationship between Offshore and Criminal. Argues that because of the complex and perverse competitive factors involved, a pure “name and shame” approach by anti‐money laundering policy makers may be counterproductive.

Keeping dirty money and terrorist funds away: The proposed Money Laundering Regulation of the Swiss Federal Banking Commission

On 9th July 2002, the Swiss Federal Banking Commission (SFBC) published for consultation a proposal for a new SFBC Money Laundering Regulation. The draft regulation proposes stricter rules for banks and securities dealers to prevent money laundering and financing of terrorism and details specific due diligence requirements with respect to business relationships with politically exposed persons. The draft incorporates the lessons drawn from money laundering cases in Switzerland as well as international developments.

Money Laundering Regulation and Bank Compliance Costs: What Do Your Customers Know? Economics and the Italian Experience

The objective of this paper is to illustrate the link between the effectiveness of the anti‐money laundering regulations and the characteristics of the compliance costs involved for banks. The work is set out as follows. The next section describes the economic framework, which starts with the assumption that intermediaries have an advantage in terms of information and then demonstrates, by means of a principal‐agent model, how this advantage can produce collective gains in the war against money laundering only if the regulations take the problem of compliance costs into due consideration.

Money laundering regulation: A bridge too far?

The 1997 revised version of the UK Money Laundering Guidance Notes for the financial sector are about to be published. They represent the results of a year's consultation and clearly demonstrate the financial sector's commitment not to be tainted by criminal money. However, the fight against laundering the proceeds of crime has long since moved away from the concept of suitcases full of cash across bank counters, and the self‐regulatory process must now encompass every part of the financial sector, going beyond the requirements of the Regulations themselves. Financial sector businesses have committed significant resources to the fight against crime, but this has not been matched by investment in the investigation, prosecution and confiscation process. As the financial sector requirements become more onerous and involved, questions are being asked whether more than enough is being required of financial sector businesses.

Money laundering regulation in Canada

Money laundering regulation in Canada

Incriminating Disclosures: An Evaluation of Money Laundering Regulation in England and Wales

Incriminating Disclosures: An Evaluation of Money Laundering Regulation in England and Wales