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Purpose: The anti-money laundering (AML) frameworks of many countries were generally influenced by the international best practices of money laundering that were first established in 1988 through the Basel Committee on Banking Supervision (BCBS). The general belief is that these international best practices are applicable in all jurisdictions, although most countries are still affected by money laundering. The international best practices are universal measures that were developed as a yardstick to control and curb money laundering globally. Nonetheless, international best practices for money laundering are not tailor-made for specific jurisdictions and/or countries. Therefore, it remains the duty of respective jurisdictions and/or countries to develop their own context-sensitive AML measures in accordance with international best practices. An overview of the AML international best practices that were developed and adopted by several countries are analysed in this paper. These include customer due diligence measures established by the BCBS, the financial action task force (FATF) standards, as well as the ongoing monitoring and the risk-sensitive approach that were implemented to curb money laundering globally. Design/methodology/approach: The article analyses the AML international best practices that were developed and adopted by several countries. These include customer due diligence measures established by the BCBS, the FATF standards, as well as the ongoing monitoring and the risk-sensitive approach that were implemented to curb money laundering globally. Findings: It is hoped that policymakers and other relevant persons will use the recommendations provided in the paper to enhance the curbing of money laundering in financial institutions globally. Research limitations/implications: The paper does not provide empirical research. Practical implications: The study is useful to all policymakers, lawyers, law students and regulatory bodies globally. Social implications: The study seeks to curb money laundering in the economy and society globally. Originality/value: The study is original research on the use of AML/counter financing of terrorism international best practices to curb money laundering activities globally. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to examine the South African banks' customer due diligence (CDD) practices in the fintech era to mitigate money laundering (ML) risks and ensure financial stability. Financial technologies have brought substantial transformations to the financial services sector. However, such technologies have exposed the sector to emerging risks that threaten the integrity and stability of the financial system globally. Before any bank–customer relationship is established, proper customer background checks must be conducted. These background checks enable financial institutions to validate information provided and ensure customers are properly risk profiled. Failure to risk profile customers could result in financial institutions being used as conduits for ML. Undoubtedly, CDD procedures are pivotal to overall anti-money laundering efforts and curbing financing terrorism in a regulatory framework. Design/methodology/approach: A qualitative research approach was adopted to address the research questions of the study. Given the confidentiality associated with the financial services sector, data triangulation was used in blending mainly secondary and primary data sources. Secondary data sources used in the study were published reports available in the public domain that were corroborated with subject matter experts' interviews. Findings: Based on the findings of this study, it is concluded that in South Africa, technological solutions have been incorporated into CDD functions, which is now risk-based (enhanced due diligence). Also, legally, South Africa has incorporated the biometrics, integration with Department of Home Affairs and Companies and Intellectual Property Commission databases, customer consent to third-party sources with the Financial Intelligence Centre Act and the Protection of Personal Information Act. Originality/value: The shift towards digital banking in South Africa results in increased data and dynamic risk profiling. This study advocates a policy shift requiring a risk-based approach to mitigating emerging ML risks (in particular digital laundering), especially in the wake of South Africa's recent greylisting by the Financial Action Task Force. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the research paper is to determine the efficiency of all crimes approach, their relationship with a risk-based approach and the consequences on regulated sector professionals. And, therefore, what is meant by suspicion, how employees follow the requirements and how it affects the quality and quantity of suspicious activity reports. It also considers the economic and legal challenges the regulated sector faces while dealing with customers or clients. All in all, this paper investigates what does the anti-money laundering (AML) regime means for legal practice and how lawyers' responsibility is affected. Design/methodology/approach: As the research is being conducted through the analytical methodology, the specific topic of "regulated sector professionals and reporting suspicion of money laundering" is analyzed. It evaluates the fact that the risk-based approach followed in Financial Action Task Force (FATF) recommendations and its adaptation in the UK with all crimes approach caused discrepancy in the judicial system and influenced regulated sector professionals negatively. Findings: The paper points out that in spite of protective amendments in terms of jurisdictional immunity, UK legislation has caused problems for regulated sector professionals, such as the potential of breaching a client confidentiality agreement and avoiding tipping-off, thus remaining under pressure by clients and facing the risk of losing their clients or obligation to record suspicions in case of court investigation. Originality/value: The question of money laundering and the FATF recommendations has had a considerable scholarship. However, the proposed study intends to precisely look at the efficiency of all crime approaches, their relationship with a risk-based approach and the consequences on regulated sector professionals. The proposed research will further determine the regulated sector's economic and legal challenges while dealing with customers or clients. Unlike the existing scholarship, the proposed thesis will focus on what the AML regime means for legal practice and how lawyers' responsibility is affected. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to analyze the effectiveness of the Financial Action Task Force (FATF's) recommendations in Latin America in the fight against Money Laundering (ML) through the Immediate Outcomes 4 (Preventive Measures) and 6 (Financial Intelligence) and the relationship between anti-money laundering (AML) effectiveness and anti-corruption measures. Design/methodology/approach: Through quantitative and quality methods measure the performance of the Immediate Outcomes' levels in compliance with the established FATF' standards; The objective is to analyze progress in the prevention and identification of ML. Findings: The authors discuss the relationship between AML effectiveness and anti-corruption measures starting with the analysis of the best-ranked country in these indicators (IO4 and IO6). Research limitations/implications: Mutual evaluations require a long process, which is why the authors do not have all the updated data for all the Latin American countries; only the updated Immediate Outcomes data up to September 16, 2021, are taken. This paper is part of the Research Project "The impacts of corruption in the Western Hemisphere and regional responses." Originality/value: Through a multidisciplinary analysis, the Immediate Results evaluation model is prioritized to measure the effectiveness of the methods applied in Latin America through the IO4 and IO6. The model that presents the best effectiveness is selected and the successes that this country is applying over its peers are analyzed. From this analysis, a quantitative and qualitative analysis can be appreciated. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to understand the member countries' current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework. Design/methodology/approach: Content analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries. Findings: The result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets. Research limitations/implications: This study is limited to information mentioned in the FATF MER. Practical implications: This study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement. Originality/value: FATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries' discretion. Therefore, this study aimed to understand the member countries' current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework. [ABSTRACT FROM AUTHOR]

Purpose: Money laundering (ML) has become a global threat in recent years, impacting both developed and poor countries. Developing an efficient anti-money laundering (AML) regime is a difficult and time-consuming process owing to the ever-changing spectrum of methods used, weaknesses in control mechanisms, intricacies of laws and regulations, organizational malfunction and goal displacement. In Bangladesh, surge of illegal money, rising money heists and egregious capital outflows have posed a governance problem. The purpose of this study is to investigate the dimensions of ML and examine the structure and performance of the AML regime. Design/methodology/approach: This study adopts a qualitative method, based on a thorough review of the conceptual and empirical literature on ML, content analysis of a range of publications, a scan of newspaper articles and digital resources and responses/comments of current and retired government employees in Bangladesh. The evaluation is informed by the recommendations of the Financial Action Task Force and supported by the mutual evaluation reports of the AGroup on Money Laundering. Findings: Bangladesh, like most of South Asia, is highly vulnerable to ML and is hard-pressed to fully comply with global standards for control. Weak institutions, bureaucratic pathology, lack of transparency and accountability, high levels of corruption, an ambiguous regulatory environment, unregulated financial operations, a disordered banking sector, conflicting interests, criminal exploitation, poor oversight and reporting, flawed risk assessment and weak government performance have affected the performance of the AML system. Originality/value: This paper looks at the problem of ML from a holistic perspective covering different dimensions such as black money whitening, illegal funds movements, informal money transfer systems, use of offshore refuge for hiding money and so on and the state's responses to the syndrome. The evaluation will be of particular relevance to policymakers, anti-corruption and law enforcement agencies, the financial intelligence operators and public prosecutors dealing with criminal justice. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to evaluate the existing legal basis, and its practical application, of an arbitrator's competence to raise on her own initiative money laundering issues. Design/methodology/approach: The research focusses on presenting the essence of the problem through evaluation of the legal basis for the arbitrators to raise money laundering concerns on their own initiative and the examples of so being done in international commercial arbitration. Findings: This paper concludes that arbitrators do not presently have a solid legal basis that authorises them to act sua sponte against money laundering. Originality/value: The originality and value of this paper lies in its emphasis on theoretical and practical issues related to money laundering in international commercial arbitration. It argues in favour of an explicit recommendation to be incorporated in the 2012 Recommendations of the Financial Action Task Force (FATF) that international commercial arbitrators address money laundering on their own initiative. [ABSTRACT FROM AUTHOR]

Combatting criminal misuse of cryptocurrencies was at the core of the FATF agenda under the US Presidency, culminating in June 2019 with the thorough extension of international standards against money laundering over virtual assets' markets. This echoed the first legislative measure regulating virtual currencies adopted by the EU a year before. Directive 2018/843, better known as the 5th Anti-Money Laundering Directive, fails however to address key technological breakthroughs and new business models, which continuously make the ever-growing and fast-paced crypto economy evolve. Against this background, the present contribution investigates shortfalls and challenges that lay ahead in the light of the new FATF Recommendations. It ultimately argues that the preventive anti-money laundering measures cannot dispense with the establishment of a cross-border integrated supervisory and enforcement system. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to evaluate the recent steps and enforcement mechanisms employed in Nigeria to combat money laundering and terrorism financing to give a clear and deeper insight to the potential that it portends and locate its workability by combing through various policies that are adapted to reinforce the existing anti-money laundering/combating financing terrorism (AML/CFT) legal and regulatory framework in Nigeria. The paper, therefore, provides a comprehensive assessment of these measures to exhume necessary reinforcement elements required to achieve the desired result by exploring developments from other jurisdictions that have surpassed the country in the AML/CFT crusade. Design/methodology/approach: This study adopted qualitative research methodology. It is structured in such a way that mixed qualitative methodology approach as a research strategy is employed. This is achieved by putting into use the combination of doctrinal and non-doctrinal research methods. Descriptive, interpretative and content analysis methods are used to analyse various AML/CFT government policies along with the existing AML/CFT laws. Judicial pronouncements, various scholarly opinions, along with the anti-money law (AML/CFT) within the Nigeria context are analysed in line with the 40 "Recommendations" of the Financial Action Task Force which depicts the acceptable legislative and regulatory precedent and an international standard to measure the adequacy or otherwise of any national or local laws on money laundering. Findings: Factors that were militating against the effectiveness and positive performance of Nigeria government to combat money laundering-related matters were identified. A clear-cut amendment to the existing provisions of law that will address the issue is suggested to enhance the effectiveness and combat other similar challenges that are likely to come out of these policies, otherwise more problems would be created than could be solved. Originality/value: This paper exposes deficiencies in the present mechanism adopted to combat money laundering in Nigeria and proffers necessary antidote to facilitate the effectiveness of the legislation. It provides necessary information that could facilitate amendments and new legislation(s) to curb the defects by the lawmakers and could serve as a veritable source of information to law students, legal practitioners and academia. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate how well countries comply with global anti-money laundering and counter-financing of terrorism (AML/CFT) regulations. Design/methodology/approach: With the help of an AML/CFT compliance index composed by the author, this study is able to numerically quantify countries' AML/CFT compliance levels. Countries were selected based on their membership with the Financial Action Task Force (FATF), precisely members who have gone through at least one round mutual evaluation and have duly submitted a report to the task force. The AML/CFT index was composed by assigning numeric values to the individual country ratings across all 49 FATF recommendations contained in their mutual evaluation reports (MER). Findings: Some notable findings include the yearly global level of AML/CFT compliance between the period 2004 and 2016, as well as compliance levels across continents for the same period. Compliance levels for the seven components of the FATF recommendations were also reported to help assess which set of recommendations countries comply with the most and why they do. It was also found that countries' lack of compliance was as a result of high cost of compliance with FATF recommendations. Research limitations/implications: The main limitation of this study was a lack of high-frequency AML data of countries, especially less-developed countries. Originality/value: The uniqueness of this paper lies in the fact that the AML/CFT compliance index constructed and used in the study is the first of its kind. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the implications of the 2014 Financial Action Task Force (FATF) publication and guidelines on virtual currency definitions and the overall impact of blockchain technology on anti-money laundering (AML) compliance and regulation. The report cites three case study examples, which the FATF paper uses and which this paper questions as to their relevance, especially to the formal banking sector. Design/methodology/approach: The paper has provided a critical analysis of a FATF publication and guideline document. Additional secondary data has been used on blockchain technology and to analyse the relevance and implications of the case studies used in the FATF document. Findings: The main findings are that virtual currency technology has the potential to support AML frameworks within banking when and if they are better understood. However, generic case examples of virtual currency legal cases are not necessarily useful when developing AML risk assessment frameworks within the banking sector. Practical implications: The implications from the research affect any financial organisation undertaking AML risk analysis or compliance especially for virtual currencies. It applies to the banking, insurance and auditing professions and is of interest to academics working on virtual and digital currencies. Social implications: The social implications are that virtual currency technology can be used to add protection to banking transactions and could also be considered for client identity information such as beneficial ownership. Originality/value: The originality of this paper is the topic of blockchain technology being considered in AML frameworks and the critical analysis of the FATF cases. [ABSTRACT FROM AUTHOR]

More than two hundred countries in the world have agreed to abide by the anti-money laundering ("AML") recommendations developed by the Financial Action Task Force ("FATF"), which is an intergovernmental organization. This Article focuses on the potential impact on the legal profession of FATF's fourth round of mutual evaluations. During these mutual evaluations, which currently are underway, FATF-affiliated countries examine each other's compliance with the FATF Recommendations and recommend follow-up action. This Article first presents the legal profession-related results from the completed Mutual Evaluation Reports. A number of these FATF Reports recommend changes that include requiring lawyers to report suspicious client transactions, greater enforcement of existing lawyer AML rules, and changing the entities that supervise lawyer AML efforts. The next Part of this Article examines the legal profession AML situation in the Authors' home countries of the United States and Peru, noting the current or potential impact in these countries of the FATF Recommendations, the FATF Mutual Evaluation process, and lawyerrelated money laundering scandals. The final Part of this Article suggests an alternative, education-focused, peer-review approach to the legal profession portions of the FATF Mutual Evaluations that arguably would decrease lawyer facilitation of criminal money laundering activities while better protecting traditional lawyer values that are globally recognized as important components of administration of justice and rule of law systems. Because the regulatory impact of FATF's mutual evaluations may be much broader than anti-money laundering issues, everyone interested in the topic of lawyer regulation should be aware of the FATF Recommendations and the ongoing mutual evaluation process. [ABSTRACT FROM AUTHOR]

Purpose This article aims to constructively critique the new global methodology for evaluating the effectiveness of anti-money laundering regimes against defined outcomes.Design/methodology/approach With surprisingly little discussion at the intersection of the money laundering and policy effectiveness and outcomes scholarship and practice, this article combines elements of these disciplines and recent peer-review evaluations, to qualitatively assess the Financial Action Task Force’s (FATF’s) anti-money laundering “effectiveness” methodology.Findings FATF’s “effectiveness” methodology does not yet reflect an outcome-oriented framework as it purports. Misapplication of outcome labels to outputs and activities miss an opportunity to evaluate outcomes, as the impact and effect of anti-money laundering policies.Practical implications If the “outcomes” of the “effectiveness” framework do not match the crime and terrorism prevention policy goals of nation states, the new “main” component for assessing the effectiveness of anti-money laundering regimes potentially detracts focus and resources from, rather than towards, intended policy objectives.Originality/value There is a dearth of scholarship whether the global anti-money laundering “effectiveness” framework is sufficiently robust to assess effectiveness as it purports. This article begins addressing that gap. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to advance debate and prompt new strategies substantially to improve the capacity to disrupt serious profit-motivated crime.Design/methodology/approach Using interdiction rates (the proportion of criminal funds seized or forfeited) as an interim proxy effectiveness indicator, this article challenges elements of the dominant anti-money laundering/counter-financing of terrorism (AML/CFT) narrative, and reflects on policy effectiveness and outcomes.Findings Interdiction rates in jurisdictions surveyed hardly constitute a rounding error in the accounts of profit motivated criminal enterprises. The current AML/CFT model appears almost completely ineffective in disrupting illicit finances and serious crime.Research limitations/implications With such research at an early stage, some data are poorly substantiated and methodological inconsistencies rife.Practical implications For policy interventions with a reasonable prospect for crime not to pay, beyond rhetoric, frank evaluation of results and a potential step-change in policy, regulatory and enforcement vision and capability, may be required.Originality/value Scholars have exposed a paucity of meaningful links between AML/CFT controls and crime and terrorism prevention, yet the dominant narrative persists largely unchecked. This paper examines components of that narrative in the context of scholarship on “bullshit”. [ABSTRACT FROM AUTHOR]

Most explanations of the Financial Action Task Force argue that material coercion plays a key role in the consolidation and diffusion of the global anti-money laundering regime. This paper looks carefully at the decision-making within FATF and argues that, at its most impactful, FATF operates in line with the principles of “experimentalist governance.” Experimentalism emphasizes broad, participatory standard setting, contextualized implementation, intensive but diagnostic monitoring, and routinized updating in light of experience. The paper discusses the differences between the more common understandings of FATF before laying out the principles of experimentalist governance. It outlines the experimentalist form of FATF decision-making. It then provides evidence of experimentalist decision-making in three important aspects of FATF: the evolution of blacklisting; the role of monitoring; and the continuing implementation of the risk-based approach. [ABSTRACT FROM AUTHOR]

The Anti-Money Laundering regime has been important in harmonizing laws and institutions, and has received global political support. Yet there has been minimal effort at evaluation of how well any AML intervention does in achieving its goals. There are no credible estimates either of the total amount laundered (globally or nationally) nor of most of the specific serious harms that AML aims to avert. Consequently, reduction of these is not a plausible outcome measure. There have been few efforts by country evaluators in the FATF Mutual Evaluation Reports (MERs) to acquire qualitative data or seriously analyze either quantitative or qualitative data. We find that data are relatively unimportant in policy development and implementation. Moreover, the long gaps of about 8 years between evaluations mean that widely used ‘country risk’ models for AML are forced still to rely largely on the 3rd Round evaluations whose use of data was minimal and inconsistent. While the 4th round MERs (2014-2022) have made an effort to be more systematic in the collection and analysis of data, FATF has still not established procedures that provide sufficiently informative evaluations. Our analysis of five recent National Risk Assessments (a major component of the new evaluations) in major countries shows little use of data, though the UK is notably better than the others. In the absence of more consistent and systematic data analysis, claims that countries have less or more effective systems will be open to allegations of ad hoc, impressionistic or politicized judgments. This reduces their perceived legitimacy, though this does not mean that the AML efforts and the evaluation processes themselves have no effects. [ABSTRACT FROM AUTHOR]

Crypto-coins (CCs) like Bitcoin are digitally encrypted tokens traded in peer-to-peer networks whose money laundering potential has attracted the attention of regulators, firms and the wider public worldwide. This article assesses the effectiveness of the global anti-money laundering regime in balancing both the challenges and opportunities presented by these novel ‘altcoins’. Two main arguments are advanced. First, the implications that crypto-coins presently pose for global anti-money laundering efforts stem less from the threats of their illicit uses as digital currencies and more from the opportunities presented by their underlying blockchain technologies. Second, despite several shortcomings, the risk-based approach pursued by the Financial Action Task Force (FATF) strikes an effective balance between the existing threats and opportunities that crypto-coins currently present. Rather than a conclusive evaluation however this article stresses the need for continual monitoring and investigation of the wider ethical implications raised by CCs for global efforts to combat money laundering in an era of rapid technological change. [ABSTRACT FROM AUTHOR]

Can, and will, lawyers police their clients? This article aims to shed light on the private front-line workers of the Financial Action Task Force on money laundering (FATF). The analysis is based on a study of how Swedish lawyers perceive and handle obligations to police clients within FATF style risk-based anti-money laundering/counter terrorism (AML/CTF) regulation. We find that the lawyers were reluctant to taking on the responsibility for AML/CTF, and that their front-line work was directed towards being compliant enough. Relatedly, we identify several practices of separation that serve to mediate between the conflicting aims and interests in the everyday of this form of private policing. Another finding is that the lawyers by and large position themselves as knowledgeable actors, and view risks of AML/CTF as knowable. Nevertheless, lawyers experienced a principle clash between being ‘not banks’, and being front-line workers for FATF. In particular, the lawyers perceived their role as front-line workers to be more complex due to their professional norms and ethics on client privilege, and what they saw as the proper role of lawyers, being in conflict with the obligation to report clients and their transactions. In concluding, we suggest that paying more attention to the everyday experience of front-line workers when devising regulatory tools may be a way to promote engagement in ‘true’ crime prevention on their part. [ABSTRACT FROM AUTHOR]

What role has FATF played in the global effort to counter terrorist financing through the non-profit sector? How have advocates for the sector responded and what do these developments tell us about FATF’s operations and influence? This article reflects on the emergence and evolution of FATF Recommendation 8, initially introduced as Special Recommendation VIII after the terrorist attacks in the United States on 11 September 2001. We show how the breadth of that recommendation elicited a response in the form of a "transnational advocacy network" among those within the non-profit sector. The resulting process of dialogue and the recent change in the text of the recommendation provide important lessons for scholars and practitioners concerned about FATF's accountability and authority. [ABSTRACT FROM AUTHOR]

This article analyzes the global anti-money laundering (AML) regime from the perspective of security governance, examining the creation of a transnational security space by the FATF. Security is often mentioned as relevant context for AML measures, and the Financial Action Taskforce (FATF) as its central institution. Yet, most analyses - implicitly or explicitly - present the FATF as an important banking regulator. Arguing that this perspective on the FATF is too limited, the article outlines the changing security context in which AML emerged as an important tool for governance. Unlike traditional ideas of international security, the idea of security governance emphasizes new forms of cooperation to ensure safety and security across multiple levels. Based on International Relations (IR) and criminological research, the article develops a framework with five dimensions of security governance: a comprehensive security concept, multi-purpose rationalization, public-private cooperation, multi-nodal governance, and transnational security spaces as a result. Unlike other efforts of global crime governance, the global AML regime provides a prime example of security governance in all of these dimensions. At the same time, the link to security also explains why the global AML regime expanded in some areas more than in others: AML is still a weak governance instrument for regulating financial crimes such as tax evasion or corruption, but it is a strong one for security-related crimes. While the FATF remains a special case in global governance, the creation of transnational security spaces in AML - caused by FATF activities - is likely to be a model for future security governance in other fields. [ABSTRACT FROM AUTHOR]

The international fight against money laundering illustrates changes in global governance as a result of the increasingly cross-border nature of crime and the need it creates for all involved to cooperate. The economic priorities and security concerns that surround it contributed to the strong evolution of global governance in this area and the status of anti-money laundering as a shared problem. The creation of the Financial Action Task Force (FATF), its expansion and cementation throughout the years, is a good example of the many forces working together to responding to the demands of emerging criminal threats and trends. It offers a good illustration of how relationships in global governance have influenced FATF’s priorities and action and ultimately the way in which illicit financial flows are tackled. This analysis offers an overview of FATF’s network across time taking into account the role of states, international organisations, and the private sector in the decision-making processes. It argues that Great Powers - a small, but aligned, group of states of global economic relevance - are responsible for FATF’s direction and the international efforts against illicit financial flows. It suggests, however, that unlike what could be expected, their power is declining following the rise of private sector influence through resourceful, organised and transnational actions e.g. on information sharing. [ABSTRACT FROM AUTHOR]

This article serves to introduce this special issue of Crime, Law, & Social Change on the Financial Action Task Force (FATF). It provides a primer on the history and purpose of FATF and lays out some of the central debates over FATF and the anti-money laundering (AML) regime. Finally, as a way of giving readers an overview of the articles in the special issue, it proposes a series of themes that academics and practitioners should consider in future research and work with FATF. [ABSTRACT FROM AUTHOR]

During the period from 2013-2015, Kuwait adopted the new administrative risk-based anti-money laundering and combating the financing of terrorism (AML/CFT) regulatory framework. This article analyses the costs and benefits of the compliance of the new framework with the FATF's standards, focusing on the structural changes: (1) a move from a hybrid-prosecutorial to a fully-fledged administrative model of financial intelligence unit; (2) adoption of the risk-based approach to the prevention of money laundering and terrorist financing (ML/TF); and (3) the increase in reporting obligations and preventive measures. The main argument advanced in the article is that while the new framework is highly compliant with FATF standards and will maintain the already low level of ML/TF in Kuwait, in comparison with the pre-2013 anti-money laundering regulations, the costs of compliance for reporting parties and clients are higher, and outweigh the benefits. The article suggests how to respond to this and other challenges. [ABSTRACT FROM AUTHOR]

Purpose This paper aims to critically examine the Money Laundering (Prevention and Prohibition) Bill, 2016. It also aims to determine the level of effectiveness of the preventive measures in the Bill.Design/methodology/approach The appraisal took the form of a desk study, which analyzed various documents and reports such as the Financial Action Task Force Recommendations 2012, Mutual Evaluation Reports conducted by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) on Nigeria, the judgment delivered by Justice Gabriel Kolawole of the Federal High Court Abuja and the United Kingdom’s national risk assessment of money laundering and terrorist financing.Findings This paper determined that the Bill could achieve its core objectives if the following recommendations are implemented: section 15 of the Bill should be modified to include the definition of “Arrangement”; lawyers should be allowed to send their Suspicious Transaction Report to the Nigerian Bar Association, provided that there are appropriate forms of cooperation between the NBA and the Financial Intelligence Unit, and this approach is in line with the Financial Action Task Force Recommendations; the Bill should expressly prohibit retaliation by employers against whistleblowers and provide them with a private cause of action in the event that they are discharged or discriminated against by their employers, and this approach is being adopted by the US Dodd–Frank Act; a request for customer information, by the Director-General of the Nigeria Financial Intelligence Centre, should be made pursuant to an order of the Federal High Court obtained upon an ex-parte application supported by a sworn declaration by an authorized officer of the Centre, justifying the request for customer information.Originality/value This paper offers a critical appraisal of the Money Laundering (Prevention and Prohibition) Bill, 2016. The paper will identify the strengths and weaknesses of the Bill. This is the only paper to adopt this kind of approach. [ABSTRACT FROM AUTHOR]

EU directives on AML (anti-money laundering)/CTF (counter-terrorism financing) entail involuntary public policy-making by for-profit professionals on politically sensitive issues. This raises fundamental questions on the role of private actors in public policy-making apart from their roles as lobbyists and contractors. From a democratic perspective, the involuntary public policy-making by European lawyers is particularly problematic as it involves guardians of the rule of law who, we argue, are simultaneously forced to act as agents of the state. In the case of AML/CTF, lawyers are within the political system rather than outside it. We show that expectations concerning how lawyers are to work closely with the state in the United Kingdom and Sweden differ, and that the policy-making styles lawyers apply in practice were either 'pragmatic' (UK) or 'evasive' (Sweden). Our findings provide a first step in understanding the new role of for-profit professionals as involuntary public policy-makers, and its possible effects. [ABSTRACT FROM AUTHOR]

The article focuses on the black market legalization and whitening scheme, authorized under Ley 26.860 of Argentina which use to violate the international anti-money laundering (AML) protocols. It mentions that implications of Argentina's AML violations recommends that the Financial Action Task Force (FATF) reinstate Argentina. It also mentions that the non-cooperative jurisdictions need to develop an enhanced international public-private sector partnership.

Dealing with money laundering has been one of the toughest struggles nations around the world, including Malaysia, have had to face. Prevalent international concerns over such crime have led to the establishment of international policies and standards by the Financial Action Task Force (FATF), which aimed at preventing and ultimately criminalising such crime within the national boundary. In accordance with such policies, Malaysia has introduced the Anti-Money Laundering Act in 2001 (AMLA) as a legal modality in governing such crime. It has been amended and renamed the AMLATFA in 2003 to include terrorism financing. Again, recently in late 2013, AMLATFA has been amended to keep up with changing standards and times. Within this legal landscape, this paper will highlight the instrumental and normative problems surrounding the said legislation. The authors contend that despite the adherence to global governance standards, legal deficiencies in the AML/ATF law in Malaysia remained, which merits urgent attention and action from the relevant authorities. This paper employs a doctrinal legal research and secondary data of which the AMLATFA is the primary source. The secondary sources for this article include decided cases, articles in academic journals, books and online databases. [ABSTRACT FROM AUTHOR]

This paper utilises the existing framework for analysing international 'soft law' measures to examine why 83% of Financial Action Task Force members are either non-compliant or partially compliant with Special Recommendation VIII (SR.VIII) on the prevention of terrorist financing through non-profits. The paper also considers whether SR.VIII is unique amongst other FATF Recommendations in terms of its low levels of compliance. [ABSTRACT FROM AUTHOR]

With the intensification of the Financial Action Task Force's (FATF's) worldwide campaign to promote anti-money-laundering regulation since the late 1990s, all Asian states except North Korea have signed up to its rules and have established a regional institution—the Asia/Pacific Group on Money Laundering—to promote and oversee the implementation of FATF's 40 Recommendations in the region. This article analyses the FATF regime, making two key claims. First, anti-money-laundering governance in Asia reflects a broader shift to regulatory regionalism, particularly in economic matters, in that its implementation and functioning depend upon the rescaling of ostensibly domestic agencies to function within a regional governance regime. Second, although this form of regulatory regionalism is established in order to bypass the perceived constraints of national sovereignty and political will, it nevertheless inevitably becomes entangled within the socio-political conflicts that shape the exercise of state power more broadly. Consequently, understanding the outcomes of regulatory regionalism involves identifying how these conflicts shape how far and in what manner global regulations are adopted and implemented within specific territories. This argument is demonstrated by a case study of Myanmar. [ABSTRACT FROM PUBLISHER]

This article offers a critical assessment of the post-9/11 efforts of the European Union (EU) in the fight against terrorist finances. Using the EU's own goals from its action plans and counterterrorism strategies as the baseline criteria, it examines how successful the EU has been in implementing the relevant aspects of various United Nations Security Council counterterrorism resolutions, the special recommendations of the Financial Action Task Force, and its own measures spanning across all of its three pre-Lisbon pillars. In particular, the article seeks to answer the following questions: (1) What and how much of its own counter-terrorism plans has the EU managed to achieve since 9/11? and (2) What lessons can be learned from the hitherto successes and failures for future EU efforts to counter terrorist financing? Special attention is paid to the thus far neglected role of the private sector in the fight against terrorist financing. [ABSTRACT FROM PUBLISHER]

Purpose -- The purpose of this paper is to assess the effectiveness of anti-money laundering (AML) reporting system in India in terms of Suspicious Transaction Reports (STRs) and its impact on countering money laundering through the conviction and confiscation. The main emphasis of financial action task force (FATF) guidelines on AML and countering of financing of terrorism (CFT) is the obligation of financial institutions and designated non-financial businesses and professions to instantaneously report the suspicious transactions to Financial Intelligence Unit (FIU), an agency with a mandate to deal with AML. Design/methodology/approach -- It is a descriptive study to explore the outcome of the AML process. The study has used the secondary information published in the annual reports of FlU-India and FATF. The study period is 2006-2007 to 2011-2012. Findings -- Though there is a significant increase in the STRs filed, the impact of AML is not realized in terms of neither AML-related convictions nor confiscations, since the enactment of the Prevention of Money Laundering Act (PMLA). However, the AML/CFT regime in India has just started earnestly, and it still has to go a long way before stabilizing and achieve tangible results. Research limitations/implications -- In the Indian context, only few of the effectiveness indicators of the FATF methodology 2013 could be selected due to the limited availability of data, as much of the information maintained by various stakeholders, including reporting entities, FIU-India and other investigative and enforcement agencies, is kept confidential. Thus, it is difficult to establish the effectiveness of enforcement function of AML. Evaluation of effectiveness of AML is judged on the basis of convictions and confiscations. Originality/value -- There is a dearth of studies assessing the reporting system under PMLA and thus this paper attempts to throw some insights on the outcome of AML chain, especially the impact of reporting suspicious transactions. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this article is to analyse Mexico's money laundering governance with a focus on its 2007-2013 reform process. It provides a view of money laundering governance as a politically contested policy area and a reflection on the reach and purpose of the international regime promoted by the Financial Action Task Force (FATF). Design/methodology/approach -- The analysis uses an actor-centred approach on governance structures relating groups of public and private actors with competing policy preferences. Findings -- Three ideal-typical groups of actors are identified. Of these, the Financial Integrity and Criminal Enforcement Groups were central proponents of prevention- and prosecution-based policies, respectively. While criminal enforcement was initially sidelined, its role was strengthened in Mexico since 2007. Despite early signs of success, diverging policy preferences between these groups continue to complicate money laundering governance in Mexico through a complex distribution of tasks between them. Practical implications -- To address wider crime fighting concerns, more emphasis should be put on the role of prosecutorial actors in money laundering governance. Beyond the domestic level, the results raise concerns about the increasing focus of the FATF on money laundering as a threat to financial integrity. Originality/value -- The article adds to a better understanding of money laundering governance in Mexico. Further, the presented systematisation of actors can inform the analyses of money laundering governance and underlying political tensions in other country cases. By focusing on organised crime and prosecution, the case deviates from the international trend to concentrate on issues of market integrity and prevention-orientated policies. [ABSTRACT FROM AUTHOR]

The article looks at the Financial Action Task Force (FATF), established in 1989 by the Group of Seven countries (G7) which includes the U.S. Germany and France, aimed to counter the abuse of the financial system by criminals. Topics discussed include the fight against terrorist financing, FATF's forty recommendations to prevent several financial crimes such as money laundering, and the FATF's grouping with designated non-financial businesses and professions (DNFBP).

The article discusses the efforts of U.S. lawyers for adopting global anti-money laundering and countering terrorist financing laws . Topics discussed include efforts of the Financial Action Task Force (FATF), established by the Group of Seven countries (G7) to counter the abuse of the financial system; FATF's policies and their impact on the legal profession; and educational efforts of lawyers to money laundering and terrorist financing.

The article offers information on the Financial Action Task Force (FATF), established in 1989 by the Group of Seven countries (G7) which includes the U.S. Germany and France, aimed to counter the abuse of the financial system. Topics discussed include efforts of FATF to prevent finance crimes such as money laundering and terrorist financing; FATF's influence on law practice, and recommendations made by FATF to prevent several financial crimes such as money laundering.

The article explores the role of lawyers in preventing international finance crimes. Topics discussed include efforts of the Financial Action Task Force (FATF), established by the Group of Seven countries (G7) to counter the abuse of the financial system, laws governing terrorist financing, and recommendations made by FATF to prevent several financial crimes such as money laundering.

The article explores the lawyers' ethics for preventing international finance crimes such as adopting global anti-money laundering (AML) and counter terrorist financing (CTF). Topics discussed include efforts of the Financial Action Task Force (FATF), established by the Group of Seven countries (G7) to counter the abuse of the financial system; FATF's policies and their impact on the legal profession; and recommendations made by FATF to prevent several financial crimes such as money laundering.

Purpose – This paper aims to investigate the purpose, reach and effectiveness of the customer identification framework of the Financial Action Task Force (FATF). Design/methodology/approach – The article draws on relevant research and documents of the FATF, the Basel Committee on Banking Supervision and the Alliance for Financial Inclusion to determine whether compliance with the standards and practices of the FATF would prevent anonymous usage of financial services. Findings – The FATF’s identification principles, guidance and practices resulted in processes that are largely bureaucratic and do not ensure that identity fraud is effectively prevented. Strict identification requirements on the other hand may impact on financial inclusion, leaving the FATF with little leeway to raise its standards. There are potential solutions, but they are longer-term and partial in nature. Originality/value – Current identification and verification practices affect the lives of millions of people around the globe. The measures are being enforced to ensure that users are appropriately identified. This article informs the debate by highlighting the weaknesses of the current approach. [ABSTRACT FROM AUTHOR]

Although the word of "Money Laundering" isn't very old in world literature, but attempted money laundering has a long history a long side with trade and commerce, as it always has been told. Money laundering is a process that the incomes of criminal acts enter to the economic cycle and will purify Dirty income. Therefore, we can say launderers are actually committed two offenses, primarily criminal acts and then use of mass incomes. In the current era, the speed of change and transformation in all areas, especially in the business world is unthinkable. With the arrival of electronic trading in to the range of words, Launderers using modern science and technology, electronic banking and cyberspace capabilities to make their actions complicated to prevent, detect and neutralize. After the recent global economic crisis, transparency and confidence-building, especially banks, monetary systems have become more important. Accordingly dealing in the field of money laundering and terrorism financing issues emphasized by observer authorities, including the Central Bank of the countries. Among the important questions are provided. What are effective methods for identifying bank customers? How financial operations are observed and monitored? How to record your data in the digital space area? And finally, How and when to report and what information to provide to the competent authorities? Preparing, planning and registration of new standards and evaluation of all activities of involving institutions, particularly banks, requires entry of all those who know the value of the negative consequences of anti-money laundering offense. Although, this work should be organized and the financial intelligence unit (FIU) must conduct all Anti-Money laundering with monitoring role in area of suspicious transaction reports and follow-up them. Because cyberspace and e-government in related organizations, including banks, stock exchange, exchanges, insurance companies, national organization for civil registration, national organization for Docs and real estate registration, national organization for registration of companies and commercial enterprises have not matched yet, in that situation the importance of combating E-money laundering is manifested. And governmental officials should consider the Preparing updated laws and regulations, the infrastructure, culture, and public acceptance and international cooperation strongly. [ABSTRACT FROM AUTHOR]

Purpose – The article aims to rely on the global wealth chains theory to study the effect of tax amnesty on anti-money laundering (AML) in Bangladesh. This theory is an analytical framework intended to identify how wealth is repackaged and disguised to move it out of spheres of state oversight, regulation and taxation. It introduces the law on AML in Bangladesh, pointing out the revised Financial Action Task Force (FATF) recommendation that has expanded the scope of money laundering predicate offences to cover both indirect and direct tax crimes and smuggling in relation to customs and excise duties and taxes. Design/methodology/approach – Interviews in Bangladesh and desk research. Findings – There are some gaps in the scope of the offence, the coverage of predicate offences and the types of property covered by the money laundering offence. There is also an absence of financial penalties available to effectively sanction legal persons. The current money laundering offences are derived from the ordinance issued in 2008 by the caretaker government (2006-2008). The current act contains detailed definitions of money laundering and property and a list of predicate offences and sanctions for the offence. However, there are some gaps in the physical elements of the offence, and the range of its predicate offences remains too narrow. Adding tax evasion to its list of predicate offences will, given the history of money laundering in Bangladesh, aid in combating illegal transfer of assets abroad and recovery of the same and abolish tax amnesty. Originality/value – There is no paper that has analysed the linkages between money laundering and taxation in developing countries, especially Bangladesh. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to analyze thoroughly all of the sources of research used to develop the money laundering (ML) and terrorist financing (TF) low-risk rating, a rating attained by Norway according to the Basel Institute of Governance, and determine the reasons why Norway is one of only two countries in the world according to the 2012 report, with the other being Estonia, to gain an overall low-risk ML and TF rating. Design/methodology/approach – The differences between the USA and Norway which has obtained a low-risk ranking, were compared and contrasted. Findings – Beginning with the Basel Institute Rating index as a legitimate source for use in assessing anti-money-laundering (AML)/TF risk, and the amount of documentation used in the index’s methodology, it has been proven that the low-risk rating Norway has received is well deserved, and that the US rating of medium risk is also deserved for the time the report was published. Achieving a low-risk rating is not as ambiguous as recently thought and neither is its application on a global scale. Originality/value – The paper identifies practical areas of improvement and concerns in addressing the overall issue of ML and terrorist financing. [ABSTRACT FROM AUTHOR]