Connect with us

Business

Major Money Laundering Countries

Guest Author

Published

on

It is a fact that money laundering crimes have grown rapidly in recent years. The increase in crimes brings along an increase in the amount of dirty money. Governments and financial institutions are trying to protect themselves against money laundering and terrorist crimes.

THE BASEL AML INDEX

The Basel Institute for Governance, an independent international non-profit organization, aims to prevent and combat financial crimes such as corruption. To achieve these goals, Basel annually prepares an independent score and ranking list that assesses the risks of money laundering and terrorist financing in the world. It also published the ninth raid for this year (2020). 

Published by the Basel Institute of Governance since 2012, this document mainly includes risk scores based on data from 15 publicly available sources such as the World Bank, the Financial Action Task Force (FATF), and the World Economic Forum. The five areas covered by risk scores are as follows:

  • Bribery and corruption
  • Quality of AML / CFT framework
  • Financial transparency and standards
  • Legal and Political Risks
  • Public transparency and accountability

One of Basel’s events is not to rank countries in comparison with each other, but to provide an overview of the risk levels of different countries or regions and their progress in addressing vulnerabilities over time. According to the 2020 report prepared by the Basel Institute of Management, it was seen that the risks of money laundering and financing of terrorism in 141 countries increased compared to last year. Basel AML Index 2020: Poor surveillance and dormant systems leave countries open to money laundering. 

The 2020 Basel AML index disappointed anyone looking for tangible progress in the fight against money laundering and global terrorist financing. The average risk score for all 141 countries on the list is unacceptably high, 5.22 out of 10. Here ten is equal to the maximum risk. Only six countries have increased their scores more than once. Thirty-five countries have gone back. However, many countries’ financial systems are extremely vulnerable to money laundering, terrorist financing, and related crimes.

SCORES AND RANKING

The top 10 countries with the highest risk of AML are Afghanistan (8.16), Haiti (8.15), Myanmar (7.86), Laos (7.82), Mozambique (7.82), Cayman Islands (7.64), Sierra Leone (7.51), Senegal (7.30), Kenya (7.18), Yemen (7.12).

The top 10 countries with the lowest risk of AML are Estonia (2.36), Andorra (2.83), Finland (2.97), Bulgaria (3.12), Cook Islands (3.13), Norway (3.19), New Zealand (3.24), Sweden (3.32), Slovenia (3.35), Denmark (3.46)

REGIONAL FOCUS

The Basel AML Index follows the World Bank country classification by dividing Europe and Central Asia into two regions:

  • European Union and Western Europe
  • Europe and Central Asia
  • East Asia and Pacific
  • Latin America and the Caribbean
  • The Middle East and North Africa
  • North America
  • South Asia
  • Sub-Saharan Africa

When the links between the supervision, regulation, and implementation of AML compliance programs in countries are broken or if these elements are not properly implemented, money laundering risks and activities come with it. 

Sanction Scanner is an AML compliance software with solutions that can help businesses from every country in this regard. Sanction Scanner offers Sanction, Adverse Media, PEP, Sanction Screening services. Organizations around the world can meet AML requirements with real-time and global comprehensive data from the Sanctions Scanner.

Continue Reading
Advertisement
Comments

Trending Posts

Pin It on Pinterest

Share This