From a risk-based to an uncertainty-based approach to anti-money laundering compliance

Bello, Abdullahi Usman; Harvey, Jackie

doi:10.1057/s41284-016-0002-0

Cited by 17 publications

(5 citation statements)

References 48 publications

(54 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The logic is easy: if a bank has already checked where the money comes from, then that is good enough. In addition, the interviewees realise that they may not be fit to perform such check due to their lack of information, as noted also in previous research (Bello and Harvey, 2016; Helgesson and Mörth, 2016):…”

Section: Lawyers’ Anti-money Laundering and Counter-terrorism Financing Compliance Strategiesmentioning

confidence: 89%

Avocat, rechtsanwalt or agent of the state?

Svenonius

Mörth

2020

JMLC

View full text Add to dashboard Cite

Purpose The purpose of this paper is to analyse how lawyers in two of the largest European economies manage the contradictory requirements set by anti-money laundering and counter-terrorism financing (AML/CTF) legislation on the one hand and professional codes of ethics on the other hand. Design/methodology/approach The study is based on qualitative interviews with French and German lawyers. It asks “How do European lawyers handle the conflicting demands ensuing from their roles as frontlines workers?” The paper uses lawyers’ day-to-day practices and variations in member states’ transpositions of the European Union directives as a starting point to study AML/CTF in the miniscule. Findings The article shows that contextual institutional restraints and cultural factors have significant impact on the possibility to enlist for-profit actors in the fight against terrorism an organised crime. Research limitations/implications This research highlights several factors inherent in AML/CTF regulation that warrant further research. Not only should further work be carried to broaden the understanding of lawyers but also other actors included in this policy area. Practical implications The study explains why French and German lawyers do not comply as expected by the legislator. If increased compliance is required, then the paper provides input into what measures can be taken, by policy, enforcement and supervision. Originality/value The study focusses on a hard-to-reach group of actors in AML/CTF regulation that has never before been studied in detail. As recent scandals have shown, lawyers are key actors in global finance but have rarely been scrutinised in their AML compliance norms and routines.

show abstract

Section: Lawyers’ Anti-money Laundering and Counter-terrorism Financing Compliance Strategiesmentioning

confidence: 89%

Avocat, rechtsanwalt or agent of the state?

Svenonius

Mörth

2020

JMLC

View full text Add to dashboard Cite

show abstract

“…However, this knowledge does not “enable specific tactical or operational interventions to prevent the terrorist attacks” (Gill and Phythian, 2018, p. 198) because this information cannot resolve the uncertain conundrum relating to the terrorist attacks. The conundrum revolves around the questions, such as who will attack, when they will attack, how will they attack, where will they attack and how much resources would be required to carry out the attack (Bello and Harvey, 2017; Hamin et al , 2016; Innes, 2006). Financial intelligence can help to solve the riddle that revolves around the questions just mentioned because this information are discernible from financial transaction data (Rudner, 2006).…”

Section: The Importance Of Financial Intelligence Tools In Combatting...mentioning

confidence: 99%

The existing financial intelligence tools and their limitations in early detection of terrorist financing activities

Gowhor

2021

JMLC

View full text Add to dashboard Cite

Purpose This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities. Design/methodology/approach The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities. Findings It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities. Research limitations/implications The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools. Practical implications The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities. Social implications Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities. Originality/value The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.

show abstract

“…The rule-based approach relies on the assumption that common pre-defined rules for all countries and reporting entities will cover the potential risks of money laundering. The risk-based approach challenges this notion arguing that the application of uniform rules for all leads to ineffective results (Bello & Harvey, 2017). AML regimes must be different to reflect the particularities of the country first, especially with regard to the characteristics of the legal system and the overall risk profile (Costanzo, 2013), and then the individual business activities and business sectors (Jeans, 2016).…”

Section: Shift Towards Risk-based Approach In Anti-money Launderingmentioning

confidence: 99%

Risk-Based Approach in the Prevention of Money Laundering

Petrunov¹

2019

LIMEN - International Scientific-Business Conference - Leadership, Innovation, Management and Economics: Integrated Politics Of

View full text Add to dashboard Cite

New compliance regulations developed in the past several years by international organizations for tackling money laundering emphasize the risk-based approach as a critical element in the prevention of the crime. This article elaborates on the new trends in this field. The first section looks at the main documents underlying the legal framework set in place to protect the financial system from being used for money laundering purposes. Highlighting key concepts in the selected documents, the article reveals important changes in the philosophy backing up anti-money laundering policies: from sanctioning to prevention through the application of macro and micro risk assessments. In this context, the article further discusses the requirements for businesses to follow a risk-based approach in evaluating the risk of money laundering in establishing business relationships with new customers; the need to monitor and control these relationships. Specific steps are proposed to design a comprehensive riskbased anti-money laundering program.

show abstract

From a risk-based to an uncertainty-based approach to anti-money laundering compliance

Cited by 17 publications

References 48 publications

Avocat, rechtsanwalt or agent of the state?

Avocat, rechtsanwalt or agent of the state?

The existing financial intelligence tools and their limitations in early detection of terrorist financing activities

Risk-Based Approach in the Prevention of Money Laundering

Contact Info

Product

Resources

About