Global Anti-Money Laundering and Combating Terrorism Financing Regulatory Framework: A Critique

Gaviyau, William; Sibindi, Athenia Bongani

doi:10.3390/jrfm16070313

Cited by 6 publications

(3 citation statements)

References 63 publications

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“…As digital finance continues to evolve, regulatory authorities have exhibited escalating concerns regarding the potential implications of emerging financial technologies. This includes online lending platforms and cryptocurrencies in facilitating money laundering and the financing of terrorism (Gaviyau & Sibindi, 2023;Ricci, 2020). Several studies have explored how these emerging technologies can facilitate money laundering and other financial crimes (Dupuis & Gleason, 2020;Hapsari & Satria, 2019).…”

Section: Money Laundering and The Digital Agementioning

confidence: 99%

Money laundering in global trade and the role of financial technology: The structured reviews

Yousop,

Razak,

Noordin

2024

5007

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Money laundering in international trade facilitates the concealment of illicit funds through the manipulation of trade invoices and the exploitation of regulatory gaps. Addressing this issue involves improving traceability through financial technology, a promising solution. However, the adoption of such technology poses inherent risks and challenges that require careful consideration. This review synthesises knowledge on trade-related money laundering and financial technology, highlighting critical areas for additional research and improvement. Employing a Preferred Reporting Item for Systematic Reviews and Meta-Analyses (PRISMA) approach, academic databases, including Scopus and Web of Science (WoS), were systematically searched to identify relevant studies and articles. Advanced search techniques using keywords such as money laundering, trade-based money laundering, and financial technology resulted in the identification of 57 articles for eligibility. After excluding 20 articles due to being out of the field, having titles not significantly related, or abstracts not aligning with the study's objective, 37 eligible articles and conference proceedings were further examined. Two main themes were developed, concluding that the convergence of money laundering through digital trade and financial technology requires collaborative efforts among regulatory bodies, financial institutions, and technology experts. Such collaboration is essential to balance innovation and security, ensuring stability and prosperity in global economies.

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Section: Money Laundering and The Digital Agementioning

confidence: 99%

Money laundering in global trade and the role of financial technology: The structured reviews

Yousop,

Razak,

Noordin

2024

5007

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“…Законодавство про боротьбу з відмиванням коштів забезпечується Агентством фінансової розвідки Замбії у взаємодії з іншими регуляторними органами. Здійснення ZFIA наглядової функції визначено Законом про Центр фінансової розвідки (2010), а злочини щодо відмивання коштів криміналізовано в Законі про заборону та запобігання відмиванню грошей (2010) [13].…”

Section: Leunclassified

Methodology for assessing compliance with fatf recommendations and the effectiveness of financial monitoring systems

Hrytsyshen,

Hrabchuk,

Boshian

2023

sas

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Rules combating money laundering and terrorism financing play a crucial role in establishing trust in the reliability and stability of the financial system, simultaneously acting as a protective mechanism against the infiltration of illicit elements. This dual function enhances the stability and reliability of the financial system, which is a crucially important element for fostering economic development and financial markets. The purpose of the article is a thorough analysis of the existing legal and institutional framework, as well as regulatory practices in the field of financial monitoring to determine their compliance with FATF regulations and identify opportunities for optimization and improvement. The research of evaluation of the effectiveness of financial monitoring systems was carried out on the examples of countries selected from different geographical regions and with different levels of development, including several countries in Africa, North and South America, Europe and Asia. Additionally, based on published consolidated assessment ratings of countries that underwent the latest round of FATF methodology assessments, we will identify those countries that received the highest ratings across 11 criteria: the United States and the United Kingdom (in 4 criteria), Israel and France (in 3 criteria). To incorporate the experience of foreign countries into Ukraine, the assessment of the effectiveness of the financial monitoring system is conducted by comparing it with both superior and inferior foreign practices, as well as with countries facing similar military-political situations. A profile of the effectiveness of systems countering money laundering and financing terrorism is constructed for various countries, including the United Kingdom, the United States, China, Georgia, Moldova, Pakistan, Poland, and Ukraine, following the FATF methodology. It has been determined that, for many foreign systems combating money laundering and terrorism financing, risks associated with the use of cash remain relevant. Additionally, inadequacies in combating terrorism financing have been identified, except for the United States and the United Kingdom. Reserves for increasing the effectiveness of national systems and systems combating the legalization of proceeds obtained through criminal means or terrorism financing have been identified.

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“…AML aims to ensure that cryptocurrencies are not used as a medium for illicit financial activities, such as terrorist financing, drug trafficking, and other forms of illegal transactions. Globally, the continued regulatory focus on Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) frameworks highlight the persistent efforts aimed at preventing the illicit exploitation of national financial systems, especially in developed countries (Gaviyau and Sibindi, 2023;KPMG, 2023). However, the decentralized dynamics of cryptocurrencies present novel challenges in detecting, preventing, and mitigating financial crimes, necessitating innovative strategies and technologies to safeguard the integrity of financial systems and protect stakeholders from the detrimental effects of criminal activities.…”

Section: Introductionmentioning

confidence: 99%

Integrating Machine Learning in Anti-Money Laundering through Crypto: A Comprehensive Performance Review

Japinye

2024

EJAAFR

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The integration of machine learning (ML) algorithms in Anti-Money Laundering (AML) practices has garnered significant attention due to its potential to enhance the detection and prevention of illicit activities in the cryptocurrency ecosystem. This systematic literature review analysed the effectiveness of integrating ML algorithms in detecting and preventing crypto laundering activities, identify the most frequently used ML algorithms, examine trends in publication and research methodologies, and discuss key challenges and constraints associated with integrating ML technologies into AML frameworks. A comprehensive search strategy was employed to identify relevant studies, resulting in the inclusion of 52 articles published between 2019 and 2023. The findings reveal a growing interest in the field, with a notable increase in publications in recent years. Traditional ML models such as Logistic Regression, Random Forest, and Support Vector Machine (SVM) remain prevalent, while deep learning models like Multilayer Perceptrons (MLP) and Long Short-Term Memory (LSTM) networks are gaining popularity. Graph Convolutional Networks (GCNs) have emerged as a significant area of exploration, particularly in the context of graph data analysis in cryptocurrencies. Despite advancements in ML, cryptocurrencies continue to pose a high risk of money laundering due to the practical challenge of implementation ownership of the various ML models. Future research should focus on how these challenges will be addressed to ensure the effective and sustainable use of ML technologies in real-world AML practices.

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Global Anti-Money Laundering and Combating Terrorism Financing Regulatory Framework: A Critique

Cited by 6 publications

References 63 publications

Money laundering in global trade and the role of financial technology: The structured reviews

Money laundering in global trade and the role of financial technology: The structured reviews

Methodology for assessing compliance with fatf recommendations and the effectiveness of financial monitoring systems

Integrating Machine Learning in Anti-Money Laundering through Crypto: A Comprehensive Performance Review

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