Promoting financial inclusion for effective anti-money laundering and counter financing of terrorism (AML/CFT)

Shehu, Abdullahi Y.

doi:10.1007/s10611-011-9351-0

Cited by 22 publications

(16 citation statements)

References 14 publications

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“…The relevant leading drivers for de-risking are the high cost of compliance with the CTF/AML regime based on risk-based approach, the high level of financial penalties, and the cost of the implementation of the sanctions regime (FATF, 2016). The fourth stage is financial exclusion; the generation of financial exclusion, including limited access to formal financial systems, has been a criticism of the AML/CTF regime (Shehu, 2012).…”

Section: Internal Exclusionary: Financial Culturementioning

confidence: 99%

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Financial exclusion as a consequence of counter-terrorism financing

Malakoutikhah

2020

JFC

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Purpose The purpose of this paper is to analyse the unintended consequences, financial exclusion, of counter-terrorism financing regulations in terms of their impact on financial inclusion and, consequently, the creation of an ineffective counter-terrorism financing framework. A further aim is to make recommendations to mitigate these unintended consequences. Design/methodology/approach This subject is examined by using the practices of a range of countries and organisations. The interdisciplinary approach of the paper is highlighted, which comprises criminal law, banking law, international law and human rights law. Findings Financial exclusion is a focal point that results in ineffective counter-terrorism measures which are caused mostly by the formal financial sector, in particular, the banking system. The financial exclusion also leads to counter-productive counter-terrorism financing through a low risk-appetite, de-risking, de-banking, financial exclusion and using unregulated or less-regulated and supervised financial systems. Originality/value No article comprehensively analyses financial exclusion as a consequence of counter-terrorism financing framework. The paper examines the process of counter-terrorism financing regulations, which leads to financial exclusion. In addition, the impact of financial exclusion on all relevant actors, such as individuals, correspondent banking relationships, money and value transfer services, charities and virtual currencies, is examined.

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Section: Internal Exclusionary: Financial Culturementioning

confidence: 99%

“…in that 'what works in one jurisdiction may not necessarily work in another' (Shehu, 2012). In fact, there is a negative correlation between financial exclusion and using informal financial system.…”

Section: The Impact Of Financial Exclusionmentioning

confidence: 99%

Financial exclusion as a consequence of counter-terrorism financing

Malakoutikhah

2020

JFC

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“…In addition, the direct benefit transfer would enhance the security of payments and lower the associated crime incidents (Mundial, 2014). Shehu (2012) have observed that the promotion of financial inclusion would be an effective strategy against anti-money laundering and counter financing of terrorism.…”

Section: Benefits At Macro Economicmentioning

confidence: 99%

A Review on the Recent Trends in Financial Inclusion: The Research Journey So Far

Thomas

Subhashree

2020

HSSR

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Purpose of the study: This paper tries to review the existing literature on financial inclusion and to discuss the various definitions of financial inclusion, its diverse dimensions comprehensively - demand side and supply side - and multiple explanatory variables (economic, demographic, behavioural, and social factors) to explain the level of financial inclusion. Methodology: From various databases and e-journals, the papers were retrieved on the topic of financial inclusion during the time span of the last 15 years (2005-2019). After reading the abstract of totally collected 140 research papers, the researchers have chosen 84 articles for the present study based on the relevance of the content to the topic under study. The collected information was classified as per the major themes. Main Findings: Much research has been conducted on the measurement and impact assessment of financial inclusion, But the studies on the explanatory variables are comparatively fewer. Among the various factors influencing the financial inclusion level, no much emphasis has been laid on the usage dimension; the key role of behavioural, psychological, and sociological factors on the financial inclusion level still remains unexplored. Applications of this study: This paper will be useful for theoretical researchers who prefer to explore the factors that influence the usage dimension of financial inclusion. The policymakers and practitioners in the area of financial inclusion will be able to improve the effectiveness of their policies and implementation strategies of financial inclusion. Novelty/Originality of this study: This review paper explores the juncture at which the current research on financial inclusion has arrived. It would serve as a starting point for further in-depth explorations in the various segments of financial inclusion. Also, the present study points out and suggest potential areas for further research in the field of financial inclusion.

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“…The demand for information about a customer becomes a problem, however, when the transaction request is made of a person without the necessary identity documents, while the expectation for data collection and recording by informal businesses is similarly problematic. In particular, this situation is a challenge for regulating migrant remittances, which in the past was largely via informal methods, and a challenge for efforts to promote financial inclusion when the persons currently “unbanked” are also “undocumented” (Shehu ). These two issues are outlined in the next two subsections, followed by a subsection presenting a case that has been made for the beneficial use of AML surveillance and laws for investigations of bribery and corruption by government officials.…”

Section: Consequences In Developing Statesmentioning

confidence: 99%

“…Meanwhile in the developing economy, the excluded may consist of a larger segment of the population that includes people who did not previously need an identity document, those working in the informal economy, and those living in unofficial and informal residences. The objective behind financial inclusion, on the other hand, is to counter these effects and to promote access and use of financial services (Shehu :308). A bank account is understood generally to provide a safer means to save money than an envelope under the mattress and access to more secure ways of transferring money than handing cash to an acquaintance to deliver to a family member back home.…”

Section: Consequences In Developing Statesmentioning

confidence: 99%

Securitizing Money to Counter Terrorist Finance: Some Unintended Consequences for Developing Economies

Vlcek

2013

Int Stud Perspect

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With its roots in the 'war on drugs' and the criminalisation of money laundering, the global initiative to combat the financing of terrorism (CFT) provides one strategy for preventing and pre-empting terrorist attacks. In public pronouncements terrorist finance was named the 'lifeblood' and 'oxygen' for terrorism itself, thus displaying an analogy suggesting that its mere removal could bring an end to terrorism. Following the theoretical perspective of the Copenhagen School of security studies this paper argues that national and international measures against terrorist finance constitutes the 'securitisation' of money. By situating money as the essential component to an existential threat it was possible to justify extraordinary measures to monitor financial transactions. These measures produced unintended consequences prompting resistance and an evolution of procedures to reduce those consequences. This paper considers two affected areas (migrant remittances and financial inclusion) and points to the potential use of financial surveillance against grand corruption.

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Promoting financial inclusion for effective anti-money laundering and counter financing of terrorism (AML/CFT)

Cited by 22 publications

References 14 publications

Financial exclusion as a consequence of counter-terrorism financing

Financial exclusion as a consequence of counter-terrorism financing

A Review on the Recent Trends in Financial Inclusion: The Research Journey So Far

Securitizing Money to Counter Terrorist Finance: Some Unintended Consequences for Developing Economies

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