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Purpose: The purpose of this study is to examine Iran's anti-money laundering (AML) system from a legal and criminal perspective and to understand the obstacles for international cooperation and the extent to which it aligns with financial action task force (FATF) standards. In this regard, three aspects are examined, namely, enforcement and guarantees of preventive measures, penalty for ML offences and the burden of proof. Design/methodology/approach: This subject is examined through the legal–criminal perspective, which concentrates on the effectiveness of legal measures in tackling criminal issues by focusing on criminal law. The legal–criminal viewpoint considers criminal behaviour as a breach of societal norms and strives to combat it through legal channels. Findings: Iran's AML laws and regulations are partially compliant with the financial action task force (FATF) recommendations. However, the main obstacle is not the lack of sufficient laws, rather the lack of proper implementation of these laws. In addition, there are foundational shortages, such as the absence of a national risk document to guide an action based on current risks. Originality/value: No comprehensive study has analysed Iran's AML laws, referring to the three main aspects of enforcement and guarantees of preventive measures, penalties for ML offenses and the burden of proof. In general, there are few research papers on Iran's AML laws owing to Iran's high ranking in ML/TF. However, analysing Iran's regulations can be helpful in taking a step towards effective international AML practices. [ABSTRACT FROM AUTHOR]

Financial innovation in the cryptocurrency space has prompted central bankers and financial policymakers around the world to question the future of money and payments. For many scholars and policymakers, the rise of cryptocurrencies implies significant improvements to the efficiency of making cross-border payments--and thus portends a gradual sunset on the legacy payments system. But for decades, that legacy payments system has partnered with the State to accomplish valuable foreign policy and national security goals: to combat money laundering, deter state aggression, and defend human rights and democratic institutions. This Article examines the potential for cryptocurrency payments ecosystems to bypass the legal frameworks that today require banks to act as gatekeepers of illicit finance and enforcers of sanctions regimes. Ultimately, in light of the trade-offs implied by moving from a bank-centric to a multi-railed crypto system, this Article argues for infrastructure-building within the existing system. In particular, it proposes the introduction of a centralized verifying party, which would conduct customer due diligence on an industry-wide basis. Given the current costs and complication of banks' current legal requirements to undertake individualized due diligence, the structural reform proposed here stands to make the legacy payment system more efficient--and hence more attractive relative to crypto competitors--for making cross-border payments. [ABSTRACT FROM AUTHOR]

Cryptocurrencies are among the largest unregulated markets in the world. We find that approximately one-quarter of bitcoin users are involved in illegal activity. We estimate that around $\$$ 76 billion of illegal activity per year involve bitcoin (46% of bitcoin transactions), which is close to the scale of the U.S. and European markets for illegal drugs. The illegal share of bitcoin activity declines with mainstream interest in bitcoin and with the emergence of more opaque cryptocurrencies. The techniques developed in this paper have applications in cryptocurrency surveillance. Our findings suggest that cryptocurrencies are transforming the black markets by enabling "black e-commerce." Received June 1, 2017; editorial decision December 8, 2018 by Editor Andrew Karolyi. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide a review of Anti-Money-Laundering (AML) after the latest amendments, i.e. Anti-Money Laundering Act of 2020 in Pakistan. Design/methodology/approach: This paper performs a detailed review of AML and related laws and amendments to record notable changes and improvements in the recent amendments and drew a comparison among these legal amendments. Findings: This paper finds that recent amendments are essential and judiciously crafted to cover the legal clinches, ensuring effective implementation of AML laws and positive expected outcomes for Pakistan. Originality/value: This paper is unique in the context of the ongoing struggle against money laundering (ML) in Pakistan; covering the legal progress of Pakistan regarding ML, corruption and terrorism financing. [ABSTRACT FROM AUTHOR]

Cartels, terrorists, fraudsters, and other criminals face a problem: when they receive the proceeds from their illicit activities, how can they get this money into their bank accounts without raising regulatory eyebrows? The Bank Secrecy Act (BSA) has established a complex regulatory regime, imposing on banks the duty to assess the risks presented by their clients, to monitor the transactions they process, and to report transactions that contain indicia of money laundering and other criminal activity to the Financial Crimes Enforcement Network (FinCEN). In response, criminals utilize increasingly sophisticated means to obfuscate the origins of these transactions and disguise their illicit nature to enter the U.S. banking system. Banks thus face a difficult task standing at the front line of anti-money laundering (AML) detection. Strong financial incentives for banks to neglect their BSA compliance function compound the difficulties innate to AML detection. While banks are subject to regular examinations and face fines for failing to maintain adequate BSA compliance procedures, and while bank officials can even face imprisonment, the primary federal enforcement agency, FinCEN, faces perennial resource shortages. Agencies must also consider a variety of factors when deciding whether to bring an action against a noncompliant bank. The confluence of these issues leads some banks to ignore, neglect, or undermine their BSA compliance officials. This Note proposes a qui tam model within the BSA to provide recourse to bank BSA compliance personnel who have evidence of violations by their employers. This model allows private individuals with knowledge of a violation to bring a claim on behalf of the government, while still providing for agency oversight through the ability to intervene in or dismiss cases. This Note argues that qui tam will help increase the amount of BSA enforcement, ameliorate the resource shortages faced by FinCEN, and preserve regulatory discretion by allowing FinCEN to transition into a gatekeeper role. This Note also discusses additional controls unique to the BSA to deter abuse and maintain effective BSA compliance departments at banks. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the evolution of the law for combating economic crimes including money laundering in Tanzania and explore the current developments in the anti-money laundering (AML) law and the ongoing fight against these crimes in Tanzania. Design/methodology/approach: A desk-based review of documents on money laundering and its control in Tanzania was conducted. The paper presents qualitative data from the documentary sources. It applies the doctrinal legal research approach to examine, analyze and describe the AML law applicable in Tanzania. The paper uses the "law-in-context" research approach to explore some non-law aspects of money laundering in Tanzania and interrogate how the law addresses non-law dimensions of money laundering. Policy documents and media reports were analyzed. The thematic data analysis technique was applied, which involved identifying, describing and reporting issues according to the themes emerging from the data. Findings: The AML law in Tanzania emerged from the law that was originally enacted to curb economic crimes. The law has evolved for some decades. Its evolution has been driven by domestic factors and foreign drivers which are political, economic and social in nature. The role of the AML law has been changing. Initially, the law was a tool for curbing economic crimes. Recently, the law has acquired a new role, namely, to facilitate the recovery of illicit funds and non-financial assets from offenders and enable the authorities in Tanzania to use those economic resources for developmental purposes. Research limitations/implications: The paper underscores the need for the Government of Tanzania to re-consider the broader implications involved in its current efforts to tackle economic crimes and money laundering. The balance between the implementation of the measures to combat money laundering and economic crimes in Tanzania and the importance of protecting rights of persons indicted with those offences should be struck. The AML law should be applied in such a way not to infringe the rights of the accused persons and not to throttle economic activities including the flow of legitimate foreign investments into Tanzania. Originality/value: This paper generates insightful information to policymakers, law enforcers, regulators and other stakeholders who undertake activities to tackle money laundering and its control in Tanzania and researchers who study these issues for purposes of providing understanding of the problem and facilitating policy and legal reforms. The paper raises issues that can be explored further in future and contribute to the discourse on money laundering and its control in Tanzania. [ABSTRACT FROM AUTHOR]

The money laundering offence (ML offence), as established by the Kuwaiti Anti-Money Laundering and Countering Financing of Terrorism Act 106/2013 ("AML/CFT Act"), has the potential to combat financial crimes. The broad definition of 'proceeds of crime' and the 'all crimes' approach adopted in the AML/CFT Act are two features that help the ML offence to do so. In relation to Kuwait, where the problem of public corruption is a common, prevalent pattern of criminality, the ML offence becomes of paramount importance. Corruption can be effectively combated by the ML offence. Using the indirect method of proof, the 'stand-alone' ML offence can do the trick. Yet, the ML offence is underused by Kuwaiti practitioners; it is used as a secondary, additional charge. In this context, this paper builds on public policy work on 'policy transfer' and argues that rather than being a rational response to a real problem, the AML/CFT Act has been transferred to Kuwait based on a 'coercive transfer', and that process is responsible for the misapplication and misunderstanding among Kuwaiti practitioners of the AML law. To that end, the Kuwaiti law enforcement authorities, prosecutors, and judges should reconsider their understanding and implementation of the existing AML law, and effectively harness the role of the ML offence in counter-corruption function. This paper's thesis is a feasible one. Instead of calling for legislating for new laws, which may be stunted by broader political factors, this paper argues for employing existing legal instruments. [ABSTRACT FROM AUTHOR]

For over three decades, money laundering has been an area of concern for policymakers and law enforcement, with significant efforts undertaken at national and international levels to combat it. Recently, laundering of criminal proceeds using real property has attracted increased attention amongst policymakers. Various efforts are now being undertaken to tackle money laundering in the UK property market, but there are still significant difficulties in its practical implementation. Drawing upon semi‐structured interviews with estate agents and compliance officials, this study identifies critical aspects of AML compliance that are particularly problematic for those involved in it. In so doing, this article delivers a new perspective, by analysing data gathered with the first empirical study on the implementation of AML obligations in practice (in the UK property market) since the introduction of the 2017 Money Laundering Regulations. [ABSTRACT FROM AUTHOR]

Purpose: Artificial intelligence has had a major impact on organisations from Banking through to Law Firms. The rate at which technology has developed in terms of tasks that are complex, technical and time-consuming has been astounding. The purpose of this paper is to explore the solutions that AI, RegTech and CharityTech provide to charities in navigating the vast amount of anti-money laundering and counter-terror finance legislation in the UK; so that they comply with the requirements and mitigate the potential risk they face but also develop a more coherent and streamlined set of actions. Design/methodology/approach: The subject is approached through the analysis of data, literature and, domestic and international regulation. The first part of the paper explores the current obligations and risks charities face, these are then, in the second part, set against the examination of potential technological solutions as of August 2020. Findings: It is suggested that charities underestimate the importance of the nature and size of the threat posed to them, this is significant, as demonstrated, given the growing size and impact of the sector. Technological solutions are suggested to combat the issues charities face. Originality/value: The study is original because it is the first to create the notion of CharityTech and to specifically explore what technological advances can assist charities in meeting the regulatory compliance challenge. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examines the trade-offs that Small Island Developing States (SIDS) must make in navigating an inappropriate elite-driven global anti-money laundering anti-money laundering/countering the financing of terrorism (AML-CFT) order. This paper examines the case of Samoa, an under-researched Pacific Island nation. It is hoped that this paper will have a wider resonance for policymakers from other developing nations facing similar challenges. Design/methodology/approach: It draws on the latest Samoan domestic source material and Asia/Pacific Group on Money Laundering Mutual Evaluation Reports to highlight the difficult balancing act that SIDS face in complying with complex global norms within their limited regulatory capacity and competing development priorities of financial inclusion and affordable remittance flows. Findings: Samoa and other SIDS in balancing the existential risks of "blacklisting" with the significant regulatory opportunity costs of compliance undertake an expensive form of AML-CFT window-dressing. Policymakers need to be more sensitive to the needs and regulatory opportunity costs of small jurisdictions, particularly when questions about the effectiveness of the AML-CFT remain open. Research limitations/implications: The author notes Samoa's offshore center's role in raising its risk profile. However, owing to this paper's limited scope offshore center (OFCs) will not be explored in depth. Further research is needed in this area. Originality/value: There is a dearth of contemporary academic research into AML-CFT regulation in the South Pacific and Samoa specifically. This paper presents through its Samoan case study insights into the cost-benefit calculations that small jurisdictions must make in seeking to comply with elite global AML-CFT norms vis-à-vis competing policy goals such as financial inclusion and ready access to remittance flows. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate the role of cryptocurrencies in facilitating operations relating to modern slavery and specifically human trafficking. Over the past decade, law enforcement agencies and intergovernmental organisations have established mechanisms, including financial regulations, to curb and identify such operations. Regulation over conventional financial institutions has greatly aided in identifying cross-border and transregional trafficking operations. However, there remains concern over the role of cryptocurrencies in the modern trafficking enterprise. Design/methodology/approach: This paper follows a review of the literature, discussing specific cases that have exposed the role of cryptocurrencies in facilitating human trafficking. This paper first presents a comprehensive discussion on the existing operational mechanism of organisations in human trafficking. Subsequently, it determines the potential use of cryptocurrencies in circumventing detection by law enforcement agencies. Findings: This paper finds that existing controls have allowed law enforcement to identify illicit transactions concerning human trafficking through conventional financial institutions. However, the most effective mechanism of identifying such operations is becoming increasingly difficult with the use of cryptocurrencies. Although there are potential solutions to the issues, cryptocurrencies, and the anonymity they offer, have allowed criminal organisations to evade detection using a more active marketplace through the internet. Research limitations/implications: Law enforcement agencies and regulators must take into account the nature of cryptocurrencies and the limitations of regulations on such global virtual assets. Instead, this paper's findings suggest alternate methods, including regulation on exchanges, blockchain use for documentation and investments in detection technologies that allow identification of trafficking operations and forced labour. Originality/value: This paper presents existing cases and growing concerns that cannot be quantified in the current circumstance. Further, the paper aims to specifically discuss the role of cryptocurrencies in the existing human trafficking supply chain, offering readers and law enforcement agencies a perspective into criminal organisations' combination of conventional trafficking operations and modern technological resources. Further, it makes a recommendation to invest in detection mechanisms that are different from the conventional theory based on identification by "following the money". [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to evaluate the benefits and challenges, on the national and international level, associated with the settlement of cases involving non-conviction civil confiscation of unexplained wealth. Design/methodology/approach: This paper is centered on evaluation of key aspects of settlement of civil confiscation of unexplained wealth cases. Conducting a review of settlement of confiscation cases and of non-conviction-based unexplained wealth regimes, this research evaluates the validity of the lead thesis. Findings: Settlement of civil asset confiscation of unexplained wealth cases presents several challenges that call for mitigation. Originality/value: This paper emphasizes the theoretical and practical issues on the national and international level related to settlement of cases involving non-conviction-based civil asset confiscation of unexplained wealth, with recommendations for development of legal principles for non-conviction based civil asset confiscation. [ABSTRACT FROM AUTHOR]

Purpose: This study examines the new venue of moving illegal wealth from Pakistan under the umbrella of China–Pakistan Economic Corridor (CPEC). The study first discussed the features of CPEC in short and how it may bring stability and a new phase of development in the region and also in Pakistan. The review of related literature has suggested that previous studies are more focused on the advantages of CPEC and are almost neglecting the cons of the said project. Later, the research puts light on the problem of money laundering from Pakistan through CPEC and related trade transactions; Walker's Gravity model has been used to calculate the attractiveness of money laundering. It has highlighted that China's attractiveness for moving illegal wealth from Pakistan is increased in recent years; the risk of an increase in the amount of money laundered is also analyzed through the Fan Chart technique. Attributes which are making China more attractive for Pakistani wrongdoers are also discussed. The study aims to conclude that if the problem of money laundering will be addressed properly, the CPEC will play a vital role in bringing stability in Pakistan. Design/methodology/approach: This study uses a descriptive and quantitative approach. This study uses the Walker's Gravity Model updated by Unger et al. (2006) to measure money laundering in Pakistan. A newly developed technique for forecasting that is Fan Chart has been used to predict the trend of China's attractiveness for money laundering as a preferred destination from Pakistan. Findings: The study finds out that China is already increasing its ranking as a favorite destination for money laundering from Pakistan. Fan Chart analysis suggests that the attractiveness score will be increased. Practical implications: The study helps in highlighting the problem of increase in money laundering from Pakistan through China under the umbrella of CPEC. Originality/value: To the best of the authors' knowledge, there is no study found on the topic of the problem of money laundering linked with CPEC, and this is the first effort to point out the problem. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to provide an empirical comparative analysis on cross-border suspect wealth issues and international efforts to curb corruption-related suspect wealth. Through the lens of the United Nations Convention Against Corruption (UNCAC) and the Stolen Asset Recovery Initiative (StAR) Initiative, this paper illustrates the strength and limitations of current anti-corruption frames and as a result, sheds lights on the dilemmas of tackling suspect wealth on the ground. Design/methodology/approach: This paper begins with an overview of the magnitude of suspect wealth; then it compares the focuses of the UNCAC and the StAR Initiative. The author draws upon lessons from previous suspect wealth settlement cases to illustrate the limitations of applying the international frameworks. Finally, this paper takes China as case study to highlight lessons for future anti-corruption efforts. Findings: According to the StAR Initiative, $20–$40bn worth of public assets are stolen via corruption each year, amounting to 20% to 40% of development assistance annually. But the most recent data estimate that the total assets repatriated from OECD countries were $423m from 2006 to 2012, which was only a small fraction of estimated stolen assets. This highlights that tackling suspect wealth not only has moral value but also provides practical benefits for countries seeking development finance. Research limitations/implications: The UNCAC has brought international cooperation and the importance of transparency to the forefront of tackling suspect wealth. It creates an international norm for recovering and repatriating stolen assets. But due to its loose implementation and enforcement, the UNCAC has left loopholes in anti-corruption policymaking, particularly in countries lacking the rule of law. By comparison, the StAR Initiative takes innovative approach such as using insolvency for asset recovery and country-based capacity building to strengthen originating countries' ability to repatriate assets. Both the UNCAC and the StAR Initiative are well-intended, but authoritarian regimes and weak rule of law often create dilemma for international collaboration. Practical implications: This paper provides recommendations on how to further tackle suspect wealth with existing international frameworks. Social implications: Reducing suspect wealth contributes to society equity and restores public trust by recovering much needed public assets and development resources. Originality/value: This paper illustrates the effect of UNCAC and the StAR Initiative through a comparative lens. It demonstrates how rising authoritarianism can create dilemmas for work against corruption and suspect wealth. Finally, it provides potential policy prescriptions for navigating such dilemmas via shared international efforts. [ABSTRACT FROM AUTHOR]

Purpose: This case study highlights why and how the Swiss banking sector played a crucial role in the 1Malaysia Development Berhad (1MDB) corruption scandal. In particular, the paper illustrates how different actors in the Swiss financial sector neglected compliance guidelines and due diligence, thus effectively facilitating the laundering of misappropriated 1MDB funds. The purpose of this paper is to give bankers and compliance officers an overview of the methods money launderers use to circumvent compliance measures so that the Swiss banking sector can be protected more effectively from abuse. In addition, there is discussion whether current regulations, including banking secrecy, should be amended. Design/methodology/approach: This paper used a content analysis methodological approach to collect data from media sources. Qualitative methods were used to analyze these sources. Findings: The findings reveal that the Swiss banking sector played a major role in facilitating the siphoning and subsequent laundering of 1MDB funds by neglecting due diligence obligations. Practical implications: This paper advocates a more consequential implementation of the existing anti-money laundering and corruption regulations. Social implications: A reworking of the 1MDB scandal should be of interest to compliance professionals in the banking sector and citizens that have been negatively affected or are concerned by the involved high-level corruption. Originality/value: This paper is the first of its kind to study the role of the Swiss banking sector in the 1MDB scandal. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to analyze the Vietnamese laws and practices concerning the confiscation of proceeds of crime, especially in view of Vietnam's obligations to meet the international standards on money laundering and terrorist financing, set by the Financial Action Task Force and relevant international conventions that Vietnam ratified. To limit the scope of this paper, the analysis focuses on the confiscation of proceeds of domestic crimes that do not require international legal assistance. This paper concludes with recommendations for improving the legal framework on criminal asset recovery in Vietnam. Design/methodology/approach: This is a doctrinal study that considers the applicable legal framework. This study is supported by brief case studies of major cases involving the confiscation of proceeds of crime. Findings: Vietnam has a functioning asset confiscation regime but gaps in the law, lack of financial investigation expertise and lack of focused investigative attention on asset preservation and confiscation are hampering its effectiveness. The key gaps can easily be closed with appropriate amendments to the law. These reforms should be combined with a dedicated skills development program to produce sufficient number of financial investigation experts and criminal asset management experts to support the regime. The training should extend to judicial officers to ensure an appropriate understanding of the asset confiscation law. Reforms such as these should follow on a comprehensive review of Vietnam's law and practices relating to the confiscation and forfeiture of criminal assets. This review should extend to assets linked to the financing of terrorism and proliferation to ensure that Vietnam has a comprehensive regime to deal with criminal assets. Research limitations/implications: This paper draws on publicly available information regarding the confiscation of proceeds of crime in Vietnam. Little data is available on asset confiscation and that prevents an in-depth assessment of the regime. Originality/value: This paper highlights gaps in the current asset confiscation regime and proposes reforms and approaches that will ensure a more effective asset confiscation regime for Vietnam. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide an easy to follow, practical guide for small traditional banks and credit unions to conduct an enterprise-wide risk assessment of the financial institution's anti-money laundering compliance program. Design/methodology/approach: Information was collected from relevant documents published by global standard setters in the disciplines of anti-money laundering, financial crime prevention and risk management. The data was integrated with common challenges experienced by small financial institutions to produce an application-based guide that practitioners can readily implement. Findings: Though not a new concept, macro-level financial crises and institutional level financial crimes have influenced the rapid evolution of risk management in financial institutions over the past three decades. Small unsophisticated banks and credit unions are expected to now perform an internal risk assessment. An abundance of information is available on risk assessment, but small institutions remain challenged in finding a turnkey document that is readily actionable to stimulate a less arduous undertaking, especially given the institutions' limited resources. Research limitations/implications: The setting reflects small deposit-taking institutions with traditional services. It is tailored for easy understanding and practical use by the institutions. Originality/value: This could influence small institutions to conduct enterprise-wide risk assessments and formulate and use more specific risk management policies. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to study the impact of global anti-money laundering and countering the financing of terrorism (AML/CFT) standards on combating money laundering and terrorist financing (ML/TF) efforts. This study will assess the impact of AML/CFT legal framework as well as the effective implementation of the framework on combating crimes. Design/methodology/approach: The author develops an AML/CFT effectiveness index using the results of 11 immediate outcomes in mutual evaluation reports to measure the overall effectiveness of regimes in combating ML/TF. In addition to this index, the AML/CFT compliance index is used to measure the strength of the AML/CFT legal framework of countries. A model was developed and tested to measure the impact of the AML/CFT legal framework and its effective implementation on corruption, bribery, terrorism and crimes. Findings: The results suggest that the effective implementation of the AML/CFT legal framework is important to combat ML/TF. The existence of a sound AML/CFT legal framework alone will not be sufficient to combat ML/TF. Therefore, countries are required to implement their legal framework effectively to achieve the AML/CFT goals of the country as well as the global policymaker. The empirical results show a significant relationship between the AML/CFT effectiveness index with the proxies the author used to capture corruption, bribes and crimes. Considering the wide range of implications of the crimes, which are related to ML/TF, this study suggests the global policymakers to further strengthen the monitoring mechanism of AML/CFT deficient countries to protect the global financial systems from criminals. Practical implications: There is a dearth of studies on the impact of the effectiveness of the AML/CFT regime on combating ML/TF. Therefore, this study will lay the foundation for future studies on measuring the effectiveness of an AML/CFT regime. More appropriate measures will be developed in the future based on this foundation. Originality/value: This paper is an original work done by the author, which discusses the impact of Financial Action Task Force standards on combating ML/TF. The AML/CFT effectiveness index is the original idea of the author, which can be used as a quantitative measure to capture the effectiveness of the AML/CFT regimes in future studies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the money laundering vulnerability of private legal practitioners in Tanzania, the involvement of these practitioners in money laundering activities and their role in preventing, detecting and thwarting money laundering and its predicate crimes. Design/methodology/approach: The paper applies the "black-letter" law research approach to describe, examine and analyze the anti-money laundering law in Tanzania. It also uses the "law-in-context" research approach to interrogate the anti-money laundering law and to provide an understanding of factors impacting on the efficacy and readiness of private legal practitioners in Tanzania to tackle money laundering. The review of literature and analysis of statutory instruments and case law, reports of the anti-money laundering authorities and agencies and media reports-generated data are used in this paper. This information was complemented by data from interviews of purposively selected private legal practitioners. Findings: Private legal practitioners in Tanzania are vulnerable to money laundering. There is an emerging evidence that indicates the involvement of some private legal practitioners in the commission of money laundering and/or its predicate crimes. The law designates the legal practitioners as reporting persons and imposes on the obligation to fight against money laundering. Law-related factors and practical challenges undermine the capacity of the legal practitioners to curb money laundering. Additionally, certain hostile perceptions contribute to the legal practitioners' unwillingness, indifference or opposition against the fight against money laundering. Research limitations/implications: The paper underscores the need for Tanzania to reform its policy and legal frameworks to create enabling environment for anti-money laundering gatekeepers, including private legal practitioners to partake efficiently in the fight against money laundering. It also underlines the importance of incorporating the principles that govern the private legal practise to enable the practitioners to partake effectively in tackling money laundering. Originality/value: This paper generates useful information to private legal practitioners, policy makers and academicians on issues relating to money laundering and its control in Tanzania and presents recommendations on possible policy and legal reforms that can be adopted and applied to augment the role of the legal practitioners in Tanzania to combat money laundering. [ABSTRACT FROM AUTHOR]

Purpose: There is a significant focus today on the deficiencies of the financial system as the sector continues to boom while facing the growing pains of financial scandals, money laundering and the financing of terrorism around the world. Here, this study aims to investigate past research and the development of knowledge and practice in the area of countering money laundering and terrorist financing. Additionally, we draw attention to the gaps in the preventive mechanisms adopted by countries to fight against anti-money laundering (AML) and anti-terrorism financing (ATF) and to highlight areas for possible future research. Design/methodology/approach: This study was carried out through a systematic literature review of the existing work on AML and ATF. Findings: The general findings of the reviewed papers show the deficiencies in the laws, acts and preventive measures meant to fight money laundering and terrorism financing and support the need for more research in this area in terms of law, regulations and technological matters. Originality/value: Providing a concrete understanding of the concept of AML and terrorist financing and contributing the theoretical development in the area. [ABSTRACT FROM AUTHOR]

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Purpose: The purpose of this paper is to discuss the latest developments of anti-money laundering (AML) laws in terms of case law and to give meaningful response in relation to certain key findings (KFs) and recommendations by the financial action task force contained in its mutual evaluation report dated September 2019. Design/methodology/approach: In terms of AML case law, the authors analyse the latest judgment from the Hong Kong (HK) court of final appeal. In terms of the evaluation report, the authors outline salient points from the KFs and recommendation, commenting on their likelihood of success. Findings: With the developments in AML case law and the KFs identified, HK is expected to maintain its high standard in AML/counter financing of terrorism (CFT) compliance. Originality/value: A robust AML/CFT regime is the bedrock of HK's reputable status as an international financial centre. This study seeks to illicit meaningful interactions amongst all stakeholders. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to tackle the most pressing issues confronting global anti-money laundering (AML) efforts, particularly, the implications of the Brexit from EU and the increasing association of bitcoin and cryptocurrencies with crimes. Design/methodology/approach: This paper will evaluate the implications of Brexit to AML efforts and the threat that cryptocurrencies like bitcoin pose to the financial system. Findings: Instead of banning trade and other transactions using BTC and other cryptocurrencies, financial experts, with the able assistance of IT and mining experts, from all over the world need to convene and tailor an effective regulatory framework. Solid cooperation among the international community, supported by unitary standards and procedures, will help boost the worlds AML/combatting the financing of terrorism (CFT) efforts. As an added bonus, effective regulation, monitoring and control can facilitate more efficient tax collection. Originality/value: Recommendations were advanced about the future of AML/CFT efforts and the need for internationally holistic approaches in combatting these twin scourges on all economies. [ABSTRACT FROM AUTHOR]

Financial data are key to various law enforcement processes, including criminal investigations, anti-money laundering strategies and the implementation of national fiscal policies. However, financial data also qualify as personal data. While law enforcement objectives can derogate certain privacy-related legal safeguards, private financial firms should, in principle, comply with the privacy standards upheld by GDPR. Highlighting the most critical trends of the current financial industry (i.e. commercial exploitation of data; international dimension of financial informational networks; use of automated processing and decision-making tools), the present paper analyses how privacy and law enforcement priorities interplay in determining the governance of financial data. We conclude by recognizing that privacy loopholes exist in the current financial industry's data practices, and that - as payments tend to be increasingly performed in digital manners, exponentially increasing the availability of financial data - privacy-enhancing payment methods should be encouraged and legitimised. [ABSTRACT FROM AUTHOR]

Purpose: Regulators have a duty to enforce anti-money laundering (AML) and countering financing of terrorism regulation. However, in doing so, they should not to be overzealous especially in carrying out investigations into suspicious money laundering transactions. This does not mean that oversight agencies should not carry out the required investigations with due diligence. This study aims to propose that banks cannot be allowed to operate in a lawless environment; however, there is a need ensure that businesses are able to operate with minimal regulatory interference. Design/methodology/approach: Data was collected from primary and secondary sources such as Uganda's Anti-Money laundering Act 2013 (amended 2017), Patriot Act 2001, Proceeds of Crime Act 2000 International legal instruments, case law, books, websites, journal papers, policy documents and scholarly debates and evaluated to foster the objectives of the paper accordingly. The paper has also been enriched by empirical experiences of countries in Europe, Africa and within countries on money-laundering regulation and its intricacies. There was a wealth of online data sources and in print, which were reviewed and internalised to foster the objectives for writing the book. Findings: Regulation of businesses against money laundering and financing of terrorism imposes a heavy cost burden on poorer countries and should be funded by developed economies for some countries to easily operate desired International AML standards. It also needs to be noted that banks cannot be allowed to operate in a lawless business environment, which makes money laundering an international and national security issue. Originality/value: The thesis of this paper was drawn from the author's presentation to security agencies in Kampala in August 2019. In his presentation, the author opined that investigations into money-laundering offences should be triggered when a financial institution forms suspicions of potential money-laundering offences to have been committed. Some of the questions he sought to answer during the presentation was whether sharing information on "accountable persons or the regulated sector" in Uganda's AML 2013 with newspapers before investigations are concluded does not amount to tipping off presumed money-laundering culprits? How should investigations be conducted? [ABSTRACT FROM AUTHOR]

As part of the global effort to combat public corruption, anti-money laundering laws require financial institutions and other entities to conduct enhanced scrutiny on so-called -politically exposed persons" (PEPs)-mainly senior government omcials, along with their family members and close associates. Unfortunately, the current system for identifying PEPs-which depends entirely on a combination of self-identification, in-house checks, and external private vendors that rely on searches of publicly available source material-is both inefficient and in some cases inaccurate. We therefore propose the creation of a global PEP database, organized and overseen by an inter-governmental body. This database would be populated with data compiled by national governments, drawing primarily on the data those governments already collect pursuant to existing financial declaration systems .for public officials. A global PEP database along the lines we propose has the potential to make PEP identification more accurate and more efficient. reducing overall compliance costs and allowing compliance resources to be used more productively. [ABSTRACT FROM AUTHOR]

Purpose: The purposes of this paper are to discuss the short-term economic impact of the jurisdictions that have been identified as deficient countries in terms of the regime of anti-money laundering and countering the financing of terrorism and to identify the probable reasons for the poor results of mutual evaluation reports of the deficient countries. Design/methodology/approach: This study uses a case study approach to discuss the short-term economic impact of the countries that are under the International Co-operation Review Group (ICRG) process due to poor results of mutual evaluation reports. The sample of countries for the study was selected based on the Financial Action Task Force (FATF) listing as of November 30, 2019. The objectives of the study are expected to be achieved by discussing the issues of these jurisdictions based on publicly available information. However, this study will not consider the long-term economic impact on the countries due to the observed short-term nature of the ICRG process. Findings: This analysis reveals that the ICRG process affects countries in two different perspectives. First, there are implications on the financial system of a deficient country as a result of identifying it as a high-risk country. Second, there are some other forms of economic implications due to the rigorous ICRG process. The downgrading of the sovereign rating by international and credit rating agencies is one of such implications that result in adding a risk premium to the country. This results in increased transaction costs and borrowing costs of deficient countries. Besides, it appears that the ICRG process impacts the capital and currency markets of deficient countries as a result of enhanced due diligence process on fund transfers and limitations in corresponding banking relationships. However, despite these difficulties, some countries have been identified more than once for the ICRG process. Therefore, such countries have to take measures to strengthen the anti-money laundering and countering the financing of terrorism (AML/CFT) regime to avoid future listing. However, long-term sustainability of the countries that were removed from the FATF grey-listing is also questionable under the current FATF methodology of evaluating countries because of the level of effectiveness depends on the judgment of assessors on the risk and context of countries rather the technical compliance. Research limitations/implications: This study was limited to the countries that were in the grey list as of November 30, 2019. The countries exited from the list have not been considered for the study. Originality/value: This paper is an original work done by the author by discussing the issues of the ICRG process in respect of deficient countries in view of strengthening the AML/CFT regimes of such countries. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the extent and drivers of anti-money laundering (AML) disclosures in the audited annual reports of regional listed banks in Kenya. Design/methodology/approach: Using the Financial Action Task Force recommendations and other guidelines, the authors develop an AML disclosure index that is used to score the extent of AML disclosures by banks. A sample of 15 listed regional banks in Kenya over the period of 2007-2017 is used. Using this sample, the authors performed fixed-effects regressions to identify the significant determinants of AML disclosures. Findings: The study establishes a low level of AML disclosures in the audited annual reports of sampled banks. The extent to which the AML disclosures improved across three distinct regulatory regimes over the period of 2007-2017 is reported. The authors find that the AML disclosures are largely driven by corporate governance (board size and audit committee size) and the ratio of diaspora remittances to GDP. Practical implications: Owing to the global nature of money laundering activities, the study suggests that the Central Bank of Kenya needs to internationalize AML regulations and follow internationally accepted best practices in AML to respond to emerging trends in money laundering and related crimes. Originality/value: To the best knowledge of the researchers, this is perhaps the first study to examine the drivers of AML disclosures by banks in a developing economy in the East and Southern African region. Given the global nature of money laundering, the study makes an important and original contribution to the body of knowledge with potential for replication in other jurisdictions. The findings will also form a basis for developing an AML reporting or disclosure framework. [ABSTRACT FROM AUTHOR]

Purpose: Kenya has made little progress in its endeavor to categorize lawyers as designated non-financial businesses and professionals (DNFBPs), despite making spirited attempts in 2007, 2018 and lately in 2019. The legal professionals are, therefore, not bound by the reporting and other stringent obligations imposed by the Financial Action Task Force (FATF) to deter possible misuse by money launderers. The purpose of this paper, therefore, is to enumerate the ongoing efforts toward designating lawyers as DNFBPs in Kenya. The paper also assesses the institutional and legislative incentives (as well as barriers) for imposing the anti-money laundering (AML) duty thereto. Design/methodology/approach: The paper provides a qualitative review of Kenya's AML legislative framework and the potential support/hindrance to imposing the AML duty on lawyers. Also, this paper provides a suggestion for possible solutions. Findings: The legislative framework in Kenya has outlawed money-laundering, and lawyers can be compelled to disclose confidential information observed in the course of employment if it embodies crime or fraud. Thus, imposing the AML obligation on lawyers is nothing out of the ordinary, rather a mere creation for a formal disclosure mechanism. However, this paper also revealed divergent views that merit reconciliation for the seamless designation of lawyers. Originality/value: To enhance the legislative framework in Kenya, the paper borrows from the FATF's Interpretive Note to Recommendation 23 and suggests a practical solution to the apparent conflict between the legal professional privilege and the AML duty. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the ways in which the international standards in the field of anti-money laundering (AML) and counter-terrorist financing (CTF) have reshaped regulatory regimes in a globalised world. Design/methodology/approach: This paper deconstructs the origins and development of international standards in the field of AML and CTF dealing with longstanding legal professional privilege. This paper adopts both qualitative and quantitative research methodologies. The qualitative aspect comprises a literature review of sources, including scholarly works, Financial Action Task Force (FATF) recommendations, reports and domestic laws. The quantitative aspect analyses a unique and comprehensive table reproduced below, that indicates Australia's compliance with all the FATF recommendations over more than a decade with full alternation to FATF's revisions of its recommendations. Findings: This paper demonstrates that an understanding of the influence of the FATF norms can shed light on the departure from regular lawmaking processes and emerging forms of international governance. The conclusion suggests that tranche II is coming and Australia will amend it in domestic regime to comply with the international standard, applying the AML/CTF regime to the legal profession and thus interfering with legal professional privilege. The question is not if but when. Originality/value: This paper fills the gaps in the existing literature by contemplating the future of legal professional privilege globally and in Australia, which provides a case study of a regime that does not yet comply fully with AML and CTF international standard. This approach differs significantly from that of other literature in the field, which deals comprehensively with the theoretical foundations of legal professional privilege, as well as its practicalities and limitations, without considering the influence of the international non-binding norms. [ABSTRACT FROM AUTHOR]

The article provides background information outlining the relevant Bank Secrecy Act/Anti-Money Laundering laws that establish financial institutions' affirmative duties to report financial crimes in the U.S. Topics include laws creating mandatory criminal reporting obligations; financial institutions' reporting duties; and reducing the costs and duties borne by financial institutions without sacrificing the government's interests in deterring money laundering and ensuring national security.

The article examines whether the European Union's (EU) Anti-Money Laundering Directive to regulate cryptocurrencies is good for business or encourage criminals. Also cited are the background of virtual currencies and blockchain, the U.S.' legal framework to regulate cryptocurrencies under its Bank Secrecy Act, and some virtual currencies like Bitcoin.

Purpose: On 24 July 2019, the European Commission adopted a Communication to the European Parliament and the Council towards better implementation of the European Union's (EU) anti-money laundering (AML) and countering the financing of terrorism (CFT) framework. This Communication was accompanied by four reports. This papers aims to investigate these reports. Design/methodology/approach: Review of EU developments and reports. Findings: The European Commission continues to work on eliminating the vulnerabilities of the current AML and CFT system. As the reports show, there are still many issues regarding the EU's AML and CFT framework. The reports offer useful insights into weaknesses and failures and provide a good basis for further discussions with relevant stakeholders, for certain amendments to the current rulebook and enforcement as well as for stronger mechanisms regarding supervision and supporting cross-border cooperation. Originality/value: This article discusses important relevant EU developments. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to illustrate the incentivised steps criminals take to launder cash while avoiding government's anti-money laundering (AML) measures. Design/methodology/approach: To illustrate how and when technology is most prominent in the money laundering process, this paper analyses the criminal's methodological approach to "technology-enhanced money laundering" by examining several high-level examples. To strengthen the theoretical assessment and the overall validity of the findings, the author incorporates details from their own research and professional experience to maximise comprehension of the methodological process that organised criminals and money launderers alike look to undertake when placing illicitly derived cash in the money laundering cycle. Findings: The AML model of "placement, layering and integration" is synonymous with presenting the process of money laundering – in the most basic or generic forms. This paper identifies that the placement stage is a primary stage through which technology is exploited to assist in the entire laundering process. Practical implications: Using money laundering case studies, this paper identifies that existing AML/countering terrorism financing international perceptions/practices and typological studies are not adequate for presenting an accurate assessment of the process used to undertake money laundering. Originality/value: This paper provides an examination of the practicalities behind the prevention of money laundering from a compliance and investigative perspective. The paper is of interest to those involved in policy, compliance and investigations associated with money laundering. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine three important interrelated issues that arise in the context of financial investigations: the access of law enforcement agencies to centralised bank account registries that have been set up in several jurisdictions; the exchange of financial information between financial intelligence units (FIUs) that function in different jurisdictions; and the exchange of financial information between FIUs and law enforcement bodies. Through the adoption of Directive 2019/1153, the European Union (EU) has attempted to achieve a paradigm shift in these three areas, but many challenges remain, from the interconnection of registries to the implementation of adequate data protection safeguards. Design/methodology/approach: This paper draws on primary sources of law, legal scholarship, reports and open source data to analyse the changes that Directive 2019/1153 has brought about in conducting financial investigations in the area of anti-money laundering (AML) and the counter-financing of terrorism (CFT). Findings: The new Directive 2019/1153 constitutes an international model for broadening the access of law enforcement agencies to financial information and facilitating information exchanges between FIUs and law enforcement agencies. Nevertheless, many challenges have still to be addressed, such as the interconnection of centralised registries and the implementation of adequate safeguards. Originality/value: This is a comprehensive study examining the new EU framework for access to financial information and information exchanges between FIUs and law enforcement agencies, which can be used as a model for international cooperation in the areas of AML/CFT. [ABSTRACT FROM AUTHOR]

Following concerns that the art market is being used to launder criminal money and fund terrorist activities, measures have recently been introduced to subject the market to the anti-money laundering (AML) regime – such as the EU 5th Money Laundering Directive (2018) and the US Illicit Art and Antiquities Trafficking Prevention Bill (2018). The expansion of the AML regime to include art dealers has been attributed to the failure of regulation and the vulnerabilities inherent in the market to laundering. This paper considers vulnerabilities to money laundering and examines the types of regulation that apply in the art market. The paper then goes on to analyse the application of AML criminal law and preventive measures in the UK context, demonstrating that art dealers can be criminally prosecuted for engaging in normal commercial activities. Even if dealers do comply with AML reporting rules, such compliance can significantly impact upon their business. These are important considerations given the government's emphasis on striking a balance between the burdens on business and deterring money laundering activities. Drawing upon the AGILE analytical framework, we remain sceptical about the continued expansion of the AML regime. [ABSTRACT FROM AUTHOR]

The dominant recent legal discourse concerning Bitcoin and later virtual currencies has been focused on regulatory issues such as anti-money laundering and financial and securities regulation. By contrast, scant attention has been given to the intersection between the uses of Bitcoin and commercial law even as its popularity has grown as both an asset class and as a means of payment for goods and services. In determining the commercial law consequences of transactions involving Bitcoin, the likely cross-border nature of Bitcoin-related transactions will give rise to choice of law issues which may have a determinative effect on a given dispute. Commercial disputes involving virtual currencies have already made their way into common law courts. This paper examines one of the most significant choice of law problems that arises – the law applicable to determine disputes concerning property in Bitcoins (and determining the situs of Bitcoins) through the lens of English conflict of laws. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore the role of the financial intelligence unit in Tanzania in fighting against money laundering and its predicate offences, examine its potential in controlling the problem and describe factors that undermine its efficacy. Design/methodology/approach: The doctrinal research approach is used to analyse Tanzania's anti-money laundering law and appraise its effectiveness in facilitating operations of the financial intelligence unit in fighting against money laundering and its predicate offences. The law-in-context approach is applied to interrogate the anti-money laundering law and describe non-law factors that impinge on the efficiency of Tanzania's financial intelligence unit. Findings: The law vests the financial intelligence unit with powers to perform a number of functions that are significant in fighting against money laundering and its predicate offences in Tanzania. The unit has been instrumental in curbing money laundering. The efficacy of this anti-money laundering agency, which is at its infancy stage, is emasculated by law-related, institutional and non-law factors. These factors undercut the potency of the agency. Practical implications: There is a need for Tanzania to undertake policy, legislative and institutional reforms to augment the efficacy of the financial intelligence unit. The reforms should be implemented concurrently with other measures, which will enhance the country's anti-money money laundering regime. Originality/value: This paper applies the legal and non-law perspectives to evaluate the effectiveness of the financial intelligence unit as an essential component of Tanzania's anti-money laundering regime. It proposes law-related and non-law approaches to augment the efficiency of the unit and the country's anti-money laundering regime in general. [ABSTRACT FROM AUTHOR]

This article discusses the role of private actors in the finance-security nexus. It analyses how the delegated authority bestowed upon private actors in anti-money laundering and combating terrorist financing (AML/CTF) may be perceived not as empowerment but as an expression of a threatening invasive and hegemonic order: To reap the possible benefits offered by the security paradigm in the 'war on terror', private actors must relinquish a degree of self-determinacy. This threat to self-determinacy, it is argued, foregrounds (affective) resistance among for-profit professionals. The article probes how for-profit professionals engage in (affective) resistance through self-authorship. Evoking Hansen's discourse analysis on linkages and differentiation, the empirical analysis delineates how lawyers in the UK and France resist being resilient subjects in AML/CTF. It shows how for-profit professionals use self-authorship for purposes of (affective) resistance. Specifically, it finds that the linkages and counter-values subjects pin to the perceived invasive order of AML/CTF serve as poles in the fence protecting a space where professional identity is safeguarded. In this way, actors became resisting subjects when faced with obligations to be resilient. In conclusion, the article affords nuance to the role of private actors in the finance-security nexus by outlining how the forging of the first link in De Goede's security chain is undermined. [ABSTRACT FROM AUTHOR]

As high-net worth individuals have increasingly viewed art as a method of diversifying their portfolios, prices in the high-end global art market have exploded in the past several years. At the same time, investors have developed new methods for accessing art's liquidity, such as art lending services and exchanges. While the changing character of art towards an asset class has opened the door to new investment opportunities, it has also left the art market particularly vulnerable to money laundering schemes. Existing characteristics of the art market, including a lack of uniform record-keeping standards among dealers and the speculative nature of art, also make it hospitable to this crime. In light of the art market's vulnerability to money laundering, the need for legislation specifically addressing the industry seems clear. Yet, professional art intermediaries raise legitimate concerns about the compliance burdens and loss of confidentiality that accompany a regulatory scheme. This Note addresses the existing tension between potential anti-money laundering legislation and art dealers' interests, and proposes regulatory solutions to prevent money laundering through art without disrupting the art market. [ABSTRACT FROM AUTHOR]

On 3 August 2017, the biggest civil ligation for breaches to anti-money laundering and counter-terrorism financing obligations in Australia was launched. Further, it led to an inquiry into Australia's biggest bank, A key lesson from this experience is that failures in compliance can be exceedingly costly. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine the increasing emphasis of the UK anti-money laundering (AML) legislative framework, on the financial arrangements of criminals. Our qualitative study engaged key stakeholders from the AML environment through a series of focus groups. This included law enforcement; accountants; prosecutors; bankers and, importantly, ex-offenders. We argue that the inclusion of the views of a traditionally hard to reach group of ex-offenders, adds significantly to knowledge and understanding about effectiveness of AML. The research findings suggest that, at first glance, the focus on asset recovery has been successful. However, our respondents shared with us areas of tension and inconsistencies in application of the law, in particular between police and the courts. For example, whether it was better to prosecute the predicate offence  separately or in addition to the offence of money laundering; or whether to pursue criminal or civil recovery. We further find that criminals have been able to use their knowledge to circumvent the system, suggesting that greater effort is needed to promote cooperation, rather than competition, in successfully detecting and prosecuting offenders. [ABSTRACT FROM AUTHOR]

In recent years opioid overdoses have caused the deaths of thousands of Americans, leading many government officials to declare public health emergencies. The death toll is increasing at an alarming rate, due in large part to the entry of synthetic opioids into the market. Synthetic opioids are widely available on the darknet, where users purchase the drugs using bitcoin. Because the technology behind bitcoin provides another layer of anonymity to darknet transactions, it is appealing to individuals engaged in illicit drug sales. Darknet opioid dealers then use the bitcoin proceeds to fund further illicit activity. Traditionally, the use of monetary instruments to conduct illegal transactions was punishable under the federal money laundering statutes. Money-laundering charges and convictions play a key role in criminal prosecutions by helping to eliminate the financial foundation of illicit drug operations. However, under the current language of the federal money laundering statutes, bitcoin is not explicitly defined as "money" or a "monetary instrument." As such, the determination of whether bitcoin-funded crimes are covered by the statutes has been left to federal and state judges, whose rulings on the subject have been inconsistent. This inconsistency has led to charges being dismissed in certain cases. Accordingly, bitcoin continues to fund darknet drug operations, and opioids continue to flow into the United States. Instead of leaving technical definitions to judges, Congress should amend the federal money laundering statutes based on expert input and societal needs. To ensure prosecutors are legally equipped to combat the dark-net drug sales contributing to the opioid crisis, this comment proposes the federal money laundering statutes be amended to include bitcoin within the statutes' coverage. [ABSTRACT FROM AUTHOR]

Billions of people around the world are excluded from the formal financial system and forced to store, transfer, and borrow money by using inefficient and unsafe methods. The recent introduction of mobile money programs in developing countries is revolutionizing financial inclusion by allowing users to store and transfer money on their mobile phones, thereby eliminating the need to access a bank or an internet connection. Unfortunately, fears that these programs will be used to launder money and finance terrorism have led the international community to develop and implement restrictive anti-money laundering policies that will likely impede the growth and accessibility of these programs. This Article posits that these policies will ultimately cause financial institutions to terminate relationships with mobile money providers, resulting in less secure mobile money transactions and more transactions taking place through the informal economy. This conclusion is based on the history of money-service businesses in the United States, which lost access to financial services due to severe penalties, overzealous regulators, and stringent anti-money laundering regulations that were applied in unpredictable ways. This Article encourages the international community to look to gatekeeper theory to create an anti-money laundering regime that incentivizes financial institutions to remain in the mobile money industry. By applying gatekeeper theory and creating an optimal liability regime, the international community will be able to incentivize financial institutions to remain in the industry while compelling them to dedicate the proper amount of resources toward identifying and preventing money laundering and terrorist financing. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this study is to assess whether level of income of a particular country affects the level of effectiveness in anti-money laundering (AML)/ countering the financing of terrorism (CFT) supervision to identify the most important recommendations in achieving high level of effectiveness and critically discuss the findings of the fourth round evaluations with the outcome of first two objectives.Design/methodology/approach The level of effectiveness was rated in terms of a four-point Likert scale given 4 for high, 3 for substantial, 2 for moderate and 1 for low level of effectiveness. The countries were ranked using a four-point Likert scale given 4 for high income, 3 for upper middle income, 2 for lower middle income and 1 for low income countries as per the categorisation of World Bank list of economies (World Bank, 2017). For the purpose of estimation, level of effectiveness was rated in terms of a four-point Likert scale given 4 for high, 3 for substantial, 2 for moderate and 1 for low level of effectiveness. The level of technical compliance was ranked using a five-point Likert scale given 5 for compliant, 4 for largely compliant, 3 for partially compliant, 2 for non-compliant and 1 for not applicable as per the ratings given in FATF 2013 methodology (FATF, 2013).Findings It was observed that the level of income of a particular jurisdiction has a positive relationship with the level of effectiveness in AML/CFT supervision. Statistical analysis reveal that AML/CFT framework on regulation and supervision of financial institutions (Recommendation 26) and providing guidance and feed back to reporting entities (Recommendation 34) have significant impact on effectiveness level on AML/CFT supervision over the powers of supervisors (Recommendation 27), regulation and supervision of designated non-financial business and professions (Recommendation 28) and sanctions (Recommendation 35).Research limitations/implications The research was limited to 36 fourth round mutual evaluation reports.Originality/value This paper is an original work done by the author as a result of the experience which the author received involving as an assessor in mutual evaluations. [ABSTRACT FROM AUTHOR]