Uncomfortable truths? ML=BS and AML= BS2

Ronald F. Pol

Journal of Financial Crime, 2018, vol. 25, issue 2, 294-308

Abstract: Purpose - The purpose of this paper is to advance debate and prompt new strategies substantially to improve the capacity to disrupt serious profit-motivated crime. Design/methodology/approach - Using interdiction rates (the proportion of criminal funds seized or forfeited) as an interim proxy effectiveness indicator, this article challenges elements of the dominant anti-money laundering/counter-financing of terrorism (AML/CFT) narrative, and reflects on policy effectiveness and outcomes. Findings - Interdiction rates in jurisdictions surveyed hardly constitute a rounding error in the accounts of profit motivated criminal enterprises. The current AML/CFT model appears almost completely ineffective in disrupting illicit finances and serious crime. Research limitations/implications - With such research at an early stage, some data are poorly substantiated and methodological inconsistencies rife. Practical implications - For policy interventions with a reasonable prospect for crime not to pay, beyond rhetoric, frank evaluation of results and a potential step-change in policy, regulatory and enforcement vision and capability, may be required. Originality/value - Scholars have exposed a paucity of meaningful links between AML/CFT controls and crime and terrorism prevention, yet the dominant narrative persists largely unchecked. This paper examines components of that narrative in the context of scholarship on “bullshit”.

Keywords: Outcomes; Anti-money laundering; Financial Action Task Force; Counter-terrorism financing; Policy effectiveness; Profit-motivated crime (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-08-2017-0071

DOI: 10.1108/JFC-08-2017-0071

Access Statistics for this article

Journal of Financial Crime is currently edited by Dr Li Hong Xing and Prof Barry Rider

More articles in Journal of Financial Crime from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().