Money laundering risk from emerging markets: the case of Vietnam

Hung Ba and Tran Huynh

Journal of Money Laundering Control, 2018, vol. 21, issue 3, 385-401

Abstract: Purpose - The purpose of this paper is to apply the frameworkPrice (2008) and HSBC Money Laundering Risk Procedures 2016 for estimating the risk contribution of each individual customer in Vietnamese banking system using the information from the survey in South East region in Vietnam in general and Ho Chi Minh city in specific. Design/methodology/approach - Based on the collected data from the survey, the Money Laundering Risk Score (MLRS) is calculated for each customer who is using the services and products of Vietnamese commercial banks by the enhanced measurement model of Christopher Price, the ordinary least squares and three variations of logistic regression model. Findings - This paper proposes an appropriate estimation of the money laundering risk (MLR) for personal customer using the most significant factors that affects MLR and suggests practical recommendations for commercial banking system. Practical implications - This paper suggests an intuitive method to estimate the contribution of each customer factor on their MLRS. Originality/value - The higher respondent’s group of age lead to the higher MLR occurred in the financial market. Follow the works of Wolfsberget al. (2006), Sathan and Mahendhiran (2007),Usman Kemal (2014) andReganati and Oliva (2017), this paper also confirms negative relationship between MLR with the respondent’s group of salary and the academic level. This indicated that the lower amount of money the respondents earn and lower academic level they were, the higher degree of MLR.

Keywords: Emerging market; Logistic regression; Christopher price’s framework; Money laundering risk (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:jmlcpp:jmlc-09-2017-0050

DOI: 10.1108/JMLC-09-2017-0050

Access Statistics for this article

Journal of Money Laundering Control is currently edited by Dr Li Hong Xing and Prof Barry Rider

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