Our recently released Basel AML Index 2021 highlights how slow and ineffective implementation of beneficial ownership registries continues to provide safe havens for dirty money.

We argue that this is damaging for individual jurisdictions, but more importantly undermines all global efforts to combat money laundering and terrorist financing (ML/TF). Excerpt from the full report:

Why do so many jurisdictions score so poorly for the effectiveness of their anti-money laundering systems? What's the biggest problem - prevention or enforcement? Answer from our Basel AML Index 2021 report: Ineffective systems are the general rule, but jurisdictions consistently score worse for prevention than for enforcement. Excerpt:

The Basel AML Index 10th Edition explore four aspects hindering the global fight against money laundering and terrorist financing (ML/TF). The first element crunched Financial Action Task Force (FATF) data on how jurisdictions are responding to money laundering threats related to virtual assets. The answer: not well at all. Excerpt from the full report:

The use of virtual assets such as cryptocurrencies is exploding – for legitimate as well as illicit purposes.

The Financial Action Task Force (FATF)’s regional body in Latin America, GAFILAT, has welcomed our International Centre for Asset Recovery (ICAR) to join its Asset Recovery Network (Red de Recuperación de Activos del GAFILAT, or RRAG) as an observer member.

The use of virtual assets such as cryptocurrencies has expanded hugely around the world. Thousands of new users are added each day, and more individuals now use cryptocurrencies than trade on stock exchanges. Yet, as with all emerging technologies, there are risks that cryptocurrencies can be used for illegal activity such as money laundering and terrorist financing.

The Presidency of the G20 rotates each year between member countries, as does the leadership of the B20 – the G20’s voice of business.

The key issue of tackling corruption is picked up almost every year, but not always in the same way or using the same format. This can make it challenging to find historical information including past anti-corruption commitments and related recommendations.

Released today, the 10th annual edition of the Basel AML Index raises grave questions about whether jurisdictions are serious about tackling their money laundering and terrorist financing (ML/TF) risks, and what is holding them back.

The Basel AML Index is an independent annual ranking that assesses ML/TF threats around the world and the capacity of jurisdictions’ anti-money laundering and counter financing of terrorism (AML/CFT) measures to address their specific risks.

See summary report released in December 2021: Boosting Co-operation in Asset Recovery: Exploring the Potential of Private Sector Engagement and Public-Private Collaboration

How can law enforcement agencies, financial intelligence units and private financial institutions such as banks work better together to identify, freeze and confiscate criminal assets?