Financial crime

Keeping pace with financial crime: Basel AML Index sharpens risk assessment data for 2026

Financial crime changes fast, and so do the data available to measure it. Compliance teams, supervisors and other public authorities need tools that evolve just as quickly when they assess money laundering and related financial crime risks at the jurisdiction level. The Basel AML Index’s 15th annual update, to be released in early December, is designed to meet that need. Four changes to its methodology replace data sources that are no longer updated, plus add new perspectives on bribery, judicial independence, public financial management, and financial, tax and customs transparency. Subscribers will also gain new features built around their day-to-day work, including coverage of 247 jurisdictions, faster sanctions updates and easier tracking of changes in the Basel AML Index scores over time. Who uses the Basel AML Index and why The Basel AML Index is an independent tool for assessing the risk of money laundering and related financial crimes in jurisdictions around the world. Published annually since 2012 by the Basel Institute on Governance, it combines data from respected public sources on the regulatory, legal, political and financial factors that make a jurisdiction more or less vulnerable to financial crime. The methodology currently comprises 17 indicators across five domains: Quality of AML/CFT/CPF framework; Corruption and fraud risks; Financial transparency and standards; Public transparency and accountability; and Political and legal risks. Financial institutions use the subscription-based Basel AML Index Expert Edition and Expert Edition Plus tools to assess country risks, benchmark internal risk models and identify higher- and lower-risk jurisdictions so they can prioritise resources. Supervisors, regulators and policymakers can access the Expert Editions for free. They use them to benchmark progress over time and against other jurisdictions, prepare for Financial Action Task Force evaluations and strengthen their supervisory approaches. Thank you to our expert reviewers Each year, we review the Basel AML Index methodology with external experts to make sure it remains accurate, transparent and relevant to evolving financial crime risks. This year’s meetings on 21 and 22 September 2026 brought together more than 40 experts from the public and private sectors, including regulators, supervisors, financial intelligence units, international organisations and financial institutions. We are very grateful to all participants for their time and for the meaningful and valuable contributions they made to the review. Their input shaped this year’s decisions in concrete ways: one of the changes described below was proposed by participants during the discussion. Participation in the review meeting does not indicate agreement with the decisions or a consensus among participants. Responsibility for the final decisions on the methodology rests with the Basel Institute on Governance. Four changes to the methodology Table 1 summarises the changes. Weightings of all five domains stay the same. | Domain | Change | Weight in overall score | |----------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------| | Corruption and fraud risks | TRACE Bribery Risk Matrix replaced by World Bank Enterprise Surveys data on bribery incidence and depth | 5% unchanged | | Political and legal risks | World Economic Forum Judicial Independence indicator replaced by V-Dem judiciary data | 3.33% unchanged | | Public transparency and accountability | PEFA data added as a fourth indicator; domain weight shared equally | 1.25% per indicator | | Financial transparency and standards | Financial Secrecy Index replaced by a new Financial, Tax & Customs Transparency indicator | 15% unchanged | Change 1: Bribery – incorporating data on firms’ direct experience The TRACE Bribery Risk Matrix is no longer updated. We initially proposed removing it and doubling the weight of Transparency International’s Corruption Perceptions Index. During the meeting, experts suggested the World Bank Enterprise Surveys as an alternative. We reviewed and accepted this suggestion. Based on the direct experience of private-sector firms, the Enterprise Surveys complement the perception-based Corruption Perceptions Index. Two of their indicators will be combined into a single score with a weight of 5 percent: - Bribery incidence is the percentage of firms that experienced at least one request for a bribe payment. - Bribery depth is the percentage of public transactions in which a gift or informal payment was requested. This will be included in the Corruption and Fraud Risks domain. Change 2: Judicial independence – V-Dem replaces discontinued data The World Economic Forum no longer regularly updates its Judicial Independence indicator. We will replace it with five indicators from the Varieties of Democracy V-Dem dataset, produced by a global research initiative based at the University of Gothenburg, Sweden. The indicators are: high court independence; lower court independence; compliance with high court decisions; compliance with the judiciary; and government attacks on the judiciary. The five indicators will be combined into a single score from 0 to 10, with higher scores indicating higher risk. The new indicator keeps the existing weight of 3.33 percent, within the Political and Legal Risks domain. Change 3: Public financial management – PEFA data added Data from Public Expenditure and Financial Accountability PEFA assessments will become the fourth indicator in the Public Transparency and Accountability domain. PEFA adds an assessment of public financial management systems, which the existing three indicators in this domain do not cover comprehensively. PEFA assesses 31 performance indicators across seven areas, from budget reliability and transparency of public finances to external scrutiny and audit. Its methodology covers both compliance and effectiveness. We will calculate a single PEFA score for each country, using country-level assessments only. The domain’s 5 percent weight will be shared equally between its four indicators, at 1.25 percent each. Change 4: A new Financial, Tax & Customs Transparency indicator In the Financial Transparency and Standards domain, the Tax Justice Network’s Financial Secrecy Index will be replaced by a new Financial, Tax & Customs Transparency indicator developed by the Basel AML Index team. It keeps the existing weight of 15 percent. The new indicator reduces duplication with data from the Financial Action Task Force, which the Index already uses directly. It also aims to improve consistency with the Index’s other indicators and extends coverage to 173 jurisdictions. It has two components: - Financial, tax and customs transparency. This uses 15 selected sub-indicators from the Global Forum on Transparency and Exchange of Information for Tax Purposes and the World Bank Business Ready framework. They cover tax information exchange, beneficial ownership, customs and border management, interoperability of public information systems, insolvency frameworks, commercial lending and safeguards for electronic payments. - Exposure through cross-border financial services. This uses International Monetary Fund IMF Balance of Payments data on financial services exports. It measures both materiality a jurisdiction’s share of global financial services exports and intensity the value of those exports relative to the size of its economy . Statistical testing shows that the new indicator is positively associated with the other components of the Basel AML Index, while remaining sufficiently distinct from them. New features for Expert Edition subscribers The following features are also being introduced to enhance the user experience. The Expert Edition of the Basel AML Index will introduce: - Wider coverage. The Expert Edition and Expert Edition Plus subscriptions will cover 247 jurisdictions, including additional dependencies and other areas covered by the ISO 3166-1 standard, which many international financial and compliance systems use. Where jurisdiction-specific data are unavailable, the score of the relevant sovereign state or administering jurisdiction will be used as a proxy. All proxy scores will be clearly identified in the dataset. - Faster sanctions updates. Sanctions lists will be updated within six working days of the relevant sanctions decisions, without waiting for the next quarterly data update. - Easier tracking of changes. Three new fields – Previous Score , Change in Overall Score and Change in Risk Level – show changes over time without the need to compare separate editions. This supports regular reviews of geographical risk assessments and internal jurisdiction risk classifications. - Version control. New Version Number and Last Updated On fields allow users to document which version of the Basel AML Index they applied in their risk assessments. This supports internal record-keeping and supervisory audits. - Metadata sheet. A new dedicated sheet will describe every column in the dataset. This provides a common reference for interpreting the data and makes it easier to integrate them into internal risk assessment and compliance systems. A new streamlined subscription process, with clearer access rules for free and paid access to Basel AML Index data, is also in the works. What to expect in December The changes will apply from the 2026 edition of the Basel AML Index, to be published in early December 2026. As several indicators are changing, some jurisdictions’ scores and risk levels may shift as a result of the new methodology rather than a change in underlying risk. We recommend that users take this into account when updating their geographical risk assessments. Learn more - Explore the Basel AML Index and its current methodology. - Find out about Expert Edition and Expert Edition Plus subscriptions. - Register for the 2026 Basel AML Index launch event. - Contact the Basel AML Index team at index@baselgovernance.org.

Latin American practitioners join forces against evolving financial crime

Cryptoassets are transforming the work of investigators, prosecutors and asset recovery specialists across Latin America. At a dedicated workshop in Luxembourg, more than 30 practitioners came together to share how they are responding to the challenge – with practical solutions, strong regional leadership and a readiness to learn from one another. The workshop was co-organised by the Basel Institute on Governance and the UK National Crime Agency NCA . It was hosted by Luxembourg’s Bureau de gestion des avoirs as a side event to the 10th Global Conference on Criminal Finances and Cryptoassets. Participants came from prosecution services, police forces, financial intelligence units, supervisory authorities and the judiciary. As members of the Latin America Crypto Community of Practice, they share a determination to confront the rapid growth of cryptoassets and their exploitation by organised crime. Regional leadership in action The workshop placed the region’s own expertise at its centre. Practitioners from Argentina, Brazil, Colombia and Peru presented cases involving cryptoassets and asset recovery. They shared the approaches they had tested, the obstacles they had encountered and the lessons they had learned. The discussions reflected the tremendous effort taking place across Latin America. Practitioners are tackling complex technical, legal and operational questions, often while the risks, technologies and criminal methods continue to evolve. Maria Cordeiro, Senior Specialist, Asset Recovery at the Basel Institute and coordinator of the Latin America Crypto Community of Practice, said: The commitment and creativity of practitioners across Latin America are remarkable. They are not waiting for perfect laws, unlimited resources or ready-made solutions. They are getting to grips with difficult cases, testing practical approaches and helping one another move forward. That passion and leadership are exactly what this community is designed to support. Working through shared challenges Participants worked together on practical challenges related to the seizure, confiscation, custody, management and sale of cryptoassets. The discussions were frank and focused on finding workable solutions. Held in Spanish and under the Chatham House rule, the workshop provided a trusted space in which practitioners could speak openly and learn from their peers. The group also explored ways to strengthen cooperation against organised crime, illicit trafficking and other threats involving cryptoassets. These crimes operate across borders, making strong professional relationships and rapid information exchange essential. The workshop was opened by Oscar Solórzano, Director for Latin America at the Basel Institute’s International Centre for Asset Recovery. Perla, a subject matter expert from the UK National Crime Agency NCA , co-moderated the session. Partnerships and looking forward We thank the NCA for co-organising the workshop under its Illicit Finance programme in Latin America and the Luxembourg Bureau de gestion des avoirs for hosting it so generously. We are also grateful to the NCA, the US Bureau of International Narcotics and Law Enforcement Affairs INL in Colombia, Ecuador, Mexico and Peru, and the International Criminal Investigative Training Assistance Program ICITAP in Colombia for funding the participation of practitioners in the workshop and the Global Conference. We also thank current sponsors of our Latin America Crypto Community of Practice for their support for this practitioner-led exchange: Kodex, Asset Reality, Tradias, VerifyVASP, Inca Digital, Coinbase, TRM Labs and CAT Labs. The workshop showed the value of bringing committed practitioners together around real cases and shared challenges. Discussions are already underway about a dedicated Latin America Crypto & Asset Recovery Conference in 2027.

The powerful role of investigative journalists in tackling crypto-related crime (and what would boost it)

How can investigative journalists help expose crypto-related crime – and educate both the public and policymakers in an increasingly complex financial landscape? That was the knot unravelled in a recent webinar jointly organised by the Basel Institute on Governance and the Organization for Security and Co-operation in Europe OSCE , and moderated by Dr Jolly Mtaba of Malawi University of Business and Applied Sciences. Speakers spanning investigative journalism, law enforcement and public-private cooperation discussed the opportunities and challenges of investigating illicit activity involving virtual assets. They also probed the skills and collaborations needed to turn media investigations into on-the-ground impact on public awareness, policy advancement and law enforcement action. Below are some of the key takeaways from the discussion. Why does investigative journalism matter in the fight against crypto-related crime? According to investigative journalist Geoff White , journalists play two critical roles. One is investigative: uncovering wrongdoing, exposing weaknesses in systems and shining a light on fraud, corruption and money laundering. The other is educational. Many people have heard of cryptocurrency, but far fewer understand how it works, how it can be misused or why it can create opportunities for criminals. Journalists therefore have an important role in helping the public, policymakers and law enforcement agencies understand increasingly complex financial crime risks. As White noted, and has sought to do in his latest book Rinsed and podcast series The Lazarus Heist , there's the explanation piece, and then there's also the investigation and the forcing daylight into this industry. What makes crypto investigations different? The panellists agreed that crypto-related investigative reporting presents unique challenges. Spencer Woodman of the International Consortium of Investigative Journalists ICIJ gave an example from the ICIJ’s Coin Laundry investigation. He explained that while many aspects of crypto investigations resemble traditional money laundering investigations, aspects such as self-custody wallets and crypto-to-cash services introduce a new level of complexity. Unlike traditional financial accounts, self-custody wallets can be created quickly, anonymously and without the involvement of a financial institution, he explained: One thing that amazed me in this investigation was figuring out how easy it is to make my own self-custody wallet. You can generate these things at the click of a button, and that’s one reason scammers have such an easy time laundering money in crypto. This makes tracing funds significantly more difficult, particularly when cryptocurrency is converted into cash through informal crypto-to-cash desks or courier services operating outside traditional regulatory frameworks. Building on White’s comments about the explanatory function of journalism, an additional challenge is explaining complex blockchain technology to the audience, said Woodman: These scoops and new pieces of information are often about complex financial dealings, and that's already difficult to explain to readers in a succinct way. And then you have this additional challenge of having to explain what cryptocurrency is at a more basic level to a general readership. So the stories are serving a dual purpose – explaining the complex ins and outs of crypto, and then trying to explain the often complicated findings of our investigation. Can investigative journalism lead to real-world action? The answer is a clear yes. Alexandra Gillies of the Organized Crime and Corruption Reporting Project OCCRP highlighted several investigations that led to concrete outcomes. After one investigation into the Lithuanian crypto company Bankera, the Lithuanian authorities launched a criminal investigation and conducted more than 30 raids of companies connected to the case. Two banks in Lithuania and Vanuatu faced consequences too. Another OCCRP investigation uncovered links between two UK-registered crypto exchanges and suspected Iranian money laundering networks. Following publication, the companies were removed from the UK corporate register. She explained: At OCCRP we take a proactive approach. First, through outreach to people who can use the information, such as the briefings we gave to law enforcement agencies and policymakers about the findings of our big Scam Empire project. Second by collaborating with civil society organisations such as Transparency International – where the journalists do their reporting, and then the civil society groups push for policy change, or for accountability and legal consequences for those involved in the wrongdoing. This has worked really well on a number of corruption issues. Moderator Dr Jolly Ntaba added an example from Malawi, where a collaborative corruption investigation by journalists sparked a national debate and led to a presidential directive aimed at addressing some of the issues uncovered. How can journalists and law enforcement work together without compromising independence? This was one of the webinar's central themes. Eric van der Schild , Head of Europol's Financial Intelligence Public Private Partnership EFIPPP , emphasised that trust is essential. Journalists and law enforcement agencies have different mandates and operate under different constraints, but both share an interest in exposing criminal activity and improving public safety. He and other panellists stressed that cooperation does not mean sharing unpublished information or compromising journalistic independence. Gillies clarified that OCCRP's engagement with law enforcement takes place after publication and is based on publicly available reporting: The way we share information is by publishing stories. Instead, panellists highlighted the value of dialogue, mutual learning and ensuring that investigative findings reach the institutions best placed to act on them. The old adage remains true, said van der Schild: Trust arrives on foot and leaves on horseback. What skills do journalists need to investigate crypto-related crime? Several panellists highlighted the growing need for specialist expertise. Tom Walugembe of the Basel Institute’s International Centre for Asset Recovery pointed to a range of skills that can strengthen investigative reporting, including financial analysis, open source intelligence techniques and a better understanding of asset recovery mechanisms. He also emphasised the importance of understanding how law enforcement agencies conduct investigations and cooperate across borders. The need for such skills beyond law enforcement is the main driver of the Basel Institute’s development of a new course on financial investigations and asset recovery directed specifically at civil society organisations and investigative journalists. Woodman argued that journalists do not need to become blockchain specialists overnight. However, they do need a solid understanding of the basics: The best way to operate, in my opinion, as a reporter focusing on crypto, is to build some capacity and understanding of how to use public blockchain explorers. That foundation allows journalists to engage more effectively with technical experts and critically assess the information they receive: There are things in the metadata of those transactions that can really trip you up… relationships with experts are crucial, but it’s never very helpful to go to an expert and say: tell me everything about what I’m looking at here. You need to look at the thing yourself and then say: am I looking at this correctly? Are there enough resources and expertise available? Not yet. Both OCCRP and ICIJ described ongoing efforts to build internal expertise on cryptocurrency and blockchain analysis. One challenge is that many media organisations rely on commercial blockchain analytics providers, which can be expensive and may have potential conflicts of interest due to their relationships with industry clients. As a result, several speakers stressed the importance of building in-house expertise. Gillies noted that investigative journalism increasingly requires multidisciplinary teams capable of combining traditional reporting skills with technical and financial expertise. At the OCCRP, they are keen to strengthen collaboration with academic researchers and data scientists, she said. What challenges do journalists face? Apart from the omnipresent challenges of resources and expertise, the risks associated with investigating crypto-related crime are often the same risks faced by journalists investigating corruption, organised crime and money laundering more broadly. These include legal threats, cyberattacks, political pressure and, in some countries, threats to personal safety. In response to a question from the audience, panellists emphasised the impact of declining press freedom. Restrictions on independent journalism can lead to self-censorship, force journalists into exile and reduce the amount of actionable information that reaches the public domain. Gillies said: There’s a lot of stress and distraction that comes from managing repression. The panellists agreed that protecting press freedom is essential if investigative journalism is to continue playing an effective accountability role. It’s in governments’ interests to “take that issue seriously and put it at the top of the agenda”, including both legal protections and adequate resourcing. What was the overall message? The webinar highlighted that cracking down on crypto-related crime is a complex challenge that is evolving at a dizzying rate and that requires all hands on deck. Investigative journalists, law enforcement agencies, civil society organisations, researchers and policymakers each bring different strengths to that effort. And though the technology may be evolving rapidly, the aim remains the same: follow the money, expose wrongdoing, ensure that those responsible are held accountable and strengthen policies to protect people, businesses and states. As the discussion demonstrated, investigative journalism continues to be one of the most powerful tools available for achieving that goal. Learn more ::: links - View the webinar recording on YouTube - Read about the role of international and non-profit organisations in tackling crypto-related crime, drawing on another Basel Institute–OSCE webinar and insights from UNODC, the FIU :::

A career with purpose in public finance management: Límberg Chero

Our colleague Límberg Chero has played an important role in establishing the Basel Institute’s strong presence in Peru. From the early years – even before a formal office existed in Lima – to his current work with the Subnational Public Finance Management Programme Programa GFP Subnacional , his journey reflects a great passion for fighting corruption. It began far from the capital, in an ancient town in northern Peru, and was strengthened through rigorous academic training and years of public service. This article is part of a series on careers in fighting financial crime and opportunities to learn and study with the Basel Institute. The take-off in Peru My journey at the Basel Institute on Governance began even before the Lima office existed. In 2014, together with colleagues from the Basel Institute – including our dearly missed Managing Director of two decades, Gretta Fenner, and my colleague Óscar Solórzano – we launched a public finance management project funded by the State Secretariat for Economic Affairs of Switzerland SECO . Although centred on macroeconomics and fiscal policy, its essential goal was to make the public budget tangible and meaningful for citizens. To do this, we moved beyond traditional approaches and integrated innovative tools, like the use of behavioural science to prevent corruption and foster integrity in the management of public finances. This comprehensive perspective – a novelty in Peru at the time – was key to the project proposal’s success. Since then, the Subnational Public Finance Management Programme for regional and municipal governments in Peru has retained SECO’s trust for more than 10 years. The secret behind this success lies not only in improved processes and fiscal discipline, but in the continuous work with people committed to change. Internally, the Basel Institute’s team is multidisciplinary, open to change and committed to bridging practice and academic insight. Bridging differences for sustainability Working at the Basel Institute on Governance is truly a privilege. Our Lima office has gained remarkable regional recognition thanks to a distinctive approach: practical, rigorous and focused on building strong relationships with key actors in the fight against corruption, money laundering and terrorist financing. I currently lead the Subnational PFM Programme’s Interinstitutional Coordination, ensuring the programme’s effectiveness and, above all, the sustainability of reforms at subnational levels, in alignment with national efforts. This work requires the continuous reconciliation of the different “languages”, worldviews and objectives of people across Peru’s diverse regions. Our aim is to craft strategies and messages that resonate equally to ministries, regional governments and municipalities – aligning technical agendas with political ones, and engaging civil society and academia along the way. This challenge becomes more manageable because of my background: I come from an ancient town in northern Peru, Monsefú. Being perceived as someone close yet trained in competitive academic and professional environments fosters trust and legitimacy. From economics to a global mission As a child, leaving my town felt impossible. Universities were located in other regions and the educational options available largely led to local career paths tied to a modest economy with little real opportunities. At that time, the country had not yet experienced the trade openness or business development it has today. Through hard work and the trust of people who believed in me, however, I earned scholarships that allowed me to study in highly competitive environments in Peru’s capital, Lima, more than 1,000 kilometres away from my hometown. My foundations were solid: I completed my undergraduate studies in economics and later specialised through the Central Bank’s Economics Programme, which admits only 30 candidates out of thousands of applicants, as well as through an internship at the World Bank in Korea. I worked as an economist at institutions such as the Ministry of Economy and Finance, the Central Reserve Bank of Peru, the Andean Community CAN and the Inter-American Development Bank IDB . At that time, my professional life felt complete: it combined specialised technical work with teaching and active participation in international networks. These included the Andrés Bello Agreement Network, which brought together university researchers from multiple countries to reflect on and advance regional integration in Ibero-America, as well as the Puentes Network, which focused on promoting transparency in investment by Latin American companies. But everything changed when I fully grasped the scope of the challenges posed by global corruption. I never imagined my economics degree would only be the starting point of a much bigger journey. From that moment on, my purpose became clear: to dedicate all my experience to strengthening this fight against forces that hinder global prosperity. Innovating with little budget In Latin America, the Basel Institute is known for results-oriented innovation. I have witnessed firsthand how every new skill quickly finds a practical application and how we can make significant contributions without the need for additional funding. For example, I could draw on my Master’s degrees in Process Innovation and Government Control, and in Public Management and Education Andragogy to enrich various initiatives we pursued, such as: supporting regional governments in implementing structural reforms in significantly shorter timeframes; strengthening Peru’s Public Finance Management Experts Network, which was recognised during Peru’s National Innovation Week; and reducing dropout rates and increasing course completion in our Internal Control and Integrity courses through, among other things, the introduction of “virtual coffee breaks”. During the pandemic, we leveraged my background in education to enhance our online learning and training approach and results. For example, we started to deliver courses and training across the country via Facebook, a platform that at the time did not charge for mobile data usage and allowed public officials to participate even using low-end mobile phones. These courses have since been integrated into Basel LEARN – the Basel Institute’s online training and learning hub. Together, these efforts enabled us to develop courses that reached more than 6,000 participants in five years – all without additional funding. It’s all about people My work has focused on ensuring the sustainability of tangible improvements to public finance management that the PFM Programme’s experts helped implement in areas as varied as: distribution of vaccines and educational materials for children; property tax collection in major cities; restitution of confiscated funds; and the fight against “green corruption”. In this context, the most valuable asset is our network. I have more than 20,000 contacts on my business phone – all professionals who directly or indirectly contribute to the Programme’s goals, and above all, friends committed to building a better Peru. This network generates mutual benefits: it enables the rapid dissemination of good practices, drastically reduces event preparation costs we secure many venues at zero cost and ensures massive impact. Colleagues across the Basel Institute are a vital part of this network. Our close collaboration has led me to take part in a wide range of diverse and fascinating projects – from serving as a director and writer for several programme-produced videos, to moderating international events on asset recovery, and exchanging methodologies used in public finance management that can be applied to asset recovery and repatriation. The foundation that inspires and sustains hope The Peruvian context presents unique challenges. There is high political volatility, evidenced by the fact that there have been eight presidents in the past 10 years despite only two presidential elections in that period. This means that “VUCA” volatility, uncertainty, complexity and ambiguity and the notion of “chaos” are part of daily life. Yet, beneath this instability lies a “subsoil” of ethically committed public officials and technical professionals who allow progress to continue. They are my daily source of inspiration. As I often say: There are more good people than bad – they just make less noise. This reflects a reality: the visible efforts of honest Peruvians provide a stronger foundation than the corruption cases that shake us, even if public perception sometimes suggests otherwise. In sum, I am deeply grateful for the privilege of engaging with my country and its challenges through work that strengthens public integrity and the fight against corruption. Thank you, Basel Institute – and its magnificent team around the globe – for allowing me to continue serving the world, and especially my country. Inspired? Take a look at the learning opportunities we offer at the Basel Institute for individuals who are equally passionate about fighting corruption and financial crime: Basel LEARN – our online training and learning hub with free eLearning courses and lots more Basel STUDY – our postgraduate programmes on anti-corruption and asset recovery with the University of Basel

Holding the line: Betsy Andersen on corruption and hope in uncertain times (The Academy Bulletin)

Corruption corrodes trust, weakens institutions, and undermines societies. Few people understand this better than our Executive Director Elizabeth Andersen. With more than two decades of experience advancing the rule of law around the world, Betsy brings a wealth of insight into why corruption matters and how to confront it. In the fifth issue of the Bulletin of the International Academy of Financial Crime Litigators, Betsy is in conversation with the Bulletin’s co-editor Dr Maria Nizzero. She discusses what drew her to the Basel Institute, the challenges of sustaining anti-corruption momentum in a turbulent geopolitical climate, and why, despite the setbacks, she remains deeply optimistic about the fight ahead. The interview is republished here with permission from the Academy. Can you tell us a little bit more about yourself and what drew you to the Basel Institute on Governance? Elizabeth Andersen: I’ve spent more than 20 years working to strengthen the rule of law globally, and one of the most pressing challenges we face is corruption. It undermines institutions, harms societies and erodes trust in government. The Basel Institute’s reputation for impact made it a compelling place to continue this work. What especially attracted me is its model: combining hands-on technical assistance with research and policy engagement. I was particularly drawn to the way in which the Basel Institute transforms lessons learnt from their very impactful technical assistance and case-based assistance on the ground into policy recommendations. These recommendations contribute to global conversations and policymaking that can in turn deliver systemic change. This virtuous cycle of on-the-groundwork, learning and policy engagement was really very attractive to me as a terrific model. You previously led the World Justice Project. What lessons are you bringing to Basel? EA: Both organisations share a commitment to data-driven, evidence-based solutions. At the World Justice Project, I saw how indices can be powerful diagnostic tools and motivators for change, as countries or jurisdictions work to strengthen their scores. They open the door for really important conversations on the path forward for change. I intend to carry this work forward to the Basel Institute, as I believe the Basel AML Index – our flagship tool for assessing risks of money laundering and related financial crimes at the country level – has the potential to achieve even more than what it is already doing. Another key point these organisations have in common is the value they place on multi-stakeholder approaches. The rule of law isn’t just for lawyers and judges: it requires governments, businesses and civil society to work together. At the Basel Institute, one of the ways in which we’re advancing that vision is through Collective Action initiatives. These bring together the private sector and other stakeholders – typically government and civil society – in sustained, collaborative efforts to overcome shared corruption challenges and raise standards of business integrity and fair competition. I look forward to building on the Basel Institute’s track record in convening such multi-stakeholder initiatives, so critical to combating corruption effectively. From geopolitical shifts, to the threat of war, to tariffs, to climate change, with so many urgent global issues, how do you keep anti-corruption on the agenda? EA: This is something I have been thinking about a lot – in particular about the ways in which we need to frame, or reframe, the work that we do in terms of the policy priorities that prevail today. We have to link corruption to today’s top policy concerns, whether that’s defence spending, organised crime or the energy transition. There is an important corruption dimension to all of these contemporary priorities. By highlighting that connection through research, we can make the case that anti-corruption work isn’t a distraction or unnecessary expense; it’s foundational and an investment in long-term success. Illicit financial flows are another critical issue. These are not victimless crimes, but ones that rob communities of resources. Especially at a time when development assistance is shrinking, asset recovery and international cooperation to return stolen funds are more urgent than ever. That has always been at the core of the Institute’s work, but it feels all more urgent now. Some argue momentum on asset recovery is waning. Do you agree? EA: In fact, demand for our support in partner countries is growing. We have more demand than we can currently meet from governments asking us to help them develop capacity to investigate, prosecute and recover assets. We’re also seeing governments adopt stronger legal tools, such as non-conviction based forfeiture and improved anti-money laundering frameworks. And international cooperation mechanisms are maturing, which gives me confidence that progress is possible. There may be some fatigue, but there is also a growing awareness that asset recovery is not only a strategy for recovering stolen assets and obtaining much needed resources; it also acts as a deterrent and signals that organised crime will not pay. We also find a lot of promise in the work of the International Anti-Corruption Coordination Centre IACCC , the ongoing Global Forum on Asset Recovery GFAR Action Series and the GlobE Network – the Global Operational Network of Anti-Corruption Law Enforcement Authorities. This kind of international cooperation on anti-corruption and asset recovery is essential, and there are a lot of opportunities to enhance it through such initiatives. In this context, UK Deputy Prime Minister David Lammy’s commitment to tackling illicit finance and the announcement of a summit next year on this topic are really important. The summit represents a great opportunity for financial centres in particular to re-energise and re-focus the fight against illicit finance. How does the Basel Institute bridge the gap between international standards and local realities? EA: This is a really important question, and its answer is a legacy of Gretta Fenner, the Basel Institute’s Managing Director for many years who tragically passed away in 2024. I am proud to say that we never parachute in with a one-size-fits-all presentation. For example, each Basel Institute training on financial investigations and asset recovery is tailored to the local context – to reference the local laws, the local procedures, even the local evidence and context in which crime happens. And this training is typically followed up with mentoring by expert advisors who are often embedded directly with partner agencies in the country. This high-touch approach is time intensive, but it’s the only way to ensure international standards translate into meaningful local practice, and this is something the Institute really excels in. Funding challenges, especially rising from the new US administration’s decisions to cut USAID, have shaken civil society. How is the Basel Institute responding? EA: We’re incredibly fortunate to have a loyal group of donors who have sustained or even increased their support. We don’t take it for granted, however, so we’re also working to diversify funding, including by engaging the private sector. Many companies now recognise that good governance is essential to their bottom line. We’ve also received generous support for education from individuals, such as scholarships for our new graduate-level anti-corruption and asset recovery courses with the University of Basel. Investing in the next generation of leaders is something I’m particularly excited about. I really want to give a shout out to the International Academy of Financial Crime Litigators, which has through the Academy itself and a couple of generous members committed to fund two scholarships for talented professionals who would otherwise not be able to attend the course. Talking about the private sector, what role does the private sector play in fighting corruption? EA: It’s a critical role. We’ve promoted Collective Action for decades, helping to establish initiatives like the Wolfsberg Group and the Metals Technology Initiative. On our B20 Collective Action Hub – a leading free resource centre on this approach – we’ve documented over 300 such initiatives. This growing dataset allows us to identify what works when engaging the private sector in fighting corruption. It allows us to push beyond rhetoric or box-ticking towards initiatives that have meaningful impact. Despite setbacks, what keeps you hopeful? EA: Above all, the people. My colleagues at the Institute, many recruited by my predecessor Gretta Fenner, are extraordinarily talented and committed. Our partners around the world often take up this cause at personal risk, which is deeply inspiring. And then there are the broader networks drawn from government, businesses, civil society, the media and ordinary citizens, standing up against corruption. When you see that collective energy, it’s impossible not to feel optimistic. Finally, what research is the Basel Institute prioritising next? EA: We’re looking closely at how to strengthen legal tools while safeguarding human rights, for example, with a comparative study of non-conviction based forfeiture laws. We’re also exploring mechanisms to help ensure fines from foreign bribery cases can be used to support anti-corruption initiatives, including in communities that have been harmed by corruption. Both areas aim to make anti-corruption and asset recovery frameworks not only more effective, but also more just. The Academy's Bulletin has been established to transmit the work of Academy Fellows, draw attention to matters of importance to the legal community and provide high-level analysis of cutting-edge issues in global financial crime investigations and litigation. The Basel Institute on Governance acts as Secretariat to the Academy.

Reporting suspicious crypto activity

Policy Brief 18: Managing seized cryptoassets

Working Paper 54: Targeting illicit wealth through non-conviction based forfeiture: Identifying human rights and other standards for Latin America

Quick Guide 26: National money laundering and terrorist financing risk assessments

Quick Guide 25: Tax investigations and illegal wildlife trade