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.
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.
Money laundering risks evolve fast, as do the tools and data available to assess them. That is why the Basel AML Index – the Basel Institute’s flagship index of money laundering risks around the world – updates its methodology every year, following an in-depth review with a group of experts from diverse backgrounds.
Our recently released 9th Basel AML Index reveals – disappointingly – that global money laundering risks remain high. The average risk score across all 141 countries in the Public Edition this year is 5.22, compared to 5.39 in 2019.
Few countries are making dramatic progress in addressing these risks. In fact, only six countries improved their risk scores by more than one point. 35 countries went backwards.
Released today, the 9th Basel AML Index will disappoint anyone wishing for tangible progress in combating money laundering and terrorist financing (ML/TF) around the world.
The average ML/TF risk score across all 141 countries in the 2020 Public Edition of the Basel AML Index remains unacceptably high at 5.22 out of 10, where 10 equals maximum risk. In fact, only six countries improved their scores by more than one point. 35 countries went backwards.
From mid-June, the Basel AML Index Expert Edition will highlight countries included on the European’s list of “high-risk third countries” with strategic deficiencies in their anti-money laundering and counter terrorist financing (AML/CFT) regimes.
The 9th public edition of the Basel AML Index, an independent ranking of countries’ risk of money laundering and terrorist financing, will feature several changes to its underlying indicators and methodology. The new edition of the Basel AML Index is due to be released in early July.
Russia’s risk level in the Basel AML Index has hit a record low following a December 2019 Financial Action Task Force (FATF) assessment that rated the country’s anti-money laundering and counter terrorist financing (AML/CFT) systems as reasonably effective.