Asset recovery practices in combating money laundering: evidence from FATF mutual evaluation report of FATF member countries of Asia pacific region

Abstract

Purpose This study aims to understand the member countries’ current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework. Design/methodology/approach Content analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries. Findings The result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets. Research limitations/implications This study is limited to information mentioned in the FATF MER. Practical implications This study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement. Originality/value FATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries’ discretion. Therefore, this study aimed to understand the member countries’ current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework.

Collaborative efforts in ASEAN for global asset recovery frameworks to combat corruption in the digital era

“…Such forfeiture rules do not call for beyond a reasonable doubt proof of illicit origin, unlike confiscation in criminal proceedings. Instead of relying on proof based on a balance of probabilities, this procedure emphasizes a high probability of illicit origin coupled with the owner's incapacity to disprove it (Zolkaflil et al, 2023). Besides criminal and civil procedure at the court, sometimes asset recovery effort takes place voluntarily like in Abdullah Puteh's case (Cahyandhi, 2019).…”

Analysis of The Impact Financial Action Task Force On Money Laundering and Terrorism Financing?(FATF) On The Supervision of Money Laundering and Terrorism Financing Crimes In Indonesia

“…Money laundering is a form of criminal activity that seeks to conceal the legitimacy of the proceeds of crime by disguising them as lawful income. The overall process consists of a placement stage, a layering stage, and an integration stage (Gilmore, 1999;He, 2010;Zolkaflil et al, 2023). Money laundering is a complex activity, where the source and nature of dirty money are disguised so that the money looks legitimate and then usable, transferable, and negotiable (Hobson, 2008;Rider, 2008;Ryder, 2012).…”

“…The FATF introduced a series of recommendations (40 recommendations) in 2012 to guide the fight against money laundering and counterterrorism financing (AML/CFT). The FATF has conducted periodic assessments involving two main criteria, namely technical compliance and its effectiveness in monitoring the compliance of member states (Zolkaflil et al, 2023).…”

“…Money laundering related to terrorism financing is one of the major global threats because of its negative impact on the global economy. The International Monetary Fund (IMF) estimates money laundering rates to range between 2% and 5% of global Gross Domestic Product (GDP), involving an estimated $1.6 trillion to $4 trillion per year (Weeks-Brown, 2018;Zolkaflil et al, 2023). Due to the magnitude of the threat and the impact of money laundering globally, various efforts were made by many countries, one of which resulted in the Financial Action Task Force (FATF).…”