De-risking: An Unintended Negative Consequence of AML/CFT Regulation

Ramachandran, Vijaya; Collin, Matthew; Juden, Matt

doi:10.1007/978-3-319-64498-1_11

Cited by 6 publications

(4 citation statements)

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“…Still, they remain unacknowledged because banks’ size and geographic location affect perceptions about the banks in the international market (Duncan, 2018). In addition, AML regulation has caused private actors involved in de-risking (and de-banking) clients (Ramachandran, Collin, and Juden, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Sultan

Mohamed²

2022

JMLC

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Purpose This study aims to investigates the challenges faced by Pakistani financial institutes (FIs) and regulators in implementing robust customer due diligence measures. Design/methodology/approach The study adopted a qualitative technique. Twenty-five semi-structured interviews with chief compliance officers and regulators were conducted. Findings The study concluded that the main challenges are name screening, obsolete nature and quality of databases and undocumented, unregistered and unregulated portions of the economy and society. In addition, identification and verification of high-profile customers and beneficial owners, lack of specialised staff and cost of compliance are the significant challenges faced by FIs in Pakistan. Originality/value The Pakistani financial sector is less researched on anti-money laundering front, especially concerning customer due diligence. Further, the social, cultural and economic norms of the Indian sub-continent are more or less the same. Therefore, the study findings could be generalised to the region.

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Section: Literature Reviewmentioning

confidence: 99%

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Sultan

Mohamed²

2022

JMLC

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“…34 In the same sense, concerns have been expressed as to the fact that AML regulation has resulted in private actors engaging in de-risking (and de-banking) of customers. 35 Given this context, an extensive literature exists on AML, mainly focusing on the financial sector. 36 Moreover, as already recalled, international and national legislations have increasingly imposed obligations on different sectors and the actors involved in them, including lawyers, accountants and estate agents.…”

Section: Contextualising Aml In the Real Estate Sectormentioning

confidence: 99%

The Challenges of Implementing Anti‐Money Laundering Regulation: An Empirical Analysis

Zavoli¹,

King

2021

Modern Law Review

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For over three decades, money laundering has been an area of concern for policymakers and law enforcement, with significant efforts undertaken at national and international levels to combat it. Recently, laundering of criminal proceeds using real property has attracted increased attention amongst policymakers. Various efforts are now being undertaken to tackle money laundering in the UK property market, but there are still significant difficulties in its practical implementation. Drawing upon semi-structured interviews with estate agents and compliance officials, this study identifies critical aspects of AML compliance that are particularly problematic for those involved in it. In so doing, this article delivers a new perspective, by analysing data gathered with the first empirical study on the implementation of AML obligations in practice (in the UK property market) since the introduction of the 2017 Money Laundering Regulations.

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“…Due to the fear governing the relationship between the regulatory authorities and the banking sector, and banks not feeling that they are partners in tracking criminals through the financial system, they will continue to operate conservatively and to restrict services for high-risk customers (Keatinge, 2014b). The remittance companies are regarded as high-risk customers even though they comply with the procedure because the money remitters to the high-risk countries (Ramachandran et al, 2018). In this regard, the Dahabshill is an interesting case.…”

Section: Money or Value Transfer Systemsmentioning

confidence: 99%

Financial exclusion as a consequence of counter-terrorism financing

Malakoutikhah

2020

JFC

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Purpose The purpose of this paper is to analyse the unintended consequences, financial exclusion, of counter-terrorism financing regulations in terms of their impact on financial inclusion and, consequently, the creation of an ineffective counter-terrorism financing framework. A further aim is to make recommendations to mitigate these unintended consequences. Design/methodology/approach This subject is examined by using the practices of a range of countries and organisations. The interdisciplinary approach of the paper is highlighted, which comprises criminal law, banking law, international law and human rights law. Findings Financial exclusion is a focal point that results in ineffective counter-terrorism measures which are caused mostly by the formal financial sector, in particular, the banking system. The financial exclusion also leads to counter-productive counter-terrorism financing through a low risk-appetite, de-risking, de-banking, financial exclusion and using unregulated or less-regulated and supervised financial systems. Originality/value No article comprehensively analyses financial exclusion as a consequence of counter-terrorism financing framework. The paper examines the process of counter-terrorism financing regulations, which leads to financial exclusion. In addition, the impact of financial exclusion on all relevant actors, such as individuals, correspondent banking relationships, money and value transfer services, charities and virtual currencies, is examined.

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De-risking: An Unintended Negative Consequence of AML/CFT Regulation

Cited by 6 publications

References 0 publications

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

The Challenges of Implementing Anti‐Money Laundering Regulation: An Empirical Analysis

Financial exclusion as a consequence of counter-terrorism financing

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