The Effects of Money Laundering (ML) on Growth Application to the Gulf Countries

Issaoui, Fakhri; Wassim, Touili; Toumi, Hassen

doi:10.4018/978-1-7998-2466-4.ch084

Cited by 2 publications

(2 citation statements)

References 7 publications

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“…Also, AML regulations eliminate inefficient firms from the marketplace to promote growth. Issaoui et al (2016) had shown that AML policies, suspicious transaction reporting and criminalization of terrorist financing have positive growth outcomes for Gulf countries. In a study of 135 countries, Djankov et al (2006) prove that countries with better business regulations grow faster.…”

Section: Review Of the Literaturementioning

confidence: 99%

Financial sector development, anti-money laundering regulations and economic growth

Ofoeda

Agbloyor

Abor

2022

IJOEM

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PurposeThis study examines the influence of anti-money laundering (AML) regulations on the financial development-economic growth nexus around the world.Design/methodology/approachThe study uses data from 165 countries spanning continents, income levels, and regulatory regimes from 2012 to 2018. The Prais–Winsten (1954) and Hansen (2000) panel threshold estimation approaches were used to assess the study's hypothesized relationships.FindingsFinancial development, according to the research, generally stimulates economic growth. However, the authors find evidence of AML regulations' threshold effect on the finance-growth connection, with the impact of finance on growth being positive below the threshold value. Above the threshold, however, the authors observe a negative influence. Further, the authors find that AML regulations have a considerable detrimental impact on the finance-growth nexus over the threshold for developed countries. However, the authors find a positive but insignificant effect of finance on growth below the AML regulations threshold for African countries, while finance positively impacts growth above the AML regulations threshold.Practical implicationsThe findings of the study imply that countries must make conscious efforts to combat the incidence of money laundering by establishing policies to improve financial transparency and standards, promoting public sector transparency and accountability, reducing legal and political risk, and combating bribery and corruption.Originality/valueThis study contributes to the literature as it is the first attempt to examine the moderating role of AML regulations in the finance-growth nexus. Also, the study examines the threshold effect of how AML regulations impact the finance-growth nexus.

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Section: Review Of the Literaturementioning

confidence: 99%

Financial sector development, anti-money laundering regulations and economic growth

Ofoeda

Agbloyor

Abor

2022

IJOEM

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“…A study by Fakhri et al (2016) examined the impact of money laundering on growth through Gulf countries during 1980-2014. The findings show that the main policies in matter of fight against money laundering "suspicious transaction reporting, anti-money laundering law, and the criminalizing of terrorist financing" have significant and positive impacts on raising the possibilities to realize more economic growth.…”

Section: Prior Studies Prior Studiesmentioning

confidence: 99%

ThThe Phenomenon of Money Laundering and Its Impact on Economic Growth in Iraq

Ali¹,

Ahmed²

2023

JKSS

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The purpose of this study is to assess the impact of money laundering on banking activities in Iraq by using the descriptive method to describe the money laundering problem and its effect on the Iraqi economy, specifically its impact on the economy and the banking sector. After that, we discussed the most recent steps taken into consideration by the government of Iraq to overcome this issue. The data in this study is based on secondary data collected from the annual reports of the Central Banks of Iraq (CBI) during (2021-2022). The collated data were statistically analyzed through the SPSS method. The results show that money laundering has a significant and negative impact on the Iraqi economy and causes structural damages to local currency in short- and long-term periods. Finally, the study recommends that serious government actions must be taken to overcome money laundering in Iraq and the banking sector in particular.

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The Effects of Money Laundering (ML) on Growth Application to the Gulf Countries

Cited by 2 publications

References 7 publications

Financial sector development, anti-money laundering regulations and economic growth

Financial sector development, anti-money laundering regulations and economic growth

ThThe Phenomenon of Money Laundering and Its Impact on Economic Growth in Iraq

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