The risk‐based approach to anti‐money laundering: problems and solutions

Abstract

PurposeThe purpose of this paper, which is a part of a PhD thesis, is to detect problems associated with the risk‐based approach to anti‐money laundering (AML), as well as present ways to improve the risk‐based approach.Design/methodology/approachThe method is law and economics. The PhD thesis itself is also based on a comparative analysis of the Danish and British AML regimes.FindingsThe main findings are: failure to develop adequate risk‐based AML systems, taking into account varying levels of money laundering risk, is not only to be considered in the context of legal risk but also and more importantly in the context of integrity risk; anti‐money laundering (AML) has to be made part of financial and non‐financial institutions' corporate social responsibility policies; the Risk Analysis Manual provided by the Central Bank of The Netherlands lists very specific and comprehensive assessment criteria for a broad range of risks facing financial institutions. This manual could be considered by international bodies and individual financial institutions in informing their risk control; due to their intelligence access, cross‐national agreements of cooperation and exchange of information and contacts to multiple stakeholders, financial intelligence units are better placed in educating financial institutions on AML matters by means of regular typology publications and other guidance based on SARs and other intelligence; and AML considerations should be incorporated in other areas of law, such as immigration law concerning wealthy individuals, if the AML regime is to achieve its intended impact.Originality/valueThe paper highlights how the AML regime in general and the risk‐based approach in particular could be improved so as to meet concerns of both regulatory authorities and regulated entities.

Uji tuntas untuk kehutanan, layanan keuangan dan pelanggan: Upaya mengatasi pelanggaran hukum, pencucian uang dan korupsi pada sektor kehutanan Indonesia

“…Bank bergantung pada kendali internal serta kebijakan dalam menentukan apa yang perlu dilaporkan kepada pemerintah (Siminova 2011;Rahman 2013). …”

“…Hal ini termasuk mengkomunikasikan harapan serta praktek terbaik, resiko dan kesempatan yang datang dengan CDD. Contohnya, dalam beberapa konteks, ada resiko hukum dan keuangan yang jelas berkaitan antara ketidakpatuhan FSP dengan protokol CDD (Siminova 2011). Namun, tidak ada pengawasan akan kepatuhan CDD pada bankbank yang beroperasi di Indonesia, dan hanya ada sedikit bukti akan penegakan terkait dalam kegagalan mematuhi CDD.…”

“…Ada cakupan yang jelas untuk menyertakan regulator perbankan dalam pengawasan dan penegakan yang diperkuat baik dari protokolprotokol umum CDD dan yang secara spesifik berkaitan dengan "perbankan hijau" serta prakarsa keuangan yang berkelanjutan. Hal ini bergantung pada komunikasi yang kuat antar badan untuk menyediakan intelijen dan praktek yang terbaik di antara institusi regulator, pengawasan, dan penegakan (Siminova 2011). Kerja sama semacam ini amatlah penting untuk menghasilkan dukungan kolektif dan transparansi untuk mengalihkan sektor standar serta menjalankan langkah-langkah yang berpotensi menindak pelaku kuat dari dunia politik (Dermawan dkk.…”

“…Risiko tercorengnya reputasi juga bisa menjadi motivasi kuat bagi sektor swasta untuk terlibat di dalam upaya melestarikan lingkungan dan CDD untuk klien berbasis kehutanan (Siminova 2011;contohnya: EIA 2013). Khususnya FSP besar dengan nama internasional semakin berupaya memikirkan lingkungan, seperti yang telah terjadi pada tokoh pelaku besar yang terlibat dengan komoditas kunci pertanian (contohnya: minyak sawit, daging sapi, kedelai, bubur kayu).…”

Risk-Based Approach in the Prevention of Money Laundering

“…Over the last three decades, a broad legal framework has been developed that sets out specific guidelines and requirements that countries, and in particular financial institutions and business organizations, must adhere to in the conduct of their business. The belief is that anti-money laundering (AML) measures must become an integral part of financial and non-financial institutions' corporate social responsibility policies (Simonova, 2011).…”