IT-Solutions in Money Laundering/Counter Terrorism Financing Risk Assessment in Commercial Banks

2020 ◽  
pp. 156-164
Author(s):  
Sofya Klimova ◽  
Asmik Grigoryan
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
Commercial Banks ◽  
Counter Terrorism ◽  
Financing Risk ◽  
Terrorism Financing

National Anti-Money Laundering/Counter-Terrorist Financing Risk Assessment as a Partial Tool for Creditor’s Protection

2017 ◽  
Vol 9 (1) ◽  
pp. 47-57 ◽  
Author(s):  
Lucia Kurilovská ◽  
Marek Kordík
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
Slovak Republic ◽  
Qualitative Aspect ◽  
The Third ◽  
Financing Risk ◽  
Terrorism Financing ◽  
The Subject ◽  
Financing Of Terrorism ◽  
First Time

This paper deals with a national risk assessment. The subject of the risk assessment is money laundering and the financing of terrorism. This is the first time it has been conducted in the Slovak republic. The contribution shows what are the decisive criteria in evaluating the national system of terrorism financing. The first variable that needs to be taken in account is the number of cases. The second variable is the qualitative aspect of the cases. The competency of the personnel constitutes the third variable. The infrastructure generates a fourth variable in order to prevent, avoid and respond such a threat. The other variables are strongly related to the directions and channels of the terrorism financing. The infrastructure belongs to the category of other variables. The paper also deals with data sources and lists those that should be used as a source for further evaluation. The outcome of the NRA will be a comprehensive report.

Eff ectiveness of the Anti-Money Laundering and Counter-Terrorist Financing Legislation as a Determinant for Asset Confi scation and Freezing Sanctions

2018 ◽  
Vol 9 (2) ◽  
pp. 119-135
Author(s):  
Lucia Kurilovská ◽  
Marek Kordík
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
Slovak Republic ◽  
Legal Framework ◽  
The Other ◽  
Data Sources ◽  
The Third ◽  
Terrorism Financing ◽  
The Subject ◽  
First Time

The paper deals with a  national risk assessment. The subject of  the risk assessment is money laundering and terrorism financing. This is the first time it has been conducted in the Slovak republic. The contribution shows what are the decisive criteria in evaluating the national system of anti-money laundering and terrorism financing. The  first variable that needs to be taken in account is measures examining the legal framework. The second variable is the institutional framework. The competency of personnel represents the third variable. The infrastructure creates the fourth variable in order to prevent, avoid and respond to such a threat. The other variables are strongly related to the effectiveness of the sanctions. The infrastructure belongs to the other variables. The contribution deals also with data sources and lists those that should be used as a source for further evaluation. The outcome of the NRA will be a comprehensive report.

Customer’s awareness, trust, discomfort and acceptance of anti-money laundering practices in Malaysian Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zuliera Zariz Azman Aziz ◽  
Seri Ayu Masuri Md Daud
Keyword(s):  
Technology Acceptance ◽  
Money Laundering ◽  
Significant Relationship ◽  
Integrated Approach ◽  
Content Type ◽  
Counter Terrorism ◽  
Banking Secrecy ◽  
Terrorism Financing ◽  
Survey Instruments ◽  
Acceptance Model

Purpose This study aims to examine the associations between customers’ awareness of money laundering and terrorism financing, trust in banking secrecy measures and discomforts in fulfilling the bank’s anti-money laundering (AML) procedure and their acceptance of existing practices of banks regarding AML and counter-terrorism financing. Design/methodology/approach This study adapts a set of survey instruments developed and validated by prior studies to collect the required data. A convenient sample of 160 Malaysian bank customers aged 18 and above were surveyed to collect the data. Findings This study finds a significant relationship between the respondents’ awareness of money laundering and terrorism financing, trust in banking secrecy measures and their acceptance of the bank’s AML and counter-terrorism financing practices. However, no significant relationship is documented between the level of discomforts experienced by customers in satisfying the banks’ AML requirements and their acceptance of the banks’ AML practices. These results hold even after controlling for alternative explanations of the customers’ acceptance of banking practices examined in the extant literature: age, gender, location, literacy level and occupation. Research limitations/implications This study extends the literature on customers’ acceptance of banking practices more broadly by providing empirical evidence on the role of customers’ awareness on issues underlying the banking practices and their trust in the bank’s secrecy measures. Practical implications This study also provides some practical contributions by shedding some light on the factors that could help banks increase the acceptance of AML practices among their customers. Thus, the findings of this paper help banks focus their effort on these factors and hence increase acceptance rate more effectively. Originality/value Drawing on the elements of the theory of reasoned actions and technology acceptance model and the extant research on trust-privacy and comfortability in a banking setting, this study proposes an integrated approach that is theoretically and empirically grounded.

scholarly journals FATF in Combating the Financing of Terrorism

2014 ◽  
pp. 88-96
Author(s):  
K. S. Melkumyan
Keyword(s):  
International Law ◽  
Money Laundering ◽  
Task Force ◽  
World Politics ◽  
Timely Manner ◽  
Financing System ◽  
Counter Terrorism ◽  
Terrorism Financing ◽  
Geographical Expansion ◽  
Financing Of Terrorism

The article examines the FATF specific approach to the problem of terrorism financing. The FATF essence, content of the activity and influence levers are also analyzed within the article. It is shown that the FATF has reviewed the problem of terrorism financing in the broadest perspective, having engaged simultaneously and consistently mechanisms for combating money laundering and terrorism financing. The Task Force has greatly contributed to building of the world counter-terrorism financing system through forming the legal and institutional basis as well as through interaction with all the possible participants and actors of world politics in this area. Moreover, the FATF has succeeded in geographical expansion of the FATF influence from the original 16 to187 jurisdictions by promotion of FATF-style regional bodies establishment. Particular attention is drawn to the unique features of the FATF Recommendations in comparison with the earlier issued sources of international law, which define the international counter-terrorism financing regime. The author believes that one of the advantages of the FATF as an institute within the counter-terrorism financing system among others is the informal status of the FATF, which provides its flexibility and high ability to respond quickly and in a timely manner to evolving nature of money laundering and terrorism financing as well as emerging threats.

scholarly journals Compliance and corporate anti-money laundering regulation

2018 ◽  
Vol 7 (2) ◽  
pp. 7-14 ◽  
Author(s):  
Pietro Pavone ◽  
Francesco Parisi
Keyword(s):  
Money Laundering ◽  
Internal Control ◽  
Large Area ◽  
Internal Control System ◽  
Financing Risk ◽  
Terrorism Financing ◽  
The Will ◽  
The Government ◽  
Corporate Actions ◽  
Italian Legislation

This paper, having traced the evolution of anti-money laundering legislation, defines and frames money laundering and terrorism financing risk inside corporate dynamics. Principles that must inspire corporate actions on the construction of an adequate managing structure to contain risks are set out, considering the fact that there is no risk that this does not have an economical content. This is even truer in the presented case, given that the Italian legislation to counter money laundering is focused on the innovative and modern risk-based approach, which has to guide the organization and functioning of corporations. Possible configuration of corporate anti-money laundering supervisions is therefore analyzed, with the aim of underlining the present connection between anti-money laundering legislation and rules referring to the government and to the internal control system. The present study originates from the interpretation of the new Italian anti-money laundering law. In particular, the first consideration that derives is that the new law does not impose precise obligations in terms of corporate anti-money laundering structure, but a large area of autonomy is left to the will of each company.

Data Mining in the Investigation of Money Laundering and Terrorist Financing

2011 ◽  
pp. 228-241 ◽  
Author(s):  
Ibrahim George ◽  
Manolya Kavakli
Keyword(s):  
Data Mining ◽  
High Risk ◽  
Decision Tree ◽  
Money Laundering ◽  
Financial Applications ◽  
Counter Terrorism ◽  
Terrorist Financing ◽  
Terrorism Financing ◽  
Operational Data ◽  
Financial Organisation

In this chapter, the authors explore the operational data related to transactions in a financial organisation to find out the suitable techniques to assess the origin and purpose of these transactions and to detect if they are relevant to money laundering. The authors‘ purpose is to provide an AML/CTF compliance report that provides AUSTRAC with information about reporting entities‘ compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Their aim is to look into the Money Laundering activities and try to identify the most critical classifiers that can be used in building a decision tree. The tree has been tested using a sample of the data and passing it through the relevant paths/scenarios on the tree. The success rate is 92%, however, the tree needs to be enhanced so that it can be used solely to identify the suspicious transactions. The authors propose that a decision tree using the classifiers identified in this chapter can be incorporated into financial applications to enable organizations to identify the High Risk transactions and monitor or report them accordingly.

Sign in / Sign up

Export Citation Format

Share Document