The threats of money laundering and terrorist financing are growing year by year, and penalties for non-compliance with money laundering laws skyrocketed in 2021. As many as 17 banks were penalized in the first half of last year alone, with the largest fine exceeding one million dollars.
The Basel AML Report (anti-money laundering) index issued in September 2021 assessed around 200 countries and territories worldwide.
The Basel AML index is an independent annual ranking that assesses the risks of financial crime globally. The first report was issued in 2012 and evaluates jurisdictions based on several factors. These include the effectiveness of anti-money laundering systems, bribery and corruption, public accountability and transparency, legal and political risks, and financial transparency and standards.
The risks of money laundering and terrorist financing continue to rise over time. Whether it is the FATF Mutual Evaluation Report or the Basel AML Index Report, all assessments reveal that the situation could worsen. Many regions need to reassess their policies and systems to combat the increasing number of financial crime cases. According to the Basel report, ineffective anti-money laundering systems and poor laws have led to an increase in money laundering and terrorist financing activities.
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Among the countries known as havens for money laundering, Haiti ranks first, followed by the Democratic Republic of the Congo, Mauritania and Myanmar, while Mozambique holds the fifth position. They are followed by the Cayman Islands, Madagascar, Mali, and Senegal.
Among the countries with the lowest risk are European countries. These include Andorra, Denmark, Slovenia, Sweden, and Finland, while San Marino and Lithuania squeezed in among the Nordics.
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