National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs

The Financial Action Task Force (FATF) requires national governments to demonstrate an understanding of the money laundering risks in the country. Such an understanding is the foundation for effective control of money laundering under the risk-base...

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Main Authors:	Ferwerda, Joras, Reuter, Peter
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2022
Subjects:	FINANCIAL ACTION TASK FORCE (FATF) MONEY LAUNDERING RISK ASSESSMENT INTERNATIONAL MONEY LAUNDERING POLICY CRIMINAL MONEY ANTI-MONEY LAUNDERING (AML) REGIME ILLEGAL MONEY CRIME
Online Access:	http://documents.worldbank.org/curated/en/099302204122255265/IDU02386c9b80f623045e70bf8a09a30b6162595 http://hdl.handle.net/10986/37305

id	okr-10986-37305
recordtype	oai_dc
spelling	okr-10986-373052022-04-15T05:10:36Z National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs Ferwerda, Joras Reuter, Peter FINANCIAL ACTION TASK FORCE (FATF) MONEY LAUNDERING RISK ASSESSMENT INTERNATIONAL MONEY LAUNDERING POLICY CRIMINAL MONEY ANTI-MONEY LAUNDERING (AML) REGIME ILLEGAL MONEY CRIME The Financial Action Task Force (FATF) requires national governments to demonstrate an understanding of the money laundering risks in the country. Such an understanding is the foundation for effective control of money laundering under the risk-based approach the FATF calls for. The authors analyzed the National Risk Assessments (NRAs) published by eight systemically important countries to test whether they demonstrate that basic understanding and to draw lessons for national governments from those NRAs. The eight show very different conceptualizations, analytic approaches, and products. Each raises serious issues regarding the risk assessment methodology. For example, most relied largely on expert opinion, which they solicited in ways that are inconsistent with the well-developed methodology for making use of expert opinion. They misinterpreted data from suspicious activity reports and failed to provide risk assessments relevant for policy makers. Only one described the methodology employed. Although the challenge of conducting strong risk assessments is great, given the difficulty of estimating the extent of money laundering in any sector, the findings based on this limited sample point to ways to improve substantially on existing practices. The report concludes with a set of suggestions for (international) policy makers and those conducting NRAs for improving risk assessments. Suggestions include increased clarity about the conceptualization of risk, transparency about data and methods so that each country can learn from others, and the adoption of more formal and standardized methods of eliciting expert opinion. 2022-04-14T15:27:32Z 2022-04-14T15:27:32Z 2022 Report http://documents.worldbank.org/curated/en/099302204122255265/IDU02386c9b80f623045e70bf8a09a30b6162595 http://hdl.handle.net/10986/37305 English EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Report Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCIAL ACTION TASK FORCE (FATF) MONEY LAUNDERING RISK ASSESSMENT INTERNATIONAL MONEY LAUNDERING POLICY CRIMINAL MONEY ANTI-MONEY LAUNDERING (AML) REGIME ILLEGAL MONEY CRIME
spellingShingle	FINANCIAL ACTION TASK FORCE (FATF) MONEY LAUNDERING RISK ASSESSMENT INTERNATIONAL MONEY LAUNDERING POLICY CRIMINAL MONEY ANTI-MONEY LAUNDERING (AML) REGIME ILLEGAL MONEY CRIME Ferwerda, Joras Reuter, Peter National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
relation	EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT;
description	The Financial Action Task Force (FATF) requires national governments to demonstrate an understanding of the money laundering risks in the country. Such an understanding is the foundation for effective control of money laundering under the risk-based approach the FATF calls for. The authors analyzed the National Risk Assessments (NRAs) published by eight systemically important countries to test whether they demonstrate that basic understanding and to draw lessons for national governments from those NRAs. The eight show very different conceptualizations, analytic approaches, and products. Each raises serious issues regarding the risk assessment methodology. For example, most relied largely on expert opinion, which they solicited in ways that are inconsistent with the well-developed methodology for making use of expert opinion. They misinterpreted data from suspicious activity reports and failed to provide risk assessments relevant for policy makers. Only one described the methodology employed. Although the challenge of conducting strong risk assessments is great, given the difficulty of estimating the extent of money laundering in any sector, the findings based on this limited sample point to ways to improve substantially on existing practices. The report concludes with a set of suggestions for (international) policy makers and those conducting NRAs for improving risk assessments. Suggestions include increased clarity about the conceptualization of risk, transparency about data and methods so that each country can learn from others, and the adoption of more formal and standardized methods of eliciting expert opinion.
format	Report
author	Ferwerda, Joras Reuter, Peter
author_facet	Ferwerda, Joras Reuter, Peter
author_sort	Ferwerda, Joras
title	National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
title_short	National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
title_full	National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
title_fullStr	National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
title_full_unstemmed	National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs
title_sort	national assessments of money laundering risks : learning from eight advanced countries’ nras
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099302204122255265/IDU02386c9b80f623045e70bf8a09a30b6162595 http://hdl.handle.net/10986/37305
_version_	1764486911400869888

National Assessments of Money Laundering Risks : Learning from Eight Advanced Countries’ NRAs

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