Modelling the Risk Profiles of Clients in the Fight Against Money Laundering and Terrorism Financing
AbstractGlobal standards require financial intermediaries (FIs) to develop risk profiles to fight money laundering and terrorism financing. International typologies and multivariate analysis techniques are used to define profiles and develop models to classify clients; indicators are proposed to assess the vulnerability and exposure of intermediaries and the quality and stability of the models. Statistical evidence proves significant to validate profiles, avoiding the use of subjective criteria, generalizations, or stereotypes; a time-, resource-, and cost-efficient process is designed for FIs to monitor transactions and clients; the models are shown to be useful to assist intermediaries and regulators to deter these types of crimes.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 12 (2013)
Issue (Month): 2 (December)
emerging markets and developing economies; anti-money laundering and combat of terrorism finance; financial and capital markets; profiling risky clients;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, 09.
- Marco Arnone & Pier Padoan, 2008. "Anti-money laundering by international institutions: a preliminary assessment," European Journal of Law and Economics, Springer, vol. 26(3), pages 361-386, December.
- Donato Masciandaro, 1999. "Money Laundering: the Economics of Regulation," European Journal of Law and Economics, Springer, vol. 7(3), pages 225-240, May.
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