IDEAS home Printed from https://ideas.repec.org/a/aza/jfc000/y2017v1i1p37-45.html
   My bibliography  Save this article

Risk impact is in the eye of the beholder: The difficulties faced by the regulator in an offshore financial centre

Author

Listed:
  • Coleman, Paul

Abstract

Protecting the financial integrity and reputation of the financial sector by achieving strong anti-money laundering and combating terrorist financing regimes is a crucial responsibility of the regulator. Conflicting objectives exist between the regulator and the financial institution based upon their assessment, should money laundering occur, of the reputational impact to the country’s financial sector and to the financial institution itself. The expectation of the regulator, through rigorous supervision, to uphold the integrity of the financial sector continues to increase. While agreeing with the concept of effective management of money laundering and terrorist financing risks, the financial institution must protect the integrity of the financial system in the context of an environment of demanding cost constraints. This paper considers the impact of centralisation as a cost effective operating model against the increasing demand and expectations for robust regulatory compliance, highlighting the conflicting objectives of both the regulator and the financial institution.

Suggested Citation

  • Coleman, Paul, 2017. "Risk impact is in the eye of the beholder: The difficulties faced by the regulator in an offshore financial centre," Journal of Financial Compliance, Henry Stewart Publications, vol. 1(1), pages 37-45, June.
    • Handle: RePEc:aza:jfc000:y:2017:v:1:i:1:p:37-45
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/849/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/849/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    offshore financial centre; anti-money laundering (AML) compliance; risk; transaction monitoring; regulator; regulatory fines;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K2 - Law and Economics - - Regulation and Business Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jfc000:y:2017:v:1:i:1:p:37-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.