IDEAS home Printed from https://ideas.repec.org/a/pal/risman/v27y2025i4d10.1057_s41283-025-00169-5.html
   My bibliography  Save this article

Risk assessment in anti-money laundering: an integrated entropy-AHP-VIKOR model

Author

Listed:
  • Yuan Liu

    (Capital University of Economics and Business)

  • Yadi Wang

    (People’s Public Security University of China)

  • Anqi Guo

    (People’s Public Security University of China)

  • Ning Ding

    (People’s Public Security University of China)

Abstract

Money laundering poses a serious risk to financial systems worldwide, and it is difficult to quantitatively characterize the risk. To bridge this gap, we propose a hybrid decision framework integrating entropy weight method (EWM), analytic hierarchy process (AHP), and VIKOR algorithm, which enables risk stratification of high-risk personnel and enterprises. Based on 500 real cases of money laundering, a framework of risk features is established. The combination of EWM and AHP determines the combined weighting. Then, the VIKOR method is utilized to calculate the compromise solution and rank the target of evaluation, thereby determining the level of personnel and enterprise risk. To validate the model, we select real data of personnel and enterprises in China, and the findings show that the ranking of the model is consistent with the selected case data. The combined weighting VIKOR model offers a way to identify high-risk personnel and enterprises. This study provides actionable insights for enterprise risk management practices, supports risk-sensitive capital allocation decisions, and offers a potential framework for incorporating anti-money laundering (AML) risk into regulatory capital requirements.

Suggested Citation

  • Yuan Liu & Yadi Wang & Anqi Guo & Ning Ding, 2025. "Risk assessment in anti-money laundering: an integrated entropy-AHP-VIKOR model," Risk Management, Palgrave Macmillan, vol. 27(4), pages 1-45, December.
    • Handle: RePEc:pal:risman:v:27:y:2025:i:4:d:10.1057_s41283-025-00169-5
    DOI: 10.1057/s41283-025-00169-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41283-025-00169-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41283-025-00169-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:pal:risman:v:27:y:2025:i:4:d:10.1057_s41283-025-00169-5. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.