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Compliance with the AM+L4776L/CFT International Standard; Lessons from a Cross-Country Analysis

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  • Concha Verdugo Yepes

Abstract

This paper assesses countries' compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) international standard during the period 2004 to 2011. We find that overall compliance is low; there is an adverse impact on financial transparency created by the cumulative effects of poor implementation of standards on customer identification; and the current measurements of compliance do not take into account an analysis of ML/FT risk, thereby undermining their credibility and the relevance of some of the policy recommendations taken on their basis. Moreover, we also examine the key role of some cultural, institutional, and financial factors in boosting countries' compliance using econometric analysis.

Suggested Citation

  • Concha Verdugo Yepes, 2011. "Compliance with the AM+L4776L/CFT International Standard; Lessons from a Cross-Country Analysis," IMF Working Papers 11/177, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:11/177
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    References listed on IDEAS

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    1. Jos de Wit, 2007. "A risk-based approach to AML: A controversy between financial institutions and regulators," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 15(2), pages 156-165, May.
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    4. Richard Podpiera, 2006. "Does Compliance with Basel Core Principles Bring Any Measurable Benefits?," IMF Staff Papers, Palgrave Macmillan, vol. 53(2), pages 1-5.
    5. Richard Podpiera, 2004. "Does Compliance with Basel Core Principles Bring Any Measurable Benefits?," IMF Working Papers 04/204, International Monetary Fund.
    6. Boileau Loko & Mame Astou Diouf, 2009. "Revisiting the Determinants of Productivity Growth - What’s new?," IMF Working Papers 09/225, International Monetary Fund.
    7. Donato Masciandaro, 2005. "False and Reluctant Friends? National Money Laundering Regulation, International Compliance and Non-Cooperative Countries," European Journal of Law and Economics, Springer, vol. 20(1), pages 17-30, July.
    8. Simmons, Beth A., 2001. "The International Politics of Harmonization: The Case of Capital Market Regulation," International Organization, Cambridge University Press, vol. 55(03), pages 589-620, June.
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    10. Alessandro Gambini & Salim M. Darbar & Marco Arnone, 2007. "Banking Supervision; Quality and Governance," IMF Working Papers 07/82, International Monetary Fund.
    11. Sieglinde Gstöhl, 2007. "Governance through government networks: The G8 and international organizations," The Review of International Organizations, Springer, vol. 2(1), pages 1-37, March.
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    Cited by:

    1. Balakina, Olga & D’Andrea, Angelo & Masciandaro, Donato, 2017. "Bank secrecy in offshore centres and capital flows: Does blacklisting matter?," Review of Financial Economics, Elsevier, vol. 32(C), pages 30-57.

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