Basel, Switzerland has released today the 10th edition of the Basel AML index raise concerning questions about the path jurisdictions are toward fighting anti-money laundering (AML) and terror financing (TF).
The Basel AML Index is an independent annual ranking that assesses ML/TF threats across the globe and the capacity of jurisdiction's anti-money laundering and counter financing of terrorism (AML/CFT) measures to address their risks. The average global anti-money laundering frauds are elevated from 5.22% to 5.3% across 110 jurisdictions.
The Basel Institute on Governance provides a risk score based on global data intelligence units like FAFT, OFAC sanctions list or other global watchlists. These reports are standard and effective based on technical compliance as well as AML standards. The risk score covers five domains:
Quality of ML/TF Framework
Bribery and Corruption
Financial Transparency and Standards
Public Transparency and Accountability
Legal and Political Risks
Basel has concluded that the AML jurisdiction across the globe is in a weak spot. It requires automate and internationally accepted financial system to counter financial crime and money laundering. The risk score of several jurisdictions has improved this year but, none has managed to score more than 0.3% out of 10.
This year Basel has published a report on 4 areas of AML/CFT policy that need urgent attention:
A stronger response toward non-compliance
Effective prevention via brief analysis
Transparency for Ultimate Beneficial Owner
Addressing the avoidances for AML/CFL laws
Policymakers should analyze their respective jurisdictional risks and make plans for serious reform. No jurisdiction is doing well. We call on all jurisdictions to step up their game, said Andrea Schenker-Wicki.