New AML Index released by Basel Institute | Weekly Words of Wisdom
The Basel Institute on Governance, a global NGO focused on combating corruption and strengthening governance, has published its annual AML Index. The index assesses countries on their AML frameworks, corruption levels, financial transparency, political accountability, and political risk.
- Western Europe and the EU excelled in most areas, securing strong rankings. However, Malta and Bulgaria stood out as regional outliers with above-average risk scores.
- Eastern Europe and Central Asia scored below average, struggling with corruption, political risks, and weak press freedom. These regions show limited progress in addressing money laundering. Russia was excluded following its suspension from FATF membership.
- East Asia and the Pacific exhibited polarized results, with New Zealand performing well, ranking just outside the top 10, and Myanmar being the highest-risk country globally.
- North America performed well overall but faced high financial transparency risks tied to its large financial hubs
- Latin America and the Caribbean had generally low financial crime risks due to fewer large financial hubs but faced criticism for weak AML efforts, especially in drug trafficking and environmental crime.
- Middle East and North Africa performed well in AML frameworks but suffered from poor financial transparency and high corruption.
- Sub-Saharan Africa ranked the lowest globally, with only a few countries (Namibia, Seychelles, Mauritius, and Botswana) avoiding high-risk ratings.
- South Asia ranked below average overall but showed relative strength in transparency.
Since 2013, global AML efforts have improved significantly, bolstered by $206 billion spent by financial institutions on compliance measures in the past year.
Visit the Basel Institute’s AML Index here.