Financial Crime World

Title: Basel AML Index 2023: New Report Ranks Countries by Money Laundering and Terrorist Financing Risk

The 12th edition of the Basel AML Index has been released by the Basel Institute on Governance, providing a detailed assessment of money laundering (ML) and terrorist financing (TF) risks faced by countries worldwide in 2023.

Basel AML Index: A Comprehensive Evaluation of ML/TF Risks

The Basel AML Index is a vital tool for financial institutions, regulatory bodies, and other stakeholders to understand and navigate the complex ML/TF risk landscape. Key features of the Index include:

  • Public evaluation of risk values on a scale of 1 to 10 for each country.
  • Recognition by the Financial Action Task Force (FATF) and numerous international organizations as an essential resource in the fight against financial crimes.

Wide-ranging Assessment of ML/TF Risks

The Index covers various factors that influence ML/TF risks, such as:

  • Legal frameworks
  • Law enforcement
  • Regulatory transparency
  • Effectiveness of government initiatives
  • International cooperation

Key Findings from the 2023 Report

Some findings from the 2023 report include:

  • Countries with Increased Risk Levels: North Korea and Syria remain significant threats in the ML/TF arena with high risk ratings.
  • Lowest Risk Jurisdictions: Norway, Sweden, and Denmark continue to rank among the lowest risk jurisdictions with minimal ML/TF risks.

The Importance of a Robust, Internationally Coordinated Approach

The Basel AML Index underscores the importance of a robust, internationally coordinated approach to combat financial crimes. It serves as a call to action for countries to:

  • Strengthen their regulatory frameworks
  • Enhance cooperation
  • Prioritize the implementation of best practices

Release of the 2023 Basel AML Index: A Timely Call to Action

The release of the 2023 Basel AML Index comes at a crucial time, as the global focus on ML/TF risks continues to intensify. Financial institutions, regulators, and governments must stay informed about the evolving threats and respond accordingly to mitigate potential risks and maintain the integrity of the financial system.