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Top ML/TF Risks: Basel AML Index

· 2 min read
Lucy Wilson
Financial Intelligence Analyst

The Basel AML Index is an independent ranking and risk assessment tool that provides insights into countries' vulnerability to money laundering and terrorist financing (ML/TF) risks. Managed by Basel Governance, its primary goal is to promote transparency and facilitate a global effort to combat these illicit activities.

Highest-Risk Countries​

According to the Basel AML Index, the following countries pose the highest ML/TF risks:

  • Afghanistan
  • North Korea
  • Somalia

These countries present significant challenges in detecting and preventing financial crimes due to weak regulatory frameworks and a lack of international cooperation.

Safest Countries​

On the other hand, countries such as:

  • Portugal
  • Finland
  • Ireland

rank among the safest,showing a strong commitment to anti-money laundering regulations and transparency.

Basel AML Index

Basel AML Index Methodology​

The Basel AML Index methodology evaluates numerous factors, including:

  1. Regulatory Framework: Assesses the quality and strength of a country's anti-money laundering laws, regulations, and supervisory bodies.
  2. Transparency: Evaluates the level of transparency in a country's financial system and business dealings.
  3. Risk Perception: Analyzes the overall risk perception based on global expert opinions and historical ML/TF trends.
  4. Potential for ML/TF Activities: Analyzes factors such as money flows, geographical location, and political instability that could contribute to ML/TF activities.

Benefits of Basel AML Index​

This data-driven, dynamic tool is essential for both public and private organizations to:

  • Make informed decisions about international transactions and business partners.
  • Mitigate risks associated with ML/TF activities.
  • Implement best practices to combat financial crimes effectively.

Stay Informed​

Stay up-to-date on cross-border money laundering risks and learn from trusted institutions, regulators, and financial institutions that are implementing best practices to combat ML/TF activities. Access the Basel AML Index for comprehensive, up-to-date risk assessments.