Investigating the determinants of money laundering risk

Yaseen Ghulam, Blandina Szalay

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Abstract

We conclude that, overall, the macroeconomic indicators are less relevant in influencing money laundering risk than the other factors adopted from the Basel report. Nonetheless, the volume of exports and the exchange rate were robust in both the ordered and multinomial regression analyses alongside financial secrecy, auditing standards, and corporate transparency. While more financial secrecy and a higher volume of exports were found to increase this risk, the other variables showed a negative relationship. We further conclude that it is mostly less secrecy, more transparency, and better auditing that could gradually transform a high-risk country into medium risk.
Original languageEnglish
JournalJournal of Money Laundering Control
Early online date7 Mar 2023
DOIs
Publication statusEarly online - 7 Mar 2023

Keywords

  • transparency
  • auditing
  • macroeconomic conditions
  • corruption
  • money laundering

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