Aml Kyc Essay

6224 WordsAug 10, 201225 Pages
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1368-5201.htm The fight against money laundering An economic analysis of a cost-benefit paradoxon Hans Geiger and Oliver Wuensch Swiss Banking Institute, University of Zurich, Zurich, Switzerland Abstract Purpose – To provide an economic view on the costs and benefits of anti-money laundering (AML) efforts. Design/methodology/approach – Based on a international, comparative study conducted in Switzerland, Singapore and Germany, the authors outline the impact of AML measures on banks and the financial services industry. The paper discusses possible reasons for the failure of AML to fight the predicated crimes. It also discusses the collateral damage caused by AML. Findings – Compared with the monetary and non-monetary costs of money laundering prevention for the society and the economy, the benefits are small. Instead of broadening and deepening the current AML framework, a thorough review of the current approach should take place. Research limitation/implications – Costs and benefits of AML measures are hardly quantifiable. The authors resort to a qualitative approach, stylising possible outcomes and side effects of money laundering prevention. Practical implications – Useful set of arguments for discussing the benefits and shortcomings of the current and upcoming AML measures. Originality/value – Money laundering measures and their impact are examined using basic laws of economy and financial intermediation. Keywords Money laundering, Economic value analysis, Cost benefit analysis Paper type Conceptual paper The fight against money laundering 91 Prologue The Swiss Banking Institute of the University of Zurich has, in co-operation with universities in Germany and Singapore, conducted an international survey on the anti-money laundering (AML) measures among banks in

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