ANTI-MONEY LAUNDERING AND ITS EFFECTIVENESS

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Huang Ching Choo Mira Susanti Amirrudin Nur Adura Ahmad Noruddin Rohana Othman

Abstract

Anti-money laundering (AML) broadly encompasses procedures, processes,laws, or regulations designed to curtail the practice of generating fundsthrough illicit or criminal activities. Since 2001, Malaysian law enforcementagencies have stepped up their capacities and efforts to curb moneylaundering. However, implementation costs incurred on AML activitiescould be burdensome to the regulating, enforcement, and reporting agencies.Although these efforts are generally benefi cial, assessing their effectivenessbefore increasing the level of AML regulation is necessary. This paperreviews literature on various approaches used to estimate money launderingand assess the effectiveness of AML. Although different measures andmodels are used to estimate money laundering, no model to quantify moneylaundering is globally acceptable. The absence of an accurate measurementof costs incurred and the diffi culty in linking benefi ts to AML efforts posechallenges in assessing the effectiveness of AML policy. Nevertheless, the useof both crime data and perceived data on cost and effectiveness serves as astep forward in the determination of the effectiveness of AML in Malaysia.

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How to Cite
CHOO, Huang Ching et al. ANTI-MONEY LAUNDERING AND ITS EFFECTIVENESS. Management & Accounting Review (MAR), [S.l.], v. 13, n. 2, p. 109-124, dec. 2014. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/35>. Date accessed: 19 sep. 2018.
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