We all love rankings and league tables, don’t we? Top ten this and five biggest that – we can’t resist. And the world of money laundering is no different. Pity the poor MLRO, looking for ways to apply a fair risk-based approach to his clients and their transactions, and who can blame him for seizing with joy upon any sort of list that can make his life simpler.
The grand-daddy of them all is the Transparency International (TI) Corruption Perceptions Index (CPI), issued every October-ish and – as the name might suggest – ranking the world’s countries according to how corrupt they are perceived to be. (Not how corrupt they are, you understand – as I think we can all see that that is pretty much unquantifiable.) TI also produce a smaller and less frequent Bribe Payers’ Index, which looks at the supply side of corruption – in other words, how likely are citizens of particular countries to pay bribes when they travel and work abroad, and so disseminate corruption.
A new entrant is the Financial Secrecy Index which – according to its website – “identifies the jurisdictions that are most aggressive in providing secrecy in international finance, and which most actively shun co-operation with other jurisdictions”. As you can imagine, this throws up some interesting contrasts with the CPI…
To see some other thoughts on the CPI, take a look at this post.