Something’s smelling rank around here

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.

This entry was posted in AML, Due diligence, Training and tagged , , , , , . Bookmark the permalink.

1 Response to Something’s smelling rank around here

  1. Pingback: Season of bribes and mellow inducements | I hate money laundering

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