On 19th August, the Basel Institute on Governance published its 2019 Index, saying that falling rankings in the Index are said to show how many countries’ AML systems are a weak defence against today’s money laundering risks. It says that this may help to explain why countries generally considered “safe” for investment have been hitting headlines recently with high-profile money laundering scandals. Colombia, Latvia, Finland, China and Lithuania fell significantly in this year’s Basel AML Index – due to poor ratings by FATF. Denmark is rated the least risky country for corruption and bribery, followed by New Zealand and Singapore in a list of top 10 performers dominated by Nordic and northern European countries. Unsurprisingly perhaps, offshore financial centres such as the Marshall Islands, Grenada and St. Lucia are among the lowest-performing countries in terms of financial transparency and standards, but some larger financial centres such as Switzerland and the UK have improved their scores in this category since 2018. Countries destabilised by war, with weak rule of law and where members of the press are stifled, are easily abused by criminal and this year’s list of poor performers in this category is led by Yemen and Venezuela. The Index rates countries on –
- Quality of ML/TF Framework;
- Bribery and Corruption;
- Financial Transparency and Standards;
- Public Transparency and Accountability; and
- Legal and Political Risks.
The Index is available at –
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