Tuesday, July 30, 2013

Market Overview: The Impact of Anti-Money Laundering Regulations Market Analysis 2020

Description
Synopsis

The report provides a detailed overview of anti-money laundering (AML) initiatives taken by governments and regulatory bodies across the world to combat rapidly growing money laundering activity:

  • Examines the impact of money laundering and how wealth management and other financial institutions have taken measures to deal with such illicit activity
  • Provides a global perspective on various money laundering activities and the measures being taken to tackle the problem, in terms of enactment of regulations and coordination between nations
  • Provides an insight into various AML regulatory developments that have taken place in key markets and their impact on their respective governments, financial institutions and customers




Executive summary

Governments and regulatory bodies have taken numerous measures to curb money laundering activities in the last decade. The phenomenon has assumed increased urgency since 2008–2009 when economies across the world, developed nations in particular, were severely impacted by the financial crisis. Following the global economic slowdown, a number of regulations have been enforced; proposals for the Fourth Money Laundering Directive by the European Commission (EC) in 2013, the launch of new FATF money laundering recommendations in 2012, and the Foreign Account Tax Compliance Act (FATCA) in the US are key recent developments in global AML regulation. These initiatives are intended to strengthen the global AML regulatory environment and increase pressure on financial institutions to comply.

While AML compliance in North America and Europe is highly developed, it is yet to reach these standards in a number of emerging economies in the Asia-Pacific, Middle East and Latin America. While many countries in these regions have formulated AML regulations in the past, effective enforcement by local regulators has been the key challenge. However, governments and regulatory bodies in these nations have demonstrated their interest in bringing their AML compliance in line with international standards. Limited regulatory enforcement and rising money laundering activity have compelled global financial institutions in these economies to take a proactive approach to improve their AML processes, such as know your customer (KYC) and customer due diligence (CDD).




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