Global Anti-Money Laundering Effectiveness at 32% According to Financial Action Task Force (FATF)

Since 2014, the Financial Action Task Force (FATF) has been assessing the effectiveness of countries’ measures to stop money laundering practices in their country. As of December, 2017, 43 countries around the world have been assessed and the average effectiveness of this sample stands at just 32 percent. Of the 43, only seven countries scored above 50% and none scored above 70%. The top seven countries are the USA, Spain, Italy, Switzerland, Australia, Portugal, and Sweden. 

Each country was scored on effectiveness and the degree to which technical compliance systems were implemented. For effectiveness, there were eleven criteria for which a country could receive a designation of effectiveness as high, substantial, moderate, or low. And for technical compliance, there were ten criteria for which a country could be designated as compliant, largely compliant, partially compliant, or non-compliant. The criteria included to what degree supervisors at financial institutions were monitoring their compliance with AML/CFT requirements and whether or not proceeds and instrumentalities of crime are confiscated. The full list of the criteria can be found on the FATF website.

Transparency International Report

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