Accountability in anti-money laundering – findings from the banking sector in Finland
| DOI | https://doi.org/10.1108/JMLC-12-2021-0140 |
| Published date | 14 February 2022 |
| Date | 14 February 2022 |
| Pages | 388-400 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Juuli Juntunen,Henri Teittinen |
Accountability in anti-money
laundering –findings from the
banking sector in Finland
Juuli Juntunen
UEF Business School, University of Eastern Finland, Joensuu, Finland, and
Henri Teittinen
UEF Business School, University of Eastern Finland –Kuopio Campus,
Kuopio, Finland
Abstract
Purpose –The purpose of this study is to explore how the banking industry seeks to prevent money
launderingand how the phenomenon is reflected in practice in the daily workof bank employees in Finland.
Design/methodology/approach –This study is a qualitative case study by its nature. The concept of
accountabilityhas been used as a theoretical approach in the study.
Findings –This study shows that knowingthe customer is one of the most important factors in preventing
money laundering. The risk-based approach, customer risk classification and bank’s internal instructions
have partially clarified daily routines in anti-money laundering (AML). Technological developments and
various payment services have generated new ways of money laundering,but technology has also made it
easier to monitor cash flows through various monitoring systems. The challenge is constantly changing
regulationsconcerning how to act in different situations for different customers.
Originality/value –This study investigated the accountability of banks in AML in Finland and highlighted
how bank employees implement accountability for AML in an ever-changingsocio-technical context.
Keywords Finland, Banking, Accountability, Anti-money laundering
Paper type Research paper
1. Introduction
Banks operate in a paradoxical business environment. On the one hand, ever-changing and
tightening regulations are forcing financial institutions to redefine their business models
and minimise their own risks and to act as a protector of society. On the other hand, banks
operating on market terms are expected to have a higher rate of return on capitaland good
customer service. The banking industry is also under pressure to keep pace with rapid
technological developmentand societal change. The role of banks in anti-money laundering
(AML) illustratesthis paradox very well.
Money laundering is an illegal activity in which criminals seek to disguise their illegal
activities for profit(
Ryder, 2012;Gilmore, 1995). Money laundering is a key component of
financial crime, the grey economy and international crime. Emphasis both in research and
practice have been placedon AML procedures.
According to Andersén (2020), althoughmoney laundering has not been discussed very
much in Finland, thousands of whistle-blowers monitor the financial activities of their
customers and are required to prove that they are not involvedin money laundering.
An effective way to prevent money laundering is to remove funding and access to finance
from criminals. The prevention and detection of money laundering are considered to be among
JMLC
26,2
388
Journalof Money Laundering
Control
Vol.26 No. 2, 2023
pp. 388-400
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-12-2021-0140
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
To continue reading
Request your trial