Asset recovery practices in combating money laundering: evidence from FATF mutual evaluation report of FATF member countries of Asia pacific region
| DOI | https://doi.org/10.1108/JMLC-11-2021-0127 |
| Published date | 05 January 2022 |
| Date | 05 January 2022 |
| Pages | 24-34 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Salwa Zolkaflil,Sharifah Nazatul Faiza Syed Mustapha Nazri,Normah Omar |
Asset recovery practices in
combating money laundering:
evidence from FATF mutual
evaluation report of FATF
member countries of Asia
pacific region
Salwa Zolkaflil
Accounting Research Institute, Universiti Teknologi Mara, Melaka, Malaysia
Sharifah Nazatul Faiza Syed Mustapha Nazri
Faculty of Accountancy, Universiti Teknologi MARA, Melaka, Malaysia, and
Normah Omar
Accounting Research Institute, Universiti Teknologi MARA, Melaka, Malaysia
Abstract
Purpose –This study aims to understandthe member countries’current asset recovery mechanism based
on two elements,namely, confiscation policy and asset recovery managementframework.
Design/methodology/approach –Content analysiswas performed on the Financial Action Task Force
(FATF) MutualEvaluation Report (MER) of eight countries.
Findings –The result showed that only a few countriesestablished a centralised asset recovery centre or
special taskforce to manage recovered assets.
Research limitations/implications –This study is limited to information mentioned in the FATF
MER.
Practical implications –This study highlights the need to have a centralised asset recovery
management centre as an initiative to improvethe outcome of money laundering investigations. The study
findings will benefit regulators to understand further the practical challenges of the asset recovery
mechanismfor future improvement.
Originality/value –FATF recommends that each country establish a centralised asset recovery centre
and work closely withthe investigating officers and prosecutors in deciding on assets confiscation.However,
the implementation is contingent on their local environment and resources at the member countries’
discretion. Therefore, this study aimed to understand the member countries’current asset recovery
mechanismbased on two elements, namely confiscation policy and asset recoverymanagement framework.
Keywords Asset recovery mechanism, Money laundering investigation,
Asset recovery management centre, Confiscation policy, FATF Mutual Evaluation Report
Paper type Research paper
Ethical approval: This article does not contain any studies with human participants or animals
performed by any of the authors. The study conducted content analysis on the FATF Mutual
Evaluation Report (FATF MER) of eight countries.
JMLC
26,1
24
Journalof Money Laundering
Control
Vol.26 No. 1, 2023
pp. 24-34
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2021-0127
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