Can Latin America AML effectiveness impact corruption prevention?
| DOI | https://doi.org/10.1108/JMLC-11-2021-0125 |
| Published date | 21 December 2021 |
| Date | 21 December 2021 |
| Pages | 324-336 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Sarahí Cruz Salazar,Marcio Adriano Anselmo |
Can Latin America AML
effectiveness impact
corruption prevention?
Sarahí Cruz Salazar and Marcio Adriano Anselmo
Division of Research and Publications, Inter-American Defense College,
Washington, District of Columbia, USA
Abstract
Purpose –The purpose of this paper is to analyze the effectiveness of the Financial Action Task Force
(FATF’s) recommendations in Latin America in the fight against Money Laundering (ML) through the
ImmediateOutcomes 4 (Preventive Measures) and 6 (Financial Intelligence)and the relationship between anti-
money laundering(AML) effectiveness and anti-corruptionmeasures.
Design/methodology/approach –Through quantitativeand quality methods measure the performance
of the Immediate Outcomes’levels in compliancewith the established FATF’standards; The objective is to
analyze progressin the prevention and identification of ML.
Findings –The authors discuss therelationship between AML effectiveness and anti-corruptionmeasures
startingwith the analysis of the best-ranked country in these indicators (IO4 and IO6).
Research limitations/implications –Mutual evaluations require a long process, which is why the
authors do not have all the updated datafor all the Latin American countries; only the updated Immediate
Outcomesdata up to September 16, 2021, are taken. This paper is part of the ResearchProject “The impacts of
corruptionin the Western Hemisphere and regional responses.”
Originality/value –Through a multidisciplinary analysis, the Immediate Results evaluation model is
prioritizedto measure the effectiveness of the methods applied in LatinAmerica through the IO4 and IO6. The
model that presents the best effectivenessis selected and the successes that this country is applying over its
peers areanalyzed. From this analysis, a quantitativeand qualitative analysis can be appreciated.
Keywords Latin America, Corruption, Effectiveness, Money laundering
Paper type Research paper
1. Introduction
Between the 1980s and 1990s, Latin America went through a series of reforms within its
governments, going from authoritarian governments to democratic ones. As countries in
Latin America consolidated theirdemocracy, they also demanded consolidate transparency
within their systems. Corruption has been one of the silent diseases of Latin America,
affecting economically,politically and socially the growth of these countries. The Corruption
Perception Index (CPI) confirms the worrying scenario of corruption in Latin America; first
established in 1995, the index aims to show the perception of integrity in the public sector
through a variety of surveys of the public and businessleaders; a fact reinforced by different
indicators. In 2018, the average score of Transparency International was 44 out of 100; the
author of this index explains that any score below 50 indicates a failure of governments in
the face of corruption. Statistics indicate that between 10% and 25% of public investment
contracts are lost through corrupt activities. Antonio Guterres, Secretary General of the
United Nations, emphasizes, “The problem of corruption is present in all nations- rich and
poor, North and South, developed and developing”(UN, 2018). It states the importance to
tackle the problem that negativelyaffects nations around the world.
JMLC
26,2
324
Journalof Money Laundering
Control
Vol.26 No. 2, 2023
pp. 324-336
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2021-0125
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