Overview international best practices on customer due diligence and related anti-money laundering measures
| DOI | https://doi.org/10.1108/JMLC-07-2022-0102 |
| Published date | 12 September 2022 |
| Date | 12 September 2022 |
| Pages | 53-62 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Howard Chitimira,Sharon Munedzi |
Overview international best
practices on customer due
diligence and related anti-money
laundering measures
Howard Chitimira and Sharon Munedzi
Faculty of Law, North West University, Potchefstroom, South Africa
Abstract
Purpose –The anti-money laundering(AML) frameworks of many countries were generallyinfluenced by
the international best practices of money laundering that were first established in 1988 through the Basel
Committee on Banking Supervision (BCBS). The general belief is that these internationalbest practices are
applicable in all jurisdictions, although most countries are still affected by money laundering. The
international best practices are universal measures that were developed as a yardstick to control and curb
money laundering globally. Nonetheless, international best practices for money laundering are not tailor-
made for specificjurisdictions and/or countries. Therefore, it remainsthe duty of respective jurisdictions and/
or countries to develop their own context-sensitive AML measures in accordance with international best
practices. An overview of theAML international best practices that were developed and adoptedby several
countriesare analysed in this paper. These include customerdue diligence measures established by theBCBS,
the financial action task force (FATF) standards, as well as the ongoing monitoring and the risk-sensitive
approachthat were implemented to curb money laundering globally.
Design/methodology/approach –The article analyses the AMLinternational best practices that were
developed and adopted by severalcountries. These include customer due diligence measures establishedby
the BCBS, the FATF standards, as well as the ongoing monitoringand the risk-sensitive approach that were
implementedto curb money laundering globally.
Findings –It is hoped thatpolicymakers and other relevant persons will use therecommendations provided
in the paper to enhance the curbingof money laundering in financial institutions globally.
Research limitations/implications –The paper doesnot provide empirical research.
Practical implications –The study is useful to all policymakers, lawyers, law students and regulatory
bodies globally.
Social implications –The study seeksto curb money laundering in the economy and society globally.
Originality/value –The study is original research on the use of AML/counter financing of terrorism
internationalbest practices to curb money laundering activitiesglobally.
Keywords Customer due diligence, Anti-money laundering, International best practices, Measures
Paper type Research paper
© Howard Chitimira and Sharon Munedzi. Published by Emerald Publishing Limited. This article is
published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce,
distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full
terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
This article was supported in part by the National Research Foundation of South Africa (NRF),
Grant Number: 141933. Consequently, the author wishes to thank the NRF for its support.
The article was influenced in part by S. Munedzi’s Master of Laws (LLM) dissertation, The
Reliance on Customer Due Diligence to Enhance the Combating of Money Laundering under the
Financial Intelligence Centre Amendment Act 1 of 2017 (North-West University) 2018, pp. 74-82.
Anti-money
laundering
measures
53
Journalof Money Laundering
Control
Vol.26 No. 7, 2023
pp. 53-62
EmeraldPublishing Limited
1368-5201
DOI 10.1108/JMLC-07-2022-0102
The current issue and full text archive of this journal is available on Emerald Insight at:
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