"Foreword" [2004] ELECD 124; in Pieth, Mark; Aiolfi, Gemma (eds), "A Comparative Guide to Anti-Money Laundering" (Edward Elgar Publishing, 2004)

Book Title: A Comparative Guide to Anti-Money Laundering

Editor(s): Pieth, Mark; Aiolfi, Gemma

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843766735

Section Title: Foreword

Number of pages: 1

Extract:

Foreword
Money laundering is the process by which criminals attempt to conceal the
source and ownership of the proceeds of their illicit activities; if successful,
the criminal maintains control and access to these funds when and where he
chooses. The efforts to combat this phenomenon are the subject matter of this
study, and in particular how anti-money laundering (AML) rules and regula-
tions impact on four of the major cross-border banking centres: UK, USA,
Singapore and Switzerland.
In looking at the evolution of the AML paradigm from its origins as a tool
to combat drug trafficking, to its most recent application in the fight against
terrorism, it is clear that the concept remains high on the political agenda.
However, despite a plethora of rules there is still a lack of harmonization and
uneven implementation, leaving open the question whether national AML
systems really meet the international standards. To determine levels of imple-
mentation in these countries, the AML system in each of the four jurisdictions
is examined in close-up. These country studies are then analysed as to their
merits and deficiencies leading to the question, `is the playing field being
levelled in AML?'
Put in its wider context, this question reveals the reformulation of AML in
terms of a shift from the `rule based' to the `risk based' approach. It may be
that this change is just a reshuffling of ideas and approaches that were already
in place before ­ nevertheless the impact on financial institutions cannot be
...