Combating money laundering in transition countries: the inherent limitations and practical issues

摘要

Purpose – The purpose of this paper is to explain the operating background of combating money laundering in transition countries, to demonstrate the unique phenomenon of “adopt but not enforce” and “selective implementation,” to discuss the role of anti-money laundering (AML) system as a part of political confrontation between transition countries and developed countries, and finally to criticize the defensive reporting in transition countries' financial institutions. Design/methodology/approach – The paper analyzes the inherent limitations and practical issues in combating money laundering in transition countries, and provides various cases as well as statistic data to illustrate the AML difficulties faced by transition countries. Findings – Many transition countries have taken AML actions during the past decade, however, the AML systems in these jurisdictions are not effective yet. AML motivations in transition countries are mainly surrounding international pressures and domestic political needs. Originality/value – The paper highlights the unsound operating environment of fully implementing AML legislations in transition countries, and critically demonstrated that the effectiveness of AML systems in transition countries is heavily influenced by domestic and international political considerations.