Money laundering policies will require global rethink

Significance

Allegations of bribery regarding the awarding of the 2022 World Cup to Qatar raised questions about how bribes may have been laundered, as an average of 6.25 billion dollars per year over 24 years is alleged to have been spent on bribes. Despite its relative small scale in the wider context of money laundering, the FIFA case is significant for global anti-money laundering policies, because of the sheer length of time over which the alleged crimes were committed, the extent to which the individuals involved were high-profile public figures and the level of complicity of banks.

Impacts

• The FIFA corruption probe may lead to heightened anti-money laundering standards for sports associations more generally.
• Toughening the anti-money laundering framework might prod banks to heighten scrutiny of sports-related and other transactions.
• Absent tough enforcement, anti-money laundering provisions will remain ineffective, no matter how stringent they may appear on paper.