Search results
1 – 2 of 2Nasir Sultan, Norazida Mohamed, Jamaliah Said and Azroz Mohd
This study aims to explore the perception of the compliance officers of the Pakistani financial sector towards the placement of Pakistan on the grey list by the Financial Action…
Abstract
Purpose
This study aims to explore the perception of the compliance officers of the Pakistani financial sector towards the placement of Pakistan on the grey list by the Financial Action Task Force (FATF).
Design/methodology/approach
To achieve this objective, the study adopted a qualitative methodology and conducted semi-structured interviews with different financial institutes and their regulators.
Findings
The study found that role of the FATF is lopsided and politically motivated towards Pakistan. Although Pakistan has loopholes like many other countries, its treatment in the FATF is irregular. Therefore, the decision of the greylisting is not purely based on technical compliance, but political preferences are the determinative aspect.
Originality/value
This study provides a holistic overview of the FATF greylisting mechanism and how Pakistan is treated. This might provide both the FATF and Pakistan to revisit their policies.
Details
Keywords
In July 2021, the European Commission has proposed a set of conjunct initiatives to reform the antimoney laundering/countering the financing of terrorism (AML/CFT) regulatory…
Abstract
Purpose
In July 2021, the European Commission has proposed a set of conjunct initiatives to reform the antimoney laundering/countering the financing of terrorism (AML/CFT) regulatory regime in Europe with the main aims to (i) harmonize the AML/CFT regulation and (ii) centralize the authority to a higher degree at European Union (EU) level. This paper aims to assess the reform in light of the EU subsidiarity principle.
Design/methodology/approach
The paper uses a benchmark approach to compare the proposed EU money laundering reform against Article 5(3) of the Treaty on the Functioning of the European Union.
Findings
The paper confirms that more centralized decision-making at EU level in this policy area is justified, mainly because (i) the policy area is not an area where the EU has exclusive competence, (ii) EU centralized action is necessary and (iii) it also adds value, for instance, for level playing field and efficiency considerations as long as local information advantage will not be lost. As such, the subsidiarity principle can be applied and is an adequate tool to legitimize EU centralized action in the field of money laundering combat.
Originality/value
As the EU AML regulatory reform has not yet been sufficiently discussed in light of the subsidiarity principle, the article is of innovative nature.
Details