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The emerging market economies, in particular, have become victim to the laundering activities which have damaged investment potentials, undermined governance, fostered crime and corruption, and decreased tax revenues. In this chapter, we construct a macrotheoretic framework to analyze money laundering in the form of tax evasion by individuals in an economy in the events of financial autarky and free trade. In other words, our theoretical model allows us to examine if movement from autarky to a state of financial integration whets the degree of financial malpractice like money laundering.

Purpose: This chapter aims to evaluate the impact of money laundering and terrorism financing on the Indian economy and to study the effectiveness of prevention of money laundering acts and terrorist financing as per the guidance of the financial protection task force.

Need for the study: Developing countries like India have been more vulnerable to terrorism and financial scams over the last four decades. Despite the establishment of regulating bodies and anti-money laundering acts, this problem continued to be a national threat. Therefore, examining the impact of money laundering and terrorism finance on the Indian economy is necessary.

Methodology: This study is based on secondary data gathered from the web portals of government agencies and international organisations dealing with money laundering and terror funding. Newspapers, journals, and annual reports are reviewed to identify the modus operandi of money laundering operators and their impact on the economy.

Findings: Money laundering and terrorism financing significantly threaten the Indian economy and national security. Despite different anti-money laundering laws and multiple regulating authorities, the system has pitfalls that allow economic fraud and money transactions for terrorist activities. There is a need for cyber security, and integrated enforcement agencies to combat money laundering at national and international levels.

Practical implications: This study would be helpful for academicians and policymakers to understand the nexus of money laundering and terrorism financing and its impacts on the Indian economy.

This study aims to determine how integrity influences money laundering combatting.

A qualitative approach using methodological triangulation was used to answer the question to describe and understand the phenomena from the participants’ perspective. Data was gathered with a semi-structured questionnaire, observation and field notes.

Analysis revealed that 93% of law enforcement investigators believe integrity is required to combat money laundering. They also observed that integrity is needed for the political environment, institutions and their personnel or officers.

There is a need for integrity in the economy’s public and private sectors to combat money laundering effectively. Integrity must be present in the political environment, institutions and personnel. Hence, a recommendation is to appoint chief integrity officers in all stakeholder organisations.

This study is among the few research that covers the area of integrity and its influence on combatting money laundering from law enforcement investigators’ perspective.

Malaysia has implemented a comprehensive AML/CFT framework, yet its effectiveness remains questionable due to low number of prosecutions on money laundering cases. Therefore, this study aims to understand the reasons for low number of prosecutions, by addressing the challenges faced by the law enforcement agencies in conducting money laundering investigation. This study then identifies future improvement actions to enhance their effectiveness in combating money laundering in future.

This study distributed surveys to the law enforcement agencies that are responsible for conducting money laundering investigation in Malaysia. In total, 65 surveys were distributed; however, only 61 were returned to the researchers. Out of the 61 surveys returned, only 39 can be analysed due to incomplete answers given by respective respondents.

The results show that the investigating officers are facing difficulties in gathering sufficient information to support their charges. Besides information gathering, they are also facing difficulties due to short investigation timeframe regulated in the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) 2001. This study concludes that, although the law enforcement agencies have the power to investigate money laundering and terrorism financing under the act, Malaysia is lacking in having a good investigative support system to assist the law enforcement agencies during the investigation process.

The results of this study are helpful to the regulators and law enforcement agencies in determining the flaws of the current money laundering investigation practices. This study also provides suggestions for future improvement action.

Lack of study focuses on money laundering investigation conducted by the law enforcement agencies, especially in the Malaysian setting, makes the study valuable to the money laundering research.

To assess the efficiency of the anti‐money laundering regulation by using an incentive‐based approach.

It is designed a mechanism in which competent authority is the principal and the financial institutions are the agents.

The analysis shows that despite the efforts of the authorities to combat money laundering the efficiency of an incentive‐based approach has been damaged by the existence of hidden information related to the ability or willingness of banks to cope with money‐laundering prevention.

The contract approach adopted to assess the efficiency of the regulation may highlight the efficiency properties of international schemes of combat against money laundering. But, it is subject to limitations related to the hidden information.

This is a theoretical result that points out to the necessity of creating financial intelligence units in order to concentrated the efforts of collecting information about the willingness or ability of banks to cope with money laundering prevention.

The paper presents an attempt to apply an incentive theoretic approach to evaluate the efficiency of a scheme of combating money laundering. Besides, it reveals the fragile connections in the framework to combat money laundering.

To call for the legislature to pay more attention to the professional laundering and to improve the capability to attack money laundering.

By describing the phenomena that money laundering crimes nowadays often involves lawyers, notaries and accounts, to analyze the necessity and rationale of bringing these professionals under the obligations of anti‐money laundering, and to present a reasonable solution to the contradiction between professional privilege and anti‐money laundering obligations.

In order to keep a balance between the fight against money laundering and the protection of professional privilege, we should make a difference among the professional activities: when professional activities are linked judicial proceedings or in the course of ascertaining the legal position of clients, they would be exempted from the obligation of anti‐money laundering; when they perform financial or company law activities, they should assume anti‐money laundering obligations.

This paper presents a reasonable solution to the contradiction between professional privilege and anti‐money laundering obligations, which would be beneficial to the legislature.

The analysis of the interactions between the criminal economy and the financial markets has not yet been systematically studied by the economists. This study belongs to a current research interested in this area, ie the economic analysis of money laundering. The work is organised as follows.

The purpose of this paper is to analyze the merits and disadvantages of the law of the People's Republic of China on anti‐money laundering.

The paper describes the main contents contained in the newly adopted law of the People's Republic of China on anti‐money laundering, celebrates the enactment of the law and points out the gap still remaining between Chinese legislation and international standards.

The enactment of the law of the People's Republic of China on anti‐money laundering is of vital significance. Based on the international experience in the fight against money laundering, Chinese anti‐money‐laundering legislation has made considerable progress. Its shortcomings, however, are also evident.

This paper presents a comprehensive description of, and comments on, the law of the People's Republic of China, which would be beneficial to the legislature.

The purpose of this paper is to make objective comments on China's comprehensive measures on combating money laundering and terrorism financing, and to put forward some recommendations for improvement.

This paper based on the financial action task force (FATF) evaluation report, describes the fight against money laundering and terrorism financing in China, analyses the gap still remaining between China and the international standards, and points out the future efforts to be made.

China has made significant progress in implementing anti‐money laundering and combating the financing of terrorism measures in the last decades, gaps however are still remained. The future efforts to be made are as follows: criminal legislation and administrative measures should be improved or supplemented; human resources and institutional resources should be supported and international cooperation should be further strengthened.

This paper presents a comprehensive description of, and comments on, the efforts on China's anti‐money laundering and combating the financing of terrorism, which would be beneficial to policy makers and relevant administrators.

The purpose of this paper is to evaluate the existing legal basis, and its practical application, of an arbitrator’s competence to raise on her own initiative money laundering issues.

The research focusses on presenting the essence of the problem through evaluation of the legal basis for the arbitrators to raise money laundering concerns on their own initiative and the examples of so being done in international commercial arbitration.

This paper concludes that arbitrators do not presently have a solid legal basis that authorises them to act sua sponte against money laundering.

The originality and value of this paper lies in its emphasis on theoretical and practical issues related to money laundering in international commercial arbitration. It argues in favour of an explicit recommendation to be incorporated in the 2012 Recommendations of the Financial Action Task Force (FATF) that international commercial arbitrators address money laundering on their own initiative.