Toward tailored AML/CFT strategies: Clustering countries by FATF compliance and effectiveness

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F25%3A43909817" target="_blank" >RIV/60076658:12510/25:43909817 - isvavai.cz</a>

Result on the web

<a href="https://jois.eu/?950,en_toward-tailored-aml-cft-strategies-clustering-countries-by-fatf-compliance-and-effectiveness" target="_blank" >https://jois.eu/?950,en_toward-tailored-aml-cft-strategies-clustering-countries-by-fatf-compliance-and-effectiveness</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/2071-8330.2025/18-2/13" target="_blank" >10.14254/2071-8330.2025/18-2/13</a>

Result language

angličtina

Original language name

Toward tailored AML/CFT strategies: Clustering countries by FATF compliance and effectiveness

Original language description

Addressing global disparities in Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) compliance and effectiveness is increasingly critical due to escalating financial crime risks. This study aims to identify natural clusters of countries based on their performance in FATF technical compliance and effectiveness assessments, thereby facilitating tailored AML/CFT support strategies. The study utilised hierarchical clustering, Principal Component Analysis (PCA), and ANOVA tests, employing FATF assessment ratings data for Immediate Outcomes (IO1-IO11) and Recommendations (R.1-R.40). Four distinct clusters were identified, highlighting significant variations in AML/CFT compliance and effectiveness. Advanced economies demonstrated high compliance and effectiveness, emphasising the strategic use of technology, cybersecurity, and effective regulatory oversight. Developing and transitional countries exhibited mixed or low performance, reflecting institutional, socio-economic, and governance-related challenges, including weaker institutional frameworks, higher corruption rates, and socio-economic pressures driving financial crime. The research also underscores persistent global challenges in adapting to new technologies and adequately supervising non-financial sectors. These clusters underline the necessity of differentiated, context-specific AML/CFT strategies, emphasising targeted interventions, technology integration, ethical frameworks, and regional cooperation to enhance global financial integrity. Additionally, these findings differ from the FATF’s traditional grouping approach, which typically classifies countries primarily based on risk assessments and geopolitical factors rather than performance-based data analysis.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of International Studies

ISSN

2071-8330

e-ISSN

2306-3483

Volume of the periodical

18

Issue of the periodical within the volume

2

Country of publishing house

PL - POLAND

Number of pages

26

Pages from-to

229-254

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-105011702111