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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

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

Název periodika

Journal of International Studies

ISSN

2071-8330

e-ISSN

2306-3483

Svazek periodika

18

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

26

Strana od-do

229-254

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-105011702111