The Basel AML Index has European countries at the top, with Congo at the bottom of the ranking
The Top 10 countries in the Basel Institute AML Index are comprised of European countries and New Zealand.
The worst 10 countries, which also include Haiti, Myanmar, and Cambodia, are almost all from Africa.
Finland, whose FATF assessment was also made public today, tops the list, with Congo coming in last place with an 8.3 out of 10 score for its money laundering risk.
AML/CFT Framework Quality, Corruption and Bribery Risk, Financial Transparency and Standards, Public Transparency and Accountability, and Political and Legal Risk are some of the 18 indicators that countries are evaluated on under the Basel AML Index.
Quality of AML/CFT Framework in a Country, which accounts for 65% of the score, is given the most weight. Countries are evaluated based on their FATF Mutual Evaluation Reports and Follow-up Reports in this category.
In the instance of the Democratic Republic of the Congo, FATF found that the nation's most recent MER "did not demonstrate a good understanding of the Money Laundering/Terrorist Financing risks it faces."
Additionally, nations are rated according to the US State Department's Global Organized Crime Index, Trafficking in Persons Report, and International Narcotics Control Strategy Report.
These are the top 10 nations:
These are the bottom 10:
Democratic Republic of Congo
France tops the list of countries vying to be the site of the new European AML Authority (AMLA), followed by Latvia (17), Austria (21), Germany (26), and Italy (34th).
The United States is rated 28th, the United Kingdom is ranked 11th, and Mexico is ranked 68th.
The Transparency International Corruption Perceptions Index and TRACE: Bribery Risk Matrix are two additional metrics used by the Basel AML Index to rate nations.
According to the organization, each indicator's scores are gathered and normalized using the "min-max method" into a 0–10 scale, with 10 denoting the highest risk level. The majority of the indicators picked for the index have their own scoring systems.
According to the organization, the Basel AML Index assesses "structural factors by quantifying regulatory, legal political and financial indicators that influence jurisdictions’ vulnerability to ML/TF," and it also uses perception-based metrics like the Transparency International Corruption Perceptions Index.
Finland leads the pack in this year's AML Index with a score of 2.88, followed by Andorra on 2.89 and Sweden on 3.12.
The 11th Public Edition of the Index also shows that there are increased risks in four key categories, including corruption, financial transparency, public transparency, and political/legal risks. The average risk level is 5.25 out of 10, according to the Index.
By fLEXI tEAM