https://dailyasianage.com/news/336318/global-integration-is-required-to-stop-money-laundering

Money laundering remains a pervasive issue that undermines global financial systems and fuels illicit activities. With an estimated $2 trillion laundered globally each year, the impact on economies and security is profound. Identifying major money laundering countries is crucial for understanding where these illicit flows are concentrated and how they disrupt economic stability. According to a White Paper on Bangladesh’s latest economic standings which was revealed a few months ago, 16 billion dollars were laundered from Bangladesh to foreign countries every year on an average during last 15 years.

The overall performance in the Basel AML Index has shown improvement throughout South Asia in 2023. However, a significant portion of this positive trend is attributed to Sri Lanka and Pakistan graduating from the Financial Action and Task Force or FATF grey list. The methodological changes implemented this year contributed to enhancements in the region's average score concerning the quality of AML/CFT frameworks, which was identified as the weakest area in the previous year. Additionally, there were positive improvements in indicators related to financial transparency.

Certain nations, due to their financial environments, regulatory gaps, or geopolitical situations, have become significant hotspots for money laundering. These countries not only pose substantial risks to the integrity of international finance but also challenge global efforts to enforce anti-money laundering (AML) regulations effectively.

The Basel AML Index and the Financial Action Task Force (FATF) are pivotal in assessing and mitigating money laundering risks. The Basel AML Index provides a comprehensive evaluation of countries' risk levels based on multiple criteria, while the FATF sets international standards and promotes effective implementation of AML measures globally. Understanding their methodologies and criteria is essential for grasping how major money laundering risks are identified and managed. In recent years, money laundering has been rapidly growing. So the amount of dirty money. Governments and financial institutions try to protect themselves from this crime.

Basel Institute of Governance is an independent, international, non-profit organization committed to preventing corruption and other financial crimes. The organization was established in Basel, Switzerland.

Each year, Basel prepares an independent score and ranking that assesses the world's risk of money laundering and terrorist financing. This ranking is the Basel AML Index. Published by the Basel Institute of Governance in 2012, this document gives risk scores based on data from 15 publicly available sources, such as the Financial Action Task Force (FATF), the World Bank, and the World Economic Forum.

The primary objective is not to rank countries superficially compared to each other but to give an overall view of different countries 'and regions' risk levels and their progress in addressing vulnerabilities over a certain period of time.