From a risk-based to an uncertainty-based approach to anti-money laundering compliance

Bello, Abdullahi and Harvey, Jackie (2017) From a risk-based to an uncertainty-based approach to anti-money laundering compliance. Security Journal, 30 (1). pp. 24-38. ISSN 0955-1662

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Official URL: http://dx.doi.org/10.1057/s41284-016-0002-0

Abstract

The prescriptive nature of the rule-based approach to anti-money laundering (AML) compliance and the exponential growth of suspicious activity reports resulting from the use of ‘tick-box’ method led to the adoption of the risk-based approach (RBA) to AML. However, the RBA suffers from a number of difficulties and this has resulted in its ineffective implementation. The difficulty in implementing the approach can mainly be traced back to the inappropriateness of the risk theoretical framework for AML. We argue that an uncertainty-based approach will provide a more fruitful basis for an effective AML regime. The paper, therefore, outlines how an uncertainty-based approach could be considered as an alternative to the existing RBA in order to improve the effectiveness of the AML compliance regime.

Item Type: Article
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Security Journal. The definitive publisher-authenticated version: is available online at: Bello, A. and Harvey, J. (2016) From a risk-based to an uncertainty-based approach to anti-money laundering compliance, Security Journal, available at: http://link.springer.com/article/10.1057%2Fs41284-016-0002-0 Co-published with Palgrave Macmillan
Uncontrolled Keywords: risk-based approach, uncertainty-based approach, risk, uncertainty, anti-money laundering
Subjects: N100 Business studies
N300 Finance
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: Jackie Harvey
Date Deposited: 14 Jun 2016 13:02
Last Modified: 06 Sep 2017 19:02
URI: http://nrl.northumbria.ac.uk/id/eprint/26933

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