Efficiency of anti-money laundering: the case of Northern European countries

Abstract

As money laundering is a highly threatening and dangerous activity, its damage is only discussed when the consequences of these illegal activities become public, thus such kinds of investigations are particularly relevant. By following public anti-money laundering (AML) directives and internal financial legislation of specific countries, it is possible to improve any money laundering situation, anticipate potential risks and avoid various financial downturns. This paper examines the evolution of money laundering, the motives behind them, the potential economic consequences and highlights the need to suppress these activities to promote higher standards of AML, which could have a positive impact on the countries’ economies. In the empirical part, according to the main macroeconomic indicators, 10 Northern European countries are analysed and the effectiveness of anti-money laundering processes, are identified. The analysis is made using several research steps, obtained results are compared and discussed. Methods used: scientific literature analysis, comparative analysis, data systematization, statistical data analysis, COPRAS, and cluster analysis. Conclusions and future research areas are mentioned.