Money laundering is a serious crime that has many victims and governments must address it. It involves the proceeds of crime: people smuggling and human trafficking, sexual exploitation, drug trafficking, corruption, fraud, theft, environmental crime, tax crime, and many others. In the current approach, a major proportion of enforcement is “outsourced” to the private sector, via a compliance model. Currently, the global costs of compliance are estimated to be in the range of $180 – 250 billion. Anti-money laundering (AML) compliance, including enforcement, by banks and others obliged entities, have also, however, triggered major negative unintended social and economic consequences. While this compliance-led approach does act as a disincentive to attempts to launder money, banks and other obliged entities bear real-world unintended costs and increased risks of failure to comply. At the same time, reportedly less than 1% of illicit laundered funds are being recovered. It seems that questions must be raised about the effectiveness of the current methods.

Please join us on 10 February at Banque de Luxembourg to hear a variety of perspectives on this important issue

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