Basel AML Index Released

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The Basel Institute of Governance, which works with the public and private sector to counter corruption, has released its annual Anti Money Laundering (AML) Index 2017.

This is the sixth edition of the Basel Anti-Money Laundering (AML) Index developed by the Basel Institute on Governance.

The Basel Institute published the Basel AML Index for the first time in 2012 and has since then been the only non-profit organisation to create a research-based ranking focusing on the risk of money laundering and terrorist financing.

The Basel AML Index provides the following key features:
-Overview of 146 countries according to their risk level in money laundering/terrorist financing
-Composite index based on public sources and third party assessments
-Independent research-based risk ranking which is updated annually
-AML country risk assessment tool for compliance purposes

What does the Basel AML Index measure?

The Basel AML Index measures the risk of money laundering and terrorist financing of countries based on publicly available sources. A total of 14 indicators that deal with AML/CFT regulations, corruption, financial standards, political disclosure and rule of law are aggregated into one overall risk score. By combining these various data sources, the overall risk score represents a holistic assessment addressing structural as well as functional elements in the AML/CFT framework.

As there are no quantitative data available, the Basel AML Index does not measure the actual existence of money laundering activity or amount of illicit financial money within a country but is designed to indicate the risk level, i.e. the vulnerabilities of money laundering and terrorist financing within a country.

The 2017 Basel AML Index covers 146 countries. Three countries were removed from the 2016 edition of the Basel AML Index: Ethiopia, Guinea, and Seychelles. They were excluded from this year’s rating due to insufficient data.

There were no significant changes in the Basel AML Index methodology in 2017. The only one minor occurred in the category of Public Transparency and Standards, where the World Bank Extent of Disclosure Index was replaced with the World Bank Corporate Transparency Index. As previously, the methodology takes into consideration the modifications brought to the assessment mechanism of the FATF Mutual Evaluation Reports.

2017 Basel AML Index: Main Findings:

The 10 countries with the highest AML risk are Iran, Afghanistan, Guinea-Bissau, Tajikistan, Laos, Mozambique, Mali, Uganda, Cambodia and Tanzania.

The three lowest risk countries are the same as last year: Finland, followed by Lithuania and Estonia.

The greatest improvements since 2016 have been made by Sudan, Taiwan (China), Israel and Bangladesh.

The countries that deteriorated most severely in their scores in 2017 are Jamaica, Tunisia, Hungary, Uzbekistan and Peru.

BASEL AML Index Ranking of Countries:

Iran 1 8.6
Afghanistan 2 8.38
Guinea-Bissau 3 8.35
Tajikistan 4 8.28
Laos 5 8.28
Mozambique 6 8.08
Mali 7 7.97
Uganda 8 7.95
Cambodia 9 7.94
Tanzania 10 7.89
Kenya 11 7.72
Liberia 12 7.62
Myanmar 13 7.58
Nepal 14 7.57
Burkina Faso 15 7.54
Paraguay 16 7.53
Haiti 17 7.5
Vietnam 18 7.44
Zambia 19 7.43
Sao Tome And Principe 20 7.42
Niger 21 7.38
Benin 22 7.37
Bolivia 23 7.17
Lesotho 24 7.15
Sri Lanka 25 7.15
Sierra Leone 26 7.14
Lebanon 27 7.07
Vanuatu 28 7.02
Sudan 29 7.02
Panama 30 7.01
Cape Verde 31 6.99
Mauritania 32 6.92
Nigeria 33 6.9
Ghana 34 6.84
Trinidad And Tobago 35 6.8
Zimbabwe 36 6.8
Yemen 37 6.8
Marshall Islands 38 6.7
Gambia 39 6.7
Rwanda 40 6.69
Argentina 41 6.69
Dominican Republic 42 6.69
Turkey 43 6.65
Thailand 44 6.65
Nicaragua 45 6.64
Pakistan 46 6.64
Jamaica 47 6.6
Namibia 48 6.59
Angola 49 6.55
Venezuela 50 6.53
China 51 6.53
Ukraine 52 6.52
Cote D’ivoire 53 6.51
Algeria 54 6.48
Timor-Leste (East Timor) 55 6.43
Kazakhstan 56 6.42
Morocco 57 6.38
Ecuador 58 6.37
Tunisia 59 6.37
Kyrgyzstan 60 6.33
Indonesia 61 6.32
Senegal 62 6.31
Guyana 63 6.24
Russia 64 6.22
Philippines 65 6.2
Brazil 66 6.2
Guatemala 67 6.17
Papua New Guinea 68 6.13
Mongolia 69 6.1
Malaysia 70 6.1
Uzbekistan 71 6.09
United Arab Emirates 72 6.06
Grenada 73 6.04
Botswana 74 6.02
Honduras 75 5.97
St. Vincent And The Grenadines 76 5.96
Costa Rica 77 5.93
Mauritius 78 5.92
Bosnia-Herzegovina 79 5.91
Malawi 80 5.86
Bahrain 81 5.8
Bangladesh 82 5.79
Serbia 83 5.76
Mexico 84 5.75
Albania 85 5.75
St. Lucia 86 5.72
Egypt 87 5.66
India 88 5.58
Hong Kong Sar, China 89 5.54
Kuwait 90 5.53
El Salvador 91 5.48
Moldova 92 5.43
Saudi Arabia 93 5.43
Hungary 94 5.41
Italy 95 5.41
Luxembourg 96 5.4
Georgia 97 5.37
Japan 98 5.36
South Africa 99 5.32
Peru 100 5.25
Uruguay 101 5.16
Switzerland 102 5.15
Canada 103 5.14
Dominica 104 5.12
Greece 105 5.11
Macedonia 106 5.1
Qatar 107 5.1
Austria 108 5.06
Chile 109 4.94
Netherlands 110 4.93
Jordan 111 4.9
Portugal 112 4.9
Korea, South 113 4.9
Spain 114 4.87
Cyprus 115 4.87
United States 116 4.85
Singapore 117 4.83
United Kingdom 118 4.81
Azerbaijan 119 4.78
Slovakia 120 4.78
Germany 121 4.78
Montenegro 122 4.76
Belgium 123 4.66
Ireland 124 4.62
Colombia 125 4.57
Czech Republic 126 4.57
Norway 127 4.56
France 128 4.52
Romania 129 4.5
Poland 130 4.5
Australia 131 4.49
Iceland 132 4.47
Latvia 133 4.44
Armenia 134 4.44
Malta 135 4.37
Taiwan, China 136 4.34
Israel 137 4.25
Sweden 138 4.25
Croatia 139 4.11
Denmark 140 4.05
Slovenia 141 4.02
New Zealand 142 3.91
Bulgaria 143 3.87
Estonia 144 3.83
Lithuania 145 3.67
Finland 146 3.04

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