Anti-money laundering regulations and financial inclusion: empirical evidence across the globe

IF 2 Q2 BUSINESS, FINANCE

Journal of Financial Regulation and Compliance Pub Date : 2022-05-09 DOI:10.1108/jfrc-12-2021-0106

Isaac Ofoeda

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引用次数: 6

Abstract

Purpose This study aims to examine the impact of anti-money laundering (AML) regulations on financial inclusion using a comprehensive measure of AML regulations developed by the Basel Institute on Governance. Again, this study investigates the existence of threshold effects in the AML regulations–financial inclusion nexus. Design/methodology/approach This study uses panel data across 212 economies (developed, developing and Africa) of the globe-spanning from 2012 to 2019. This study uses the dynamic panel threshold estimation technique proposed by Seo et al. (2019). Findings In general, the results indicate that AML regulations promote financial inclusion across the globe. However, AML regulations spur financial inclusion below the threshold of AML regulations, whereas, above the thresholds, AML regulations have damaging effects on financial inclusion. Further, the author finds that AML regulations have a detrimental impact on financial inclusion for developed economies. In contrast, AML regulations promote financial inclusion at all levels of AML regulations for African countries. Practical implications The findings of this study imply that countries must make conscious efforts in combating the incidence of money laundering by establishing sound AML regulatory regimes as a means of promoting financial inclusiveness. However, there is a need for regulators to ensure cost-effective and efficient implementation of AML regulations. Originality/value The value of this paper is its contribution to literature as it is a major attempt in empirically assessing the impact of AML regulations on financial inclusion. Again, to the best of the author’s knowledge, this is the first study to examine the non-linear relationship between AML regulations and financial inclusion.

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反洗钱条例和金融包容性：全球经验证据

目的本研究旨在利用巴塞尔治理研究所制定的反洗钱法规的综合衡量标准，研究反洗钱法规对金融包容性的影响。本研究再次调查了反洗钱法规-金融包容性关系中阈值效应的存在。设计/方法论/方法本研究使用了2012年至2019年全球212个经济体（发达国家、发展中国家和非洲）的面板数据。本研究使用了Seo等人提出的动态面板阈值估计技术。（2019）。研究结果总体上表明，反洗钱法规促进了全球金融包容性。然而，反洗钱法规在反洗钱法规门槛以下刺激金融包容性，而在门槛以上，反洗钱条例对金融包容性产生了破坏性影响。此外，作者发现，反洗钱法规对发达经济体的金融包容性产生了不利影响。相比之下，反洗钱法规促进了非洲国家反洗钱法规各个层面的金融包容性。实际意义这项研究的结果表明，各国必须有意识地努力打击洗钱，建立健全的反洗钱监管制度，以此促进金融包容性。然而，监管机构需要确保反洗钱法规的实施具有成本效益和高效性。原创性/价值本文的价值在于它对文献的贡献，因为它是实证评估AML法规对金融包容性影响的一次重大尝试。再次，据作者所知，这是第一次研究反洗钱法规与金融包容性之间的非线性关系。

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来源期刊

Journal of Financial Regulation and Compliance BUSINESS, FINANCE-

CiteScore

2.60

自引率

11.10%

发文量

期刊介绍： Since its inception in 1992, the Journal of Financial Regulation and Compliance has provided an authoritative and scholarly platform for international research in financial regulation and compliance. The journal is at the intersection between academic research and the practice of financial regulation, with distinguished past authors including senior regulators, central bankers and even a Prime Minister. Financial crises, predatory practices, internationalization and integration, the increased use of technology and financial innovation are just some of the changes and issues that contemporary financial regulators are grappling with. These challenges and changes hold profound implications for regulation and compliance, ranging from macro-prudential to consumer protection policies. The journal seeks to illuminate these issues, is pluralistic in approach and invites scholarly papers using any appropriate methodology. Accordingly, the journal welcomes submissions from finance, law, economics and interdisciplinary perspectives. A broad spectrum of research styles, sources of information and topics (e.g. banking laws and regulations, stock market and cross border regulation, risk assessment and management, training and competence, competition law, case law, compliance and regulatory updates and guidelines) are appropriate. All submissions are double-blind refereed and judged on academic rigour, originality, quality of exposition and relevance to policy and practice. Once accepted, individual articles are typeset, proofed and published online as the Version of Record within an average of 32 days, so that articles can be downloaded and cited earlier.