Project Summary:: Nordic-Baltic Technical Assistance Project – Financial Flows Analysis, AML/CFT Supervision, and Financial Stability
High-Level Summary Technical Assistance Reports, September 4, 2023
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- Project Summary:: Nordic-Baltic Technical Assistance Project – Financial Flows Analysis, AML/CFT Supervision, and Financial Stability
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Bibliographic details
- Authors: Grace Jackson, Maksym Markevych, Antoine Bouveret, Pierre Bardin, Alexander S Malden, Santiago Texidor Mora, Indulekha Thomas
- Published: September 4, 2023
- Series: High-Level Summary Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400253997.029
Overview and context
- Authors: Grace Jackson, Maksym Markevych, Antoine Bouveret, Pierre Bardin, Alexander S Malden, Santiago Texidor Mora, Indulekha Thomas
- Date: September 4, 2023
- Series: High Level Summary Technical Assistance Report No. 2023/012
- Issue: 012
- Volume: 2023
- Pages: 5
- DOI: https://doi.org/10.5089/9798400253997.029
- Stock No: HLSEA2023012
- ISBN: 9798400253997
- ISSN: 2959-4103
Key findings
- Various international banking scandals concerning AML/CFT breaches have taken place in the Nordic Baltic region, with far-reaching financial and reputational consequences.
- Financial integrity issues could potentially present risks to financial stability in the short and medium term.
- The depth of geographic ML/TF risk analysis and understanding differs among the Nordic-Baltic countries.
- There has been clear investment in ML/TF risk models across the region, but gaps remain, notably in advanced data collection and analysis.
- Quantifying the financial stability impact of money laundering shocks is an understudied area.
- AML/CFT regimes in the region would benefit from better understanding of the ML threats associated with cross-border financial flows and nonresident activities.
Policy implications and recommendations
- Enhance supervisory understanding of ML risks to address cross-border AML vulnerabilities.
- Strengthen risk-based supervision of:
- banks
- crypto asset service providers
- Deepen cooperation across jurisdictions in the Nordic-Baltic region to better manage cross-border financial flows and nonresident activities.
- Invest in advanced data collection and analysis capabilities to improve geographic ML/TF risk analysis and to support quantification of financial stability impacts from money laundering shocks.
Subject areas and keywords
- Subject: International organization, Monetary policy
- Keywords: and Risk-Based Supervision, Anti-Money Laundering, Combatting the Financing of Terrorism, Financial Stability, Illicit Financial Flows, Machine Learning, Money Laundering Shocks
High-Level Summary Technical Assistance Reports — Project Summary:: Nordic-Baltic Technical Assistance Project – Financial Flows Analysis, AML/CFT Supervision, and Financial Stability (September 4, 2023).
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- Hlsea2023012