A cost-effective strategy of implementing international anti-corruption initiatives: Enhancing the role of anti-money laundering in combating corruption

Abstract

Purpose– The purpose of this conference paper is to provide a contextual and better understanding of the nexus between corruption and money laundering, in order to enhance the role of anti-money laundering (AML) in combating corruption. Design/methodology/approach– This paper analyses the key elements of the linkage between AML and anti-corruption, and provides Australia and China as examples, demonstrating the potential importance of using AML to combat corruption. Findings– It is found that apart from the main financial sectors, designated non-financial sectors and high-risk customers involved businesses are also vulnerable for money laundering, such as non-financial designated business and professions, and politically exposed persons. In the meantime, these factors are regarded as the key points to combat corruption. Originality/value– This paper highlights the corruption risks hidden in designated non-financial business and professionals, and the risks of laundering the proceeds of corruption by politically exposed persons and financially exposed persons (FEPs).