Anti-Money Laundering Perspective in an Emerging Economy Like Bangladesh

Abstract

The focus of the report is on anti-money laundering (AML) initiatives in emerging economies, with a particular emphasis on Bangladesh. We begin by providing an overview of the research background and summarizing the key issues associated with money laundering, including the emerging challenge of digital money laundering. The report delves into the history of money laundering and the evolution of anti-money laundering efforts. Money laundering is a pervasive global challenge that necessitates collaborative efforts among governments, regulatory bodies, and law enforcement agencies for effective mitigation. AML encompasses a framework of laws, regulations, and procedures aimed at preventing the illicit proceeds from illegal activities. Subsequently, we describe the structured process of money laundering, which consists of three distinct phases: placement, layering, and integration. We emphasize the far-reaching consequences of money laundering, which can undermine economic. This study also examines three classifications of economies: developed, emerging, and developing. Developed countries are characterized by high GDP per capita, advanced technological infrastructure, robust living standards, comprehensive education and healthcare systems, a resilient economic framework, a mature market, and low cultural resistance to change. In contrast, developing countries generally experience lower GDP per capita, developing infrastructure, a burgeoning middle class, challenging economic conditions, unfavorable legal contexts, high unemployment rates, and lower living standards. Emerging economies display features such as modest economic development, increasing integration into global markets, rapid urbanization, a transition toward developed status, high growth rates, and an evolving economic framework coupled with market volatility. Examples of countries representing each of these classifications are also provided. Finally, we conduct a review of relevant literature, including articles and journals about anti-money laundering efforts, to enhance the depth and breadth of our findings.