Georgi Petrunov – University of National and World Economy, Sofia, Bulgaria, boul. 8th December
DOI: https://doi.org/10.31410/LIMEN.2019.53
5th International Scientific-Business Conference – LIMEN 2019 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Graz, Austria, December 12, 2019, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-26-4, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.2019
Abstract
New compliance regulations developed in the past several years by international organizations
for tackling money laundering emphasize the risk-based approach as a critical element in the
prevention of the crime. This article elaborates on the new trends in this field. The first section looks
at the main documents underlying the legal framework set in place to protect the financial system from
being used for money laundering purposes. Highlighting key concepts in the selected documents, the
article reveals important changes in the philosophy backing up anti-money laundering policies: from
sanctioning to prevention through the application of macro and micro risk assessments. In this context,
the article further discusses the requirements for businesses to follow a risk-based approach in evaluating
the risk of money laundering in establishing business relationships with new customers; the need
to monitor and control these relationships. Specific steps are proposed to design a comprehensive risk based
anti-money laundering program.
Keywords
Financial system, Banking, Crime.
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