The Impact of AML/CFT Regime on the Economic Performance

Abstract

This study investigates how the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime influences the economic performance of developing countries, with a specific focus on Sri Lanka. By utilizing the AML/CFT effectiveness index and assessing ratings from the 11 immediate outcomes, as outlined in the latest mutual evaluation reports, the research evaluates the effectiveness of the AML/CFT regime. Additionally, the study analyzes the GDP growth rate of these developing countries as an indicator of their economic performance. The results of the study indicate a positive correlation between the strength of the AML/CFT regime and the economic performance of developing countries. As a result, the study emphasizes the critical importance of continuously implementing and enhancing a robust AML/CFT regime. It advocates for the prudent application of such measures to foster sound economic performance in developing nations.