Researchers reveal insights into financial risk mitigation and anti-money laundering
September 6, 2023
[Chandler, AZ, August 28, 2023] – Maja Zelihic, dean of the Forbes School of Business and Technology® at the University of Arizona Global Campus, along with researchers from Jonestown Bank & Trust Company and Tennessee State University, explores the evolving landscape of financial risks and offer insights into countering money laundering activities, and published their findings in Journal of Applied Business and Economics.
“Our study's primary focus is on predicate offenses, the underlying criminal activities that generate illegal proceeds and challenge the stability of financial institutions,” said Zelihic. “We highlight the escalating challenges faced by banks and financial institutions due to the ever-increasing globalization of finance, emphasizing the need for adaptable strategies in combating money laundering and sustainable financing activities.”
Amid the COVID-19 pandemic, the study demonstrates how money launderers and non-compliant actors capitalized on the global crisis to engage in new and innovative illicit activities. The researchers identify emerging trends in financial risks, such as cyber risk, fraud, and human trafficking, which have evolved to exploit the vulnerabilities exposed by the pandemic.
“Our study provides insights for compliance leaders and practitioners, offering a roadmap to enhance anti-money laundering and counter-sustainable financing programs,” Zelihic said. “We suggest the development of new indicators, red flags, and typologies to identify evolving criminal activities and offers guidance for comprehensive compliance health checks.”
The implications of this research extend beyond financial institutions. The study holds promise for promoting positive social change, as it emphasizes the potential for strengthening regulatory mechanisms, reducing financial risks, and ultimately safeguarding economies from the detrimental effects of money laundering and financial crime.
“We believe this study serves as a cornerstone for future advancements in anti-money laundering practices and financial risk mitigation,” says Zelihic.
###
For more information about the University of Arizona Global Campus, visit uagc.edu.