Anti-Money Laundering and Its Effectiveness in Bangladesh

Abstract

Purpose: Money laundering raises significant challenges for policymakers and criminal justice authorities Money laundering is commonly recognized as a form of "serious and organized crime." It is typically described as a complex process involving three stages: placement, layering, and integration and six categories . During these stages, illicit funds are placed into the legitimate financial system, layered to conceal their origins through intricate transactions, and ultimately integrated back into the economy as seemingly legitimate assets. The purpose of this study Reviewing the present literature on money laundering and its related areas. The main focus of this study is to find the effectiveness in the present literature and the anti-money laundering framework specifically focusing on its effectiveness in the context of Bangladesh. The aim is to address these the effectiveness of anti-money laundering framework of Bangladesh and propose recommendations or measures to enhance the country's efforts in combating money laundering. Design/methodology/approach: A comprehensive review of the present literature on anti- money laundering money laundering was performed and focused on prominent databases such as Google Scholar, ProQuest, Scopus, and ScienceDirect. The purpose was to compile thorough and relevant research papers on the subject of anti-money laundering from these reliable sources. After an in-depth analysis of the literature many major study themes were found. These topics covered many facets of the effectiveness of anti-money laundering framework and money laundering .The study theme revolving around the anti-money laundering framework and its effectiveness in combating money laundering was given particular attention and further explored in this study . This study involved with an in-depth analysis of the present literature to gain a good understanding about the overall effectiveness of the anti-money laundering in Bangladesh. The analysis identified and examined the primary anti-money laundering framework strategies as well as their efficacy through international guideline . These methods may take the form of laws, rules, and procedures for enforcing them and technical developments. Additionally, study were found emphasizing areas that may be studied in the future to better understand and implement anti-money laundering strategies in Bangladesh. Finding: The following six main categories can be used to group the literature on money laundering: anti-money laundering framework and its effectiveness, the effect of money laundering on other fields and the economy, the role of actors and their relative importance, the magnitude of money laundering, new opportunities available for money laundering and detection of money laundering. In the context of Bangladesh, most studies concerning the anti-money laundering framework and its effectiveness in combating money laundering have primarily centered around the examination of innovative technologies, financial transactions, as well as trade-based money laundering. These areas of focus reflect the specific concerns and challenges related to money laundering in Bangladesh on the effectiveness of existing measures in addressing these methods of illicit financial flows. Originality/value: This paper aims to provide valuable insights into a specific area related to money laundering that has received relatively limited attention in existing research. By exploring this understudied aspect, the paper contributes to filling the error in the current literature and expands our understanding of money laundering dynamics.