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WASHINGTON: Pakistan is 46th on a list of 146 countries that face significant money laundering/terrorism financing risks, says a recent report by a Swiss institute.
The Basel Institute on Governance released the report last month but it caught the attention of the South Asian media on Friday when an official US broadcasting service, VOA Urdu, published excerpts from the study.
According to the report, the 10 countries with the highest money laundering risk are Iran, Afghanistan, Guinea-Bissau, Tajikistan, Laos, Mozambique, Mali, Uganda, Cambodia and Tanzania.
The three lowest-risk countries are Finland, followed by Lithuania and Estonia, the same as last year.
China is 51st with 6.53 points and the United States 116th with 4.85 points.
The greatest improvements since last year have been made by Sudan, Taiwan, Israel and Bangladesh. The countries that deteriorated most severely in their scores this year are Jamaica, Tunisia, Hungary, Uzbekistan and Peru.
Swiss study shows that Bangladesh has improved its anti-money laundering efforts
With 8.60 out of 10, Iran tops the list of 50 highest-risk countries, followed by Afghanistan with 8.38 points. Guinea-Bissau is third with 8.35 points and Tajikistan fourth with 8.28 points.
There are four Muslim countries among the 10 highest risk countries — Iran, Afghanistan, Tajikistan and Mali, which is seventh with 7.97 points. Saudi Arabia is 93rd with 5.43 points.
In South Asia, Afghanistan is the highest-risk country followed by Nepal with 7.57 points, Sri Lanka with 7.15 points, Pakistan with 6.64 points, Bangladesh with 5.79 points and India with 5.58. Last year, Bangladesh had 6.4 points while Pakistan had 6.62. India is 88th on the list.
This shows that Bangladesh has improved its anti-money laundering efforts.
Myanmar, which also faces significant religious and ethnic violence, is 13th with 7.58 points.
The Basel Institute’s Anti-Money Laundering Index is an annual ranking, which assesses 146 countries for money laundering/terrorism financing risks. This is the sixth annual release of the Basel AML Index, which remains to date the only research-based risk rating of countries in this field issued by an independent non-profit institution.
Since its first release in 2012 the index has not seen significant changes in terms of countries occupying the top ten risk positions. Yet, the 2017 Basel AML Index shows that the average country risk level has been deteriorating at least during the last three years.
While the global average risk scores were 5.82 in 2015 and 5.85 in 2016, the average risk score this year is equal to 6.15 (on a scale of 0 = low risk to 10 = high risk).
Correction: An earlier version of this article incorrectly stated the US rank to be 30th.
Published in Dawn, September 9th, 2017
Comments (37) Closed
India is low, thanks to Modi
@Allen need not to say thanks to modi always, India was already below in the list....
Congrats south asia for the shoddy scores and ranks!
Unless safe heavens of money laundering, Switzerland, UK, stops inflow of black money, the leaders and businessmen of third world countries will keep on inventing new ways to launder wealth of poor people. In fact so called consultants in these safe heavens themselves invent and suggest ways to launder money.
@Allen
Please don't take give credit to Modi for everything... unless you have the data to prove it.
The report doesn't say what rank India had in 2014, till when the UPA was in power. For all you know, India had a better ranking that year.
How do you know India hasn't slipped under Modi?
Having said that, I'm glad India has shown the maximum effort among South Asian countries to check laundering..
There is a need to publish list showing ranking of countries which provide safe haven for money launderers and facilitate safe parking of black money. Top rankers will definitely be Panama, Swiss bank and UK. Stern action is required against them to control this menace.
Due to Demonetization, GST, Paperless transaction, eStamping, RERA Act, cashless initiatives and One Lakh Firms De-Registered; 50,000 Shell Companies Identified...India has done the MOST in a very short period of time towards money laundering...
The severe implication of current anti-money laundering laws is inevitable in Pakistan for mitigation but unfortunately, the applicators are under subservience of culprits of money laundering. According to media reports, most top delinquents of said crime are politician especially are heads of most prominent political parties. We hope the current accountability process will be ubiquitous with punitive action against the miscreants.
Afghanistan - tops the list - failure of NATO who are fully supporting the Afghan Government - or they using Afghanistan for some of their dirty work?
@Allen
Please don't take give credit to Modi for everything... unless you have the data to prove it.
The report doesn't say what rank India had in 2014, till when the UPA was in power. For all you know, India had a better ranking that year.
How do you know India hasn't slipped under Modi?
Having said that, as an Indian, I'm glad we have shown the maximum effort in South Asia to check laundering..
The number 46 & 88 itself says a lot.
Pakistan #46 USA #30 For once, Pakistan not so far behind USA.
@Pakistani "Pakistan #46 USA #30 For once, Pakistan not so far behind USA."
I'm sure that's a typo because the US with 4.85 points is far better than India (5.58) and India is the best performer in Asia. I guess the US is 130th and not 30th.
And it is Switzerland, who built their economy based on laundering money!!!
@Gabbar not before 2014.
Amazing efforts by Bangladesh, salute to them. While we in Pakistan need to do a lot, 47 is not a good rank at all
@Allen Money laundering is done in high value Currency note, which Indian don't have, one can't do laundering Rs 5 . Of thanks to Mr Modi jee .
Pakistan needs improvement from A-Z, neighbors count. Saudi Arabia should not be in the list, they are very good in Laws and control.Bangladesh has improved that is nice. India Is still better in risk,thanks to it's neighbors.
@MICHAEL CLAYTON
And how do you defend Habib Bank which.is big jolt to Pakistan ?
No Pakistan Media has reported the closing down of Habib Bank in the US on similar charges
@MICHAEL CLAYTON *"Please don't take give credit to Modi for everything... unless you have the data to prove it.
The report doesn't say what rank India had in 2014, till when the UPA was in power. For all you know, India had a better ranking that year"*
Not 2014 but in 2015 India was ranked 78th. This year it's 88th. That's a cool 10 places improvement in only 2 years. Pakistan was 45th that year. So yes I will credit modi with this with the demonitization and agreements with the Swiss government and all.
@Pakistani 'Pakistan not so far behind USA.'
Pakistan is 46 while the US is at a strong 116. How would you say Pakistan is not so far behind USA ?
congratulations Bangla Desh
India 88 china 51 good to see that
@sam than why Pakistan is above in rank even they have low currency value.
Taxpaying reforms, awareness and benefits are required to be broad casted for inclusion of more and more people to move away from money laundering business and such reforms after payment of tax should be seen in public in form of improved infrastructure and facilities for people. Improved taxation and more tax paying citizens contribute in stabilization of economy of any country. Well Done !!! Bangladesh.. neighbors need to learn from each other..
All thanks to 30 years of Sharif Mafia.
@ukz UK is a haven for money laundering. Foreigners buy properties in cash and no questions are asked about the source. But for the local people, UK courts will ask for at least last three months bank statements. No wonder all the corrupt money of the third world countries are dumped in the bricks and mortars in London.
South Asia needs further improvement
@Bhola Bhala That is not true. Their tourism attracts the people from all over the world.
@sam India should ban 2000 notes. there should not be any notes above one hundred rupees. In US the highest is 100 dollar and in UK the highest is fifty pounds.
The source of money laundering always starts from govt employees ... especially at the lower level.
Not surprised, as Nawaz Sharif, Shabaz Sharif and their family members, Asif Zardari, Isaq Dar and dishonest bureaucrats contributed greatly in Basil Institute's list of money laundering countries (Pakistan's position 46). Once our courts punish the main culprits and order to get all looted money back to Pakistan, I am sure our rating will improve. Let's get rid of corrupt practices and black sheep from our society!
India has to be more Low as after GST , Demonetisation & changes in IT laws its really difficult to do anything , Even you can not buy gold with cash or house shops are also not readily accepting high value cash transactions.
I hope patriotic stakeholders are alive to this news. What should be follow up measures??? Lets pray it too does not become part of " Western Conspiracy" or "National Reconciliation Thesis".
Ommm. What about UAE and Swiss. This is where all the big bucks end up.
What is India's ranking?