In a 2019 report published by think tank Basel Institute on Governance, Estonia has been ranked among the 125 countries examined as the country with the lowest risk of money laundering worldwide.
The authors of the report note that the Basel AML Index is an independent annual ranking that assesses the risk of money laundering and terrorist financing (ML/TF) worldwide.
In compiling the ranking, the index provides risk scores covering five domains: quality of ML/TF framework; bribery and corruption; financial transparency and standards; public transparency and accountability; and legal and political risks.
Topping the index, indicating that it is the easiest country in the world in which to be involved with money laundering or the financing of terrorism, is Mozambique, followed by Laos, Myanmar, Afghanistan and Liberia.
In 25th place overall, the European country with the highest risk of money laundering is Serbia. Ukraine ranks 37th, Russia 48th and the U.S. 72nd. The EU member state with the highest ranking is Cyprus in 74th.
Estonia is ranked in last (125th) place overall, indicating it is the country in which the most effective measures have been enacted in the fight against money laundering. Immediately preceding it are Finland, New Zealand, Macedonia and Sweden, respectively.
As noted on its website, the Basel AML Index does not measure the actual amount of money laundering or terrorist financing activity, but rather is designed to assess the risk of such activity. ML/TF risk is understood as a broad risk area in relation to a country’s vulnerability to ML/TF and its capacities to counter it.
The index has been published by the Basel Institute on Governance since 2012.
