Stopping Dirty Money: the Global Effective-O-Meter

Stopping Dirty Money: the Global Effective-O-Meter

This feature was updated on 16 February, 2019 in order to reflect the latest FATF reports.

About the Global Effective-O-Meter

Large-scale corruption schemes are only feasible if there’s a way to hide and spend the proceeds.

Cases from Azerbaijan and Brazil to FIFA and Malaysia have shown how corrupt networks are able to open bank accounts, transfer funds across borders and acquire prime real estate and luxury goods in global capitals.

Since 2014, a global anti-money laundering body called the Financial Action Task Force (FATF) has been assessing whether countries’ measures to stop dirty money are actually working in practice – whether they are effective – in addition to the extent to which laws are in place on paper.

To date, FATF and its regional offices have assessed 70 countries across the world.  As the Effective-O-Meter shows, average global anti-money laundering effectiveness stands at just 32 per cent. There has been no change since the last edition of the Effective-O-Meter in February 2018, which covered 46 countries.

In simple terms, on average all countries assessed so far are failing to effectively prevent corrupt individuals and their professional enablers from stealing money and getting away with it, at enormous cost to citizens.

Overall, just nine countries score above 50 per cent: Australia, Israel, Italy, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States.

However, even these relative high-scorers are at the 70 per cent mark or below. In addition, anti-corruption NGOs in the top-rated jurisdiction, the UK, have expressed their dismay at the high ratings, pointing to multiple shortcomings in FATF’s review.

Since 2014, Transparency International has been calling on FATF to listen to the views of civil society experts during its country visits, precisely to reduce the risk of critical information being ignored.

As of February 2019, global effectiveness at stopping money laundering stands at 32%.

 

Methodology note

The Effective-O-Meter and effectiveness map draw on country effectiveness ratings across 11 “immediate outcomes” available from FATF here.

The 4-point qualitative scale used by FATF to measure effectiveness has been converted to a numerical scale following the system suggested by the OECD here:
Low effectiveness (LE): 0;
Moderate effectiveness (ME): 1;
Substantial Effectiveness (SE): 2;
High Effectiveness (HE): 3.

The unweighted average effectiveness score for each country across all 11 FATF immediate outcomes has been expressed as a percentage of the highest possible score (3: high effectiveness). The global effectiveness score is an unweighted average of the scores for all available countries.

Images: Transparency International

For any press enquiries please contact press@transparency.org

Latest

Support Transparency International

The terrible consequences of police corruption in South Africa

What do we do when those mandated to protect us are serving other interests than public safety and security? In South Africa, police corruption leaves the public exposed to high rates of crime, and causes distrust of the police service while allowing crime to flourish.

Why do DRC citizens report such high levels of corruption?

People's experiences with corruption in the DRC are far worse than in most other African countries. Why is corruption so prevalent in the DRC, why is bribery so commonplace and why do two thirds of citizens feel powerless?

Is Mauritius at a tipping point in the fight against corruption?

According to the latest GCB for Africa, very few Mauritians who accessed public services, like health care and education, had to pay a bribe for those services. But given recent scandals, citizens still see certain groups and institutions as corrupt.

Countries must be more transparent when investigating transnational corruption

Supervisory and justice systems should be transparent and accountable so that the public can assess their performance.

Resilient institutions

Reducing corruption is an important component of the sustainable development agenda, and one that all state parties have an obligation to address. Although corruption is often thought of as a ‘third-world problem’, institutions in the Global North play an important role in the corruption cycle, and are therefore an essential part of the solutions.

In whose interest? Political integrity and corruption in Africa

What accounts for the wide disparity in peoples’ perceptions of the integrity of elected representatives in different countries? In this piece, we will to look at various forms of political corruption, how they manifest in African countries and what can be done to promote political integrity.

Cidadãos opinam sobre a corrupção em África

A décima edição do Barómetro Global de Corrupção (GCB) – África revela que embora a maioria das pessoas na África acreditem que os níveis de corrupção aumentaram no seu país, elas também se sentem otimistas, pois acreditam que os cidadãos podem fazer a diferença no combate à corrupção.

Les citoyens africains expriment leur opinion sur la corruption

La 10e édition du Baromètre mondial de la corruption – Afrique révèle que la plupart des Africains pensent que la corruption a augmenté dans leur pays, mais aussi que la majorité d’entre eux s’estiment capables, en tant que citoyens, de changer la donne dans la lutte contre la corruption.

Global Corruption Barometer - Africa 2019

The Global Corruption Barometer (GCB) – Africa reveals that more than half of all citizens surveyed in 35 African countries think corruption is getting worse in their country. 59 per cent of people think their government is doing badly at tackling corruption.

Citizens speak out about corruption in Africa

The Global Corruption Barometer (GCB) – Africa, reveals that while most people in Africa feel corruption increased in their country, a majority also feel optimistic that they can make a difference in the fight against corruption.

Social Media

Follow us on Social Media