Abstract
In today’s rapidly evolving global financial landscape, the rise in financial crimes and
terrorist financing continues to threaten the economic and national security of nations.
This paper aims to assess the effectiveness of Anti-Money Laundering (AML) laws in
addressing these threats, particularly amid increasing geopolitical instability. The primary
objectives are to examine how current AML frameworks respond to the complex tactics
used by criminal and terrorist networks, analyse the role of international cooperation, and
explore the potential of emerging technologies in enhancing financial oversight.
Employing a doctrinal research approach based on a thorough review of academic
literature, policy documents, and regulatory reports, the paper evaluates the strengths and
weaknesses of existing AML regimes. The analysis revealed that financial crimes are
becoming more transnational, exploiting regulatory gaps, weak jurisdictions, and global
conflicts to transfer illicit funds undetected. It also finds that many current AML
mechanisms struggle to keep pace with the evolving strategies of criminal and terrorist
actors. The paper highlights the urgent need for stronger international cooperation among
financial institutions, regulators, and law enforcement agencies. It also advocates for the
strategic use of innovative technologies such as blockchain analytics, machine learning,
and artificial intelligence to enhance real-time detection and reduce human oversight
errors. In conclusion, the paper recommends a multi-layered approach that is,
strengthening AML legislation, investing in cross-border intelligence sharing, and modernising compliance systems through technological integration. These actions are
vital for protecting global financial integrity and disrupting the financial support networks
of criminal and terrorist organisations in an era marked by geopolitical uncertainty
terrorist financing continues to threaten the economic and national security of nations.
This paper aims to assess the effectiveness of Anti-Money Laundering (AML) laws in
addressing these threats, particularly amid increasing geopolitical instability. The primary
objectives are to examine how current AML frameworks respond to the complex tactics
used by criminal and terrorist networks, analyse the role of international cooperation, and
explore the potential of emerging technologies in enhancing financial oversight.
Employing a doctrinal research approach based on a thorough review of academic
literature, policy documents, and regulatory reports, the paper evaluates the strengths and
weaknesses of existing AML regimes. The analysis revealed that financial crimes are
becoming more transnational, exploiting regulatory gaps, weak jurisdictions, and global
conflicts to transfer illicit funds undetected. It also finds that many current AML
mechanisms struggle to keep pace with the evolving strategies of criminal and terrorist
actors. The paper highlights the urgent need for stronger international cooperation among
financial institutions, regulators, and law enforcement agencies. It also advocates for the
strategic use of innovative technologies such as blockchain analytics, machine learning,
and artificial intelligence to enhance real-time detection and reduce human oversight
errors. In conclusion, the paper recommends a multi-layered approach that is,
strengthening AML legislation, investing in cross-border intelligence sharing, and modernising compliance systems through technological integration. These actions are
vital for protecting global financial integrity and disrupting the financial support networks
of criminal and terrorist organisations in an era marked by geopolitical uncertainty
Keywords:
Anti-Money Laundering (AML)
terrorist financing
geopolitical instability
blockchain
artificial intelligence
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