IDEAS home Printed from https://ideas.repec.org/a/aid/journl/v7y2024i3p59-80.html
   My bibliography  Save this article

Anti-Money Laundering in the Digital Economy: Institutional, Financial, and Educational Channels

Author

Listed:
  • Anton Boyko

    (Sumy State University, Sumy, Ukraine)

  • Andrew Zimbroff

    (College of Education and Human Sciences, University of Nebraska-Lincoln, Lincoln, USA)

  • Serhii Mynenko

    (Sumy State University, Sumy, Ukraine)

  • Yang Chen

    (Fujian Normal University, Fuzhou, China)

Abstract

This paper aims to address the practical challenge of enhancing the effectiveness of anti-money laundering systems within the context of the digital economy. Specifically, it examines how institutional, financial, and educational channels can be optimised to combat illicit financial activities. This research responds to the growing need for a comprehensive anti-money laundering framework that can adapt to the evolving dynamics of the digital economy, where financial crimes are becoming increasingly sophisticated. A methodological framework is proposed to assess and forecast the effectiveness of these channels, employing the principal component method and Saaty hierarchy analysis. The study incorporates both linear and nonlinear regression models to provide medium-term forecasts for the channels' characteristics and their contribution to anti-money laundering effectiveness. An integral indicator is developed to quantify the impact of these channels in combating illicit financial activities. Historical data are utilised to project trends up to 2025, revealing the expected influence of institutional, financial (investment), and educational channels on the anti-money laundering system. The results indicate that, without targeted interventions, the effectiveness of institutional and financial channels gradually decreases, whereas the educational channel maintains a positive trajectory. This analysis underscores the importance of strengthening institutional frameworks and financial oversight to ensure the sustainability of anti-money laundering measures in the digital economy.

Suggested Citation

  • Anton Boyko & Andrew Zimbroff & Serhii Mynenko & Yang Chen, 2024. "Anti-Money Laundering in the Digital Economy: Institutional, Financial, and Educational Channels," Virtual Economics, The London Academy of Science and Business, vol. 7(3), pages 59-80, September.
    • Handle: RePEc:aid:journl:v:7:y:2024:i:3:p:59-80
    DOI: 10.34021/ve.2024.07.03(4)
    as

    Download full text from publisher

    File URL: https://www.virtual-economics.eu/index.php/VE/article/download/360/167
    Download Restriction: no
    File URL: https://libkey.io/10.34021/ve.2024.07.03(4)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alfonso Infante-Moro & Juan C. Infante-Moro & Julia Gallardo-Pérez & Francisco J. Martínez-López, 2022. "Key Factors in the Implementation of E-Proctoring in the Spanish University System," Sustainability, MDPI, vol. 14(13), pages 1-16, July.
    2. Perez, M. Fabricio & Brada, Josef C. & Drabek, Zdenek, 2012. "Illicit money flows as motives for FDI," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 108-126.
    3. Bogdan Moskalenko & Oleksii Lyulyov & Tetyana Pimonenko & Ihor Kobushko, 2022. "Institutions’ Effect on a Country’s Investment Attractiveness within Sustainable Development," Virtual Economics, The London Academy of Science and Business, vol. 5(4), pages 50-64, December.
    4. Georgios Pavlidis, 2023. "Deploying artificial intelligence for anti-money laundering and asset recovery: the dawn of a new era," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 26(7), pages 155-166, May.
    5. Aleksy Kwilinski, 2023. "The Relationship between Sustainable Development and Digital Transformation: Bibliometric Analysis," Virtual Economics, The London Academy of Science and Business, vol. 6(3), pages 56-69, September.
    6. Nurul Liyana Bahrin & Sharifah Norzehan Syed Yusuf & Kamaruzzaman Muhammad & Erlane K Ghani, 2022. "Determinants of Anti-Money Laundering Program Effectiveness among Banks," International Journal of Management and Sustainability, Conscientia Beam, vol. 11(1), pages 21-30.
    7. Yang Chen & Oleksii Lyulyov & Tetyana Pimonenko & Aleksy Kwilinski, 2024. "Green development of the country: Role of macroeconomic stability," Energy & Environment, , vol. 35(5), pages 2273-2295, August.
    8. Zhaozhi Wang & Shoufu Lin & Yang Chen & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Digitalization Effect on Business Performance: Role of Business Model Innovation," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    9. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Environmental Sustainability within Attaining Sustainable Development Goals: The Role of Digitalization and the Transport Sector," Sustainability, MDPI, vol. 15(14), pages 1-14, July.
    10. Lars Haffke & Mathias Fromberger & Patrick Zimmermann, 2020. "Cryptocurrencies and anti-money laundering: the shortcomings of the fifth AML Directive (EU) and how to address them," Journal of Banking Regulation, Palgrave Macmillan, vol. 21(2), pages 125-138, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aleksy Kwilinski, 2024. "Mapping Global Research on Green Energy and Green Investment: A Comprehensive Bibliometric Study," Energies, MDPI, vol. 17(5), pages 1-24, February.
    2. Jean-Louis Combes & Alexandru Minea & Pegdéwendé Nestor Sawadogo, 2019. "Assessing the effects of combating illicit financial flows on domestic tax revenue mobilization in developing countries," Post-Print halshs-02315734, HAL.
    3. Slim, Sadri, 2015. "Un modelo Mundell-Fleming con economía ilegal y lavado de dinero [Modeling illegal economy and money laundering: a Mundell-Fleming framework]," MPRA Paper 64675, University Library of Munich, Germany.
    4. Yusri Hazrol Yusoff & Syahirah Jumbli & Nur Nashuha Norazman & Nor Shahida Binti Abdul Razak & Muhamad Ridzuan Hashim, 2024. "Enhancing Anti-Money Laundering Strategies: A Conceptual Paper," Accounting and Finance Research, Sciedu Press, vol. 13(3), pages 1-1, August.
    5. Siranova, Maria & Tiruneh, Menbere Workie & Fisera, Boris, 2021. "Creating the illicit capital flows network in Europe – Do the net errors and omissions follow an economic pattern?," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 955-973.
    6. repec:idb:brikps:81941 is not listed on IDEAS
    7. Sami Bensassi & Arisyi F. Raz, 2025. "Combating trade‐related fraud: do the Financial Action Task Force recommendations bite?," Economica, London School of Economics and Political Science, vol. 92(365), pages 322-347, January.
    8. Svetlana Ledyaeva & Päivi Karhunen & Riitta Kosonen & John Whalley, 2015. "Offshore Foreign Direct Investment, Capital Round-Tripping, and Corruption: Empirical Analysis of Russian Regions," Economic Geography, Clark University, vol. 91(3), pages 305-341, July.
    9. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    10. Bebonchu Atems & John K Mullen, 2016. "Outward FDI from the USA and host country financial transparency," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1122-1143, November.
    11. Petr Janský & Miroslav Palanský, 2019. "Estimating the scale of profit shifting and tax revenue losses related to foreign direct investment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(5), pages 1048-1103, October.
    12. Päivi Karhunen & Svetlana Ledyaeva & Keith D. Brouthers, 2022. "Capital Round-Tripping: Determinants of Emerging Market Firm Investments into Offshore Financial Centers and Their Ethical Implications," Journal of Business Ethics, Springer, vol. 181(1), pages 117-137, November.
    13. Huifang Liu & Jin-Sup Jung, 2024. "Impact of Digital Transformation on ESG Management and Corporate Performance: Focusing on the Empirical Comparison between Korea and China," Sustainability, MDPI, vol. 16(7), pages 1-17, March.
    14. Maria Siranova & Menbere Workie Tiruneh & Brian Konig, 2024. "From abnormal FDI to a normal driver of sudden stop episodes," Working Papers 2024.02, International Network for Economic Research - INFER.
    15. Zhen Liu & Yixin Liu & Mohamed Osmani, 2024. "Integration of Smart City Technology and Business Model Innovation," Sustainability, MDPI, vol. 16(12), pages 1-30, June.
    16. Carmela D’Avino, 2023. "Money laundering and AML regulatory and judicial system regimes: investigation of FinCEN files," European Journal of Law and Economics, Springer, vol. 55(2), pages 195-223, April.
    17. Iryna Nyenno & Vyacheslav Truba & Liudmyla Tokarchuk, 2023. "Managerial Future of the Artificial Intelligence," Virtual Economics, The London Academy of Science and Business, vol. 6(2), pages 72-88, June.
    18. Dejun Zhou & Ummar Faruk Saeed & Andrew Osei Agyemang, 2024. "Assessing the Role of Sustainability Disclosure on Firms’ Financial Performance: Evidence from the Energy Sector of Belt and Road Initiative Countries," Sustainability, MDPI, vol. 16(2), pages 1-21, January.
    19. Lucie Kurekova & Klara Cermakova & Eduard Hromada & Bozena Kaderabkova, 2023. "Public funding in R&D and R&D outcome sustainable development: Analysis of Member States EU," International Journal of Economic Sciences, European Research Center, vol. 12(2), pages 40-62, November.
    20. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko & Denys Pudryk, 2024. "Global Image of Countries and Immigration Flows," Central European Business Review, Prague University of Economics and Business, vol. 2024(4), pages 83-101.
    21. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2024. "Digitalization and Energy in Attaining Sustainable Development: Impact on Energy Consumption, Energy Structure, and Energy Intensity," Energies, MDPI, vol. 17(5), pages 1-17, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aid:journl:v:7:y:2024:i:3:p:59-80. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aleksy Kwilinski (email available below). General contact details of provider: https://edirc.repec.org/data/akwilin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.