An Analysis of Anti-Money Laundering Regulations in Korea : An Analysis of Anti-Money Laundering Regulations in Korea
- 발행기관 서강대학교 국제대학원
- 지도교수 임준환
- 발행년도 2005
- 학위수여년월 200502
- 학위명 석사
- 학과 및 전공 국제대학원
- 식별자(기타) 000000081429
- 본문언어 영어
목차
By considering stylized facts on anti-money laundering regulations in Korea, this thesis tries to examine whether anti-money laundering regulations in Korea are effective, compared with those of Italy.
To test the effectiveness, the thesis employed Masciandaro’s models regarding technical, regulatory, and reputational costs in empirical and legal analyses. In the empirical analysis, data on per capita GNP, crimes, and bank deposits from 1974 to 2003 are used for correlation and regression, which will show how much money laundering is diffused in the region to make regulations ineffective. Legal analysis is also applied to demonstrate how strict anti-money laundering regulations are, which denotes ineffectiveness of the laws in terms of costs to the banking system. Under the effective laws, which make comparatively high level of efforts possible, there is no need to play a ‘name and shame’ game, because the cost of regulations is set optimized.
The empirical outcome implies Korea seems to have relatively ineffective regulations. Regionally, money laundering diffusion is witnessed in Kyunggi, Southern Choongchong, and Northern Jonra. Regulations under the single authority financial system show anti-money laundering laws in Korea are not effective, as they became stricter, generating more costs for related sectors.
In contrast with that of Korea, the empirical result suggests that Italy appears to have relatively effective regulations. Regionally, money laundering is permeated a great deal in the South, especially in the South with organized crime, according to Masciandaro’s empirical analysis. Italy seems to have relatively effective regulations after experimenting and experiencing trial and error in the early 1990s. The nation guarantees different financial authorities’ autonomy by allowing them to regulate themselves according to their needs, which seems to make Italian regulations effective.
This analysis, however, seems hasty, reflecting Korea’s short history on anti-money laundering regulations since its liberalization of the foreign market in 1999 and 2001. In this light, more studies on cost effectiveness analysis should be done in the future.
