Title: The financial industry maturity model for anti-money laundering

Authors: Tom O'Kane; Tara Casserly; Peadar McCartney

Addresses: Governance Risk and Compliance Technology Centre, Business Information Systems, University College Cork, O'Rahilly Building, College Road, Cork, Ireland ' Governance Risk and Compliance Technology Centre, Business Information Systems, University College Cork, O'Rahilly Building, College Road, Cork, Ireland ' Governance Risk and Compliance Technology Centre, Business Information Systems, University College Cork, O'Rahilly Building, College Road, Cork, Ireland

Abstract: The financial industry maturity model (FIMM) for anti-money laundering (AML) described in this paper is a governance risk and compliance (GRC) framework that describes the essential business process components that are necessary for effective implementation of AML and combating the financing of terrorism (CFT) obligations. It has been devised based on two key fundamentals; the theory of maturity models which represent growth in capability as a progression through a series of levels and the extant international legislation, regulation and best-practice information that pertains to anti-money laundering. The key objective of the FIMM (AML) model is to ensure consistent execution of AML processes by facilitating the embedding of an AML risk aware and compliance culture in financial services organisations. (Note: for the sake of brevity we will only refer to AML in the paper to cover both AML and CFT).

Keywords: maturity level; maturity models; modelling; money laundering; capability; anti-money laundering; AML; terrorism funding; terrorism financing; risk awareness culture; financial industry; financial services; governance risk; compliance culture; business processes; combating terrorism; international legislation; regulation; best practice.

DOI: 10.1504/IJBEX.2015.070317

International Journal of Business Excellence, 2015 Vol.8 No.4, pp.492 - 513

Published online: 20 May 2015 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article