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The purpose of this paper is to present an empirical assessment and outline issues in criminal regulation relating to international anti‐money laundering (AML) programs.

In the first part, this paper outlines the serious threats posed by transnational laundering operations in the context of economic globalization, and calls for highly co‐ordinated international responses to such a crime. The second part of the paper centres on elements of international criminal regulation of ML.

The focus is on the phenomenological aspect of ML and highlights that to a large extent it is an economic issue. Economic analysis calls for an accurate legal response, with typical trade‐offs: it should deter criminals from laundering by increasing the costs for such illicit operations, calling for enhanced regulatory and enforcement activities; however, stronger enforcement yields increased costs and reduces privacy. These features have lately inspired the recent paradigm shift from a rule‐based regulatory framework to a risk‐based approach which still represents an extremely delicate regulatory. Both at the international level and within the single domestic legal system, AML law is typically characterised by a multidisciplinary approach combining the repressive profile with preventive mechanisms: an empirical evaluation of the International Monetary Fund‐World Bank AML program is presented, where these two aspects are assessed. The non‐criminal measures recently implemented under the auspices of the main inter‐governmental public organisations with competence in these fields seem to be consistent with the insights of economic analysis. However, some key criminal issues need to be better addressed.

The paper offers insights into international AML programs, focusing on criminal regulation.

This chapter delves into the intricate evolution and challenges of regulatory frameworks within the global financial sector, spotlighting the dynamic interplay between technological advancements, globalization and the imperative for stringent regulatory compliance. Initially, it traces the historical lineage of financial regulation from its nascent stages, through pivotal transformations aimed at enhancing market stability and integrity, to contemporary paradigms that balance efficiency with systemic safety. The discourse navigates through various regulatory models – ranging from institutional and functional frameworks to the innovative “Twin Peaks” model – and their respective merits and challenges in aligning with the evolving financial landscape. Furthermore, the paper scrutinizes the multifaceted role of managerial accountability in fostering a culture of compliance, emphasizing proactive risk assessment, regulatory reporting and the integration of ethical considerations into corporate governance. Through an analytical lens, it explores how financial institutions can navigate the complexities of adherence to diverse regulatory mandates, thereby safeguarding financial stability while promoting growth and innovation. The narrative concludes by projecting future trajectories of regulatory frameworks, advocating for a harmonious blend of regulatory rigor and flexibility to accommodate the rapid pace of financial innovation and global interconnectedness.