Money Laundering and Financial Stability: Does Adverse Publicity Matter?


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Başaran B.

Journal of Financial Regulation and Compliance , vol.2021, no.29, pp.1-22, 2021 (Journal Indexed in ESCI)

  • Publication Type: Article / Article
  • Volume: 2021 Issue: 29
  • Publication Date: 2021
  • Doi Number: 10.1108/jfrc-09-2021-0075
  • Title of Journal : Journal of Financial Regulation and Compliance
  • Page Numbers: pp.1-22

Abstract

Already suffering reputational damage from the global financial crisis, banks face a further loss of trust due to their poor money laundering compliance practices. As confidence-driven institutions, the loss of reputation stemming from inadequate compliance with regulations and policies labels banks as facilitators of crime and destroys public trust both in the bank itself, peer banks and the wider banking system. Considering the links between financial stability and adverse publicity about banks, this article aims to critically examine the implications of money laundering-specific bank information on financial stability.