Money laundering and sanctions enforcement: large rewards, leniency and witness protection for whistleblowers

Purpose With sanctions becoming an increasingly important tool in ostracising autocratic regimes from western markets, the need for effective enforcement of and anti-money laundering (AML) is increasing, global AML regime will be backbone to detecting evasion sanctions. This regime, however, has been widely criticised as ineffective. paper aims discuss issues with current sanctions/AML propose a reward scheme whistleblowers enable asset seizures that not reliant on its effectiveness. Design/methodology/approach reviews weaknesses provide suggestions how design whistleblower programmes, based agency experience empirical evidence, well elaborate use such programmes context. Findings study concludes context enforcement, they include witness protection leniency money launderers, though those convicted criminal offence associated predicate crime. Moreover, rewards should mandatory scale amount seized or confiscated, cap monetary higher than it under Kleptocracy Asset Recovery Rewards Programme USA. Originality/value In contrast USA went about implementing this area Programme, argues these designed differently. also provides novel advice governments different dimensions model three crucial pillars along other considered.