AML POLICY
FDIs and reputational risk for the
host country
The other side of the debate suggests that
due to the reputational risks that jurisdictions with lax money laundering regulations and controls pose, there will be social
and economic consequences including the
slowing down of economic growth and
development in these countries. Most financial institutions are likely to restrict transactions with businesses in these countries in
order to mitigate their own risk as well as to
comply with local and international AML and
counter-terrorism financing (CTF) regulations. In this case, the launderers might not
even have access to investing in these jurisdictions due to prohibitions or restrictions.
Also, countries that have bad reputations or
adverse publicity against them are likely to
be risky for businesses to invest in.
Figure 2: Total number of inbound FDI projects from 2003 to 2008
Country Name
Algeria
182
Antigua
0
Data and analysis
Guyana
9
Country Name
Number
of inbound
FDI projects
2003-2008
Pakistan
168
Hong Kong
685
Peru
157
Philippines
396
Poland
1385
355
Hungary
1113
Armenia
51
Iceland
14
Australia
757
India
3679
Portugal
319
Austria
496
Indonesia
393
Puerto Rico
83
Azerbaijan
116
Iran
85
Qatar
156
Bahamas
7
Ireland
732
Romania
1346
Bahrain
156
Israel
115
Russia
2166
Bangladesh
49
Italy
735
Saudi Arabia
287
Belgium
701
Japan
761
Serbia &
Montenegro
305
Bermuda
6
Jordan
108
Singapore
975
Brazil
1046
Kazakhstan
162
Slovakia
505
Bulgaria
778
Kenya
67
Slovenia
109
Canada
1042
Kuwait
70
South Africa
311
Cayman
Islands
3
Kyrgyzstan
19
South Korea
523
1428
Chile
226
Latvia
294
Spain
China
7102
Lebanon
80
Sri Lanka
59
Colombia
243
Libya
70
Sweden
551
Croatia
196
Liechtenstein
2
Switzerland
478
Cuba
19
Lithuania
246
Syria
77
Cyprus
41
Luxembourg
71
Taiwan
415
Czech
Republic
781
Macau
31
Thailand
719
Denmark
384
Macedonia
67
Tunisia
126
Dominican
Republic
47
Malaysia
755
Turkey
416
Ecuador
43
Malta
36
UAE
1192
Egypt
237
Mauritius
26
UK
3040
El Salvador
The data was obtained from OCO Monitor,
fDi Markets which is the most comprehensive
database that provides the source company,
source country, destination country, number
of FDI projects, as well as jobs created. In
total, from 2003 to 2008, nearly 60,000 FDI
projects were recorded globally. The data
also was used in the working paper: Effects
of Foreign Direct Investments by Multinational Companies on Company Performance and on country Economic Growth
by Ayse Yuce (Ted Rogers School of Management) and Vefa Buyukalpelli (Global AML
FIU, Royal Bank of Canada).
29
Mexico
922
Ukraine
522
Estonia
226
Morocco
260
Uruguay
45
Finland
179
Netherlands
611
USA
4828
France
2144
New Zealand
135
Venezuela
117
Germany
1681
Nigeria
127
Vietnam
995
Greece
197
Norway
128
Yemen
22
Oman
99
Zimbabwe
13
Table 1. TOTAL FDI (2003-2008)
Total number of companies
included in database
19,961
Total number of FDI projects
(2003-2008)
58,204
The analysis includes a total of 58,204 foreign
investment projects made by 19,961 companies from 103 countries between 2003 and
2008. Table 1 and Figure 1 illustrate the total
number of inbound FDI projects between
2003 and 2008.
60
Country Name
Number
of inbound
FDI projects
2003-2008
Argentina
Global foreign direct investment patterns
In order to investigate which side of the
debate is closer to reality, it is imperative
to examine the global foreign direct investments projects that consist of the source
and destination countries, global FDI projects as well as the total amount invested
across borders.
Number
of inbound
FDI projects
2003-2008
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