Research ArticleOpen AccessGoogle Scholar indexed
Assessing Money Laundering Risk of Financial Institutions with AHP: Supervisory Perspective
School of Management, Tianjin University, Tianjin, China
School of Management, Tianjin University, Tianjin, China
Human Resources Department, Tianjin University, Tianjin, China
- 1 School of Management, Tianjin University, Tianjin, China
- 2 School of Management, Tianjin University, Tianjin, China
- 3 Human Resources Department, Tianjin University, Tianjin, China
Journal of Financial Risk Management·Volume 02 (2013)·Pages 29–31·Published 28 March 2013·DOI10.4236/jfrm.2013.21004
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Abstract
This paper proposed a risk assessment model with which supervisory authorities can calculate the money laundering risk (MLR) level of financial institutions and make comparisons among multiple institutions. The model is based on the Analytic Hierarchy Process (AHP) and decomposes MLR into two second-tier criteria, i.e. Inherent Risk & Control Risk. AHP pair wise comparisons made by the experts from various fields are processed through AHP software to get the weight of each factor. Using this model, MLR of each financial institution could be obtained and certain comparison among them could be carried out.
KeywordsMoney Laundering RiskAssessmentAHP
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