Anti-money laundering efforts, stock market operations and good governance

Purpose - The purpose of this paper is to articulate why money laundering is a matter of concern for stock market operations. It examines how anti-money laundering efforts contribute to good governance and, conversely, how good governance measures themselves help promote anti-money laundering efforts. Design/methodology/approach - This review examines issues and concerns from a theoretical perspective and, based on some of the governance problems that have led to the collapse of various corporations, it examines how good governance can make a difference. Findings - The paper proves that good governance norms and practices can influence the further development and refinement of anti-money laundering and terrorist financing regimes and their effective implementation. Likewise, compliance with anti-money laundering and terrorist financing regimes can help create an environment conducive to the achievement of good governance norms and practices. Research limitations/implications - Noting that very little empirical research has been done so far on the issue of money laundering in the context of stock market operations, the paper suggests that researchers should accord more attention to this subject. Originality/value - The paper sheds light on an important area that has not been the subject of previous research studies and points to the importance of qualitative research in promoting a culture of stable and compliant capital markets.