A distributional regression approach to assessing cross-country money laundering risk

Trevor Fitzpatrick, Central Bank of Ireland

Co-authors: Ruairi Nugent, Central Bank of Ireland; Francisco Alcaraz-Garcia, Central Bank of Ireland; Lusia Lo Presti, Maynooth University

Abstract: Previous research estimated the relationship between country-specific characteristics and various money laundering risk proxies using economic gravity models. We use a Gamlss approach to model relationship between cross-border money laundering risk and a range of economic, financial, and institutional factors for 190 countries and territories. This approach appropriately models the data providing new insights into cross-country money laundering risk.