Munich Personal RePEc Archive

Governance of Money Laundering: An Application of the Principal-agent Model

Shah, Syed Azhar Hussain and Shah, Akhter Hussain and Khan, Sajawal (2006): Governance of Money Laundering: An Application of the Principal-agent Model. Published in: The Pakistan Development Review , Vol. 45, No. 4 (2006): pp. 1117-1133.

[img]
Preview
PDF
MPRA_paper_8868.pdf

Download (214Kb) | Preview

Abstract

In this model we evaluate the strategy of principal (international financial regime) and affectivity of the network of money transaction to minimize transaction of money through money laundering by making laws and procedure and get these implemented by agents. With the application of present value method of cost and returns to agents and clients payoff matrix is developed. The present strategy of principal seems suboptimal to involve informal agents and clients in anti- money laundering measures and it needs revision to involve them through incentives.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.