Author : Mizuho Kida,Simon Paetzold
Publisher : International Monetary Fund
Page : 37 pages
File Size : 51,8 Mb
Release : 2021-05-27
Category : Business & Economics
ISBN : 9781513582436
The Impact of Gray-Listing on Capital Flows: An Analysis Using Machine Learning by Mizuho Kida,Simon Paetzold Pdf
The Financial Action Task Force’s gray list publicly identifies countries with strategic deficiencies in their AML/CFT regimes (i.e., in their policies to prevent money laundering and the financing of terrorism). How much gray-listing affects a country’s capital flows is of interest to policy makers, investors, and the Fund. This paper estimates the magnitude of the effect using an inferential machine learning technique. It finds that gray-listing results in a large and statistically significant reduction in capital inflows.