Combating Money Laundering and Terrorism Financing: Adaptive Strategies in a Globalized Financial Environment

This study discusses the evolving challenges of money laundering and terrorist financing strategies within a highly complex global financial system. Driven by the evolving need for adaptive anti-money laundering and countering the financing of terrorism AML/CFT frameworks, it addresses a gap in the literature by employing Teece’s dynamic capabilities framework to develop sensing, seizure and transformation capabilities. A conceptual model is suggested on the basis of a review of current practices, outlining the ways in which dynamic capabilities can improve the resilience and adaptability of AML/CFT. Future empirical research will test the effectiveness of the model in real-life application, enabling a deeper level of understanding of practical implementation.

This work offers a basis for advancing AML/CFT strategies, with practically oriented implications for policymakers, regulators and financial institutions.