Abstract
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.
Keywords Stock markets, Money laundering, Governance
Paper type Conceptual paper