The Links Between Money Laundering and Conflicts of Interest in the Investment Services Industry

Author: Karl-Johan Karlsson, CAMS-Audit

A conflict of interest is generally defined as a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influenced by a secondary interest.

Throughout this paper, I will examine the nature of the drivers of conflicts of interest in the investment services industry, such as certain types of remuneration, and argue that the same or similar drivers of conflicts of interest that affect investor protection, in many cases, holds relevance for the effectiveness of a financial institution’s AML efforts as well.

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