The Panama Papers provided proof to the world of something that had long been suspected: the secrecy havens – jurisdictions in which global financial flows were hidden in ways that not even those entrusted with enforcing the laws and regulations of countries around the world could detect – were being used by those engaged in a host of nefarious activities, from tax evasion to corruption and even to child pornography.

Anti-money laundering systems have the potential to curb the use of proceeds of corruption and other crimes by the perpetrators. An effectively implemented anti-money laundering framework limits the channels through which illicit funds can be laundered, making crime riskier and reducing the incentives for corrupt activities.