Money laundering and bank risk: Evidence from US banks

Yener Altunbaş, John Thornton (Lead Author), Yurtsev Uymaz

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We test for a link between bank risk and enforcements issued by US regulators against banks for money laundering (ML) in a sample of 960 publicly listed US banks over 2004-2015. ML-related enforcements are associated with increased bank risk on several measures of risk with the result robust to a variety of estimation methodologies. Moreover, the impact of money laundering on bank risk is accentuated by the presence of powerful CEOs and only partly mitigated by large and independent executive boards.
Original languageEnglish
Pages (from-to)4879-4894
Number of pages16
JournalInternational Journal of Finance and Economics
Issue number4
Early online date1 Aug 2020
Publication statusPublished - Oct 2021


  • Bank risk
  • Money laundering
  • bank boards
  • CEO power
  • US banks

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