Informal Structure in the Center of the Counter-Terrorism Financing Regime:
Effectiveness Issues

Melkumian K.S.,

post-graduate student of the Department of World Politics, Moscow State Institute of International Relations (MGIMO University),

elibrary_id: 1010063 |

DOI: 10.17976/jpps/2019.02.11
Rubric: Laboratory

For citation:

Melkumian K.S. Informal Structure in the Center of the Counter-Terrorism Financing Regime: Effectiveness Issues. – Polis. Political Studies. 2019. No. 2. P. 149-160. (In Russ.).


The article is devoted to theoretical analysis of the FATF role in AML/CFT regime. Particular emphasis is given to exogenous and endogenous factors of the FATF viability within the framework of AML/CFT regime despite the FATF temporary nature, based on Mandate. The author regards the FATF contribution into AML/CFT regime in accordance with Krasner’s elements of the international regime: principles, norms, rules and decision-making procedures. The FATF is shown to be the core element of the regime. The author stresses the power, institutional factors and expertise as the basis of the FATF viability and success, and author appeals to three main schools of international regimes: realism, neoliberalism and cognitivism. The author notes that at the initial stage of the FATF development, the economic power and capacity of the G-7 states served as an important factor, which contributed to the diffusion of the FATF standards beyond the FATF. However, in the mid-1990s, the AML/CFT environment began to change, showing signs of an institutional environment. As a result, the FATF faced global governance dilemma: to remain an exclusive club, but be an undemocratic one; or become an inclusive forum, but an ineffective one, as a larger and more heterogeneous membership jeopardizes the capacity of making rules. At the same time, the FATF has a potential to avoid a decision-making deadlock by allowing other actors to participate and providing an opportunity to facilitate communication, reduce information asymmetry and transaction costs. Explaining the viability of the FATF, the author pays special attention to McGinnis and Ostrom’s design principles of robust institutions. 

FATF, terrorism financing, regime, factors, norms, realism, neoliberalism, cognitivism..

 Full Text  


Adler E., Haas P.M. 1992. Conclusion: Epistemic Communities, World Order, and the Creation of a Reflective Research Programme. – International Organization. Vol. 46. No. 1. P. 367-390.

Alldridge P. 2008. Money Laundering and Globalization. – Journal of Law and Society. Vol. 35. No 4. P. 437-463.

Brunsson N., Jacobsson B. 2000. Following Standards. – A World of Standards. Ed. by N. Brunsson, B. Jacobsson. Oxford: Oxford University Press. P. 127-137.

Carrington I., Shams H. 2006. Elements of an Effective AML/CFT Framework: Legal, Regulatory, and Best Institutional Practices to Prevent Threats to Financial Stability and Integrity. – Seminar on Current Developments in Monetary and Financial Law. Washington, D.C.: IMF. 46 p. URL: (accessed 20.08.2018).

Dahl R.A. 1994. A Democratic Dilemma. System Effectiveness versus Citizen Participation. – Political Science Quarterly. Vol. 109. No. 1. P. 23-34.

Drezner D. 2005. Globalization, Harmonization, and Competition: The Different Pathways to Policy Convergence. – Journal of European Public Policy. Vol. 12. No. 5. P. 841-859.

Glaser Ch.L. 1994-1995. Realists as Optimists: Cooperation as Self-Help. – International Security. Vol. 19. No. 3. Р. 50-90.

Grieco J.M. 1988. Anarchy and the Limits of Cooperation: a Realist Critique of the Newest Liberal Institutionalism. – International Organization. Vol. 42. No 3. P. 485-507.

Hasenclever A., Mayer P., Rittberger V. 1996. Interests, Power, Knowledge: The Study of International Regimes. – Mershon International Studies Review. Vol. 40. No. 2. P. 177-228.

Helleiner E. 2002. The Politics of Global Financial Regulation: Lessons from the Fight Against Money Laundering. International Capital Markets: Systems in Transition. Ed. by J. Eatwell, L. Taylor. Oxford: Oxford University Press. P. 177-204.

Hulsse R., Kerwer D. 2007. Global Standards in Action: Insights from Anti-Money Laundering Regulation. – Organization. Vol. 14. No. 5. P. 625-642.

Jacobsson B. 2000. Standardization and Expert Knowledge. – A World of Standards. Ed. by N. Brunsson, B. Jacobsson. Oxford: Oxford University Press. P. 40-49.

Keohane R.O. 1982. The Demand for International Regimes. – International Organization. Vol. 36. No. 2. P. 325-355.

Kern A. 2001. The International Anti-Money-Laundering Regime: The Role of the Financial Action Task Force. – Journal of Money Laundering Control. Vol. 4. No. 3. P. 231-248.

Kindleberger Ch.P. 1986. The World in Depression, 1929-1939. Los Angeles: University of California Press. 355 p.

Krasner S.D. 1982. Structural Causes and Regime Consequences: Regimes as Intervening Variables. – International Organization. Vol. 36. No. 2. P. 185-205.

Kratochwil F. 1986. International Organization: a State of the Art on an Art of the State. – International Organization. Vol. 40. No. 4. P. 753-775.

Levi M., Gilmore W. 2002. Terrorist Finance, Money Laundering and the Rise of Mutual Evaluation: A New Paradigm for Crime Control. – Financing Terrorism. Ed. by M. Pieth. Dordrecht: Kluwer Academic Publishers. P. 87-114.

Levy M.A., Keohane R.O., Haas P.M. 1993. Improving the Effectiveness of International Environmental Institutions. – Institutions for the earth: Sources of effective international environmental protection. Cambridge: MIT Press. P. 397-426.

McGinnis M., Ostrom E. 1992. Design Principles for Local and Global Commons. Indiana University. 47 p.

Milner H.V. 1997. Interests, Institutions, and Information. Princeton, NJ: Princeton University Press. 328 p.

Pagani F. 2002. Peer Review as a Tool for Co-Operation and Change: An Analysis of an OECD Working Method. Paris: OECD. 39 p.

Ruggie J.G. 1982. International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order. – International Organization. Vol. 36. No. 2. P. 379-415.

Sansonetti R. 2000. The Mutual Evaluation Process: A Methodology of Increasing Importance at International Level. – Journal of Financial Crime. Vol. 7. No. 3. P. 218-226.

Sharman J.C. 2006. The Global Anti-Money Laundering Regime and Developing Countries: Damned if They Do, Damned if They Don’t? – International Studies Association Annual Conference. San Diego.

Sil R., Katzenstein P. 2010. Analytic Eclecticism in the Study of World Politics: Reconfiguring Problems and Mechanisms across Research Traditions. – Perspectives on Politics. Vol. 8. No. 2. P. 411-431.

Silveira A.J.A. 2009. The International Standards on Combating Money Laundering: a Brazilian Perspective.

Washington, DC: The George Washington University. 36 p.

Simmons B. 2000. International Efforts Against Money Laundering’. – Commitment and Compliance: The Role of Non-Binding Norms in the International Legal System. Ed. by D. Shelton. Oxford: Oxford University Press. P. 244-263.

Waltz K.N. 2010. Theory of International Politics. Long Grove, Illinois: Waveland Press. 251 p.

Wendt A. 1994. Collective Identity Formation and the International State. – The American Political Science Review. Vol. 88. No. 2. P. 384-396.



Dolgopolova M.V. 2011. “Double Standards” of Banking Secret in the Context of Interstate Tax Cooperation Development. – Academic Notes of the International Banking Institute. No. 3. Actual Problems of The World And Domestic Economy. St. Petersburg: MBI. P. 54-62. (In Russ.)

Gambarov G.D. 2015. International Legal Framework for Combating Financial Crime in the Context of Implementation (FATF case). – Juridical Science. No. 3. P. 159-169. (In Russ.)

Melkumyan K.S. 2014. FATF in Combating the Financing of Terrorism. – Vestnik MGIMO-University. No. 1. P. 88-96. (In Russ.)

Melkumyan K.S. 2017. Issues and Controversies of FATF. – International Trends. No. 1 (48). P. 143-156. (In Russ.)

Poljanichko E.G. 2008. Formirovanie mezhdunarodnyh rezhimov bor’by s terrorizmom [Formation of International Anti-Terrorism Regimes]. Moscow: Vita-Press. 165 р. (In Russ.) 

Content No. 2, 2019

See also:

Novikova G.V.,
The «Strong Strategy» of the Weak (The Terror at the End of the 20th Century). – Polis. Political Studies. 2000. No1

Kravchenko S.A., Okhotsky Ye.V.,
International Cooperation in the Field of Combating Glocalized Corruption. – Polis. Political Studies. 2018. No1

Nisnevich Yu.A., Rozhich P.,
Lustration as instrument of counteracting corruption. – Polis. Political Studies. 2014. No1

Yevstafyev D.G., Chekalkin V.I.,
The International Aspect of Middle Eastern Terrorism. – Polis. Political Studies. 1991. No4

Malakhov V.S.,
Immigration regimes in the states of the West and in Russia: the political theory aspects. Part I. – Polis. Political Studies. 2010. No3



   2020      2019      2018      2017      2016   
   2015      2014      2013      2012      2011   
   2010      2009      2008      2007      2006   
   2005      2004      2003      2002      2001   
   2000      1999      1998      1997      1996   
   1995      1994      1993      1992      1991