Purpose

The purpose of this paper is to discuss the dilemma of digital banking and the financial inclusion agenda of countries with the level of strength of the anti-money laundering and countering the financing of terrorism (AML/CFT) regime.

Design/methodology/approach

This study develops an AML/CFT compliance index using the assessment data of FATF to measure the level compliance strength of countries to measure the impact of the strength of the AML/CFT regime on the financial inclusion. Financial literacy, literacy, number of bank branches and income level of countries are used as other control variables in regression analysis, which is used to test the developed model.

Findings

The results suggest that the AML/CFT compliance level of a country is a significant factor in determining the level of financial inclusion. Besides, the number of bank branches for 100,000 people, literacy and financial literacy are significant factors in financial inclusion. However, the results reveal that financial literacy is significant over literacy in determining financial inclusion. Therefore, having considered the importance of the AML/CFT regime for financial inclusion, regulators are required to strengthen the AML/CFT regime and make clarity on the AML/CFT regulations. This clarity will promote the digitalization and financial inclusion over time.

Practical implications

Most of the studies related to financial inclusion and AML/CFT aspects are qualitative. Therefore, this is only the start of measuring the strength of an AML/CFT regime. More appropriate measures will be developed in the future based on this foundation.

Originality/value

This paper is an original work done by the author, which discusses the issues of digital banking and financial inclusion agenda of countries with the compliance strength of the AML/CFT regime. The AML/CFT compliance index is the original idea of the author, which can be used as a quantitative measure to capture the strength of the AML/CFT regimes in future studies.

中文翻译：

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缺乏反洗钱和打击资助恐怖主义的机制：数字银行和金融普惠议程

目的

本文的目的是讨论具有反洗钱和打击资助恐怖主义（AML / CFT）体制实力的国家的数字银行困境和金融普惠议程。

设计/方法/方法

这项研究使用FATF的评估数据开发了AML / CFT合规指数，以衡量各国的合规水平，以衡量AML / CFT制度的强弱对金融普惠性的影响。金融素养，素养，银行分支机构数量和国家收入水平在回归分析中用作其他控制变量，用于检验开发的模型。

发现

结果表明，一个国家的反洗钱/反恐怖融资合规水平是决定金融普惠水平的重要因素。此外，拥有10万人口的银行分支机构的数量，文化程度和金融知识水平是金融普惠性的重要因素。但是，结果表明，在确定金融普惠性方面，金融素养比文化素养重要。因此，考虑到AML / CFT制度对于金融普惠性的重要性，监管机构需要加强AML / CFT制度，并明确AML / CFT法规。随着时间的流逝，这种清晰度将促进数字化和金融包容性。

实际影响

与金融普惠和反洗钱/打击资助恐怖主义方面有关的大多数研究都是定性的。因此，这仅仅是衡量AML / CFT制度强度的开始。在此基础上，将来将开发更适当的措施。

创意/价值

本文是作者完成的原创工作，讨论了具有AML / CFT制度合规性的国家的数字银行和金融普惠议程。AML / CFT合规性指标是作者的初衷，可以用作定量方法，以捕捉未来研究中AML / CFT机制的优势。