As regulation intensifies, companies face growing pressure in their fight against money laundering, with corporate governance at the highest levels playing a critical role…
With global money laundering exceedingΒ $2 trillion annuallyΒ and being estimated to affect up to 5% of all available cash in the world, companies must act now or prepare to be held accountable. Whether a business deliberately launders money, turns a blind eye to it, accidentally enables it without any executive or board knowledge, the legal liability remains the same.
Correct corporate governance has become a critical safeguard against potential money laundering matters. The executive board are expected to take an active role in identifying and addressing how money is obtained and handled in the organisation.
According toΒ Ciaran Bollard, CEO ofΒ The Corporate Governance Institute,Β governance is a crucial line of defence against criminal practice and corporate governance professionals must stay curious about the businessβ operations.
βExecutives and board members must remain curious and ask questions. It doesnβt matter if you have never seen a case of money laundering, if youβre new in your role or if finance is not your expertise, you could still be liable if authorities locate any dirty money in the organisation.
βThe solution is to ask. Companies must assess what doesnβt look right and ensure everything is fully understood when it comes to any potential red flags or gaps in knowledge. Governance professionals must simply question complex transactions, red flags, misaligned patterns and examine when balance sheets donβt balance.
What does good governance look like in the fight against money laundering?
Bollard continues: βGood governance does not mean having all the answers, it means having the courage to demand answers. This is especially important when itβs uncomfortable to question something. Boards must ensure members feel free to question everything. This could be done with including external auditors, legal representatives and regulators in discussions to ensure executives feel protected. If questions are deliberately and persistently ignored, board members must escalate the issue until they get the answers they need.
βThe fear of challenging accepted norms has contributed to major scandals, from Danske Bank to HSBC. In both cases, leadership failed to address visible red flags and left gaps in their money laundering defences.
Bollard concludes: βMoney laundering must be taken seriously. Both money laundering and failing to prevent it are serious crimes. Defences against money laundering must meet industry standards and governance is key to ensuring this. Doing nothing is no longer safe. Governance professionals must use their voices, ask the right questions and escalate situations if necessary.
The message is clear. Boards must lead the fight against money laundering, not by mastering financial forensics, but by asking the right questions, refusing to look away, and holding the organisation to account at the highest level.
About the Corporate Governance Institute
The Corporate Governance Institute (TCGI) believes that governance is a powerful force for transformation, innovation, sustainable growth, and real progress. By combining grounded expertise with practitioner-led experience, the Institute equips todayβs most effective leaders, businesses, and boards to move far beyond compliance to unlock serious, strategic competitive advantage.
Whether for individuals, teams, or organisations, TCGI brings sharp insights, fresh perspectives, and hands-on tools. These will drive long-term impact, build momentum, and make tough calls with confidence – in a world that wonβt wait. Because good governance isnβt just about risk. Itβs about readiness.Β Β With learners in 79 countries and courses independently rated as excellent, weβre a trusted global partner in leadership and boardroom success.
