Religion and the Money Laundering Risk

In this paper, we investigate the impact of religion on the money laundering risk, focusing specifically on Protestantism compared to other religions. Protestantism is often associated with greater individual self-discipline and stronger institutional economic governance. Analysing data from 27 EU m...

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Bibliographic Details
Main Authors: Hamza Mahmood, Badar Nadeem Ashraf
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Economies
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Online Access:https://www.mdpi.com/2227-7099/13/4/96
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Summary:In this paper, we investigate the impact of religion on the money laundering risk, focusing specifically on Protestantism compared to other religions. Protestantism is often associated with greater individual self-discipline and stronger institutional economic governance. Analysing data from 27 EU member states, we find that Protestant countries exhibit a lower risk of money laundering. Additionally, our findings indicate that Protestantism exerts a distinct influence that is separate from the overall religiosity levels of countries. Our results remain robust across various estimation models and when incorporating additional governance and cultural control variables. This study enhances our understanding of the significant role that religion plays in shaping individual behaviour toward financial fraud, particularly money laundering.
ISSN:2227-7099