How do anti-money laundering systems affect FDI flows across the globe?

This paper is a systematic attempt to establish the effect of anti-money laundering (AML) systems on FDI flows across globe. Complex and related hypotheses are tested using data from 2012 2018 165 economies different continents, income levels, regulatory environments. First, examines AML flows. Second, nonlinearities systems-FDI nexus. Third, if host country peculiarities such as an offshore financial centre (OFCs) or originating Africa alter this relationship. The employs two-step system GMM dynamic panel threshold regression techniques test study. Generally, provides evidence that positively promote inflows. However, finds structures dampen FDIs inflows for OFCs. Further, influence threshold-specific. Specifically, impact below our full, developing, African samples. At same time, study negative above value full sample developing countries. Africa, positive structures. Again, negatively all centres. findings provide insights into importance in influencing MNEs’ decisions country.