Developing A Strategic Framework for Combating Money Laundering In Fragile Governance Environment: Palestine As Case Study رسالة ماجستير

Abstract

This study addresses the problem of money laundering in Palestine's fragile governance environment, characterized by overlapping jurisdictions, limited regulatory capacity, and extensive cash-based transactions. The research aims to: 1) analyse key drivers of money laundering, 2) assess effectiveness of existing anti-money laundering measures, and 3) develop a strategic framework tailored to Palestine's unique challenges. Using a quantitative research methodology, the study surveyed 54 professionals from various sectors including banking, law enforcement, and regulatory bodies to assess current anti-money laundering (AML) measures and identify key vulnerabilities. The findings reveal that high-value cash transactions and unlicensed exchange networks pose the greatest money laundering risks in Palestine, with an overall risk assessment mean of 3.99 (SD = 0.57). Limited border control and weak coordination between regulatory bodies emerged as primary obstacles to effective AML implementation. While the existing legal framework was rated moderately effective (mean = 3.85, SD = 0.70), significant gaps were identified in technological infrastructure and institutional capacity. Based on these findings, the study proposes a comprehensive strategic framework built on six pillars: strengthening legal and regulatory foundations, building institutional capacity, upgrading technological infrastructure, enhancing collaborative governance, fostering international cooperation, and implementing robust monitoring and evaluation mechanisms. Key recommendations include establishing a National AML Coordination Council, implementing AI driven monitoring systems, developing unified sanctions system, and strengthening cross-border cooperation through MENAFATF engagement. The study contributes to the limited literature on AML efforts in fragile states by providing empirical evidence on AML challenges in Palestine and offering a context-specific strategic framework. The research demonstrates that despite fragile governance conditions, systematic VI implementation of coordinated technological, institutional, and legal reforms can significantly enhance AML effectiveness in Palestine's unique context