EBI Publications

lack of these two essential elements in the financial systems. Definition of Financial Integrity; According to the World Bank, financial integrity refers to countries’ provision of the tools aiming at increasing transparency and for going after the “dirty money” as a way to reinforce the strength, safety and integrity of the financial system. Importance of Reinforcing Financial Integrity in the Banking System; Financial systems, especially banking, are subjective to different market activities and variables, where the key element is the contract. However, legally enforceable contracts are not sufficient to accomplish all the tasks of the bank, as many aspects Financial Integrity Financial Infos Issue (31) Background and Importance: Financial integrity is essential for economic and social development. Countries’ financial systems must be transparent, inclusive and functioning with integrity to ensure economic development and to promote good governance. In fact, transnational criminal activities of illegal trade and corruption that may lead to laundering of the proceeds of crime will generate illicit flows. These flows will not only undermine financial sector stability but also would hinder the countries’ good governance and economic development. Trust and integrity are highly valued required basic variables in all businesses, especially in banking. Actually, it is hard to implement any kind of business or commercial activity without them. Furthermore, many financial crises are attributed to the