If you're happy and you know it, clap your hands. This was a song we sang as kids.

Would a happy country have no crime, no Money Laundering?

I did an interesting exercise to explore the correlation between happiness and societal issues like Money Laundering. My recent visits to Nepal and UAE, two countries vastly different in prosperity and societal structure – have different AML rankings – this further set me thinking.

The Happiness Index, ranking 144 countries based on factors like GDP per capita, Social Support, and perceptions of corruption levels, sheds light on the emotional well-being of nations.
Conversely, the BASEL-AML Index ranking 164 countries assesses Money Laundering risks, emphasizing financial transparency and corruption levels.

- Notably, the top 10 happiest countries, including Finland, Denmark, Iceland, Sweden, Risk exhibit lower AML risks, fostering a sense of security and well-being.
- In contrast, countries like DR Congo Sierra Leone, Lesotho, Lebanon and Afghanistan, ranking low on the happiness index, face higher Money Laundering risks, reflecting deeper societal challenges.

The correlation between happiness and AML risk at different levels of development provides interesting insights. For instance, China, with average happiness levels, has a very high AML risk rating (top 10 %), while India, reflecting much lower happiness levels (last 20 %), has an average risk status.

Delving deeper into these rankings I uncovered a complex interplay of global factors. Countries in Africa and South America struggle with poverty, where the rule of law often succumbs to violent crime, poverty, and low conviction rates, contributing to heightened money-laundering risks. Africa has the world's lowest ratios of police and judges to members of the public.

Kuwait and the UAE exhibit high happiness levels but rank among the top 40 in risk due to corruption and ineffective enforcement mechanisms, overshadowing technological advancements and regulatory frameworks.

Bhutan, with its unique Gross National Happiness Index encompassing mindfulness, well-being, and good governance, presents a promising model. Focusing on holistic development areas like health, education, and community vitality, Bhutan aims to rival Northern European nations in happiness levels, with reports indicating significant population contentment.

I can clearly see that neither the poor nor rich country is safe from crime or money laundering. The analysis shows that both poor and rich countries are susceptible to crime and money laundering.

Internally, promoting well-being, work-life balance, and community support is crucial, while externally, going beyond regulation by enforcing good laws is essential. A non-technology recipe but nevertheless worth considering.