Corporate criminal liability for money laundering in light of international standards: A comparative perspective

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Abstract

Money laundering is one of the most serious financial crimes due to its connection with organized crime and illegal activities (Pavlidis, 2024; Alnor et al., 2025). Recent studies have addressed this issue from various angles, but they have not examined the liability of legal entities under Libyan legislation nor the extent to which its provisions align with French law and modern international standards in combating money laundering. This study, using a comparative analytical approach, aims to bridge this gap by evaluating the Libyan legal framework governing the liability of legal entities and highlighting shortcomings regarding the scope of liability and the effectiveness of penalties. The results show that Libyan legislation limits the scope of liability to financial and banking institutions, unlike French law and international recommendations, which expand the scope of liability to include all legal entities, including non-profit organizations. Furthermore, penalties in Libya are weak and ineffective. Our study contributes by proposing a legislative framework that broadens the scope of liability, links fines to a percentage of profits, and expands the scope of confiscation, thereby strengthening the fight against money laundering in Libya, ensuring the integrity of the financial sector, and reducing the risks associated with money laundering.

Keywords: Criminal Liability, Financial Crimes Legal Entities, Libyan Legislation, Money Laundering, International Standards

Authors’ individual contribution: Conceptualization — M.O.A. and A.A.; Methodology — M.O.A.; Investigation — M.O.A. and A.A.; Writing — Original Draft — M.O.A. and A.A.; Writing — Review & Editing — M.O.A. and A.A.; Supervision — M.O.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: K14, K22, K42

Received: 13.06.2025
Revised: 12.11.2025; 26.11.2025
Accepted: 02.12.2025
Published online: 03.12.2025

How to cite this paper: Alzwae, M. O., & Aljahani, A. (2025). Corporate criminal liability for money laundering in light of international standards: A comparative perspective. Corporate Law & Governance Review, 7(4), 38–47. https://doi.org/10.22495/clgrv7i4p4