Compliance issues in arbitration proceedings – bribery, money laundering and other abuses

Abstract

Purpose

The purpose of this study is to provide a firsthand perspective on the challenges and risks that can arise in arbitration proceedings.

Design/methodology/approach

To investigate the concrete methods money launderers use, a qualitative study was conducted with 10 alleged money launderers and 18 prevention experts. The results were then tested quantitatively, and it was concluded that among money launderers, the highly regulated financial sector is less popular than other sectors.

Findings

Money launderers relocate to unregulated sectors or offshore banks to avoid being questioned by compliance officers. Therefore, it is necessary for arbitrators involved in commercial or investor–state arbitration to have the expertise to readily identify the issues raised by these criminal law concepts and provide answers.

Originality/value

This paper examines the intersection between the areas of international commercial arbitration and money laundering, bribery, as well as embezzlement. At the same time, it draws attention to the need to analyze compliance issues in arbitration proceedings.

Citation

Teichmann, F., Boticiu, S.R. and Sergi, B.S. (2024), "Compliance issues in arbitration proceedings – bribery, money laundering and other abuses", Journal of Financial Crime, Vol. 31 No. 3, pp. 759-767. https://doi.org/10.1108/JFC-10-2022-0241