Money laundering through banks in Dubai

Abstract

Purpose

The purpose of this paper is to illustrate how illegally obtained funds from Austria, Germany, Liechtenstein and Switzerland are laundered through the banking system in Dubai.

Design/methodology/approach

The study is conducted using a qualitative content analysis of 60 semi-structured expert interviews with both criminals and money laundering prevention experts, and a quantitative survey of 200 financial sector compliance officers.

Findings

Some banks in Dubai are highly suitable for all stages of the money laundering process. However, although certain banks have weak compliance mechanisms, others act in an exemplary manner.

Research limitations/implications

The qualitative findings are based on semi-structured interviews and are limited to the 60 interviewees’ perspectives.

Practical implications

Identification of gaps in anti-money laundering mechanisms provides compliance officers, law enforcement agencies and legislators with valuable insights into how money laundering criminals operate.

Originality/value

The existing literature focuses mainly on organizations and the methods they use to combat money laundering. This paper outlines how money launderers operate to avoid detection. Authentic experiences are illustrated. The reader is provided with valuable insights into the minds of money launderers. Both lawful and criminal perspectives are taken into account.

Citation

Teichmann, F.M. and Falker, M.-C. (2020), "Money laundering through banks in Dubai", Journal of Financial Regulation and Compliance, Vol. 28 No. 3, pp. 337-352. https://doi.org/10.1108/JFRC-07-2019-0087