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Trade-based money laundering (TBML) empowers criminals to run free post-Brexit

Mariola Jolanta Marzouk (Department of Criminal Justice, University of Portsmouth, Portsmouth, UK)

Journal of Money Laundering Control

ISSN: 1368-5201

Article publication date: 16 July 2021

Issue publication date: 21 April 2022

379

Abstract

Purpose

This paper aims to provide unique empirical findings exploring the impact of the UK’s post-Brexit Economic Strategy to boost trade with developing countries on the UK banking sector’s ability to manage trade-based money laundering risks.

Design/methodology/approach

Exploratory research design that used structured literature review, followed by semi-structured interviews with key subject matter experts employed by large UK banks.

Findings

Both banks and law enforcement struggle to prioritise trade-based money laundering (TBML) intelligence discovery due to deficient skills, resources, technology and lack of strong regulatory stimulus. The regulated sector calls for the UK anti-money laundering (AML) reform that would better incentivise TBML deterrence, yet the Government underestimates the money laundering risks while trading with high-risk jurisdictions post-Brexit.

Research limitations/implications

The findings are based on a small sample of six semi-structured interviews with difficult to access population of key subject matter experts. Despite the small sample, participants provided well-articulated and informed insights.

Practical implications

The UK’s post-Brexit Economic Strategy to boost trade with developing countries downplays the TBML risks it carries. The findings should alert UK banks, law enforcement and the Government who will collectively bear the responsibility to effectively manage TBML while enabling smooth trading.

Originality/value

The research provides unique perceptions of UK banks’ senior subject matter experts on managing TBML threats from opportunistic criminals.

Keywords

Citation

Marzouk, M.J. (2022), "Trade-based money laundering (TBML) empowers criminals to run free post-Brexit", Journal of Money Laundering Control, Vol. 25 No. 2, pp. 376-387. https://doi.org/10.1108/JMLC-04-2021-0040

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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