Money laundering through raw diamonds

Abstract

Purpose

This paper aims to illustrate how illegally obtained funds are laundered through raw diamonds in Austria, Germany, Liechtenstein and Switzerland.

Design/methodology/approach

To identify specific money laundering techniques involving raw diamonds, this study used a qualitative content analysis of data collected from 60 semi-standardized interviews with both criminals and prevention experts and a quantitative survey of 200 compliance officers.

Findings

Raw diamonds are extraordinarily suitable for money laundering in European German-speaking countries. In particular, they may be used in all three stages of the laundering process, namely, placement, layering and integration.

Research limitations/implications

Because the qualitative findings are based on semi-standardized interviews, their insights are limited to the perspectives of the 60 interviewees.

Practical implications

Identifying gaps in existing anti-money laundering mechanisms should provide compliance officers, law enforcement agencies and legislators with valuable insights into how criminals operate.

Originality/value

While prior studies focus on the methods used by organizations to combat money laundering and how to improve anti-money laundering measures, this paper investigates how money launderers operate to avoid detection, thereby illustrating authentic experiences. Its findings provide valuable insights into the minds of money launderers and combines criminal perspective with that of prevention experts.

Citation

Teichmann, F.M.J. and Falker, M.-C. (2024), "Money laundering through raw diamonds", Journal of Money Laundering Control, Vol. 27 No. 1, pp. 1-4. https://doi.org/10.1108/JMLC-07-2019-0057