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Article
Publication date: 25 June 2021

Christoph Wronka

This study aims to illustrate and determine how illegally obtained funds are laundered through online platforms and companies in different economic sectors in the digital age.

2688

Abstract

Purpose

This study aims to illustrate and determine how illegally obtained funds are laundered through online platforms and companies in different economic sectors in the digital age.

Design/methodology/approach

A qualitative analysis approach using purpose sampling methods, including 21 semi-structured interviews with prevention experts, compliance officers and convicted cybercriminals, resulted in the determination of concrete money-laundering methods involving the employment of online platforms provided by companies and institutions in different economic sectors.

Findings

The current study focuses on various companies in different economic segments that mitigate cyber laundering and the anti-money laundering measures that can be adopted. Therefore, this paper provides a detailed discussion and analysis on how money launderers avoid being detected. Both preventive and criminal perspectives are taken into consideration.

Originality/value

By identifying the gaps in the current anti-money-laundering mechanisms, it will provide compliance officers, legislators and law enforcement agencies with an in-depth insight into how cyber laundering operates in various economic sectors.

Details

Journal of Money Laundering Control, vol. 25 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 3 October 2016

Nicholas Gilmour

This paper aims to discuss the findings of a UK-based research study that sought to explore the applicability of situational crime prevention towards money laundering undertaken…

2476

Abstract

Purpose

This paper aims to discuss the findings of a UK-based research study that sought to explore the applicability of situational crime prevention towards money laundering undertaken through the purchasing of high-value portable commodities.

Design/methodology/approach

This paper presents exploratory findings from research conducted between 2011 and 2013 in the UK. The research sought to identify the process, steps and vulnerabilities behind money laundering through the purchasing of high-value portable commodities and whether the introduction of situational crime prevention techniques could reduce vulnerabilities in the existing environment.

Findings

Despite significant research into money laundering typologies, the use of high-value portable commodities has remained largely untouched, regardless of the increased implementation of anti-money laundering policies and procedures. This paper demonstrates how the purchasing of high-value portable commodities is extremely vulnerable to money laundering – while identifying how the successful application of situational crime prevention is possible – but inherently it depends on various characteristics directly and indirectly facilitating each stage of the money laundering process.

Research limitations/implications

This paper is of value to government policymakers, regulators and financial institutions considering future preventative measures. It is also of value to financial investigators and law enforcement agencies intent on investigating money laundering. While the paper relies on data from the UK, the overall findings are such that wherever cash-intensive businesses exist, so too does the opportunity for money laundering through the financial arrangement retained by such businesses.

Originality/value

This paper presents new research on the direct link existing between high-value portable commodities and money laundering in the UK and the viability of techniques for situational crime prevention despite significant research having previously taken place to identify and develop money laundering typologies.

Details

Journal of Money Laundering Control, vol. 19 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 20 July 2010

Marco Arnone and Leonardo Borlini

The purpose of this paper is to present an empirical assessment and outline issues in criminal regulation relating to international anti‐money laundering (AML) programs.

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Abstract

Purpose

The purpose of this paper is to present an empirical assessment and outline issues in criminal regulation relating to international anti‐money laundering (AML) programs.

Design/methodology/approach

In the first part, this paper outlines the serious threats posed by transnational laundering operations in the context of economic globalization, and calls for highly co‐ordinated international responses to such a crime. The second part of the paper centres on elements of international criminal regulation of ML.

Findings

The focus is on the phenomenological aspect of ML and highlights that to a large extent it is an economic issue. Economic analysis calls for an accurate legal response, with typical trade‐offs: it should deter criminals from laundering by increasing the costs for such illicit operations, calling for enhanced regulatory and enforcement activities; however, stronger enforcement yields increased costs and reduces privacy. These features have lately inspired the recent paradigm shift from a rule‐based regulatory framework to a risk‐based approach which still represents an extremely delicate regulatory. Both at the international level and within the single domestic legal system, AML law is typically characterised by a multidisciplinary approach combining the repressive profile with preventive mechanisms: an empirical evaluation of the International Monetary Fund‐World Bank AML program is presented, where these two aspects are assessed. The non‐criminal measures recently implemented under the auspices of the main inter‐governmental public organisations with competence in these fields seem to be consistent with the insights of economic analysis. However, some key criminal issues need to be better addressed.

Originality/value

The paper offers insights into international AML programs, focusing on criminal regulation.

Details

Journal of Money Laundering Control, vol. 13 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 8 May 2018

Fitriya Fauzi, Kenneth Szulczyk and Abdul Basyith

The purpose of this paper is to identify current measures taken for financial crime’s prevention and detection in the context of Indonesia.

1134

Abstract

Purpose

The purpose of this paper is to identify current measures taken for financial crime’s prevention and detection in the context of Indonesia.

Design/methodology/approach

This study is based on data from articles in Indonesian newspapers relating to the current financial crimes, current measures of preventing financial crimes in Indonesia and based on the literature review.

Findings

There are some attempts to combat financial crimes in Indonesia, both internally and externally. The attempts that have been made for the internal scope are the enactment of anti-money laundering law, the new monitoring system of financial institutions and the formation of a superintendent institution. The attempts that have been made for the external scope are the agreement between Indonesia’ financial intelligence unit Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), and other countries’s financial intelligence unit, the affiliation member of the Asia/Pacific Group on Money Laundering (APG) to combat financial crimes through strengthening its anti-money laundering and terror financing capabilities.

Originality/value

This paper presents an overview of current prevention and detection measures in the context of Indonesia, and it is hoped that this paper will contribute to the current discussion of eliminating financial crimes.

Details

Journal of Financial Crime, vol. 25 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 February 1998

Rocco R. Vanasco

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect…

27054

Abstract

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.

Details

Managerial Auditing Journal, vol. 13 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 4 January 2008

Antonello Biagioli

The aim of this paper is to stimulate a reflection on some issues concerning the measurement of the magnitude of money laundering.

1365

Abstract

Purpose

The aim of this paper is to stimulate a reflection on some issues concerning the measurement of the magnitude of money laundering.

Design/methodology/approach

A survey of various research works devoted to the measurement of the volume of laundered funds is presented. Focussing mainly on quantitative approaches based on statistical methodologies, the paper provides hints on the modelling techniques used to estimate money laundering. Specific attention is paid to the relationship between criminal proceeds, laundered funds and asset seizure, unifying in the same stream of thought the whole process that goes from the perpetration of an offence to the repression of crimes through AML and CTF measures.

Findings

The paper takes the move from empirical considerations and findings, and develops wider reflections on the effectiveness of AML and CTF actions. Following a cost/benefit approach, the paper focuses on the possibility and meaning of testing and rating both the weight of laundered funds within the legal economy and the successfulness of AML/CTF measures in terms of frozen and seized assets. The relationship between the seriousness and intensity of a crime and the burden imposed on the society (in terms of compliance and limitations to freedom) is also questioned.

Research limitations/implications

The paper tends to concentrate on the factors that may influence the estimation of laundered funds when quantitative measurement techniques are used. Reference is made to some sectors of economic and financial activity that might be more prone to criminal infiltration and considerations of qualitative character are also part of the author's speculations. Yet, purposely, the potential contributions from other disciplines (such as, criminology and economics) are only mentioned and not fully explored.

Practical implications

The paper openly revives practical questions concerning the estimation of phenomena of financial crime and highlights clearly how the quantification of money laundering may be relevant in terms of the potential impact of the flow of illegal funds on the legal economy, the assessment of risk in the financial sector and the definition of effective and proportionate countermeasures.

Originality/value

The paper addresses questions that have long attracted international attention and interest regarding the costs and benefits of the system of control of and fight against phenomena of money laundering and terrorism financing; as well as the need of revamping empirical research along new, more efficient, shared methodologies. The author underlines explicitly how quantitative estimations may influence the perception of the relevance of such phenomena, as well as the adoption of prevention and repression measures. An original argument is developed regarding either a risk of underestimating financial crime, with a consequent reduction of the effort devoted to its fight and prevention, or the risk of overestimating the phenomenon, which in turn might impose unnecessary burdens on the society.

Details

Journal of Money Laundering Control, vol. 11 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 1 June 2005

Gorazd Meško and Branko Lobnikar

The purpose of the paper is to explore some dimensions of the community policing strategy of the Slovene police, which emphasizes establishment, reinforcement and maintenance of…

1889

Abstract

Purpose

The purpose of the paper is to explore some dimensions of the community policing strategy of the Slovene police, which emphasizes establishment, reinforcement and maintenance of good relations with local communities and new organized ways of setting of priorities in crime prevention and provision of local safety at the local level (i.e. local safety councils). In addition, the paper seeks to present the development of local safety and security efforts in Slovenia based on ideas of making local communities responsible and on partnership in setting priorities in safety/security efforts, prevention of everyday criminal offences and public disorder.

Design/methodology/approach

The authors have conducted a study on a sample of 178 representatives of local safety councils in several Slovenian towns. The study focused on the functioning of local safety councils in Slovenia and dealt with advantages and obstacles related to the work of such councils. The authors also reflected on the councils within a broader concept of democratisation and inclusion of citizens in crime prevention and partnership‐oriented local problem solving.

Findings

Findings show the development of some dimensions of community policing safety, especially democratic ways in setting priorities in local safety and crime prevention efforts. Despite some obstacles, the main advantages of such councils are as follows: democratisation of formal social control and control over the police; cooperation of (responsible) citizens and knowing one another; development of more active cooperation between all local key persons; facilitating of “safety consciousness” and discussions on local problems and “communities that care” mentality.

Research limitations/implications

The present research used both quantitative and qualitative approaches, which gave a relatively clear overview of the situation studied. A possible problem in studying priorities in crime prevention and safety provision can be related to the population, which attended the local safety council meetings. They do not necessarily represent the public opinion of local citizens but opinions of local élites dealing with crime and public security issues.

Practical implications

The main implications of the paper for policy makers and practitioners are challenges to the further development of local crime prevention efforts, which should be based on partnership, good knowledge (information‐ and knowledge‐based decision making), clear rules or legal framework, financing and accountability.

Originality/value

The paper presents the first such study conducted in a post‐socialist country, and presents some ideas for the development of common efforts in local (communal) crime prevention and efforts for a safer life in local communities.

Details

Policing: An International Journal of Police Strategies & Management, vol. 28 no. 2
Type: Research Article
ISSN: 1363-951X

Keywords

Article
Publication date: 7 January 2019

Meta Ahtik, Ozren Pilipovic and Miran Marelja

This paper aims to focus on the role of reporting entities, e.g. banks, other financial institutions, legal professionals, in the prevention of criminal offenses connected with…

Abstract

Purpose

This paper aims to focus on the role of reporting entities, e.g. banks, other financial institutions, legal professionals, in the prevention of criminal offenses connected with money laundering in Croatia and Slovenia.

Design/methodology/approach

The methodology of the economic analysis of law is used to analyze the effectiveness of laws in Croatia and Slovenia regarding the definition and the role of reporting entities in money laundering prevention in these two countries. A comparative approach is also used as the authors compare the effectiveness of Slovenian and Croatian legal systems and their compatibility with EC Directive (2015/849).

Findings

The authors find that banks have long clinged to the guaranteed confidentiality of deposits, which means that money laundering has undoubtedly brought them some benefits in the short term. The prevention of money laundering for banks is not free. The measures imposed on the bank by legislation (encouraging these banks to a higher level of demand for preventive behavior) entail costs that go beyond the direct, visible benefits of the implemented measures. However, a functioning and stable financial system has a number of externalities, of course, which are also enjoyed by banks.

Originality/value

The paper focuses on economic analysis of Croatian and Slovenian legal systems with regards of the regulation of role of reporting entities in the prevention of money laundering which produce certain costs and benefits for the financial system and reporting entities as whole. The paper also uses the comparative approach to address the problem of compatibility of Croatian and Slovenian legal system with the EC Directive (2015/849).

Details

Journal of Money Laundering Control, vol. 22 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 13 April 2020

Norman Mugarura and Emma Ssali

The purpose of this paper is to decipher the law relating to cybercrimes regulation and benchmarking best practices that could be adopted to address regulatory weaknesses in some…

Abstract

Purpose

The purpose of this paper is to decipher the law relating to cybercrimes regulation and benchmarking best practices that could be adopted to address regulatory weaknesses in some countries. In many countries, cybercrimes regulation is undermined by a lack of robust regulatory regimes. The few regimes that are available are fragmented with no coherent global strategy to deal with these offences across countries and regions. There is a lot of scholarly literature to corroborate the fact that lack of requisite laws on cyber and financial crimes has rendered states lame ducks when faced with well-organized and resourced criminal organizations.

Design/methodology/approach

This paper articulates intricacies of regulating money laundering and cybercrimes using data from selected African countries and beyond. Generic issues on financial crimes, cybercrimes, case law and policy documents drawn from different jurisdictions have been examined based on the objectives of the study. Cybercrime activities and anti-money laundering (AML) regulatory models have been evaluated drawing on experiences of selected countries in Africa and other countries. Questions whether suspicious activity reports are appropriate as a model to counter incidences of cybercrime activities or whether other options should be considered were also examined. Most notably, the risk-based assessment model such as profiling of high-risk clients rather than reporting every transaction will be compared and possibly suggested as a suitable alternative in financial crimes regulation. The authors have evaluated the data and AML regulatory approaches and other policy measures to curtail the foregoing threats. There is a possibility that AML tools used by financial institutions and banking activities could be used to prevent the growing threat of cybercrimes. The paper has also been enriched by case studies of tenuous legal systems and fragmentation of laws on cybercrimes and financial crimes and how these gaps have been exploited to fuel incidences of illicit criminal activities around the globe. The paper has also used empirical data including visits to banks and financial institutions on the nexus between the threat of cybercrimes and money laundering prevention. The authors have been selective, evaluating cases from 2000s to date. This timeline was particularly important because of the increased incidences of computers and money laundering threats globally. After analysing the data, the authors were able to delineate that there is a close connection between the foregoing two crimes, how they operate in practice, differences and similarities in the counter-measures used to mitigate their negative effect globally. Thus, in the authors’ contention, this is a novel study that is likely to spur farther research on law and policy against cyber and AML crimes not only in Uganda but also in other jurisdictions. At the same time, the findings of the study could complement, and perhaps also complete, the work of scholars who have written papers on cybercrimes to advocate for regulatory changes fight against these offences. The study will also complement the work of other researchers who have challenged the segregation of cybercrimes and financial crimes in local and international regulatory discourses. This research aims to make a significant contribution to the study of cybercrimes and how they are regulated in international law.

Findings

The findings of the paper have confirmed that the high incidences of money laundering and cybercrimes today are partly fuelled by inherent weaknesses in the global regulatory system and partly fuelled by weaknesses at an individual state level. Many countries have enacted a raft of anti-cyber and AML legislation but this notwithstanding, these laws have not been used to stem cross-border crimes globally. This is partly explained by the fact that many enforcement institutions lack the requisite capacity to institute measures through which to implement engendered laws and policies easily. The regulatory capacity of many countries has been eviscerated by deficiencies in infrastructure and systems.

Details

Journal of Money Laundering Control, vol. 24 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 9 January 2007

Hans Geiger and Oliver Wuensch

To provide an economic view on the costs and benefits of anti‐money laundering (AML) efforts.

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Abstract

Purpose

To provide an economic view on the costs and benefits of anti‐money laundering (AML) efforts.

Design/methodology/approach

Based on a international, comparative study conducted in Switzerland, Singapore and Germany, the authors outline the impact of AML measures on banks and the financial services industry. The paper discusses possible reasons for the failure of AML to fight the predicated crimes. It also discusses the collateral damage caused by AML.

Findings

Compared with the monetary and non‐monetary costs of money laundering prevention for the society and the economy, the benefits are small. Instead of broadening and deepening the current AML framework, a thorough review of the current approach should take place.

Research limitation/implications

Costs and benefits of AML measures are hardly quantifiable. The authors resort to a qualitative approach, stylising possible outcomes and side effects of money laundering prevention.

Practical implications

Useful set of arguments for discussing the benefits and shortcomings of the current and upcoming AML measures.

Originality/value

Money laundering measures and their impact are examined using basic laws of economy and financial intermediation.

Details

Journal of Money Laundering Control, vol. 10 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

1 – 10 of over 4000