Money laundering and terrorism financing through consulting companies

Author:Fabian Maximilian Johannes Teichmann
Position:Teichmann International AG, Gallen, Switzerland
Pages:32-37
SUMMARY

Purpose The purpose of this paper is to illustrate how criminals need to proceed to launder money and finance terrorism through the use of consulting firms. Design/methodology/approach A qualitative content analysis of 58 semi-standardized expert interviews with both illegal financial services providers and prevention experts led to the identification of concrete techniques for... (see full summary)

 
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Money laundering and
terrorism nancing through
consulting companies
Fabian Maximilian Johannes Teichmann
Teichmann International AG, Gallen, Switzerland
Abstract
Purpose The purpose of this paper is to illustratehow criminals need to proceed to launder money and
nance terrorismthrough the use of consulting rms.
Design/methodology/approach A qualitative content analysis of 58 semi-standardized expert
interviews with both illegal nancial services providers and prevention experts led to the identication of
concretetechniques for money laundering and terrorism nancingthrough consulting companies.
Findings Consulting rms couldbe considered to be criminalsbest friends. Terrorists could eitherbuy
or set up consulting rms in reputable countries, such as Switzerland or the UK. Subsequently,they could
combine realconsulting services along with fake clients to covertheir illicit activities.
Research limitations/implications As the ndings are based on semi-standardizedinterviews, they
are limited to the 58 intervieweesperspectives.
Practical implications The identication of gaps in current prevention mechanisms is meant to
provide legislators, complianceofcers, law enforcement agencies and intelligence ofces with insights into
how criminalsnance terrorism and launder money.
Originality/value While the existingliterature focuses on simply naming areas that could play a part in
money laundering or the nancing of terrorism, this paper describes a concrete method. It takes both
preventionand criminal perspectives into account.
Keywords Money laundering, Terrorism nancing, Consulting
Paper type Research paper
Introduction
Money laundering and the nancing of terrorism continue to be signicant challenges for
compliance departments, law enforcement and intelligence agencies. One issue is that
relatively little is known about exactly how money launderers and terrorist nancers act.
Presumably, onlythe less skilled ones get caught.
Consulting companies are sophisticated tools for both money laundering and terrorism
nancing. However, they require a certain expertise. Setting up and running companies in
suitable jurisdictions without raising suspicion from either tax departments or banks
compliance ofcers can be rather challenging. Hence, this article examines how criminals
operate such consultingrms to minimise their risk of getting caught.
Literature review
The existing literature primarily focuses on organisations and mechanisms that aim to
prevent both money laundering and nancing of terrorism. The latter is often referredto as
reverse money laundering, and hence the two of them are frequently analysed together
No external research funding has been received for this study.
JMLC
22,1
32
Journalof Money Laundering
Control
Vol.22 No. 1, 2019
pp. 32-37
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-10-2017-0056
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm

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