Recent trends in money laundering and terrorism financing

Author:Fabian Maximilian Teichmann
Position:Teichmann International AG, St. Gallen, Switzerland
Pages:2-12
SUMMARY

Purpose This paper aims to investigate how criminals launder money and finance terrorism through the financial system. Design/methodology/approach In total, 70 interviews were conducted with criminals and white-collar crime prevention experts, whose responses were subjected to qualitative content analysis. Based on the findings, a quantitative survey of 200 compliance officers... (see full summary)

 
FREE EXCERPT
Recent trends in money
laundering and terrorism
nancing
Fabian Maximilian Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose This paper aims to investigatehow criminals launder money and nance terrorism throughthe
nancialsystem.
Design/methodology/approach In total, 70 interviews were conducted with criminals and white-
collar crime preventionexperts, whose responses were subjected to qualitative contentanalysis. Based on the
ndings,a quantitative survey of 200 complianceofcers was carried out.
Findings The interviews and survey revealed concrete techniques of laundering money and nancing
terrorism through the nancial services industry and its afliates. Evidently, the compliance mechanisms
aimed at preventingmoney laundering and terrorism nancing can beeasily circumvented.
Research limitations/implications This studysndings are limited to the perspectives of 70
interviewees. Hence, it is possiblethat a study with a larger sample conducted in different countries or at a
differenttime could have yielded different results.
Practical implications Identifying the concrete methodsof laundering money and nancing terrorism
should provideboth compliance ofcers and legislators withvaluable insights into criminal activity. By better
understanding the specic steps taken by criminals, compliance ofcers should be able to more effectively
combat both moneylaundering and terrorism nancing.
Originality/value While prior literature focuses on the organizations and mechanisms involved in
combating money laundering and terrorism nancing, this paper instead explores how criminals avoid
detectionby taking into account existing compliance mechanisms and criminalperspectives.
Keywords Terrorism nancing, Compliance, Money laundering, White-collar crime, Criminals
Paper type Research paper
1. Introduction
Globally, the prevention of both money laundering and terrorism nancing continues to
dominate the activities of nancial institutionscompliance departments. Despite massive
compliance efforts, neither phenomenon has yet been eliminated. This paper investigates
recent trends in money laundering and terrorism nancing. In particular, it focuses on how
criminals circumvent the compliance procedures implemented by nancial service
providers. The aim is to provide both compliance ofcers and legislators with new
perspectives, which shouldhelp them anticipate illicit behavior and, hence, more effectively
combat nancial crime.
The Financial Action Task Force (FATF), which coordinates global efforts against
nancial crime, has conducted extensive research on both money laundering and terrorism
nancing (Alexander, 2001, p. 231). However, most of this research relies upon information
obtained from law enforcement and (nancial)intelligence agencies but does not refer to the
methods used by money launderers or terrorism nancers, who have not been caught yet.
This paper aims to add to the existing knowledge base by taking both criminalsand
prevention expertsperspectives into account.
JFRC
27,1
2
Journalof Financial Regulation
andCompliance
Vol.27 No. 1, 2019
pp. 2-12
© Emerald Publishing Limited
1358-1988
DOI 10.1108/JFRC-03-2018-0042
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1358-1988.htm

To continue reading

REQUEST YOUR TRIAL