oversight AML/corruption agencies and possibly also civil society organisation which have a mandate
on these similar issues.
Practical implications – This paper is of practical signicance for governments, policy and
oversight institutions in dealing with issues relating to corruption and money laundering. The paper
provides insights into the dynamics of the foregoing twin offences, the context they are manifested and
how the law can be better utilised to forestall them. Corruption and money laundering have eviscerated
the individual economies capacity to engage in national development programmes, and they need to be
addressed as a matter of seriousness, both nationally and internationally. This paper will provide
insights into what states need to do to harness the law relating to corruption and money laundering
offences, both at an oversight institution and individual national government’s level.
Social/implications – Corruption and money laundering crimes have eroded the fabric of societies,
eviscerated individual states capacity to pursue national development goals and not to mention fuelling
other crimes such as nancing of terrorism, human and small arms trafcking, drugs trafcking, to
mention but a few. Therefore, no state can afford to ignore the foregoing transgressions against
humanity because no state can claim to be immune from the offshoot effects of corruption and money
Originality/value – There are not many published papers which articulate the connection between
money laundering and corruption in the context of this paper. This paper is one of its kind, original and
a must read. It is a must read because it has a lot offer literally to every one û academics, researchers,
students, policy and regulatory institutions and the list goes on.
Keywords Corruption, Money laundering, The role of regulatory institutions
Paper type Research paper
1. A brief overview of money laundering and corruption
On many occasions, money laundering schemes are inextricably linked to corruption
whereby the latter is utilised either as “a means to an end or an end itself”. The foregoing
linkage was recognized by the studies carried out by the World Bank, Asian
Development Bank and United Nations Global Compact which have correlated a close
connection between money laundering and corruption (FATF Paper, 2009). In his report
concerning money laundering and corruption (1999), Diekman denes the foregoing
offenses as elements of economic crimes.
Corruption is regarded as the misuse of public ofces with the intention of achieving
personal gains, and it constitutes a distortion of the governing structure of a country.
The prevalence of corruption in countries like India where legislative measures have
hitherto failed to address it reinforces Diekman’s proposition that corruption thrives
under conditions of tenuous legal infrastructure and legal systems. It is rstly provided
as an incentive to facilitate placement or integration of tainted assets into the nancial
economy, but it is utilised to undermine measures introduced to forestall it (UN, 2013).
The most common form of corruption which also involves money laundering is bribery
– it is used as a means to facilitate placement of illicit proceeds of crime into the nancial
system. In bribery, there is a giver and receiver of the bribe whereby one person provides
a bribe in form of either presents, monetary gains or other forms of advantages to the
person taking the bribe against performance of acts or alternatively the omission of such
acts in the course of the latter’s ofcial duties. The bribe giver and receiver could either
be an ofcial or an institution of government such as the Police in some countries. There
has been a growing recognition of the interconnectivity of the foregoing offenses in
countries like Singapore which has enacted a legislation: “Corruption, Drug Trafcking
and other Serious Crimes (Conscation of Benets) Act” in (1999) recognizing the