Money Laundering

2021 ◽  
pp. 1-29
Author(s):  
Sadia Saeed ◽  
Fauzia Mubarik ◽  
Sehar Zulfiqar
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Negative Consequences ◽  
Law Enforcement Agencies ◽  
Basic Understanding ◽  
Recent Trends ◽  
Three Stages ◽  
International Issue ◽  
Financial Arrangements ◽  
Complex Phenomena

This chapter intends to discuss in detail the complex phenomena of money laundering. This chapter presents the definition, the three stages, characteristics, the negative consequences, and recent trends in money laundering. This chapter demonstrates that money laundering is an international issue by discussing the occurrence of money laundering cases around the globe. This chapter further identifies global efforts to prevent money laundering. This chapter is of value to the layman, government, policymakers, and law enforcement agencies to understand the concept of money laundering. While the chapter presents the basic understanding of the concept of money laundering, the overall finding proves that money laundering is an organized crime. Wherever cash-intensive business exists, there exists the opportunity for money laundering through financial arrangements. Therefore, collaborative domestic and international efforts are needed to combat this crime.

Money laundering through raw diamonds

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann ◽  
Marie-Christin Falker
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Qualitative Content Analysis ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Compliance Officers ◽  
German Speaking ◽  
Three Stages ◽  
Practical Implications ◽  
Combat Money Laundering

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.

scholarly journals Current Status And Prospects Of Anti-Money Laundering In Digital Economy

2020 ◽  
Vol 8 (15) ◽  
pp. 314-327
Author(s):  
Oleg M. Reznik ◽  
Yuliia O. Danylevska ◽  
Alina V. Steblianko ◽  
Iryna M. Chekmarova ◽  
Vladyslav V. Karelin
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Information Technologies ◽  
Digital Economy ◽  
Current Status ◽  
Gradual Transition ◽  
Negative Consequences ◽  
Law Enforcement Agencies ◽  
Digital Format ◽  
Financial Monitoring

The relevance of the article is determined by the need to study money laundering in the digital economy since the gradual transition of the state economy to a digital format, including the emergence of electronic money, the spread of electronic banking and the use of other information technologies, leads to the emergence of new methods and schemes for money laundering, which requires the simultaneous identification of contemporary risks of counteracting this type of crime and the search for ways of improving such activity. The purpose of the article is to study the current status and to search for ways to improve the fight against money laundering in the digital economy. Abstract logical, comparative legal methods and critical analysis were used to achieve this goal. It has been found that advances brought by the digital economy were profitable tools for money laundering. The negative consequences of money laundering have been discussed, which updates the task of finding optimal areas for counteraction. It is concluded that such areas are as follows: improving the IT infrastructure of banks, establishing relationships between banks and law enforcement agencies, preventing cybercrime, improving the financial monitoring system, ensuring the interaction of financial monitoring entities and law enforcement agencies. The conclusions and provisions set forth in the article are aimed at improving state policy in the field of combating money laundering, taking into account the challenges of the digital economy.

Trade-based money laundering: organized crime, learning and international trade

2020 ◽  
Vol 23 (3) ◽  
pp. 651-661
Author(s):  
Todd Hataley
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Organized Crime ◽  
White Collar Crime ◽  
Rational Approach ◽  
Complex Method ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Criminal Organizations ◽  
Organized Crime Groups

Purpose The purpose of this paper is to examine the link between trade-based money laundering and organized crime. Trade-based money laundering (TBML) has emerged as the newest and possibly most complex method used by organized crime and white-collar crime groups for illegally laundering money in the international financial system. Using legitimate global trade streams, criminal organizations are able to transfer billions of dollars annually between jurisdictions without having to adhere to state-level currency regulations. Design/methodology/approach Using a rational approach to understanding the behavior of criminal organizations, it is argued that TBML will continue to grow as a preferred methodology for laundering money internationally. As criminal organizations continue to be displaced from the more traditional methods of money laundering, they will look for and find TBML as a viable alternative for moving money between different jurisdictions. Findings As the methodology becomes more developed, the skill set will transfer to an increasing number of organized crime groups and be incorporated as a mainstream method for laundering and moving money. Practical implications To stay current with contemporary money laundering schemes, law enforcement agencies will have to train their investigators to spot, investigate and collect requisite evidence for successful prosecution and disruption of TBML offences. Moreover, in the absence of a global regime for sharing trade and customs information, legislators and law enforcement agencies will have to consider how to best expedite the sharing of trade and customs information. Originality/value This is the only study to address TBML as an emerging money laundering technique and the transfer of the skill between organized crime groups. It further details the skills that police investigators needs to develop to successfully combat TBML.

scholarly journals Geldwäsche - die ökonomische Dimension unbekannter Gefahren

1996 ◽  
Vol 26 (103) ◽  
pp. 259-281
Author(s):  
Thomas Achim Werner
Keyword(s):  
Resource Allocation ◽  
Exchange Rates ◽  
Money Laundering ◽  
Organized Crime ◽  
Macroeconomic Model ◽  
Legal Action ◽  
Negative Consequences ◽  
Money Stock ◽  
Fair Competition

Organized Crime manages to recycle ist immense earnings into the legal economy by using various tcchniques of money laundering. The laundered money can undermine the legal economy. This process is analysed in a macroeconomic model in order to show the qualitative interrelationsship between organized crime, money laundering, and the legal action taken against it. The influence on money stock and exchange rates is shown, as weil as the negative consequences for fair competition and resource allocation.

The Challenges in Dealing with Organized Crime and its Consequences in Modern Societies in Albania, Kosovo and Macedonia – the Balkan Peninsula

2015 ◽  
Vol 5 (1) ◽  
pp. 161
Author(s):  
Bashkim Selmani ◽  
Bekim Maksuti
Keyword(s):  
Organized Crime ◽  
Balkan Peninsula ◽  
Human Mind ◽  
Negative Consequences ◽  
The Public ◽  
Before And After ◽  
History Of ◽  
European Standards ◽  
Organized Crime Groups ◽  
Further Development

The profound changes within the Albanian society, including Albania, Kosovo and Macedonia, before and after they proclaimed independence (in exception of Albania), with the establishment of the parliamentary system resulted in mass spread social negative consequences such as crime, drugs, prostitution, child beggars on the street etc. As a result of these occurred circumstances emerged a substantial need for changes within the legal system in order to meet and achieve the European standards or behaviors and the need for adoption of many laws imported from abroad, but without actually reading the factual situation of the psycho-economic position of the citizens and the consequences of the peoples’ occupations without proper compensation, as a remedy for the victims of war or peace in these countries. The sad truth is that the perpetrators not only weren’t sanctioned, but these regions remained an untouched haven for further development of criminal activities, be it from the public state officials through property privatization or in the private field. The organized crime groups, almost in all cases, are perceived by the human mind as “Mafia” and it is a fact that this cannot be denied easily. The widely spread term “Mafia” is mostly known around the world to define criminal organizations.The Balkan Peninsula is highly involved in these illegal groups of organized crime whose practice of criminal activities is largely extended through the Balkan countries such as Kosovo, Albania, Macedonia, Serbia, Bosnia, Croatia, Montenegro, etc. Many factors contributed to these strategic countries to be part of these types of activities. In general, some of the countries have been affected more specifically, but in all of the abovementioned countries organized crime has affected all areas of life, leaving a black mark in the history of these states.

PMLA 2002’s Gremlins: Anatomizing the Labyrinth of Recent Amendments and Precedent

2021 ◽  
Author(s):  
Jaideep Singh Lalli ◽  
Nikita Garg
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Judicial Opinions ◽  
The Relationship

Abstract Enacted to regulate the incubus of organized crime, India’s Prevention of Money Laundering Act has quickly degenerated into interpretative chaos, with conflicting judicial opinions straining its otherwise sound provisions. Instead of chastening statutory mercuriality, close to eleven amendments to the Act have only fuelled incertitude further. The most damaging feature of the PMLA’s disarray is that the interpretive conflict eclipses the most basic punitive machinery of the Act. Part 2 of the article clarifies the relationship between the offence of money laundering and its predicate offences in the realm of how the latter ought to influence property attachment and prosecution proceedings for the former. Part 3 dissects the complication of Indian Criminal Procedure’s applicability to investigations under the PMLA and proposes an inventive two-step enquiry to determine the extent of said applicability in view of the provisions of both statutes. Part 4 chronicles the peculiar acquiescence of some Indian courts in not insisting upon furnishing written grounds of arrest to a detenu and explains why that jurisprudential course deserves to be abandoned. Lastly, Part 5 addresses the topical disputation of the effect of recent amendments on the potential revival of sui generis bail conditions under the PMLA that had previously been declared unconstitutional. The article presents a syncretism of recommended interpretative paths that the judiciary must take to remedy the recognized flaws.

Whose risk? Bank de-risking and the politics of interpretation and vulnerability in the Middle East and North Africa

2021 ◽  
pp. 1-16
Author(s):  
Sherine El Taraboulsi-McCarthy
Keyword(s):  
Political Economy ◽  
High Risk ◽  
Middle East ◽  
Money Laundering ◽  
North Africa ◽  
Civil Society Organizations ◽  
Negative Consequences ◽  
Local Authorities ◽  
The Impact ◽  
Politics Of Interpretation

Abstract Following the events of 11 September 2001, measures aimed at countering the financing of terrorism (CFT) were intensified by States. Many countries around the world adopted strict anti-money laundering and CFT regulations for the transfer of funds globally. This process increased the costs of complying with regulatory requirements and imposed high penalties on banks for non-compliance. As a result, preventive measures – often known as “de-risking” – were taken up by banks, including terminating the accounts of clients perceived as “high-risk” for money laundering or terrorist financing, and delaying transfers. These measures, however, have had negative consequences, reducing financial access for local civil society organizations in conflict-affected contexts that are deemed high-risk for terrorist activities. Drawing on five years of research to understand the impact of de-risking on conflict-affected contexts from a local perspective, this paper reflects on the local political economy of CFT, with a focus on the Middle East and North Africa. It explores two key areas of inquiry. The first of these is the politics of interpretation – how counterterrorism as a discourse and a set of practices, of which CFT is one, gets interpreted by local authorities and banks, and subsequently gets reinterpreted to the population. This also has implications for which local actors are better positioned to access funds than others, and why. The second area of inquiry is the politics of vulnerability – how the local political economy impact of CFT can increase the social and economic vulnerabilities of some groups more than others. This paper demonstrates that under the guise of “counterterrorism”, local authorities in conflict-affected contexts have used CFT to restrict the non-profit and philanthropic space and are using banking regulations to shape that space in ways that are bound to have negative medium- and long-term implications for it.

scholarly journals Corruption, illegitimacy and external influence: political factors of state instability

2020 ◽  
Vol 23 (8) ◽  
pp. 49-58
Author(s):  
Eduard Gugnin
Keyword(s):  
Physical Violence ◽  
Analytical Description ◽  
The State ◽  
External Influence ◽  
Negative Consequences ◽  
Power Structures ◽  
Law Enforcement Agencies ◽  
Spatial Cohesion ◽  
Ruling Elites ◽  
External Actors

The article constructs a descriptive and analytical description of the connection between corruption, delegitimization and loss of state sovereignty over society as background factors for increasing external influence and the destruction of political and spatial cohesion. As a result of the study, a conclusion was formulated, according to which the complete or partial loss of legitimacy coincides with the spread of corruption, which entails the devaluation of value and regulatory systems of social behavior. It is emphasized that corrupt practices contribute to the destruction of morals, law, ideology, have a devastating effect on government structures, procedures for its institutionalization, prevent the nomination of elites and leaders to command positions in the state apparatus, negatively affect the power and centralizing capabilities of the state. legitimate physical violence. It is noted that the loss of legitimacy is preceded by the loss of dialogue between government and society, the habitualization of corruption and its transformation into an endemic component of social life.It was stated that corruption increases the level of public permeability for external actors who take advantage of the situation of blurring the boundaries of political space and encourage citizens to spontaneous protests, which should shake the procedural principles of law and order, to achieve open conflicts between government and self-organized communities. what are the conditions for dialogue. External actors can seek to actively discredit the ruling elites by simultaneously unscrewing instability and escalating waves of destructive criticism aimed at disavowing all kinds of legitimacy: ideological, ethnic, structural, personalistic (charismatic), and others.It is noted that the final destruction of the state is the loss of a monopoly on public violence within the procedures established by law. Actors of external influence can resort to various acts of violence in order to encourage the ruling elites to increase security with the use of special Praetorian groups (paramilitary formations).It is summarized that the emergence of paramilitary formations is an indicator of the fragility of the state and its inability to control its own power structures, as evidenced by the violation of paramilitary formations of the usual official hierarchies and privatization of legitimate violence by alternative centers of power. Finally, it is emphasized that the destructive accompaniment of the latter is the growth of shadow arms markets, criminalization of the behavior of ordinary citizens who cease to see the state as an authorized defender of sovereignty and security and cease to trust legitimate law enforcement agencies, and these processes precede their colonial expansion. frozen conflicts with accompanying negative consequences for the state.

scholarly journals COMBATING MONEY LAUNDERING AS A PART OF TRANSNATIONAL ORGANIZED CRIME-CRIMINAL LAW METHODS AND PROBLEMS

2019 ◽  
Vol 31 (5) ◽  
pp. 1503-1507
Author(s):  
Tatijana Ashtalkoska-Baloska ◽  
Aleksandra Srbinovska-Doncevski
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Criminal Activity ◽  
Financial Flows ◽  
Transnational Organized Crime ◽  
Long Time ◽  
Financial Power ◽  
Criminal Legislation ◽  
And Control ◽  
Global Financial System

Money laundering its serious problem which threatens global financial system for a long time, hence measures against money laundering are part of one global system of criminal justice and policy against transnational organized crime, starting with predicting actions as criminal offences, precision its basic elements, giving priority of property sanctions and measures as a part of penal policy against this type of crime, but also finding new mechanism, in a way of detection and procedure of these illicit actions. This notion covers various activities directed against legalization of money acquired with committing crime, and therefore the center of injustice is exactly in covering criminal origin of money and including in legal financial flows. Although, in terms of detection and combating of this phenomenon, apart from the basic criminal offense, the money laundering operation itself and the predicate act often constitute a problem with regard to processing, which, if is not proved can constitute an additional obstacle of the procedure against the basic offence, as well as seizure of funds that are illegally obtained through such criminal activities. In this regard, the aim of this paper is to emphasize the necessity of building a global anti-money laundering system containing legislative measures as a first step in the control of money laundering and institutional restructuring for the effective enforcement of the existing criminal legislation. Criminalization and control of money laundering is complemented by confiscation of property and property gain acquired by such criminal activity, as measure which should enable reduction of financial power of criminal offenders and possibility of further committing of crime.

Sign in / Sign up

Export Citation Format

Share Document