Factors Influencing the Outcome of Money Laundering Investigations

Abstract

Money laundering is a global issue that must be effectively mitigated across the nation. Despite various initiatives, investigation outcome either in the form of prosecution, conviction, or confiscation remains low. Therefore, this study aims to investigate the factors influencing money laundering investigating outcome, based on rational choice theory. The study conducted focus group interviews with 15 investigating officers to have an in-depth understanding of factors and challenges faced by investigating officers in conducting money laundering investigation which influences their investigation outcome. The findings demonstrate that money laundering investigation outcome is influenced by three factors, which are cost-benefit analysis, individual belief, and organizational context. The findings of the study provide significant contributions in confirming the theoretical foundations underpinning this research and suggest recommendations for the relevant regulators in improving money laundering investigation and prosecution decision making.

Compliance determinants of anti-money laundering regime among professional accountants in Malaysia

“…Even though money laundering and terrorism financing prosecutions remain low in Malaysia, only 132 of 821 cases were prosecuted, whilst 54 cases remain ongoing (FATF, 2015). Although Malaysia practices a comprehensive anti-money laundering (AML) regime, one of the reasons for the low number of prosecutions is the difficulties faced by the investigating officers in gathering sufficient evidence to support the money laundering charges (Mohamed and Ahmad, 2012; Zolkaflil et al , 2019; Zolkaflil et al , 2021). Moreover, it is difficult to determine the illegal proceeds once it is integrated into the legitimate economy (Buchanan, 2004).…”