Abstract:Purpose
The purpose of this study is to identify the risks associated with money laundering in the scope of non-oil products export and related strategies to manage them.
Design/methodology/approach
The statistical population of the research was the managers and experts of the Islamic Republic of Iran Customs Administration in Tehran. The sample needed for qualitative interviews was collected to the extent of theoretical saturation through a targeted judgment sampling. The qualitative data was analyzed by th… Show more
Purpose
This study aims to analyze the complex dynamics of money laundering (ML) in the export sector of developing countries, with a special focus on Bangladesh. It aims to uncover the strategies and tactics money launderers use to exploit export transactions and understand the vulnerabilities that exist in economies where enforcement agencies neglect the export industry.
Design/methodology/approach
This study examines Bangladesh’s export sector ML using qualitative methods. Customs officers, central bank officers, port authorities and selected exporters were interviewed semi-structured. Document analysis of Bangladesh Bank orders, media and Customs Intelligence and Investigation Directorate reports was also done. Qualitative data patterns were identified using theme analysis.
Findings
The study identifies the most vulnerable export commodities – readymade garments, agricultural items and processed foods – as prime targets for ML. Key methods of laundering include under-invoicing, over-invoicing, misdeclaration and fake documentation. The research highlights the significant risk posed by the improper use of government financial incentives and introduces the “sample shipment” method as a novel laundering tactic. The findings underscore the need for stronger oversight and controls to mitigate these risks.
Research limitations/implications
This research is limited by single-point data because ML is a continual activity. The reliance on case studies from newspaper reports and online platforms introduces a degree of selection bias and the chosen instances may not comprehensively represent the broader landscape of trade-based ML.
Practical implications
The study provides several practical recommendations for policymakers and law enforcement agencies to fortify the export sector against exploitation by money launderers, ensuring greater transparency and accountability in international trade operations.
Social implications
By closing loopholes in the export sector, the research supports the Sustainable Development Goals, particularly Goal 16.4, which aims to reduce illicit financial flows, thereby contributing to poverty eradication and economic stability in developing countries.
Originality/value
Original research results supported by technical analysis are presented in this work. It contributes to the body of knowledge by detailing the adaptive strategies of money launderers and proposing targeted recommendations for enhancing the integrity of the export sector.
Purpose
This study aims to analyze the complex dynamics of money laundering (ML) in the export sector of developing countries, with a special focus on Bangladesh. It aims to uncover the strategies and tactics money launderers use to exploit export transactions and understand the vulnerabilities that exist in economies where enforcement agencies neglect the export industry.
Design/methodology/approach
This study examines Bangladesh’s export sector ML using qualitative methods. Customs officers, central bank officers, port authorities and selected exporters were interviewed semi-structured. Document analysis of Bangladesh Bank orders, media and Customs Intelligence and Investigation Directorate reports was also done. Qualitative data patterns were identified using theme analysis.
Findings
The study identifies the most vulnerable export commodities – readymade garments, agricultural items and processed foods – as prime targets for ML. Key methods of laundering include under-invoicing, over-invoicing, misdeclaration and fake documentation. The research highlights the significant risk posed by the improper use of government financial incentives and introduces the “sample shipment” method as a novel laundering tactic. The findings underscore the need for stronger oversight and controls to mitigate these risks.
Research limitations/implications
This research is limited by single-point data because ML is a continual activity. The reliance on case studies from newspaper reports and online platforms introduces a degree of selection bias and the chosen instances may not comprehensively represent the broader landscape of trade-based ML.
Practical implications
The study provides several practical recommendations for policymakers and law enforcement agencies to fortify the export sector against exploitation by money launderers, ensuring greater transparency and accountability in international trade operations.
Social implications
By closing loopholes in the export sector, the research supports the Sustainable Development Goals, particularly Goal 16.4, which aims to reduce illicit financial flows, thereby contributing to poverty eradication and economic stability in developing countries.
Originality/value
Original research results supported by technical analysis are presented in this work. It contributes to the body of knowledge by detailing the adaptive strategies of money launderers and proposing targeted recommendations for enhancing the integrity of the export sector.
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