Money laundering and terrorist financing: the role of capital market regulators

Jayasuriya, D. C.

doi:10.1108/13590790310808574

Cited by 17 publications

(15 citation statements)

References 6 publications

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“…The results of this study emphasize that the current pressure on the financial sector to implement strict anti-money laundering compliance mechanisms will not lead to the desired results as long as it is feasible to launder money in other economic sectors or in countries with lax regulations. Hence, this study supports the introduction of an international financial intelligence unit and intensification of information exchange between enforcement entities (Thony, 1996, p. 279 f.; Jayasuriya, 2003, p. 31 f.). It is argued that the burden of fighting money laundering cannot only be placed on the financial sector, but also needs to be addressed by legislators.…”

Section: Literature Reviewsupporting

confidence: 74%

Twelve methods of money laundering

Teichmann¹

2017

JMLC

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Purpose This paper aims to discuss how feasible it is for intelligent criminals to circumvent existing anti-money laundering mechanisms. Design/methodology/approach Based upon ten informal interviews with money launderers and their advisers; 18 formal, semi-standardized expert interviews with selected anti-money laundering specialists; and a quantitative survey of 181 compliance officers, 12 effective methods to launder money have been developed. Findings It has been found that gold, jewellery, raw diamonds, antiquities, art, real estate projects, consulting firms, mergers and acquisitions, banks in Dubai, deposit boxes, private cash deals and currency exchange offices continue to be extraordinarily suitable tools for money laundering. Originality/value The identification of gaps in anti-money laundering mechanisms is meant to provide both compliance officers and legislators with valuable insights. While the existing literature focuses on estimating the volume of money laundered in certain geographical areas and on the improvement of anti-money laundering mechanisms, this paper describes how money launderers proceed to avoid getting caught.

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Section: Literature Reviewsupporting

confidence: 74%

Twelve methods of money laundering

Teichmann¹

2017

JMLC

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“…To unify individual national efforts, the establishment of an international financial intelligence unit seems reasonable (Thony, 1996, p. 279). Moreover, international cooperation in terms of extraditions and the exchange of information could be intensified (Jayasuriya, 2003, p. 31). Yet, the risk that authorities will abuse anti-money laundering laws to generate profits persists (Gordon, 1995, p. 745).…”

Section: Literature Reviewmentioning

confidence: 99%

Money laundering through deposit boxes

Teichmann¹,

Falker²

2020

JMLC

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Purpose The purpose of this paper is to exemplify how money launderers in European German-speaking countries use deposit boxes to place incriminated funds. Design/methodology/approach During a qualitative content analysis of 60 semi-standardized expert interviews with both criminals and prevention experts and a quantitative survey of 200 compliance officers, concrete money laundering techniques using deposit boxes were identified. Findings Deposit boxes may be used to place incriminated funds or prepare for their subsequent placement. Thus, the method is highly suitable to the demands of small-scale money laundering. Research limitations/implications The study’s qualitative findings are limited to the perspectives of the 60 interview partners. The interviews were conducted in a semi-standardized fashion. Practical implications The present paper aims at identifying gaps in existing anti-money laundering mechanisms to provide compliance officers, law enforcement agencies and legislators with worthwhile insights into the minds of criminals. Originality/value The present paper illustrates how money launderers operate to avoid detection, capturing the perspective of the launderer. Thus, the reader is granted access to highly valuable information that is supposed to facilitate the introduction of new anti-money laundering measures. Moreover, it shows how compliance officers view the issue and what they consider to be important to the successful implementation of compliance mechanisms. Moreover, the officers’ statements will exhibit which methods they do and do not engage with on a daily basis.

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“…In addition to the international AML treaties, there are several global principles, recommendations and guidelines that have been developed to tackle money laundering in the banking and financial sectors. These include the Basel Principles on Banking Supervision (developed by the Basel Committee on Banking Supervision[23]), the Wolfsberg Global Anti-Money Laundering Guidelines for Private Banking (formulated by the Wolfsberg Group[24]), and the Forty Recommendations against Money Laundering and Nine Special Recommendations against Financing of Terrorism [adopted by the Financial Action Task Force (FATF[25])] (Johnson and Lim, 2003;Jayasuriya, 2003;Pieth and Aiolfi, 2003;Gill and Taylor, 2004;Haynes, 2004;De Koker, 2009b;Tsingou, 2010;Williams, 2014).…”

Section: Money Laundering Control and Banks: An Overviewmentioning

confidence: 99%

Money laundering control in Tanzania

Mniwasa

2019

JMLC

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Purpose This paper aims to examine how banks in Tanzania have been vulnerable to money laundering activities and how the banking institutions have been implicated in enabling or aiding the commission of money laundering offences, and highlights the banks’ failure or inability to prevent, detect and thwart money laundering committed through their financial systems. Design/methodology/approach The paper explores Tanzania’s anti-money laundering law and analyzes non-law factors that make the banks exposed to money laundering activities. It looks at law-related, political and economic circumstances that impinge on the banks’ efficacy to tackle money laundering offences committed through their systems. The data are sourced from policy documents, statutes, case law and literature from Tanzania and other jurisdictions. Findings Both law-related and non-law factors create an enabling environment for the commission of money laundering offences, and this exposes banks in Tanzania to money laundering activities. Some banks have been implicated in enabling or aiding money laundering offences. These banks have abdicated their obligations to fight against money laundering. This is attributed to the fact that the banks’ internal anti-money laundering policies, regulations and procedures are inefficient, and Tanzania’s legal framework is generally ineffective to tackle money laundering offences. Originality/value This paper uncovers a multi-faceted nature of money laundering affecting banks in Tanzania. It is recommended that Tanzania’s anti-money laundering policy should address law-related, political, economic and other factors that create an enabling environment for the commission of money laundering offences. Tanzania’s anti-money laundering law should be reformed to enhance its efficacy and, lastly, banks should reinforce their internal anti-money laundering policies and regulations and policies.

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Money laundering and terrorist financing: the role of capital market regulators

Cited by 17 publications

References 6 publications

Twelve methods of money laundering

Twelve methods of money laundering

Money laundering through deposit boxes

Money laundering control in Tanzania

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