Money laundering as a transnational business phenomenon: a systematic review and future agenda

Abstract

Purpose Money laundering continues to emerge as a transnational phenomenon that has harmful consequences for the global economy and society. Despite the theoretical and practical magnitude of money laundering, international business (IB) research on the topic is scarce and scattered across multiple disciplines. Accordingly, this study aims to advance an integrated understanding of money laundering from the IB perspective. Design/methodology/approach The authors conduct a systematic review of relevant literature and qualitatively analyze the content of 57 studies published on the topic during the past two decades. Findings The authors identify five streams (5Cs) of research on money laundering in the IB context: the concept, characteristics, causes, consequences and controls. The analysis further indicates six theoretical approaches used in the past research. Notably, normative standards and business and economics theories are dominant in the extant research. Research limitations/implications The authors review the literature on an under-researched but practically significant phenomenon and found potential for advancing its theoretical foundations. Hence, the authors propose a 5Cs framework and a future agenda for research and practice by introducing 21 future research questions and two plausible theories to help study the phenomenon more effectively in the future. Practical implications In practical terms, the study extends the understanding of the money laundering phenomenon and subsequently helps mitigating the problem of money laundering in the IB environment, along with its harmful economic and societal impacts. Originality/value The authors offer an integrative view on money laundering in the IB context. Additionally, the authors emphasize wider discussions on money laundering as a form of mega-corruption.

Anti-money laundering and customer due diligence: empirical evidence from South Africa

“…Financial information available to economic participants must be credible, useful and timely (Juntunen and Teittinen, 2022; Bushman, 2016; Eusepi, 2004). In fulfilling their regulatory mandate, regulators and the regulated need to circulate reliable financial information (Isolauri and Ameer, 2022; Bouvatier, 2014). Information disclosure and publication by regulators and financial institutions alike are considered a public good obtainable free of charge (Clarke, 2021; Kundid and Rogosic, 2012; Watts and Zimmerman, 1986).…”

A systematic review of anti-money laundering systems literature: Exploring the efficacy of machine learning and deep learning integration

“…Illegal funds are often camouflaged through lawful means, employing intricate business arrangements and cross-border transactions to legitimize black money (Isolauri & Ameer, 2022). Beyond criminal entities and individuals, even legal firms, institutions, and their officials may manipulate legislation or systems, directly or indirectly facilitating the money laundering process (Ahen, 2022).…”

The legal-criminal aspects of Iran’s anti-money laundering law in light of the FATF recommendations

“…ML is considered a transnational crime (Isolauri and Ameer, 2022) and is committed at the national level, requiring special attention owing to its extensive nature and disregard for geographical boundaries by criminals. This has led to the creation of national and international provisions and institutions, as well as the adoption of a preventive approach given the significant risk it poses to national and international systems (Muller et al , 2007).…”