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Copyright of Zeitschrift für Bankrecht und Bankwirtschaft is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We exploit staggered municipality-level antimafia enforcement actions in Italy over the 1995–2015 period to study how the presence of organized crime affects firms. Following enforcement actions, we find increases in competition (i) among firms and (ii) for public procurement contracts. Firms that do not exit after a weakening of organized crime shrink in size, more so when operating in the nontradable sector. Our findings are consistent with organized crime acting as a barrier to entry and affecting local economic activity. This paper was accepted by David Sraer, finance. Supplemental Material: Data and the online appendix are available at https://doi.org/10.1287/mnsc.2021.00859. [ABSTRACT FROM AUTHOR]

A historically informed understanding of ḥawāla and other varieties of informal value transfer systems (IVTS) requires consideration of the normative and cultural elements which structure and facilitate transactions in globalized financial markets. This paper argues that the Sharia-based normative and cultural framework of ḥawāla is created in the social relations of Muslim networks and that, in a criminal law context, this normativity can be used as a tool to discern between legitimate and illegitimate transactions. The new institutional economists' (NIE) explanation of ḥawāla, which predominates in scholarly work, neglects this common frame of reference built on community, shared belief, and normative rules and expectations. The NIE views economic institutions through the lens of profitmaking and self-interest centred institutional development. Moreover, in a criminal law context, the profit-oriented perspective of law overlooks the normative characteristics that sometimes appear in the transactional characteristics of these transactions. When evidence of these characteristics is presented to the court, they offer a useful tool to differentiate legitimate from illegitimate transfers of value. Legitimate transfers will frequently be facilitated through dense networks in which the normativity and culture of ḥawāla frame the rules and expectations of parties to the transaction. Criminal transactions, on the other hand, typically involve fewer participants, sometimes from different ethnic and linguistic backgrounds, are profit-orientated, and involve means of enforcement such as the use of violence which traditional networks do not employ. The NIE perspective does not fully account for non-western legal orders or for commercial practices in which exchange remains culturally, historically, and socially embedded. [ABSTRACT FROM AUTHOR]

This study examines the relationship between corporate secrecy and financial crime, presenting an analytical framework to strengthen risk assessment efforts. We develop secrecy indicators using corporate ownership data from over 2.6 million firms across eight European countries. These indicators are validated using machine learning models built upon evidence of crime committed by firms and/or their owners. The results demonstrate robust predictive power: firms with complex structures and owners from high-risk jurisdictions show a higher likelihood of engaging in illicit activities. Incorporating macro-level information, such as geographic location and economic sector, enhances the understanding of this phenomenon. These findings advance empirical knowledge about the nexus between secrecy firms and crime, offering anti-money laundering authorities novel machine learning tools for effective risk assessment. [ABSTRACT FROM AUTHOR]

‘De-banking’ refers to banks limiting or withdrawing banking services from perceived ‘high-risk’ clients. ‘High risk’ is not merely commercial risk relating to a client’s ability to pay. It also includes ‘non-commercial’ risks such as client dealings in illicit funds or activities. Debanking decisions might also be made on operational-cost grounds where continued servicing of a particular customer base becomes uneconomical. In Australia, the de-banking issue has impacted migrant communities. More recently, de-banking has impeded the ability of digital assets service providers. Under the guise of rigorous compliance legal standards, Australian banks have limited or even cut-off banking services to many Australian digital asset firms. As the financial gatekeepers to the Australian economy, Australian banks (already very protected from competitors) are undermining an industry that could potentially compete for market share. Examining strategies adopted in other jurisdictions, Australian policy makers should supplement the introduction of a licensing regime, as proposed by the Digital Assets (Market Regulation) Bill 2023 (Cth), with additional balanced measures in order to support innovation in the digital asset sector and maintain financial integrity. [ABSTRACT FROM AUTHOR]

This is an introduction to the articles submitted to the special issue of Trends in Organized Crime on 'Crime and Networks'. The aim of this special issue is to advance our relational understanding of organised crime, gangs and crime more generally by presenting six works exploring a diverse set of questions related to organised crime, street gangs, outlaw motorcycle gangs, money laundering and groups operating in cyberspace. [ABSTRACT FROM AUTHOR]

In order to launder large amounts of money, (drug) criminals can seek help from financial facilitators. According to the FATF, these facilitators are operating increasingly business-like and even participate in professional money laundering networks. This study examines the extent to which financial facilitators in the Netherlands exhibit business-like characteristics and the extent to which they organize themselves in money laundering networks. We further examine the relationship between business-like behavior and individual money launderers' position in the social network. Using police intelligence data, we were able to analyze the contacts of 198 financial facilitators who were active in the Netherlands in the period 2016–2020, all having worked for drug criminals. Based on social network analysis, this research shows that financial facilitators in the Netherlands can be linked in extensive money laundering networks. Based on the facilitators' area of expertise, roughly two main types of professional money laundering networks can be discerned. Some subnetworks operate in the real estate sector, while others primarily engage in underground banking. Furthermore, the application of regression models to predict business-like behavior using individual network measures shows that facilitators with more central positions in the network and those who collaborate with financial facilitators from varying expertise groups tend to behave more business-like than other financial facilitators. [ABSTRACT FROM AUTHOR]

The paper targets the nexus between corruption and money laundering. Scholars and practitioners recently observed how offshore financial centers and financial infrastructures have become central in facilitating corruption and other criminal activities. Offshore vehicles often serve to conceal the connections between business people and politically exposed persons. Secrecy jurisdictions and service providers have emerged as key actors in these illicit schemes. The paper explores the following questions: How do money laundering activities and offshore financial infrastructures sustain corruption? Who are the key actors involved, how do they interact, and their division of labor? How do actors and clusters govern the social-financial web of relations? It applies a combination of social network analysis (SNA) and network ethnography to the corrupt connection between the former Peruvian President Alejandro Toledo and the Brazilian construction giant Odebrecht Group. The research analyzes publicly available data from the Lava Jato and Ecoteva investigations in Brazil and Peru. It deconstructs the illicit scheme's mechanisms step-by-step, uncovers the functions of different actors and clusters, and illuminates the social norms and informal governance practices that regulate the exchange. The research highlights how the financial infrastructures of the private and public spheres are integrated and analyzes the informal governance system designed to control the transnational corruption network. The study makes it possible to understand how the nexus between corruption and money laundering works. It also supports the emerging understanding of corruption as a collective, transnational and financially advanced phenomenon. [ABSTRACT FROM AUTHOR]

How might international institutions matter? To consider this central question of International Relations, we analyze a most-likely case for the importance of materially driven enforcement: the Financial Action Task Force's (FATF) use of blacklisting in the global regime targeting money laundering and terrorism financing. Scholars and practitioners often argue that fear of financial harm caused by FATF's lists explains the near-global commitment to FATF's standards, even if compliance lags. We search for statistical evidence of this impact across four different measures of financial flows and find that listing is not correlated with financial harm. To explain these null results, we examine bank decision-making and find that the lists' impact is likely diminished by two overlooked factors: the existence of multiple, competing lists and banks' access to more fine-grained, client-specific information provided by third-party companies. We interpret this contradiction—a commitment to compliance generated in part by a fear of enforcement, despite a lack of evidence for enforcement's impact—as a "rational myth." The results challenge a common understanding of a major global governance regime, confirm ideas about the limited ability of states or International Organizations to control governance outcomes, and advance a new research agenda on the impact of bank decision-making on global governance. [ABSTRACT FROM AUTHOR]

The task of fraud detection in blockchain requires a thorough exploration of the inherent temporal and spatial characteristics in historical transaction data. Existing fraud detection methods suffer from large prediction errors. To address this issue, this paper proposed a blockchain fraud detection method, named RGCN-SRG, based on reinforced graph convolutional network (RGCN) and spatiotemporal recurrent gate (SRG). Firstly, leveraging Bitcoin's historical transaction data for the construction of the transaction graph, the method used a reinforced graph convolutional network with different kernel sizes to comprehensively extract the graph's topology information and generate feature vectors. Additionally, considering the temporal characteristics of blockchain transactions, the method introduced a spatiotemporal recurrent gate structure that incorporated graph convolutional operations into the traditional gate structure to extract dependency information from multiple spatiotemporal dimensions of the transaction graph. Finally, it obtained the prediction results of money laundering detection through a linear layer and activation function. The proposed fraud detection method was evaluated by the constructed dataset. Compared with GCN, DEDGAT, EGT and GCN + MLP F, by the proposed method improves 18.4, 10.7, 9.2 and 4.9 percentage points, respectively; the precision improves 11.5, 11.2, 7.7 and 3.7 percentage points, respectively. [ABSTRACT FROM AUTHOR]

Money is the epitome of Marx's fetishised commodity. And, in Marxist discussions of the connected topics of currency and commodity fetishism, it often is left under-appreciated that such fetishism reaches its apotheosis only with the development of 'interest-bearing capital.' Herein, I perform two complementary gestures, one as regards Marxism and another with respect to psychoanalysis. Apropos Marxism, I counter-balance the usual, long-standing (over)emphasis on commodity fetishism as per the first volume of Das Kapital with a foregrounding of this fetishism as per the third volume. Apropos psychoanalysis, I shift away from its traditional fixation on reducing financial matters to libidinal contents. I explore instead the implications of the forms of capitalist fetishism for reconsidering the forms of intra-subjective defence mechanisms. This leads me to posit a complementary inversion of Lacan's dictum according to which 'repression is always the return of the repressed': The return of the repressed sometimes is the most effective repression. To pose a rhetorical question paraphrasing Brecht: What is the laundering of money compared with the laundering that is money? [ABSTRACT FROM AUTHOR]

The EU 's recent adoption of a comprehensive legislative package on AML creates a new regulatory, supervisory and institutional framework for AML in the EU, with two keyfeatures. First, a wide range of uniform requirements will constitute a Single AML Rulebook and help creating a true level-playing field across the EU. Second, a new EU authority, the AMLA, will have a variety of significant tasks and powers, including towards so-called "selected obliged entities. After summarising the historical context in which the new package is to be seen, this article summarises the key features of the new Single AML Rulebook. It thereupon deals with the key role that the AMLA plays in the new AML supervisory system, focusing amongst others on the AMLA 's supervisory, investigative and sanctioning powers. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide authorities managing free trade zones, business enterprises, financial institutions and dedicated free zone customs, police and immigration command assigned to deal with aspects of movement of goods and persons in and out of the free zones with a clear understanding of the cross-border financial crime risks associated with the African Continental Free Trade Area and the risk control measures that combines human intelligence with advanced technology to combat cross-border financial crimes in the African Continental Free Trade Area. Design/methodology/approach: A range of research activities would be used in this study. In addition to a sweeping literature review of academic, official studies and media writings, the main focus is on critically evaluating and analysing primary data by searching and collecting statutes, court cases, administrative rules and regulations and policy documents. Findings: This paper identified bribery and corruption; modern slavery; and trade-based money laundering as the financial crime risks that are of priority concern to African Continental Free Trade Areas and demonstrated how countries can assess and mitigate these risks through adequate policies, procedures and controls including appropriate compliance management arrangement and adequate screening procedures to ensure high standards when hiring employees; corporate transparency; training on managing incidents of modern slavery, forced labour and third-party exploitation; and appropriate monitoring framework for trade-based money laundering activities. Originality/value: While many authors have written research papers on intra-African trade, none of those research papers explained how countries can assess and mitigate financial crime risks in free trade zones. This research paper describes the ways in which cross-border financial crime risks can be assessed and adequately addressed by the authorities managing free trade zones. This research paper analyses the risk assessment topic in line with the African Continental Free Trade Area with a focus on free trade zones in Nigeria. This research paper would help authorities managing free trade zones, commercial organisations and business enterprises to identify, prevent and mitigate cross-border financial crime risks. Zone managements and business enterprises that implement the risk-based approach, in line with the guidance given in this research paper, will be well-placed to avoid the consequences of inappropriate de-risking behaviour. [ABSTRACT FROM AUTHOR]

Cryptocurrencies have been presented as a destructive and resistant technology against the governments' rule since their creation. The lack of uniform international standards in the field of cryptocurrencies, leaves room for interpretation by government actors. As a result, the attention of the governing institutions is mostly focused on the potential blocking of cryptocurrencies. But with the increasing move towards the smart economy, governments need to change their position from the policy of restriction to the policy of regulation and legislation and to strengthen their supervision over cryptocurrencies. The question is, how should government regulation and legal requirements on money laundering be applied to cryptocurrencies? Authentication of clients to buy cryptocurrency, creation of a regulatory and supervisory organization, registration of all contract-based cryptocurrency transfers, are among the answers to this question. This paper aims to determine the appropriate framework for regulation in terms of combating money- laundering through cryptocurrency. Using a descriptive analytical method and library resources, we will comparatively study the Iranian and Italian government's strategy in this field. [ABSTRACT FROM AUTHOR]

Money laundering in Latvian law is considered a criminal offence against the interests of the financial system and the administration of justice. However, money laundering may also affect the property interests of the victim of a predicate offence whose assets due to money laundering have become unrecoverable. The study examines whether the victim can claim compensation from the launderer under Latvian law compared to Swiss and German laws. The results show that Latvian courts do not consider money laundering activities to cause economic losses to the victim, thus excluding compensation. However, payment of the value of the laundered assets may be ordered for the benefit of the victim. In contrast, Swiss and German courts acknowledge economic losses stemming from the money laundering itself, which provides a basis for compensation. Both approaches lead to different legal issues, which are analysed. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Finance & Financial Law / Finanse i Prawo Finansowe is the property of Wydawnictwo Uniwersytetu Lodzkiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The implementation of the Directive 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing resulted in the enactment by the Polish Parliament of the Act of March 1, 2018, on the prevention of money laundering and terrorist financing. One of the most important issues identified in the Act was the establishment of the Central Register of Beneficial Owners. The purpose of this paper is to critically analyze the functioning of the Register in Poland from the perspective of three years since its establishment. The text presents the most important problems faced by reporting institutions and obliged entities due to discrepancies in the interpretation of the Act's provisions – especially in terms of the definition of a beneficial owner. Design/methodology/approach: The basic research approach was a comparative content analysis method. The objects of analysis included Polish Laws, Directive of the European Parliament and the Council (EU) 2015/849 and the judgment of the Court of Justice of the European Union. The theoretical legislative assumptions contained in the Acts were compared with reports, studies and communications prepared by public and private institutions. This made it possible to draw conclusions regarding the causes of problems with the functioning of the Register in Poland. Findings: The results of the research showed that the ambiguity of the definition of the beneficial owner leads to a number of problems on the part of reporting institutions, such as companies, foundations and associations. On the other hand, a large part of the data entered in the Register is questioned by obliged entities. The lack of personal data protection is also a problem. Consequently, this reduces the value of the Register as a tool that effectively mitigates the risk of money laundering. Research limitations/implications: The research focused only on the functioning of the Central Register of Beneficial Owners in Poland. The subject of the analysis addressed problems with the definition of beneficial owner, issues of data quality and openness and the process of verifying the Register's data. The technical aspects of the Register operation and the financial penalties imposed by public oversight institutions were not reviewed. Also, no comparison was made with other European Union (EU) member states that have implemented Directive of the European Parliament and of the Council (EU) 2015/849. Originality/value: This study discusses the important issue of regulatory requirements introduced under EU regulations for private companies. Familiarization of companies, NGOs and obliged entities with the conclusions of the study can positively influence the consolidation of the correct interpretative path. In addition, to the best of the author's knowledge, this is the first scientific text that identifies and systematizes the most important problems of the Register's functioning in Poland. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to provide a timely synthesis of the empirical literature focusing on the economic consequences of money laundering, as this topic has been gaining momentum among policymakers and academic researchers due to its adverse effects. Design/methodology/approach: Empirical studies are collected by consulting accounting and finance journals in diverse digital sources (e.g. Science Direct, Blackwell, Taylor and Francis, Springer, Sage and Emerald). Key words used to identify relevant papers include "money laundering" and "anti-money laundering regulations," with specific focus on the economic consequences. Our search strategy includes 24 published papers over the period of 2018–2023. Findings: Findings show that most studies represent cross-country investigations; the main topics investigated focus on accounting field (e.g. audit fees, real and accrual earnings management), tax evasion, financial stability, sustainability, economic indicators (inflation, economic growth, foreign direct investment) and financial inclusion; and the economic consequences of money laundering have been also examined within banking industry (e.g. banking profitability, banking stability). Reported findings of reviewed studies suggest that money laundering has diverse adverse impacts at the country level (e.g. increased tax evasion, higher inflation rate, less sustainability and foreign direct investments), at the firm level (e.g. increased audit risk and aggressive real and accrual earnings management) and within banking industry through negative impact of money laundering on bank's loan portfolio quality, stability and profitability. Practical implications: With respect to policymakers, strengthening anti-money laundering regulations may play a critical role in reducing money laundering activities. Furthermore, financial institutions should implement specific rules dealing with anti-money regulations to ensure adequate compliance and disclosure. Finally, policymakers should be aware about the importance of digital transformation to combat money laundering activities since it facilitates the detection of financial crimes due to their traceability. Originality/value: The summary of the empirical literature focusing on the economic consequence of money laundering represents a historical record and an introduction for accounting researchers. It also urges them to further explore the economic implications of anti-money laundering disclosure within banking industry. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to estimate the amount of money laundering (ML) with multiple proxy approaches and measure the effects of ML on various indicators of the economic and financial sectors. Theoretical justifications are recruited from the parasite theory of organised crime. Design/methodology/approach: A quantitative research methodology was used on a balanced panel data set to test the study's hypothesis through generalised method of moment (GMM). The study sample consisted of 77 countries, and the data was collected for 15 years (2005–2019). Findings: A study has found that 1.23% of global gross domestic product is laundered yearly, and there is no noticeable decline in ML activities. Further study has also found that ML has devastating effects on countries, government revenue, foreign investment, economic development, political and peace conditions, bank liquidity, interest rate volatility and exchange rate volatility. The study has not witnessed the negative consequence of ML on countries' inflation rates. Practical implications: Estimates of the study guide policymakers about the volume of resources fleeing and helps them to decide the level of response needed. Further findings help them prioritise the response system according to the area most affected. Originality/value: This study is an original contribution by the authors and has studied the effects of ML by computing the amount of ML by four different proxies. [ABSTRACT FROM AUTHOR]

This document is an introduction to a special issue of the European Journal on Criminal Policy & Research focused on understanding money laundering. The introduction highlights the lack of knowledge about how money laundering works in practice and the limited research on the behavior and choices of money laundering offenders. The special issue includes papers that examine the behavior of money laundering offenders from various perspectives, such as theoretical frameworks, empirical studies, and case analyses. The papers cover a range of topics, including the determinants of offender choices, the methods used by different offender groups, and the role of intermediaries in money laundering. The introduction emphasizes the need for more research in this field and the importance of adopting an offender's perspective to better understand money laundering practices. [Extracted from the article]

This study focuses on the movement of money in a financial infrastructure built to conceal its origin and destination. The literature has addressed this theme in the field of money laundering, converting illegal money into a legitimate source, yet less is known about the reverse process, hiding and transferring legally generated resources to pay kickbacks to officials. We aim to analyze how these money dirtying schemes operate and explore their hidden mechanisms. The paper studies what happens to money in an unseen financial cluster and identifies the main actors and infrastructures essential for managing such process. Using desk research and qualitative analysis of various documents, the article examines the corruption scheme designed by the Odebrecht group to generate resources to bribe politicians and bureaucrats in Latin American and Sub-Saharan countries. It zooms in on one key component of this system, a cluster around two Peruvian entrepreneurs, where money becomes hidden from the eyes of law enforcement agencies and investigators. The main contribution lies in the conceptual distinction between money laundering and money dirtying schemes and the opportunity to expose and interpret the otherwise invisible critical processes of such illicit resource movements. [ABSTRACT FROM AUTHOR]

The misuse of law firm pooled client accounts has been identified as one of the primary areas of money laundering and terrorist financing risk for the legal profession. This article demonstrates the varied role that client accounts can play in money laundering, through both purposeful exploitation (by the predicate offender, the lawyer/law firm, or both) of the client account or of other legitimate business processes in which the client account inevitably plays a role, and/or a failure to fulfil regulatory requirements. It examines how the nature of law firm pooled client accounts in the UK creates and shapes an 'opportunity structure' for money laundering, and the occupational and organisational context of this opportunity structure. The article argues that examining the opportunity structures created by client accounts is a more useful approach than categorising them as inherently low, medium or high risk, as is seen in many national risk assessments and reports. Identifying the factors that create opportunities for money laundering through law firm client accounts can direct policymakers striving to prevent money laundering in the legal profession towards more targeted oversight mechanisms. [ABSTRACT FROM AUTHOR]

This article delves into the intricacies of managing illicit financial gains among Ivorian cyberfraudsters, shedding light on the findings of a field study conducted in Côte d'Ivoire by Swiss and Ivorian research teams. The study involved interviews with cybercriminals, law enforcement officials, and subject matter experts, in order to answer a specific question: What strategies do Ivorian cyberfraudsters use to manage and launder the criminal proceeds originating from romance scams and sextortion? The results explore the tactics employed by cyberfraudsters to obfuscate the illicit financial flows, their organizational structures, and the strategies they employ in managing and using their gains. It confirms certain elements from the scientific literature, in addition to introducing new insights for a better understanding of the processes of money laundering and the use of illicit funds. The article also unravels the multifaceted challenges encountered within the anti-money laundering framework in the context of cybercrime and raises avenues for further reflection and future work to enhance the fight against this scourge. [ABSTRACT FROM AUTHOR]

Whilst inherently lawful, shelf companies enable the generation of contrived financial structures and arrangements that can facilitate actors to organise their criminal activities and conceal, convert, or control their illicit finances or assets. A stratified market for the purchase and management of such legal structures exists. At the lower end, greater accessibility to shelf companies is enabled by websites offering shell companies, or ready-to-go corporate vehicles, at various prices to anyone interested in setting up a company quickly in a preferred jurisdiction. Although these products have been considered as high-turnover and low-cost, their importance should not be underestimated. They lower barriers to entry to customers interested in concealing, controlling, and/or converting illicit finances domestically and transnationally. To gain insight into the nature and organisation of this market, this article provides a first overview of the online market for shelf companies by empirically analysing data scraped online that identified 296 online shelf company suppliers. The results highlight how some of shelf company suppliers are positioned in a way that is conducive to the facilitation of illicit activities; that there exist a diverse range of suppliers with varying sizes, scopes, and connections; and that the market is global, with a large variety of shelf company jurisdictions provided by suppliers. [ABSTRACT FROM AUTHOR]

Two images dominate discussion of money laundering. Investigative journalists and politicians stress the variety and sophistication of methods that have been used to launder money of corrupt officials and white collar offenders. The research literature, largely dependent on criminal cases, emphasizes how unsophisticated and routine are the laundering methods used by drug dealers and other illegal market participants. The discrepancy may reflect the incapacity of police to detect sophisticated money laundering but it may also represent the reality; different groups of offenders choose different methods. This paper presents a theoretical framework to explain how offenders choose to launder their criminal earnings. Specifically it asks: what determines the sophistication of the method chosen? Among the variables that we suggest influence the choice are: (a) the type of predicate crime and of crime proceeds, (b) the type of offender (age, education, social status), (c) his/her motivations, (d) the AML environment and the level of AML controls. The paper provides arguments from criminological and economic theory for how these variables might play a role. Without claiming that individual cases can test the theory, we offer some case narratives to suggest the plausibility of the factors that we propose. [ABSTRACT FROM AUTHOR]

Reporting entities have been made jointly responsible for protecting the financial system against money laundering. However, because of privacy rules, law enforcement is not allowed to share details about underlying criminal evidence with private parties. Gatekeepers thus do not have background information on predicate offenses or other criminal acts associated with a transaction, nor do they know whether their clients are individuals who the investigative authorities designate as professional money launderers (PLMs). At the same time, gatekeepers unknowingly come across such clients who, because of their financial behaviour or other reasons, are subsequently reported to the authorities. This article examines what we can learn from these reported transactions. It combines police registrations of 264 PMLs connected to drug trafficking with Suspicious Activity Reports filed by reporting entities. It turns out that over 5,000 reported transactions are connected to 68% of the PMLs. The study also shows several differences between categories of PMLs although recurring money laundering themes are cash money flow, loans and real estate. A key finding is that gatekeepers report more diffuse financial conduct compared to the literature about PMLs. [ABSTRACT FROM AUTHOR]

High End Money Laundering (HEML) was first introduced as a concept in the UK in 2014 and has since been held up, along with Cash Based Money Laundering (CBML), as the UK's top money laundering risk (National Crime Agency (NCA), (2014). High End Money Laundering Strategy and Action Plan, accessed via: file (nationalcrimeagency.gov.uk), on 16/07/2023; HM Government, (2023). Economic Crime Plan 2, accessed via: https://www.gov.uk/government/publications/economic-crime-plan-2023-to-2026, on 16/07/2023). Whilst most writing on CBML and HEML define these terms as relating to the nature of the original criminal proceeds (i.e., whether they were originally generated as cash or as electronic money) there is blurring and ambiguity in the terms (National Crime Agency (NCA), (2014). High End Money Laundering Strategy and Action Plan, accessed via: file (nationalcrimeagency.gov.uk), on 16/07/2023). People also talk about HEML and CBML methods, which do not necessarily relate to what form the original criminal proceeds were in (HM Government, (2023). Economic Crime Plan 2, accessed via: https://www.gov.uk/government/publications/economic-crime-plan-2023-to-2026, on 16/07/2023). This definitional confusion is underpinned by a near total absence of empirical investigations of the phenomena. In this paper I use unique access to case level detail from 31 of His Majesty's Revenue and Customs' (HMRC) Fraud Investigation Service money laundering investigations, to explore the hypothesis that high-end vs. cash-based is a meaningful disaggregation. I find that what form the original criminal proceeds were generated in does meaningfully impact patterns of subsequent money laundering and is therefore conceptually useful. I also find co-occurrence between HEML methods and CBML methods and use of cash in cases where the original proceeds were electronic. However, I argue for more precise terminology, both to enhance our understanding of these phenomena and to increase our ability to identify interdiction opportunities. This paper is an original and unpublished extension of research originally conducted by (Matanky-Becker and Cockbain, Crime, Law and Social Change 77:405–429, 2021)). [ABSTRACT FROM AUTHOR]

Despite a pervasive anti-money laundering regime worldwide and growing media attention, the scant academic attention on the threat side of money laundering has led to an insufficient understanding of the actors, processes, and behaviors involved. Existing empirical studies show that money launderers are not a set of unitary and homogenous actors. However, criminological literature still lacks a systematic analysis that links distinct types of offenders with specific practices for money laundering. To address this knowledge gap, the present study analyzes 348 money laundering investigations conducted by Italian law enforcement agencies over the period 2016–2022 by the means of a multiple correspondence analysis. Italian mafias tend to launder illicit proceeds by integrating them into the legitimate economy, whereas foreign organized crime groups often favor schemes that operate independently of the financial system. Concurrently, other organized crime groups operating in Italy, as well as non-organized crime offenders, exhibit a broader spectrum of laundering behaviors. The study concludes by discussing implications for both research and policy. [ABSTRACT FROM AUTHOR]

The Financial Action Task Force (FATF) requires national governments to demonstrate an understanding of the distribution of money laundering risks across different sectors of the financial system. Such understanding is the foundation for effective control of money laundering under the risk‐based approach called for by the FATF. We analyzed the National Risk Assessments (NRAs) of eight systemically important countries before 2020 to test whether these demonstrated that basic understanding. The eight show very different conceptualizations, analytic approaches, and products. None showed more than minimal competence at risk assessment. For example, most relied largely on expert opinion, solicited, however, in ways that violated the well‐developed methodology for eliciting expert opinion. They consistently misinterpreted Suspicious Activity Reports, the most fine‐grained quantitative data available on money laundering, and failed to provide risk assessments relevant for policymakers. Only one described the methodology employed. Although conducting strong money laundering risk assessments is challenging, given the difficulty of estimating the extent of laundering in any sector, existing practices can be improved. We offer some potential explanations for the failure of governments to take this task seriously. The lack of involvement of risk assessment professionals is an important contributing factor to the weaknesses of the current NRAs. [ABSTRACT FROM AUTHOR]

This study explores how strength auditing and reporting standards (SARS) and country‐level governance interplay to reduce money laundering. The empirical study is based on a panel dataset of 109 countries, over the period 2012–2019. To test our hypotheses, relevant statistical techniques are used to enhance the robustness of the models. The empirical results reveal that the interaction between SARS and country‐level governance affect significantly and negatively money laundering. Additionally, through dynamic analysis we found that SARS and country‐level governance affect jointly Money laundering level, which confirm the complementarity between the two mechanisms. Money laundering is a worldwide phenomenon that threatens the stability of economies. Consequently, the regulatory bodies and international organization should improve auditing and reporting standards as well as governance practices at different levels (macro, micro, and mezzo). [ABSTRACT FROM AUTHOR]

Smurfing in financial networks is a popular fraud technique in which fraudsters inject their illegal money into the legitimate financial system. This activity is performed within a short period of time, with recurring transactions and multiple intermediaries. A major problem of existing graph-based methods for detecting smurfing is that they fall short of retrieving accurate fraud patterns. Consequently, the result is numerous non-fraudulent patterns alongside a few fraud patterns, causing a high false-positive rate. To alleviate this problem, we propose SMoTeF, a framework that extends existing graph-based smurf detection methods by distinguishing fraudulent smurfing patterns from non-fraudulent ones, thus significantly reducing the false-positive ratio. The core of the approach is a novel algorithm based on computing maximum temporal flow within temporal order of events. In order to evaluate the approach, a framework for injecting various smurfing patterns is developed, and experimental results on three real-world datasets from different domains show that SMoTeF significantly improves on the effectiveness of the state-of-the-art baseline, with only marginal runtime overhead. [ABSTRACT FROM AUTHOR]

This document provides an overview of a dispute between Kaloti Metals & Logistics, LLC and the Republic of Peru that was submitted to the International Centre for Settlement of Investment Disputes (ICSID). The document outlines the procedural history of the case, the factual background, the claims and requests for relief made by both parties, and the arguments presented. The document also discusses the jurisdictional requirements for investments under the United States-Peru Trade Promotion Agreement (TPA) and the ICSID Convention. Ultimately, the tribunal concludes that Kaloti's activities in Peru do not constitute an investment and therefore lacks jurisdiction in the case. [Extracted from the article]

Islamist terrorism poses a significant threat to global security. Current prevention measures focus largely on combating terrorist financing in order to hinder terrorist organizations' ability to pay their fighters and orchestrate attacks, with the aim of weakening their structures. The banking sector in particular is subject to strict regulations that intend to increase transparency and identify suspicious transactions. However, the present study illustrates that the banking sector continues to offer opportunities for terrorist financing. Using a qualitative study of 15 presumed providers of illegal financial services and 15 compliance experts to detail how terrorist financiers abuse the financial system to fund terrorist organizations, this paper has implications for both compliance officers and regulating authorities. In particular, the perceived challenges facing those at the frontline of the banking sector in detecting and preventing terrorist financing are analyzed with the intention to establish avenues for future research and countering the financing of terrorism regulation. [ABSTRACT FROM AUTHOR]

In Indonesia, Cryptocurrency, on the one hand, is not recognized as a legal tender, so it does not have a legal umbrella, and the risk of its use is borne by the user himself. On the other hand, cryptocurrencies are included in the list of commodities that can be used as the subject of Futures Contracts traded on the Futures Exchange because, from their use, it is expected to make a positive contribution to futures trading in Indonesia. These two contradictory things of cryptocurrency regulation are then faced with a phenomenon called cryptocurrency-based TPPU. This study uses a descriptive method combined with a qualitative approach. The data in this study is primary data sourced from the results of interviews and data from the Metro Jaya Police, and the secondary data used to support the research is literature in the form of books, research journals and online scientific journal data. The data that has been collected is analyzed by data reduction methods and triangulation techniques. The location of the research is the Metro Jaya Police and the University of Indonesia Library. From this study, it is known that in Indonesia, there are no special rules governing this cryptocurrency-based anti-corruption, and there has been no cooperation between law enforcement for its prevention. [ABSTRACT FROM AUTHOR]

Money laundering is a serious crime that harms the interests of society, causes economic instability in a country, and is more dangerous than corruption because tracking the flow of money from money laundering will be more difficult. Due to this complexity, asset forfeiture becomes crucial because the approach method used is known as "follow the money." This research reviews asset forfeiture in money laundering from a law enforcement perspective. This research evaluates asset confiscation methods in money laundering cases from a law enforcement perspective, aiming to better protect societal interests and prevent criminals from gaining illicit profits. This research is normative or doctrinal, also known as dogmatic research with a conceptual and legislative approach. The findings indicate that, although asset forfeiture has been regulated through criminal prevention actions based on the Criminal Code and the Criminal Procedure Code, as well as civil and administrative actions based on the Anti-Money Laundering Act, there are still shortcomings in regulations that allow criminals to hide their illegal gains. It has not achieved justice and harms both the country and the victims of money laundering. To ensure crime doesn't benefit perpetrators, it's essential to expand asset seizure regulations by revising the Anti-Money Laundering Act to include civil seizures and cover all crime-related assets. Strengthening protections for innocent third parties is also necessary to uphold justice. [ABSTRACT FROM AUTHOR]

[Purpose] The purpose of this study is to discuss, based on international as well as national laws and practices, various issues and potential solutions surrounding the growing problem of money laundering practices using cryptocurrency transactions. [Methodology] A balanced combination of theoretical and empirical methods has been used in the course of research; in particular, the method of comparative legal research has been employed extensively throughout the text of article. The theoretical component of this research paper includes commentaries by Ukrainian, German, other European as well as American researchers in this field. Their works are cited appropriately. The subject scope of the paper covers modern phenomenon of money laundering based on cryptocurrency transactions. [Findings] This paper extensively discusses international and national legal frameworks for identifying and stopping as well as preventing various money laundering schemes and techniques based on cryptocurrency transactions and blockchain technology in general. It has been established that with the global cryptocurrency market valued at roughly $1 trillion, its attractiveness to money launderers endangers economies and financial systems of numerous world jurisdictions. Based on theoretical observations and relevant analyses of legal cases, authors’ conclusions on how to fight this latent type of criminality have been presented. [Practical Implications] The research is deemed to be of value to national regulators, law enforcement agents and legal commentators, who think, write and act with the goal of fighting new money laundering patterns. It can serve as part of a broader international roadmap on how to identify suspicious money laundering schemes using various cryptocurrency transactions and also to impose effective sanctions on criminal actors behind those schemes. [Originality] The paper originality relies on its comprehensive and balanced combination of economic and legal analyses of the issues presented and potential solutions to them. It also incorporates both sound theoretical research and in-depth coverage of law enforcement actions, as well as legal cases against crypto money launderers.

This paper examines the potential of nighttime light (NTL) data as an alternative data source to predict the number of money laundering events. The study is based on the assumption that money laundering as one of financial crime categories is linked to economic development, and previous research has explored the relationship between NTL and both economic data and crime. Panel regression analysis with random effects was used to investigate the potential of NTL data to estimate money laundering activity, which was measured using Suspicious Transaction Reports (STRs) data as a proxy variable. The results suggest that NTL data can be a promising tool for estimating money laundering activity, providing new insights into the use of alternative data sources in predicting this illegal activity. The findings of this research could also contribute to the development of more effective anti-money laundering strategies by law enforcement and policymakers.