Everyday vulnerabilities – money laundering through cash intensive businesses
| Date | 06 July 2015 |
| Pages | 293-303 |
| Published date | 06 July 2015 |
| DOI | https://doi.org/10.1108/JMLC-06-2014-0019 |
| Author | Nicholas Gilmour,Nick Ridley |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation |
Everyday vulnerabilities –
money laundering through cash
intensive businesses
Nicholas Gilmour
Massey University, Wellington, New Zealand, and
Nick Ridley
London Metropolitan University, London, UK
Abstract
Purpose – The purpose of this paper is to provide an understanding of the specic techniques through
which illicit funds generated by criminals are moved, transferred and laundered in the nancial
arrangement retained by cash-intensive businesses in the UK and internationally.
Design/methodology/approach – This paper presents exploratory ndings from research
conducted between 2011 and 2013 in the UK. The research undertaken sought to identify the process,
steps and vulnerabilities behind money laundering via cash-intensive businesses and highlight the
explicit facilitators to enable this method of money laundering to take place.
Findings – Despite signicant research into money laundering typologies, the use of cash couriers and
cash-intensive businesses has remained largely untouched regardless of the increased implementation
of anti-money laundering (AML) policies and procedures seeking to halt the depositing of illicit cash into
the global nancial system. This paper demonstrates how cash-intensive businesses are extremely
vulnerable to money laundering, despite the large-scale AML efforts focused on combating money
laundering across a broad range of sectors.
Research limitations/implications – This paper is of value to government policymakers,
regulators and nancial institutions considering future preventative measures. It is also of value to
nancial investigators and law enforcement agencies intent on investigating money laundering. While
the paper relies on data from the UK, the overall ndings are such that wherever cash-intensive
businesses exist, so too does the opportunity for money laundering through the nancial arrangement
retained by such businesses.
Originality/value – This paper presents new research on the direct link existing between
cash-intensive businesses and money laundering in the UK, despite signicant research having
previously taken place to identify and develop money laundering typologies.
Keywords Anti-money laundering, Organised crime, Money laundering, Cash couriers,
Cash-intensive businesses, Illicit cash
Paper type Research paper
Money laundering
Occasioning from various criminal activities and having successfully developed over many
centuries, money laundering remains one of the most inuential features of organised crime.
Serving to empower criminals, money laundering provides the necessary option through
which to preserve illicitly gained funds, while at the same time incentivising the overall
protability of crime. In forming a shroud of apparent legal cleanliness around an object, the
process of money laundering directly supports the legitimisation of wealth (Rider, 2006)by
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
Everyday
vulnerabilities
293
Journalof Money Laundering
Control
Vol.18 No. 3, 2015
pp.293-303
©Emerald Group Publishing Limited
1368-5201
DOI 10.1108/JMLC-06-2014-0019
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