FIFA – highlighting the links between global banking and international money laundering
| Published date | 01 October 2018 |
| Date | 01 October 2018 |
| Pages | 498-512 |
| DOI | https://doi.org/10.1108/JMLC-08-2015-0037 |
| Author | Mohammed Ahmad Naheem |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
FIFA –highlighting the links
between global banking and
international money laundering
Mohammed Ahmad Naheem
Mayfair Compliance, Frankfurt, Germany
Abstract
Purpose –This paper uses the recent (August 2015) FIFA arrests to provide an example of how
illicit financial flows are occurring through the formal banking and financial services sector. The
purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to
be addressed to strengthen the banking response and reduce the impact of IFFs within the banking
sector.
Design/methodology/approach –The paper is based on the indictment document currently prepared
for the FIFA arrestsand the District Court case of Chuck Blazer the FIFA Whistleblower.It uses the banking
examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding
industry reports on AML compliance are includedto determine where the major weaknesses and gaps are
across the financialservice.
Findings –The main findings from the analysis are that banks still have weak areas within AML
compliance. Even recognised red flagareassuchasoffshorehavens,largewiretransfersandfront
companies are still being used. The largest gaps still appear to be due diligence and beneficial
ownership information.
Research limitations/implications –The research topic is very new and emerging topic; therefore,
analysispapers and other academic writing on this topic are limited.
Practical implications –The research paper has identified a number of implications for the banking
sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for
further enhanced due diligence systems for politically exposed and influential people and the importance of
beneficialownership information.
Social implications –This paper has implications for the international development and the global
banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the
broaderfinancial services sector.
Please note that this paper was composed and submitted for review to this journal in August
2015 –a time at which the author was working on his second doctorate level research project
titled “Trade Based Money Laundering: Exploring the Implications for International Banks”.All
the content within this paper was current at the time of submission (August 2015). The banking,
legal and regulation industries have evolved since then, with new material from academic
research also emerging. These points need to be taken into consideration when reading this
paper.
The author acknowledges being the recipient of a research grant awarded by Princess Ālae as
part of Seven Foundation’s“2020 Banking Vision –building banks of the future”and he thanks
her for the continued support and motivation both to himself and other students who benefit
through her generosity (www.sevenfoundation.ch).
The author also thanks Professor Muhammad Jumàh (a leading economist of this era based in
Damascus) who has continued to provide valuable input both through his teaching of the science
of economics and for his continued guidance.
JMLC
21,4
498
Journalof Money Laundering
Control
Vol.21 No. 4, 2018
pp. 498-512
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-08-2015-0037
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