How useful are anti-money-laundering efforts in combating bribery?
DOI | https://doi.org/10.1108/JMLC-03-2018-0025 |
Pages | 309-314 |
Date | 29 January 2020 |
Published date | 29 January 2020 |
Author | Fabian Maximilian Johannes Teichmann |
Subject Matter | Financial risk/company failure,Financial compliance/regulation |
How useful are
anti-money-laundering
efforts in combating bribery?
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –The purpose of this paper is to discuss the role of anti-money-laundering mechanisms in
combating bribery. In particular, it shows how parties receiving bribes can circumvent the mechanisms
currentlyin place to launder the money they receive for their services.
Design/methodology/approach –Through analysis of 25 formal expert interviews with prevention experts
and 25 informal expert interviews with money launderers from Europe, concrete ways of laundering bribes were
found. Consequently, it is suggested that alternative mechanisms are necessary to successfully fight corruption.
Findings –A combination of more severepunishments and anti-bribery incentives couldhelp to eliminate
corruption.
Research limitations/implications –This study’sfindings are limited to the perspectives of 50
interviewees.Hence, a study with a larger sample conducted in differentcountries or at a different time could
yield differentresults.
Practical implications –By identifying gaps in existinganti-money-laundering mechanisms, this paper
aims to provide compliance officers and legislators with valuable insights into why the current prevention
schemes are ineffectiveand how corruption could be more effectively tackled.
Originality/value –The findings demonstrate that current anti-money-laundering mechanisms are
unhelpfulin fighting bribery. Hence, alternative anti-briberymechanisms are needed.
Keywords Money laundering, Compliance, Bribery, Corruption
Paper type Research paper
1. Introduction
It is often argued that anti-money-laundering mechanisms are extraordinarily important in
combating bribery.The underlying reasoning is that bribes lack utilityif the receiving party
can neither invest nor transfer them. However,this presupposes that anti-money-laundering
mechanisms are indeed effective. This paper will demonstrate that anti-money-laundering
efforts are not, in fact, very effective and are, hence, of very little use in tackling bribery.
Consequently, alternativeanti-bribery mechanisms are required to eliminate corruption.For
instance, anti-bribery incentives could help to motivate both private and public actors to
abstain from payingor accepting bribes.
2. Literature review
Bribery concerns policymakers throughout the world, primarily because of its many
negative consequences for a country’s development (Li et al.,2000,p.156;Kaufmann et al.,
1999, p. 3). It is known to adverselyimpact a country’sefficiency and justice system and the
legitimation of state activities; moreover, it benefits a select few at the expense of entire
communities (Rose-Ackerman, 1997,p.32;Uslaner, 2004, p. 26). Hence, there is consensus
among experts that briberyneeds to be eliminated.
Anti-money-
laundering
efforts
309
Journalof Money Laundering
Control
Vol.23 No. 2, 2020
pp. 309-314
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2018-0025
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