Money laundering and the Internet: A challenge for regulation
| DOI | https://doi.org/10.1108/eb025031 |
| Date | 01 January 2000 |
| Pages | 67-77 |
| Published date | 01 January 2000 |
| Author | Rob Jones,Kevin Keasey |
| Subject Matter | Accounting & finance |
Money laundering and the Internet: A
challenge for regulation
Rob Jones* and Kevin Keasey
Received (in revised form): 10th January, 2000
Senior Lecturer in Financial Management, Newcastle Business School, University of Nothumbria at
Newcastle, Newcastle-upon-Tyne NE1 8ST; e-mail: rob.jones@unn.ac.uk
Journal of Financial Regulation and Compliance Volume 8 Number 1
Rob Jones is Senior Lecturer in Financial
Management at the University of Northum-
bria at Newcastle. He lectures and
researches in the areas of financial institu-
tions and markets, investment and finan-
cial regulation. He is also a chartered
accountant who has worked in accoun-
tancy and financial services for Price-
waterhouseCoopers, Prudential Assurance
and Provident Financial plc.
Kevin Keasey is the Leeds Permanent
Building Society Professor of Financial
Services and the Director of the
Inter-
national Institute of Banking and Financial
Services, Leeds University Business
School. He specialises in all aspects of
finance and financial markets, accounting,
strategy and organisational design, corpo-
rate governance and firm enterprise. His
previous senior posts include Professor of
Finance and Accounting at The University
of Leeds and Reader in Finance and
Accounting at The University of Warwick.
ABSTRACT
This paper examines the potential effects of the
Internet and e-commerce on money laundering
activity. Money laundering is a continuing
problem both for regulators who are seeking to
maintain trust and confidence in the financial
system and the investigating authorities who are
charged with enforcing the law. There have
been a number of
developments
in recent years
both in the detailed regulations and the laws
designed to prevent and
deter
money laundering.
There has been an ongoing battle of
ideas
and
innovation between money launderers and the
regulators and investigating authorities. To date
the authorities have been able to keep up with
developments by developing and refining the
regulations. With the
emergence
of the Internet
and e-commerce, however, new opportunities
and techniques will be opened up to money
launderers. This will present a whole new set of
challenges and problems to the authorities. This
paper
considers
these
challenges and
problems.
INTRODUCTION
The statutory and regulatory framework
for the detection and prevention of money
laundering is well established in the UK.
The Criminal Justice Act 1993 (the Act)
revised the existing provisions in relation
to money laundering. The Act is supple-
mented by the Money Laundering Regula-
tions 1993. The effect of the introduction
of these laws and regulations and the diffi-
culties of implementing and complying
with them has been discussed
widely.1-3
Others have discussed the costs, benefits
and likely effectiveness of the laws.4,5
UK financial institutions have needed to
make significant human and capital invest-
ments in order to comply with the statu-
tory and regulatory requirements of the
anti-money laundering provisions. Thorn-
hill acknowledges the efforts made to
comply. Indeed, she states that,
Journal of Financial Regulation
and Compliance, Vol. 8, No 1,
2000,
pp. 67-77
© Henry Stewart Publications,
1358-1988
Page 67
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