Money laundering: emerging threats and trends
| DOI | https://doi.org/10.1108/13685201311286841 |
| Date | 28 December 2012 |
| Pages | 41-54 |
| Published date | 28 December 2012 |
| Author | Jeffrey Simser |
| Subject Matter | Accounting & finance |
Money laundering: emerging
threats and trends
Jeffrey Simser
Government of Ontario, Toronto, Canada
Abstract
Purpose – The purpose of this paper is to explore typologies as well as emerging trends and threats
in money laundering.
Design/methodology/approach – Recent trends and emerging threats in money laundering are
discussed, both in terms of predicate activities (drugs, fraud) and in terms of techniques/typologies.
Findings – It is found that the challenges and risks posed by money laundering to financial systems
and to the rule of law persist.
Research limitations/implications – Understanding evolving and emerging typologies and
techniques is necessary to address money laundering challenges.
Practical implications – Considerable resources are applied by regulators and the regulated to
anti-money laundering systems; this paper provides a measure by which the robustness of those
systems can be examined.
Originality/value – This paper provides a succinct but comprehensive overview of the current state
of money laundering, as well as a look at emerging threats.
Keywords Money laundering,Fraud, Corruption, Financialinstitutions, Anti-money laundering,
Financial intelligence units, Organizedcrime, Asset forfeiture, Drugs,Narcotics
Paper type Research paper
I know that Pablo [Escobar] was earning so much cash that each year we would write off
approximately 10 percent of our money because the rats would eat it or it would be damaged
beyond use by water or dampness (Escobar and Fisher, 2009, p. 70)[1].
This paper explores emerging trends and threats in money laundering. Money
laundering is a technique used by criminals to disguise the origin of ill-gotten gains
with the intent of enjoying their “cleansed” money without interference from predatory
underworld rivals or law enforcement. In Canada, between $5 billion and $15 billion
(Cdn) is estimated to be laundered annually; worldwide the figure is between
$500 billion and $1 trillion (Brennan and Vaillancourt, 2011). Given its covert nature, no
one knows the actual quantum of money laundered. Money laundering has been a
pressing issue, particularly over the past 25 years[2]; this paper explores emerging
money laundering threats and trends.
Conceptually, there are two pillars in most anti-money laundering or AML systems:
prevention and enforcement. Enforcement includes forfeitures (criminal and civil),
prosecutions, investigations and predicate criminal cases (substantive offences other
than money laundering, like drugs or fraud). Prevention includes customer due
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
The views expressed in this paper are the personal views of the author and do not represent the
views of the Government of Ontario. The author is grateful for the suggestions and comments
from a number of people, including Assistant Crown Attorney S. Sterling and Detective
Constable D. King (Toronto Police Service).
Money
laundering:
threats
41
Journal of Money Laundering Control
Vol. 16 No. 1, 2013
pp. 41-54
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201311286841
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