Money laundering in the jewellery business
| DOI | https://doi.org/10.1108/JMLC-03-2018-0020 |
| Date | 13 January 2020 |
| Published date | 13 January 2020 |
| Pages | 691-697 |
| Author | Fabian Maximilian Johannes Teichmann |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Money laundering in the
jewellery business
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –This paperaims to illustrate how white-collar criminalslaunder money in the jewellery business.
Design/methodology/approach –Semi-structured interviews were conducted with 50 white-collar
criminals and 50 compliance and prevention experts in Austria, Germany, Liechtenstein and Switzerland.
Following the qualitativecontent analysis of their responses, a quantitative surveyof 200 compliance officers
was then conductedin the same geographical area. Thesetwo methods reveal the concrete techniquesused by
money launderersand the compliance industry’s (lack of) awareness.
Findings –The jewellery businessis susceptible to launderingmoney. It facilitates both the placement and
layeringof incriminated assets.
Research limitations/implications –As the findings of the qualitative study are based on semi-
standardisedinterviews, they are limited to the 100interviewees’perspectives.
Practical implications –The identification of concretemethods of money laundering provides valuable
insight into criminal activity for compliance officers, law enforcement agencies and legislators. A more
profoundunderstanding of the methods used by criminalsshould foster more effective crime prevention.
Originality/value –While prior literature predominantlyfocusses on the organisations and mechanisms
aimed at fighting money laundering, thispaper considers how criminals avoid detection by exploring both
preventionexperts’and criminals’perspectives.
Keywords Money Laundering, Jewellery, Compliance
Paper type Research paper
1. Introduction
Despite massive global efforts to combat both money laundering and terrorism financing,
both phenomena continue to concern compliance departments and law enforcement
agencies throughout the world (Harvey, 2004,p.339;van Duyne, 1994, p. 62; Walker, 1999,
p. 36). In particular, moneylaundering appears to have shifted to less regulated sectors, such
as jewellery. It is, hence, often argued that pastefforts to tackle these illegal activities have
not been sufficient (Schneider,2008, p. 309f).
Anti-money-launderingcompliance was once considered an effective weapon in the fight
against organised crime. The underlying reasoning was that criminals would no longer be
able to use the proceeds of their crimes, so that criminal activities would cease to be
lucrative. However,this assumption proved to be seriously flawed.
Criminals have managed to circumvent anti-money-laundering mechanisms at financial
institutions through straw men and company structures. However, as establishing and
maintaining those structures is rather complex and expensive, not all money launderers
have access to such complicatedschemes. In particular, those who launder less than CHF10
m per annum will most likely seek less-complicated means of achieving their goals. They
have, hence, shifted to less-regulatedsectors.
The jewellery sectoris particularly attractivefor money launderers. It is characterised by
a lack of regulation anda high degree of anonymity. It is also considered to be a cash-intense
Jewellery
business
691
Journalof Money Laundering
Control
Vol.23 No. 3, 2020
pp. 691-697
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2018-0020
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