Money laundering through deposit boxes
| DOI | https://doi.org/10.1108/JMLC-07-2019-0058 |
| Date | 20 January 2020 |
| Pages | 805-818 |
| Published date | 20 January 2020 |
| Author | Fabian Maximilian Johannes Teichmann,Marie-Christin Falker |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Money laundering through
deposit boxes
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland, and
Marie-Christin Falker
Teichmann International (Schweiz) AG, St. Gallen, Switzerland
Abstract
Purpose –The purpose of this paperis to exemplify how money launderers in EuropeanGerman-speaking
countriesuse deposit boxes to place incriminated funds.
Design/methodology/approach –During a qualitative contentanalysis of 60 semi-standardized expert
interviews with both criminalsand prevention experts and a quantitative surveyof 200 compliance officers,
concretemoney laundering techniques using deposit boxes wereidentified.
Findings –Deposit boxes may be used to place incriminated funds or prepare for their subsequent
placement.Thus, the method is highly suitable to the demands of small-scalemoney laundering.
Research limitations/implications –The study’s qualitativefindings are limited to the perspectives of
the 60 interviewpartners. The interviews were conducted in a semi-standardizedfashion.
Practical implications –The present paper aims at identifying gaps in existing anti-moneylaundering
mechanisms to provide compliance officers, law enforcement agencies and legislators with worthwhile
insightsinto the minds of criminals.
Originality/value –The present paper illustrates how money launderers operate to avoid detection,
capturing the perspectiveof the launderer. Thus, the reader is granted access to highly valuable information
that is supposed to facilitate the introduction of new anti-money laundering measures. Moreover, it shows
how compliance officers view the issue and what they consider to be important to the successful
implementation of compliance mechanisms. Moreover, the officers’statements will exhibit which methods
they do and do not engagewith on a daily basis.
Keywords Money laundering, Compliance, Deposit boxes
Paper type Research paper
Introduction
It is commonly acknowledged that money laundering continues to be a massive global
problem (Harvey, 2005,p.339;VanDuyne, 1994,p.62;Walker, 1999,p. 36). Hence, efforts to
combat the offense have thus far proven inadequate (Schneider, 2008, p. 309 f.). Although
money laundering was not criminalizeduntil 1986 (Sharman, 2008, p. 635), the phenomenon
has likely been present for as long as money itself has existed (Muller et al.,2007, p. 3). At
this time in 1986, anti-money laundering measures were implemented by the US Act of
Congress to combat international drug trafficking (Pieth, 2015, p. 121). Thus, the measures
that have been taken to prevent money laundering have not yet had the desired effect on
criminal organizations(Schneider, 2008, p. 309 f.).
Many compliance experts assume that because of the fact that money laundering
prevention measures are mainly focused on the financial sector, money launderers are
relocating their businesses to less regulated sectors (Teichmann, 2016, p. 2). Examples of
No external research funding has been received for this study.
Money
laundering
805
Journalof Money Laundering
Control
Vol.23 No. 4, 2020
pp. 805-818
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-07-2019-0058
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