Reexamining the anti-money-laundering framework: a legal critique and new approach to combating money laundering
| DOI | https://doi.org/10.1108/JFC-02-2022-0041 |
| Published date | 24 March 2022 |
| Date | 24 March 2022 |
| Pages | 35-47 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Paul Michael Gilmour |
Reexamining the anti-money-
laundering framework: a legal
critique and new approach to
combating money laundering
Paul Michael Gilmour
Faculty of Humanities and Social Sciences, School of Criminology and
Criminal Justice, University of Portsmouth, Portsmouth, UK
Abstract
Purpose –Money laundering poses significant challenges for policymakers and law-enforcement
authorities. The money-laundering phenomenon is often acknowledged as a type of “serious and organised
crime”yet has traditionally been describedas a complicated three-stage process, involving the “placement,
layering and integration”ofcriminal proceeds. This article aims to reexamine the money-launderingconcept
within the realm of organisedcrime and critique its legal underpinnings.
Design/methodology/approach –This paper exploreshow criminal actors collude in organised money-
laundering schemes to circumventlaws and frustrate the efforts of officials, while advancing the regulatory-
spatial paradigms of whichorganised money launderers operate. In doing so, it reframes the debate towards
the “who”and“where”of money laundering.
Findings –This paper argues that authorities’efforts to combat money laundering relies on rigid legal
definitionsand flawed ideals that fail to address the money-laundering problem.
Originality/value –There has been little scholarly debate that questions the fundamental approach to
conceptualisingmoney laundering. This paper proposesa new approach to combating money launderingthat
better incorporatesthe actors involved in money launderingand the spaces in which it occurs.
Keywords Money laundering, Organised crime, Three-stage model, AML
Paper type Conceptual paper
Introduction
Money laundering is synonymous with the term “organised crime”. Indeed, many global anti-
money-laundering (AML) authorities acknowledge money laundering as a type of “serious and
organised crime”(Levi and Soudijn, 2020). Organised crime is a consequence of a public
demand for illicit goods and services, while the motives of organised criminals will often
require profiting from crime (Lord et al., 2018). Similarly, the purpose of money laundering
involves ensuring the criminal profits appear to have come from a legitimate source and
reinvesting those profits to further criminal enterprise (Albanese, 2021, p. 341). Money
launderers will be more prosperous if their activities are well planned and coordinated with
other like-minded individuals. They will also benefit through an ability to control financial
markets, to exploit loopholes in legal frameworks and circumvent rules governing money
laundering. Their desire will always be to avoid the detection of law-enforcement authorities.
Funding: The author received no financial support for the research, authorship and/or publication of
this article.
Declaration of conflicting interests: The author has declared no conflicting interests.
Anti-money-
laundering
framework
35
Journalof Financial Crime
Vol.30 No. 1, 2023
pp. 35-47
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-02-2022-0041
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