Reorienting the lens – towards a new research agenda on the lived experiences of money laundering prevention officers
| Date | 29 July 2024 |
| Pages | 64-79 |
| DOI | https://doi.org/10.1108/JMLC-04-2024-0062 |
| Published date | 29 July 2024 |
| Author | Mario Menz |
Reorienting the lens –towards a
new research agenda on the lived
experiences of money laundering
prevention officers
Mario Menz
The Institute of Money Laundering Prevention Officers, London, UK
Abstract
Purpose –This paper aims to proposea new research agenda that integrates the often-overlookedinsights
and experiences of compliance professionals into anti-money laundering (AML) policy formulation and
academic research. It seeks to highlight the importance of a bottom-up approach in developing AML
strategies that are not only theoretically robust but also practically effective and grounded in real-world
application.
Design/methodology/approach –Using a comprehensive literature review and theoretical analysis,
this study outlines six broad research focus areas. These areas are explored through the lens of existing
theoretical frameworks that underscore the significance of practical insights,interdisciplinary collaboration
and adaptivepolicymaking in enhancing AML efforts.
Findings –This paper highlightsa significant gap in current AML research and policymaking, namely,the
underrepresentation of compliance professionals’perspectives. It argues that integrating these frontline
insightscan lead to more nuanced and effective approach to AML.
Practical implications –Adopting the proposed research agenda could significantly enhance the
practical applicabilityof AML policies, leading to more effective prevention and detection of financial crimes.
It encourages the developmentof support systems for compliance professionals,fostering a workforce that is
both competentand resilient.
Social implications –By promotinga more inclusive and practice-based approachto AML policymaking,
this paperadvocates for a societal shift in how money launderingis tackled.
Originality/value –This paper contributes to the AML discourse by proposing a shift towards a more
inclusive research and policymaking paradigmthat values the contributions of compliance professionals. It
extends the existing literatureby suggesting a comprehensive framework for bridging these divides, thereby
offeringa novel perspectiveon enhancing the effectiveness of AML strategies.
Keywords Money laundering, Financial services, Lived experiences, Practice-based research,
Knowledge exchange
Paper type Conceptual paper
Introduction
Money laundering undermines economic stability and socio-economic development,
acting as a conduit for corruption, crime and the erosion of public trust (Dowers and
Palmreuther, 2003). Europol (UNODC, 2024) estimates that annually, between US
$800bn and $2tn are laundered worldwide, representing 2%–5% of global gross
domestic product. The socio-economic ramifications of money laundering are deep and
multifaceted. Economically, it distorts market operations, inflates property values and
corrupts financial institutions, leading to instability (Drayton, 2002). Socio-
JMLC
28,1
64
Journalof Money Laundering
Control
Vol.28 No. 1, 2025
pp. 64-79
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-04-2024-0062
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
economically, it exacerbates inequality, facilitates crime and depletes national
resources that could otherwise support vital social services like healthcare and
education (Hendriyetty and Grewal, 2017). The ramifications extend beyond mere
economic metrics, eroding trust in financial and governance sys tems and promoting the
proliferation of a shadow economy that operates outside the legal framework, shrinking
tax bases and undermining the rule of law (Spalek, 1999).
The global response to money launderinghas been multifaceted, involving international
bodies, national governments,law enforcement and the financial sector. Efforts haveranged
from the establishment of internationalstandards and regulatory frameworks, such as those
advocated by the Financial Action Task Force (FATF), to national legislations and
regulations aimed at preventing and punishing financial crimes. The financial services
sector, under stringent regulatory oversight, has been tasked with implementing robust
anti-money laundering (AML) measures, from customer due diligence to reporting
suspicious activities. However, the effectiveness of AML practices has been widely
questioned (Levi etal.,2018).
High-profile data leaks, such as the Panama Papers and Paradise Papers, have not only
exposed the scale and sophistication of money laundering operations but also highlighted
systemic vulnerabilities and the limitations of current strategies (Berglez and Gearing,
2018). Despite significant efforts and resources devoted to tackling money laundering, its
persistent prevalence suggeststhat existing strategies may not be fully effective (Pol, 2020).
One critical oversight in current research and policymaking is the limited focus on the
frontline professionals in the financial sector tasked with the day-to-day implementation of
AML measures. There is a growing recognition that understanding the experiences,
challenges and perceptions of frontline professionals could provideinvaluable insights into
the effectiveness of current strategies and inform the development of more nuanced,
effective approaches (e.g. Grossman and Thompson, 2004;Lee et al., 2018;Billings et al.,
2021;Moseley and Thomann,2021).
In light of this, the paper proposes a new research agenda aimed at bridging the gap
between high-level policymaking and ground-level implementation. By focusing on the
experiences and insights of complianceprofessionals, it is possible to better understand the
practical challenges of AML efforts (Bello, 2016). This can then lead to more effective,
responsive and holistic strategies against money laundering. Through this lens, research
can contribute to a more comprehensive understanding of financial crime prevention and
integrate the realitiesof those at the coalface (Huising and Silbey, 2018).
At present, AML efforts are predominantly shaped by a policy-centric approach that
emphasises the creation, implementation, and assessment of national and international
strategies, laws and regulations (Clarke, 2021). This approach, while fundamental to global
AML efforts, often results in a top-down perspective that may not fully encapsulate the
operational realities faced by AML professionals within the financial services sector. The
disconnection betweenhigh-level policy formulations on the one hand and the on-the-ground
application of these policies on the other handrepresents a significant gap in both research
and practice. AML professionals, those tasked with the day-to-day implementation of
compliance measures, operate at the nexus of policy and practice, translating abstract
regulations into concrete actions. Despite the importance of their role, there is a noticeable
scarcity of research focused on these individuals’experiences, challenges and perceptions.
This not only diminishes the potential effectiveness of AML strategies but also fails to
acknowledge the complex and realities of implementing AML measures in practice. The
existing research and policy frameworks tend to view AML efforts through a lens that
prioritises legislativeeffectiveness and international co-operation, with less attentionpaid to
Money
laundering
prevention
officers
65
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting