The regime against money laundering: a call for scientific modelling
DOI | https://doi.org/10.1108/JMLC-11-2017-0066 |
Published date | 01 October 2018 |
Pages | 584-593 |
Date | 01 October 2018 |
Author | Emmanuel Sotande |
Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
The regime against money
laundering: a call for
scientific modelling
Emmanuel Sotande
Economic and Financial Crimes Commission, Ajua, Nigeria
Abstract
Purpose –The purpose of this paper is to examine the magnitude of the global problem of money
laundering and the scholarly critics of moneylaundering concept. The paper further explores the scientific
modellingto combat money laundering transactions.
Design/methodology/approach –The research methodology adopted was qualitative analysis. This
was appliedthrough the use and analysis of documents and expert interviews.
Findings –The paper reveals how the global displacementon the fight against money laundering is being
determined by “attractiveness index”. This attractiveness index is the dark side affecting anti-money
laundering (AML) concept within developing economies. The critics of the AML accounts for major
discrepancies associated with thecontext of the term AML regimes and international standards to combat
illicit financialflows.
Social implications –The regimes against money laundering compel countries to adopt the same
recommendations and standards and were not given opportunity to proffer their own creative alternatives
within theirown circumstances.
Originality/value –The paper suggestsAML Transaction Validation Model in the quest tocombat illicit
financialflows originated from organized and seriouscrime within the global jurisdictions.
Keywords Developing economies, Customer due diligence, Anti-money laundering
Paper type Research paper
Introduction
This research paper will look into the magnitude of the global problem of illicit financial
flows in the globalization of crime[1][2]. Following on from this, the paper will evaluate
critics of anti-money laundering (AML) and its regimes, with a focus on developing and
transitional economies. It is no doubt that the regimes of money laundering are
overwhelming developing countries and left behind so many operational deficits in the
domestication of the international standards and recommendations of the Financial Action
Task Force (FATF) in those countries. This research introduces scientific modelling to
combat money launderingtransactions within developing economies.
Part I: Magnitude of money laundering global problem
It was postulated that, without robust international, regional and national coordination on
the efforts to combat money laundering, there would be less progress on the war against
criminal organizations and their illicit profits which is the “fruit”of crime (Commonwealth
Secretariat, 2006).
Furthermore, criminal organizations and their associates in crime have no interest in
documenting the activities of theirillicit financial flows in the globalization of crime (Schott,
2006). The clandestine nature of the crime makes it difficult to assess the volume of the
JMLC
21,4
584
Journalof Money Laundering
Control
Vol.21 No. 4, 2018
pp. 584-593
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2017-0066
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