The role of the police in anti-money laundering
| DOI | https://doi.org/10.1108/JMLC-01-2018-0008 |
| Pages | 145-157 |
| Date | 07 January 2019 |
| Published date | 07 January 2019 |
| Author | Nikola Dujovski,Snezana Mojsoska |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
The role of the police in
anti-money laundering
Nikola Dujovski and Snezana Mojsoska
Faculty of Security, Skopje, Macedonia
Abstract
Purpose –This paper aims to describe and discuss the role of the police in anti-money laundering, with
particularreference to the situation in the Republic of Macedonia.
Design/methodology/approach –A doctrinal approach is used to describethe role of the police in anti-
money laundering policy, as well as to discuss whetherthe police is the central and main body in the fight
against this crime.Deductive and inductive methods are used to analyze the collecteddata about Macedonian
activities, provided by domestic and international organizations and institutions. Government agencies,
institutions and bodies with different capacities for identifying and combating money laundering are
included.
Findings –According to global statistics, about $2tn is laundered annually. Money laundering directly
affects generaleconomic and social life and the entire development,which shows why the concerns about this
phenomenonhave been growing worldwide. The most important issuein combating money laundering refers
to preventing and detecting the problem.The police have the central role in combating money laundering in
the Republic of Macedonia,but they must co-operate with public prosecutors and other agenciesto fight this
crime with more success. Even though Macedonian legislation is harmonized with European Union (EU)
directives, there are a lot of activities in the field of money laundering to be done to fulfill EU standards.
Relevant collected data were acquired from MONEYVAL reports, annual reports from the Ministry of
Interior, Public Bureauof Statistics and statistics from the public prosecutor’soffice, including all published
documents.
Originality/value –The paper answers questions related to the role and effectiveness of the police by
examining different authorizationsand powers. Different approaches in implementing the law are specified
and suggestions to overcome“two voices”are given. A comparative approach isalso used to demonstrate the
number of criminal charges per year, mainly collectedby the public prosecutor’soffice. The authors analyze
whether additionaltraining is needed for the police. All institutions shouldcollaborate with the police because
money launderingoffences may be disclosed during investigationsof other offences.
Keywords Police, Money laundering, System, Combat, Prosecutor
Paper type Research paper
1. Introduction
Money laundering is a growing concernworldwide. The money laundering process needs to
be analyzed and researched more extensively. Money laundering has many negativeeffects
on the economy and financial institutions, as well as on the productivity, real estate sector,
international trade and capital flows. From the social pointof view, the system that allows
undetected, unsanctionedcases of money laundering indirectly encouragescriminal activity,
thus prompting criminals to continue their illicit schemes. It results in increased levels of
fraud, financial fraud, bankruptciesof corporations (which further results in the loss of jobs
and loss of labor pensions following a corporation’s collapse), as well as in the rise of drug
sales in the streets, increased sales of psychotropic substances, unfair competition and loss
of morale for entrepreneurs who do not break the law but earn significantly lower profit
when compared to those who participate in money laundering. The money laundering
phenomenon is vast and complex (Tavares, et al., 2010). It is a common criminal activity
Anti-money
laundering
145
Journalof Money Laundering
Control
Vol.22 No. 1, 2019
pp. 145-157
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2018-0008
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