Written in response to a current gap in academic and industry based literature, this thesis was written on the topic of Trade Based Money Laundering (TBML) and risk assessment, within the banking context. Despite the increased use of TBML, most academic descriptions of money laundering have used the cash based model of placement and integration of large cash deposits acquired from criminal activity, which are then merged into legitimate pre-existing funds. However, there are a significant number of examples to show that cash transferred into goods and then shipped to other countries can be easier to move and less conspicuous or traceable than simple cash based deposits. One of the main challenges for detecting shipping based laundering techniques is that they involve a number of agencies sharing data and information, in order to catch the criminals. Simple banking checks may not always elicit the required information without verification from either customs or law enforcement agencies. The research sought to identify the current challenges and issues facing risk assessment professionals in the banking sector and to identify gaps in the current systems being used. The data collected included interviews and survey information taken from professionals working on AML risk assessment in banking and financial institutions from across the globe. In addition to the description of different money laundering schemes, much of the current academic discussion on money laundering in banking has focused on the regulation requirements for financial institutions to stop money laundering activity, but there has been little empirical guidance on how regulation can be adapted and implemented at the individual banking level. This research accessed a number of legal cases available in the public domain, which were analysed to see how and where some of the larger banks have failed to implement current anti-money laundering controls and to consider how this could impact on the detection of TBML activity. This research uses an Agency theory model to look at the pressures banks are under to manage client’s accounts efficiently, versus the requirements of outside regulation to undertake extensive checks on business transactions and accounts. Finally, the researcher proposed a simple risk matrix approach that developed the current thinking of client behaviour and transaction monitoring risk analysis associated with cash based laundering, to develop a four-point risk model that added geography and third party behaviour, to account for shipping and trade based laundering activity.

Magister Legum - LLM / Money laundering (hereafter ML) is a multidisciplinary topic which has become important since the late 1980s. The term ‘laundering’ literally means ‘washing’ or ‘removing dirt’. It has been defined as the conversion of criminal income into assets that cannot be traced back to the underlying crime. Criminals use ML as a way of keeping control over the proceeds of crime and to provide, ultimately, a cover for their income and wealth. ML occurs every time any transaction takes place, regardless of whether it involves any form of property or benefit, whether tangible or not tangible, which is derived from criminal activity. ML is regulated at the global, regional and national levels. To combat ML and other financial crimes, Malawi enacted the Financial Crimes Act (hereafter FCA). The FCA establishes the Financial Intelligence Authority (hereafter FIA) as an institution whose objectives include collecting financial intelligence regarding suspicious transactions.

Money laundering is a serious crime with potentially wide ranging consequences that have numerous implications for criminological research. However, criminology rarely explores this crime, nor its potential impact on other more central crimes of interest (e.g. drug trafficking or organized crime). The present study adds to a limited body of literature examining money laundering from a criminological perspective, evaluating aspects of its regulation and social control within the banking industry. Several aspects of regulatory oversight and company dynamics such as fine/settlement size, company size, and the likelihood of non-AML/OFAC violations to predict future AML/OFAC violations were evaluated. These analyses largely supported that banking crimes, and more specifically AML violations, follow the same patterns observed within previous corporate crime research. However, the primary focus of this research was to evaluate the effectiveness of industry success rankings as a form of social control as it pertains to AML violations and to determine whether or not banks that ranked well on industry rankings were also less likely to have banking violations. A variety of rankings including safety, asset-based, and overall performance measures were used to assess their relationship to bank violations, with analyses supporting that these banking industry success markers held little relationship to or acknowledgment of a firm’s previous AML/OFAC violations. Implications are discussed at length including the importance of and numerous directions for future criminological research on money laundering violation within the banking industry, suggested regulatory reforms, and the need for a wider variety and more tailored industry success measures to affect some level of social control.

Doctor Legum - LLD / Along with its inumerable wonders, the advent of the internet has brought with it very bad vices. The notion of convenience, which comes with the use of the internet, can be attributed to criminals who wish to disguise the proceeds of their ill-derived funds, or what is better known as cyberlaundering. Cyberlaundering is a phenomenon that seems negligible on face value, but, to the contrary, has very dire effects, especially on national economies, which are in no way trifling.This study describes the problem of cyberlaundering, pointing out the various legal issues pertaining to it. Given that cyberlaundering is a comparatively new crime, which is not yet conceptualized legally, criminal justice authorities find it hard to detect, investigate and prosecute cyberlaundering. An adequate legal regime against cyberlaundering is currently non-existent, as there is presently no concise international or national legal framework in place to contain the problem. Whilst the chief focus of the thesis is to devise a legal framework to combat cyberlaundering, considerable attention is also devoted to the tension that arises between public and private interests, amongst several other legal issues that come to play along the way. This is a debate that necessarily arises when legislatures resort to more radical anti-cyberlaundering laws. The study advocates a middle ground, which leads to the desired end of curbing the exponential growth of cyberlaundering, at the very least.

Magister Legum - LLM / Financial crimes are transnational in nature, and no country is immune from them. They are an international problem that can best be solved through international cooperation on a global scale. It is therefore necessary to have rules and norms that apply worldwide in order to deal with these crimes comprehensively.1 Of particular prominence is the crime of money laundering (ML), which may be defined as the processing of criminal proceeds to disguise their illegal origin.2 This term is relatively new and is broadly defined, with the definitions varying from jurisdiction to jurisdiction. In Zimbabwe, money laundering acts are listed in the Money Laundering and Proceeds of Crime Act 34 of 2013 (the Principal Act).3 The Financial Action Task Force (FATF) is the main international inter-governmental body formed specifically to set AML standards and to promote their implementation globally.

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Article Excerpt: The Anti-Money Laundering Act of 2020, enacted on Jan. 1, 2021, contained the first-ever federal requirement for certain legal entities to identify and report their beneficial owners, also known as the Corporate Transparency Act (CTA). The CTA was designed to “prevent wrongdoers from exploiting United States corporations and limited liability companies for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct.” As trusted advisors, CPAs should consider informing clients of the new reporting requirements and advise them on the best option to pursue, even if they do not file the reports for their clients [...]

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Research Questions: 1) What are the specific obligations and responsibilities that financialinstitutions may face if the use of AI technologies in AML/CFT is classified as a "High-Risk AISystems" under the proposed EU AI Act?2) How do financial institutions integrate AI technologies into AML/CFT complianceframeworks ensuring regulatory compliance and minimize risks?Purpose: Providing insights and recommendations that can help financial institutions navigatethe intersection of technological innovation and regulatory compliance in the AML/CFTdomain.Method: An exploratory multi-case study was employed within the qualitative approach withdoctrinal legal research to ensure alignment with the study's purpose. The data collection isbased on semi-structured interviews and EU legislations. An interpretive research paradigmand analysis through a thematic analysis was adopted.Conclusion: The research examines AI adoption in financial institutions for AML/CFTcompliance, combining theoretical insights, regulations, and interviews. It underscores theimportance of clear regulations, AI's efficiency in fraud detection, and the need for humanoversight. Outsourcing AI technologies while risk managing, balanced with internalcapabilities, is crucial. The proposed EU AI Act will provide additional regulatory clarity. Thestudy guides financial institutions in enhancing AML/CFT strategies through AI andintegrating technology with human knowledge, and regulatory adherence.

Lately, money laundering activities have received a lot of attention in the auditing and accounting field due to pressures from the EU. Legislative changes have caused an urgency in preventative measures against money laundering and reporting of suspicious activity. Accordingly, the selected subject is current and important to acknowledge in the work of auditors and accountants. Therefore, this study aims to examine the professional's adaptive ability in their practices to remain compliant with the developing Anti-Money Laundering regulations within the European Union. With a focus on professional skepticism the study will contribute to regulatory compliance research by analyzing documents and asking practitioners’ perspectives on their ability to judge when skeptical action is situationally appropriate.  Regulatory compliance and the inter-play of professionals is the core issue which the researchers mean to address. The adapted approach is to conceptualize a general theory by interviewing individuals with expertise in the field and gaining their perspectives on the matter. An important part of this process is to gather relevant information so that it can be used as a tool to understand the perspectives as best as possible. Beyond reviewing literature this also involves document analysis. The document analysis examines legal documents and reports to gain a rudimentary understanding of how investigated professionals in Sweden are judged in different situations.  The study's findings suggest that skeptical attitudes typically have a preventative function amongst both auditors and accountants to avoid high-risk clients. Therefore, minimizing the risk of facing a dilemma of whether to file a suspicious activity report against a client. Moreover, in the make-up of Professional Skepticism, attitude seemingly has increased weight contra the individual's mindset as the transition to a stronger presence of liquid transactions and more efficient analysis methods illegitimize the reasoning behind some situational accounting techniques. Moreover, the observed reality of the Swedish accounting and auditing professional is an increase in the awareness of the implemented laws. Adaptability and use of education, experiences, work programs and tools play a key role in the efficiency and effectiveness of the overall work within the frames of the Swedish legal systems and to detect and decrease illegal activities. To that extent, professionals also have differing outsets depending on the firms' resources and the individuals' roles in the firm.  The study contributes to knowledge of the effect of the progressive changes to Anti-Money Laundering regulations on audit and accounting practitioners, before the Money Laundering Act (2014:307) until today, as the intention is for professionals to better understand the components relevant to assertive decision-making with respect to money laundering regulation.