Behind the criminal economy: using UK tax fraud investigations to understand money laundering myths and models

To launder money is, by definition, to obfuscate and to hide, which makes it a notoriously difficult topic to study. Data access is another challenge contributing to the underdeveloped base. This paper presents an in-depth exploratory analysis of previously untapped data from the UK’s tax enforcemen...

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Bibliographic Details
Authors: Matanky-Becker, Rian (Author) ; Cockbain, Ella (Author)
Format: Electronic Article
Language:English
Published: 2022
In: Crime, law and social change
Year: 2022, Volume: 77, Issue: 4, Pages: 405-429
Online Access: Volltext (lizenzpflichtig)
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Keywords:
Geldwäsche
Organisiertes Verbrechen
Steuerhinterziehung
Financial Crime
Money Laundering
Organised Crime
Tax evasion
Description
Summary:To launder money is, by definition, to obfuscate and to hide, which makes it a notoriously difficult topic to study. Data access is another challenge contributing to the underdeveloped base. This paper presents an in-depth exploratory analysis of previously untapped data from the UK’s tax enforcement agency. We examine a sample of money laundering investigations (n = 31) over a three-year period, together involving 52 suspects. Against these cases, we test the applicability of the most widely used international model of money laundering: the three-stage model of placement, layering and integration (FATF, 2019). We also examine who was responsible for the offences and which laundering methods they used. A focus group with professionals helped us explore possible interpretations and implications of our findings. Overall, the results undermine the utility and validity of the ubiquitous three-stage model: it applied in under a third of cases. Cash couriers featured heavily and thus merit further attention, as do the cost-benefit decisions behind choosing between different money laundering methods. This study has relevance for academics, law enforcement, policy-makers and industry professionals alike.
Item Description:Literaturverzeichnis: Seite 427-429
ISSN:1573-0751
DOI:10.1007/s10611-021-09997-4