Encyclopedia of Criminology and Criminal Justice

2014 Edition
| Editors: Gerben Bruinsma, David Weisburd

Money Laundering

  • Brigitte Unger
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-5690-2_439

Synonyms

 AML;  ML

Overview

Laundering money entails disguising the illicit origins of proceeds of financial manipulation, drug trade, fraud, corrupt enrichment, or other crimes, bringing back money into the financial circuit of the legal economy. Some underlying misbehavior, the so-called predicate offense generates illicit gains which are to be turned legal. Hiding or disguising the source of these proceeds will not amount to money laundering unless they were obtained from a criminal activity (Busuioc 2007).

Predicate offenses for laundering can be “hard” crime involving drugs or violence, but may also be white collar crimes, such as illicit real estate dealings, fraud and embezzlement, and finally tax fraud and tax evasion. Laundering the resulting (typically large amounts of) money can be achieved through fake invoicing for exports and imports or unusually priced real estate transactions. Disguising is further attempted through pumping money around foreign banks (typically in tax...

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Recommended Reading and References

  1. Baker R (2005) Capitalism’s Archilles heel: dirty money and how to renew the free-market system. Hoboken, NJ: John WileyGoogle Scholar
  2. Busuioc EM (2007) Defining money laundering. In: Unger B (ed) The scale and impacts of money laundering. Edward Elgar, Cheltenham/Northampton, pp 15–280Google Scholar
  3. Deleanu I, van den Broek M, Ferwerda J, Unger B (2011) Performing in the books, assessing countries’ anti-money-laundering policy in the light of strategic reporting. Paper presented at the ECPR Conference 2011 in Reykjavik, Iceland. http://www.ecprnet.eu/MyECPR/proposals/reykjavik/uploads/papers/2734.pdf
  4. FATF (2010) Financial action task force report on tax crime, Third round mutual evaluation report on Germany, ParisGoogle Scholar
  5. Financial Action Task Force homepage. http://www.fatf-gafi.org
  6. Gnutzmann H, McCarthy KJ, Unger B (2010) Dancing with the devil: country size and the incentive to tolerate money laundering. Int Rev Law Econ 30(3):244–252Google Scholar
  7. IRS (2011) Suspicious activity reports. Retrieved from http://www.irs.gov
  8. Masciandaro D, Takats E, Unger B (2007) Black finance: the economics of money laundering. Edward Elgar, Cheltenham, UK and Northampton, MAGoogle Scholar
  9. Sabitha A (ed) (2009) Combating money laundering. Transnational perspectives. Amicus Books: The Icfai University PressGoogle Scholar
  10. Tackling money laundering, Special issue of Rev Law Econ 5(2):807–985. December 2009Google Scholar
  11. Truman E, Reuter P (2004) Chasing dirty money: the fight against money laundering. Institute for International Economics, Washington, DCGoogle Scholar
  12. Unger B (2007) The scale and impact of money laundering. Edward Elgar, Cheltenham, UK and Northampton, MAGoogle Scholar
  13. Unger B (2011) Regulating money laundering: from Al Capone to Al Qaeda. In: Levy D (ed) Handbook of regulation. Edward Elgar, Cheltenham, UK and Northampton, MAGoogle Scholar
  14. Unger B, den Hertog J (2012) Water always finds its ways. Crime Law Social Change 57:287–304Google Scholar
  15. Unger B, Ferwerda J (2011) Money laundering in the real estate sector. Edward Elgar, Cheltenham. 2011 Review of Law and Economics, Special Issue on Money Laundering, Dec 2009. http://www.toezichtencompliance.nl/nieuws?cID=914&PHPSESSID=jdeaul6hts3u2cv6kdeubdhce6
  16. Unger B, Rawlings G (2008) Competing for criminal money. Global Bus Econ Rev 10(3):331–352Google Scholar
  17. United Nations Office for Drugs and Crime (UNODC). www.unodc.org
  18. Walker J (1995) Estimates of the extent of money laundering in and through Australia. Paper prepared for the Australian Transaction Reports and Analysis Centre, Sep 1995. John Walker Consulting Services, QueanbeyanGoogle Scholar
  19. Walker J, Unger B (2009) Estimating money laundering: the walker gravity model. Rev Law Econ DecemberGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Utrecht University School of EconomicsUtrechtThe Netherlands