Abstract
This study examines problem of money laundering and identifies role of gatekeepers in utilising their expertise to conceal the proceeds of crime. In order to successfully prevent and investigate money laundering, we need to understand the development of anti-money laundering regime and how country like Indonesia adopts this development into its domestic regulations. Nevertheless, it is crucial to comprehend gatekeepers utilising various money laundering mechanisms and offshore financial centres. Scrutinised cases from Indonesia and corporate practices from Singapore on this study highlight how gatekeepers operate in the private sector, wittingly or unwittingly, use their expert knowledge of the international financial system to facilitate criminals and to secure the movement of the proceeds of crime globally.
Highlights
The proceeds of crimes1 that are laundered and concealed in money laundering schemes undermine democratic institutions, slow economic development and contribute to governmental instability.2 The Globalisation of Crime: a Transnational Organised Crime Threat Assessment Report produced by United Nations Office on Drugs and Crime explains that economic globalisation has progressed without symmetrical growth and expansion of global governance practices since the end of the Cold War.3 The development of technologies, in particular within financial institutions, offers broader opportunity for criminals to launder their money derived from illegal activities
Based on a paper presented at Liechtenstein Trusts & Estate Practitioners International Forum held on 6 May 2010, Monty Raphael, by referring to a Financial Action Task Force (FATF) Report, stated that there are two main reasons for people to seek the help of a gatekeeper to launder the money: First, anti-money laundering measures have increased the risk of money laundering being detected by financial institutions
This case shows the significant role of Adrian as the gatekeeper to conceal the dirty money derived from banking fraud and corruption by using his networks
Summary
The proceeds of crimes that are laundered and concealed in money laundering schemes undermine democratic institutions, slow economic development and contribute to governmental instability. The Globalisation of Crime: a Transnational Organised Crime Threat Assessment Report produced by United Nations Office on Drugs and Crime (hereinafter, UNODC) explains that economic globalisation has progressed without symmetrical growth and expansion of global governance practices since the end of the Cold War. The development of technologies, in particular within financial institutions, offers broader opportunity for criminals to launder their money derived from illegal activities. See Business Dictionary, “Profit,” http://www.businessdictionary.com/ definition/profit.html, accessed 8 February 2016 This development, along with other available mechanisms, can be manipulated by gatekeepers, a term denoting various financial or legal professionals with specific skills, knowledge, and access to the global financial institutions in assisting criminals to obscure their illegal assets.. This development, along with other available mechanisms, can be manipulated by gatekeepers, a term denoting various financial or legal professionals with specific skills, knowledge, and access to the global financial institutions in assisting criminals to obscure their illegal assets.6 To curb these illicit activities assisted by gatekeepers, the international anti-money laundering community has developed many measures targeting money laundering and gatekeepers in particular.. This study triggers discussion to formulate an approach to curb gatekeepers in assisting money laundering schemes
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