Money Laundering Process Research Articles

A Novel Money Laundering Prediction Model Based on a Dynamic Graph Convolutional Neural Network and Long Short-Term Memory

Money laundering is an illicit activity that seeks to conceal the nature and origins of criminal proceeds, posing a substantial threat to the national economy, the political order, and social stability. To scientifically and reasonably predict money laundering risks, this paper focuses on the “layering” stage of the money laundering process in the field of supervised learning for money laundering fraud prediction. A money laundering and fraud prediction model based on deep learning, referred to as MDGC-LSTM, is proposed. The model combines the use of a dynamic graph convolutional network (MDGC) and a long short-term memory (LSTM) network to efficiently identify illegal money laundering activities within financial transactions. MDGC-LSTM constructs dynamic graph snapshots with symmetrical spatiotemporal structures based on transaction information, representing transaction nodes and currency flows as graph nodes and edges, respectively, and effectively captures the relationships between temporal and spatial structures, thus achieving the dynamic prediction of fraudulent transactions. The experimental results demonstrate that compared with traditional algorithms and other deep learning models, MDGC-LSTM achieves significant advantages in comprehensive spatiotemporal feature modeling. Specifically, based on the Elliptic dataset, MDGC-LSTM improves the Macro-F1 score by 0.25 compared to that of the anti-money laundering fraud prediction model currently considered optimal.

India and Anti Money Laundering Measures: A Critical Study of Legislation & Its Enforcement

Money laundering is the process that criminals use to erase the connection between the crime and the money concealing the criminal source of the funds. The money laundering process has three stages viz., (a) placement, (b) layering and (c) integration. In the initial placement stage, the launderer produces its legal profits into financial system by breaking up large amounts of cash into unsuspicious smaller sums. In the layering stage, the launderer engages in a series of conversions or movements of the funds to distance those from their original source. After successful processing of criminal profits through first two phases, the launderer moves those to integration stage, so that the funds enter the legitimate economy. Money laundering has a very bad impact not only on the national financial infrastructure but it also crumbles the international financial system. This paper aims to analyse the current state of money laundering laws in India, offer a critical assessment of the enforcement machinery, investigate whether the laws as written correspond to the actual situation on the ground, and determine the amount of work needed to implement the necessary changes so that the legislation can be effectively enforced.

Notary Efforts in the Prevention of Money Laundering

In addition to having rights and obligations as stipulated in the Notary Office Law, notaries are also given additional obligations in the context of preventing and eradicating money laundering, namely as reporting party and must report deeds that tend to be a process of money laundering. However, there is a legal issue of conflicting norms because as we know that a Notary is obliged to maintain the confidentiality of the deeds of service users. So that the purpose of this legal scientific research article is to find out whether all deeds must be reported by a Notary in the prevention of Money Laundering Crimes and how the position of a Notary as a reporter is seen from the point of view of the principle of confidentiality in his position. The results of this legal scientific research article state that first, Deeds that must be reported by a Notary to the authorized official are the Financial Transaction Reports and Analysis Center, namely Sale and Purchase Agreements, Deeds of Sale and Purchase of Shares, Deed of Sale and Purchase of Assets, Deed of Establishment of a Limited Liability Company, Deed of Binding of Sale and Purchase, Deed of Establishment of Foundations, Deed of Establishment of Cooperatives, also Authorization of Selling and Authorization of Directors, which are in essence closely related to the crime of money laundering. Second, the principle or principle of secrecy as stipulated in Article 16 paragraph (1) letter f does not have absolute force, because there is a norm which explains that "unless the law determines otherwise". Notaries are expected to be able to identify authentic deeds that have a high risk or tendency of money laundering and for deeds that have allegations of money laundering. Notaries are expected not to hesitate to report to Indonesian Financial Transaction Reports and Analysis Center or INTRAC to prevent money laundering.

DAMPAK TINDAK PIDANA PENCUCIAN UANG TERHADAP EKONOMI MAKRO

Money laundering is an illegal method of generating large sums of money from criminal activities, such as drug trafficking, corruption or other criminal activities. The process of money laundering generally goes through three stages of activity, namely the placement stage, the distribution stage and the collection stage with the aim of making it appear as if it comes from a legitimate source, in order to make it look clean. The emergence of losses that are reflected in the presence of victims is the adverse impact of money laundering activities which today in fact money laundering does not only have a direct impact on the individual who is harmed but the effect will be felt on national and even global economic stability. The characteristics of the crime of money laundering must be known in advance before developing a strategy to prevent and then deal with the crime of money laundering.

Strategic management, scenario analysis and competitive advantage analysis: New opportunities for anti-money laundering system reform

The article identifies and mathematically substantiates vectors of reforming the financial monitoring system based on the synergistic approach in the cross-country context by developing scenarios by selecting internal and external factors that stimulate money laundering. The key external and internal factors of the money laundering process intensification are indicated. Competitive advantages of the anti-money laundering processes, the achievement of which is possible in terms of key external and internal factors for activation of money laundering process are formed. The relationship between the key internal and external factors of money laundering intensification and competitive advantages by building a binary characteristic matrix is formed. The synergy effect made by the mutual influence of simultaneously acting internal and external factors – a quantitative feature of the further strategy of the financial monitoring system reforming in terms of cross-country analysis is calculated. An economic-mathematical model for evaluating and interpreting strategy for improving the financial monitoring system in terms of cross-country context based on integer optimization is developed. In the article, there is calculation of the number of competitive advantages received by each observed country, without considering the possible synergy effect of mutual influence of simultaneously acting internal and external factors on each other. Moreover, there is quantitative assessment of the synergy effect made by the emergence of additional competitive advantages due to a certain combination of simultaneous influence made by external and internal factors of the money laundering intensification. The “ideal” situation of the possibility of gaining all possible competitive advantages in reforming the financial monitoring system in terms of cross-country context by overcoming internal and external factors stimulating the money laundering is studied. The results of the cross-country analysis form a basis for the further formalization of the limits for quantitative evaluation of the developed strategies through a uniform distribution.

Money laundering as a negative economic factor in the European Unio

Aim: Among the money laundering methods, virtual methods stood out, which can be considered more dynamic and less traceable than traditional money laundering methods. One of the great challenges of our time is money laundering in the developing cyberspace. Due to the dynamic development of money laundering methods and their importance in cyberspace, their influence on the national economy is also significant. The primary goal of the study is to explore the European Union and Hungarian legislative background of anti-money laundering, as well as its effectiveness in defense.Methodology: The Authors carried out a systematic review of the relevant international and Hungarian literature related to money laundering. After the literature review, as the main tool of protection against money laundering, the legal regulation was examined. Regulatory deficiencies have been identified that may form the basis of future legal regulations.Findings: As a result of the research, it can be summarized that the legislation in force in the European Union and Hungary is not ready to regulate Internet money laundering methods, regulations and legislation are always one step behind money laundering committed by virtual methods. In order to effectively defend against money laundering, changing the legal background and developing monitoring activities are considered particularly important tasks.Value: In Hungary and the territory of the European Union, the criminal law tools prove to be few in the fight against money laundering, especially against crimes committed on the Internet. The regulations and some proposals of the European Union and Hungary do not provide a solution to the majority of potential risks and loopholes arising from virtual currencies. Therefore, it is necessary to clarify the exact legal status of virtual currencies. The study highlights the shortcomings of the current legal situation, and this initiative draws attention to the current situation of certain virtual currency service providers receiving an operating license, which also requires compliance with anti-money laundering rules, so that e-money and various payment services are also stricter they could come under control. The Authors review the process of money laundering, provide an international perspective on the most frequently used money laundering methods, and explain the importance of virtual money laundering and possible defense methods.

Juridical Review of Money Laundering Crimes committed by the President Director of PT. Asabri

Background: This study aims to find out and analyze about the juridical review of money laundering crimes and find out and analyze about liability in cases of money laundering crimes committed by the president director of PT. ASABRI.
 
 Objective: This study aims to find out and analyze the juridical review of money laundering crimes and find out and analyze about liability in cases of money laundering crimes committed by the president director of PT. ASABRI.
 
 Methods: This research belongs to the normative type of research. So that it can be known that Dan the elements of not criminal money laundering are perpetrators, acts (financial or financial transactions) with the intention of hiding or disguising the origin of wealth from its illegitimate form (illegal) as if it were legal property.
 
 Results: Money Laundering as a crime has the characteristic that this crime is not a single crime but a double crime. The point is that the criminal act of money laundering is a form of crime committed either by a person and/or corporation by deliberately placing, transferring, spending, paying for the plunge, entrusting, taking out of the country, changing the form, exchanging for currency or securities or other acts of property that he knows or reasonably suspects is the result of non-criminal proceedings.
 
 Conslusion: Based on the explanation above, it can be concluded that the money laundering process has three stages, namely the Placement or placing Stage, the second is the Layering or Separating Stage, and the last is the Integration Stage or the use of wealth that has appeared legitimate.
 Keywords: Criminal Acts, Money Laundering, Asabri

The Impact of Criminal Policy on Money Laundering Against the Resilience of the Law

Differences in the authority of investigators over money laundering crimes committed by members of the Indonesian National Armed Forces lead to disharmony of norms, thus creating polemics in the law enforcement process, especially in efforts to eradicate money laundering. Currently, there is an expansion of investigative competence based on the Decision of the Constitutional Court of the Republic of Indonesia, which states that predicate criminal investigators are officials or bodies authorized by laws and regulations to conduct investigations. Violations committed by members of the Indonesian National Armed Forces against the crime of money laundering should be under the jurisdiction of the Military Court. This study aims to determine the development and impact of legal policies related to members of the Indonesian National Armed Forces who commit criminal acts in the jurisdiction of the Military Court I-03 Padang. The analysis of this research uses a descriptive qualitative approach by using primary and secondary data. The results indicate that the competence of military courts is vulnerable to discontinuing the legal process of money laundering. Military courts should also be given the authority to try Indonesian National Armed Forces members who commit money laundering crimes. Investigation of The Crime of Money Laundering committed by members of the Indonesian National Armed Forces in the ius constituendum must be formulated more firmly in the Money Laundering Law. Thus, the Indonesian National Army members who violate the entered in categorization of General Crimes or non-military will be subject to the general justice system, and in the investigation carried out by investigators in the general court as described in the provisions in accordance with the limitative theory.

The Impact of 9/11 on Money Laundering

This article examines money laundering and terrorist financing from both a conceptual framework as well as the regulations that attempt to combat its use. A historical perspective of money laundering provides context on its origins, evolution, and anti-money laundering efforts. After a review of the money laundering process, anti-money laundering efforts in the United States are examined through the end of the twentieth century as well as the rise of international terrorism. The impact of September 11, 2001 on anti-money laundering efforts is then examined along with identifying links between human and drug trafficking with terrorist financing. The article concludes with emerging technologies that may have a significant impact on both money laundering and anti-money laundering efforts as they apply to the threat of terrorism.

Crime scripting the criminal activities of money laundering – holistically

PurposeThis paper aims to demonstrate the benefit of applying crime script analysis at a macro level to expose money laundering as an interconnected series of events that contradict understanding which defines money laundering as a series of typological studies.Design/methodology/approachUsing previously captured data and detailed research studies alongside the professional experience of the author, this study creates a horizontal crime script for three distinct methods of money laundering – to determine characteristic nodes and identify pathways.FindingsDespite significant research into money laundering typologies, this paper demonstrates that the process of money laundering cannot be separated into typological studies. By applying crime script analysis to each method of money laundering prior to analysing the nodes, activities and behaviours, money laundering can be identified as a series of interconnected services, business formalities and management activities.Practical implicationsThis study is of value to government policymakers, regulators and financial institutions considering future preventative measures. It is also of value to financial investigators and law enforcement agencies intent on investigating money laundering. By applying the method of analysis outlined in this paper to each method of money laundering and then combining them together, it is possible to understand money laundering as a holistic process, in which webs of interconnected criminal events can be identified for investigative and preventative purposes.Originality/valueInterest in crime script analysis is now supporting understanding of different crime types. This study goes beyond the analysis of individual types of money laundering and applies it in a “test format” against three methods of money laundering to create, for the first time, a holistic or macro appreciation of the interconnected series of events, activities and behaviours which exist beyond the characteristics routinely captured in money laundering typology reports.

Detecting Roles of Money Laundering in Bitcoin Mixing Transactions: A Goal Modeling and Mining Framework

Cryptocurrency has become a new venue for money laundering. Bitcoin mixing services deliberately obfuscate the relationship between senders and recipients, making it difficult to trace suspicious money flow. We believe that the key to demystifying the bitcoin mixing services is to discover agents’ roles in the money laundering process. We propose a goal-oriented approach to modeling, discovering, and analyzing different types of roles in the agent-based business process of the bitcoin mixing scenario using historical bitcoin transaction data. It adopts the agents’ goal perspective to study the roles in the bitcoin money laundering process. Moreover, it provides a foundation to discover real-world agents’ roles in bitcoin money laundering scenarios.

INVESTIGATING THE EFFECTIVENESS OF STERILIZATION POLICY IN CONTROLLING MONEY SUPPLY AND CAPITAL INFLOWS IN NIGERIA

Money laundering, in its almost 90-year-long history, has attracted the attention of the scientific, professional, but also the general public. Throughout the entire period, the manifestations of this criminal phenomenon, its typology, etiological factors, etc., have changed, but the essence has remained the same: the transformation of illegally acquired money into legal financial flows. Emerging markets are particularly burdened, which is the subject of this paper: identifying, monitoring and proving the process of money laundering with the aim to reduce it in developing countries. In addition, what can be observed in these markets is that money laundering operations are mainly related to those activities where most of the payments are made in cash. Their specificity, that is, the basic motive for execution, is not just a profit, but the aspiration to introduce “dirty” money into legal flows. The aim of this paper is to use the method of description to explain and describe scientifically the money laundering process and to combat this phenomenon with a focus on the characteristics of the money laundering process. In addition, the paper describes the models and weaknesses of this process, while at the same time it respects the standards and specifics of business operations in emerging markets. The result of the paper is that it provides an overview of money laundering in the 21st century in small and open economies, including proposals to prevent and combat this negative phenomenon.

The dichotomisation fallacy of public and private corruption and the quantification dilemma

PurposeThis paper aims to examine the concept of corruption and dirty money. Corruption is amorphous and lacks a congruent definition. It is mainly divided into public and private corruption. This divide, is unnecessary, given the fact that both cause incalculable damage to the markets and lager society. Globalisation has necessitated liberalisation and resulted in amalgamating both public and private ventures. This, as a result, has made it more difficult to stick to this. Pronouncements from International Chamber of Commerce (ICC) and the Law Commission’s attitude not to segregate between private and public bribery prior to the legislation of United Kingdom Bribery Act 2010, has added greater impetus to the debate. Attempts to quantify the amount of corruption and money laundering, has equally, hit a dead end. The figures being bandied about are all estimates or “guesstimates” that cannot stand the empirical test. As a result, the conjectures have strong potentials to continue for a longer time. The purpose of this paper is to bring to the fore the need to jettison the long-held perception that public and private corruption should be seen in different lights.Design/methodology/approachThis paper relies substantially on both primary and secondary sources in the analysis.FindingsIndicatively, the facts tilt towards the conclusion that it is impossible to actually ascertain the quantifiable amount of money that is involved in corruption and the money laundering process. It is an illusion.Originality/valueThe paper provides the platform that the time is ripe for both public and private corruption to be seen as the same thing, as they both unleash catastrophic consequences on society. The issues of globalisation and liberalisation make this inevitable.

Corporate Law of Malaysia: Anti-Money Laundering and Counter Financing of Terrorism

The laws of Malaysia place responsibility upon individual to help prevent money laundering activities. This article briefly introduced the processes involved in typical money laundering process and various reporting obligations imposed by the Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 and other secondary provisions. The writing of this article employs the hermeneutics analysis of relevant legislation(s). It provides a quick and simplified reference for students and non-practitioner.

MONEY LAUNDERING PROCESS IN EUROPEAN UNION

It is no secret today that money laundering process continues in the world. We can find different cases about money laundering process in practice. To struggle with money laundering is the most important activity of European Union Member States. The specific crime of money-laundering is among the priority areas identified in the Action Plan and data has been collected by Eurostat from the Member States in several stages, followed each time by a careful analysis of the figures received and subsequent adjustment of the methodology. The contribution to this process of the Commission's Directorate-General for Home Affairs is gratefully acknowledged. The fight against money laundering is one of the European Commission’s strategic priorities. Today the Commission also publishes a report which will support Member State authorities in better addressing money laundering risks in practice. Because of struggle money laundering, European Union legislation development is very important. Key words: economic crime, anti-money laundering, stage, process, directive

RAHASIA BANK BAGIAN DARI PROSES MONEY LAUNDRY

The crime of money laundering is very detrimental to the public at large, because the crime will also be followed by other crimes, corruption, terrorism and drugs. The purpose of this research is to discuss the extent to which the Bank is involved in the money laundering process, so the researcher takes the theme Bank Secrets as part of the money laundering process. The method used is literature study with descriptive, exploratory, and analytical approaches. It can be concluded that, Bank Secrecy is everything related to information regarding depositors and deposits where the principle of bank secrecy aims to protect customers. Bank is a financial institution that runs its business based on the trust of its customers so that banks are required to be able to maintain the confidentiality of all data and information related to their customers, including information on financial transactions carried out by their customers. It is recommended that the bank should apply the Know Your Customer “Know Your Customer principle” properly accompanied by an adequate reporting system. If there is a suspicious flow of funds, it can work with related parties (PPATK, KPK and the Police) so that money laundering can be prevented as early as possible.

Money Laundering from Maqāsid Al-Sharī‘Ah Perspective with Particular Reference to Preservation of Wealth (Hifz Al-Mal)

This research aims to evaluate the concept of money laundering in reference to the objective of the protection of wealth (Hifz al-māl). It also examines the process of money laundering on whether they are halal in the Sharīʿah. This study adopts a qualitative approach. It reviews and analyses authentic data in relevant literature and documents on the principles of maqāṣid al-Sharīʿah, especially on those mentioned in the Qur’an and Sunnah. The significance of this study is that a new contribution through exploring the viewpoints of maqāsid al-Shari'ah on the sources which are involved in the money laundering process and the wealth achieved through this process. From the teaching of the Quran and Sunnah, it can be concluded that the Sharīʿah restrictions on the process of money laundering are far more stringent than any other ordinary laws since the Sharīʿah emphasises more on the protection of wealth for the welfare of human beings.

COMBATING MONEY LAUNDERING – A MANDATORY TOPIC FOR THE PROFESSIONAL ACCOUNTANT

"In recent years, the European Union has intensified concerns about money laundering and terrorist financing, with direct impact in Romania, too. The 4th and 5th European Directives, drafted in this regard, require the extension of the role and responsibility of the professional accountant (expert accountant or financial auditor) in the complex process of preventing and combating money laundering and terrorist financing. There is a specific regulatory framework, but also several stages that define the money laundering process, which must also be known by professional accountants"

FOLLOW-UP ANALYSIS RESULTS REPORT THE FINANCIAL TRANSACTION REPORTS AND ANALYSIS CENTER IN THE PROCESS OF INVESTIGATION IN MONEY LAUNDERING IN INDONESIA

Efforts to eradicate the crime of money laundering, Indonesia has an agency that specializes in reporting the possibility of money laundering and will conduct an analysis of suspicious financial transactions, namely the Financial Transaction Analysis Reporting Center. The report on the results of the Financial Transaction Analysis Reporting Center analysis should become a basic material that has value by law enforcers to carry out the process of preventing and eradicating money laundering in Indonesia, just like the Supreme Audit Agency of the Republic of Indonesia, where the Analysis Result Report can be used as the basis for the existence of state financial losses or potential loss to the country's economy. The highlight in this paper is the Follow-up to the Report on the Results of the Financial Transaction Analysis Reporting Center Analysis in the Investigation Process of Money Laundering in Indonesia. The approach method used is juridical normative, namely analytical descriptive legal research which is conducted by examining secondary data in the form of positive law literature in Indonesia and its implementation in practice. The results of the research will be analyzed qualitatively juridically, namely how to analyze the data obtained without using statistical formulas. The result of this research is that not all reports submitted by the PPATK to investigators are followed up by the investigators. The report on the results of the analysis that was not followed up by the investigator was a report on the results of the analysis which was of poor quality because there was no element of money laundering crime as well as the unclear identity of the customer (profile). Keywords: Financial Transaction Analysis Reporting Center, Investigation, Money Laundering

Penerapan Undang-Undang No 8 Tahun 2010 Tentang Pencegahan Dan Pemberantasan Tindak Pidana Pencucian Uang (TPPU) Terhadap Penegakan Hukum Pidana Pencucian Uang (Money Laundering) Terhadap Tindak Pidana Kehutanan (Illegal Logging)

Money Laundering is a double crime that is continued crimes that frequently occur in Indonesia. This is indicated by the form of illegal money laundering as a crime that is a follow-up crime, while the main crime or crime of origin is known as predicate offense or core crime or there are countries that formulate it as unlawful activity, namely predicate crimes that generate money which are then carried out in the money laundering process (Money Laundering). As for one form of money laundering crime (Money Laundering), namely forestry crimes which are considered as predicate of crimes in the legal system as referred to in Law Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering, of course it provides a legal basis for the law enforcement officers to carry out investigations and investigations as well as pursuing various suspicious transactions from financial institutions in order to seek cash flows that will eventually lead to intellectual actors holding funds for illegal logging activities. Although there are legal instruments that contain provisions of laws and regulations in the field of forestry and the environment, namely the Law Number 18 of 2013 concerning Prevention and Eradication of Forest Destruction and the Law Number 32 of 2009 concerning Environmental Protection and Management. However, in practice, the law enforcement has not been able to embrace the conception of understanding that in trapping perpetrators using the principle approach, it is suspected or should be suspected of having committed the crime of money laundering. What is being done now is to arrest the illegal logging actors who carry out