Suspicious Transaction Reports Research Articles

The Trends and Challenges of Money Mule Investigation by Malaysian Enforcement Agency

This article discusses the roles played by the enforcement agency, the current money mule situation, and the challenges faced by enforcement agency investigation officers in money mule investigations. An interview with informant from one of the Malaysian Enforcement Department, was conducted to gather his insights. An enforcement officer launches a money mule investigation based on the victim’s police report or Suspicious Transaction Report (STR). Investigation into money mule cases received by law enforcement agency is guided by Penal Code 424 and AMLATFPUAA 2001, which clearly expound the offence implicated in the money mule syndicate. The output from the interview is analysed under content analysis, whereupon the large amount of extracted information is summarised and arranged into important themes that address the research objective. The major challenges faced in criminal investigation include lack of cooperation from telco, delayed response from banks when requested to provide crucial information, wrong public perceptions on enforcement agency’s aggressiveness to fight money mule, lengthy investigation procedure, limited resources and lackadaisical attitude towards money mule threat. The challenges undermine the fight to eradicate the money mule phenomenon, one of the most critical financial crime threats in Malaysia. A slew of changes that enforcement agency is keen to see are proposed, including a more proactive telco regulator, a shorter processing period by banks in responding to production orders from enforcement agencies, and a steeper involvement by the media to build public awareness.

The Role of Regulatory Technology & Bankers to Prevent Money Laundering in Bank

Bank is a financial institution that is most often used as a place for money laundering, as well as the most financial institution that sends suspicious transaction reports to the Indonesian Financial Transaction Reports and Analysis Center (PPATK). This study aims to illustrate the impact of adopting regulatory technology (regtech) and the role of AML officers in the Indonesian banking sector on money laundering prevention effectiveness. The primary data for this study was collected through a survey instrument distributed to 689 AML officers in Indonesia with the expertise in anti-money laundering (AML) compliance; there were 296 respondents that filled the questionnaire with a response rate of 42.9%. The results of multivariate analysis indicate that electronic know your customer (KYC) is not significant in money laundering prevention. Transactions monitoring (TM) of regtech and cost & time (CT) of regtech, drive money laundering prevention to a highly statistically positive & significant. Furthermore, there is a positive & significant relationship between bankers competency & awareness in money laundering prevention. Research related to regtech and AML officers in Indonesian banking sector money laundering prevention efforts is still very limited in Indonesia. This study contributes to the existing literature on anti-money laundering and the development of anti-money laundering technology.

On the issue of the financial intelligence of Ukraine in preventing the legalization of illegal income

The purpose of the paper is to determine the importance of financial intelligence in preventing criminal income and to study some aspects of the practical activities of this unit over the past 20 years in maintaining the economic security of the state. The methodological and information basis of the work are scientific works, scientific materials of periodicals. Based on the methodological approach, it is substantiated that an important stage in the development of financial intelligence in Ukraine is the conduct of national risk assessments, in particular with the application of international recommendations, best practices and guidelines and reports, respectively. The paper examines the operation of the Financial Intelligence Unit, which is the national center for receiving and analyzing suspicious transaction reports and other information related to money laundering, related predicate crimes and terrorist financing, and for disseminating the results of that analysis. It was established that the State Financial Monitoring Service of Ukraine is the central state body responsible for collecting. analyzing and transferring data on suspicious financial transactions to authorized bodies. The research carried out in the article made it possible to establish that conducting financial intelligence of illegal income and assets carried out through the financial system of Ukraine prevents losses to the state and society from the actions of organized groups and criminal organizations, eliminates any possibility of legalization (laundering) of income received by criminal by inhibiting the development of the economy, ensuring the economic security of the state.

Exploration of Enhancing the Quality of Suspicious Transaction Reports for Anti-Money Laundering and Countering Financing of Terrorism in the Securities Industry of China

Exploration of Enhancing the Quality of Suspicious Transaction Reports for Anti-Money Laundering and Countering Financing of Terrorism in the Securities Industry of China

Compliance determinants of anti-money laundering regime among professional accountants in Malaysia

PurposeMoney laundering offences occur worldwide, with recent discussions involving issues related to the low levels of compliance among professional accountants towards the anti-money laundering (AML) regime. Under the regime, professional accountants are required to implement compliance programs (Know Your Customer, Clients Due Diligent, Record Keeping) and to submit any suspicious transaction report encounters to the authorities. Due to the lack of research in this sector, this study aims to examine the compliance determinants towards AML regimes among professional accountants in Malaysia.Design/methodology/approachPremised on protection motivation theory, a questionnaire was developed and distributed among 1,100 professional accountants. Of which 275 questionnaires were returned and subjected to regression analysis.FindingsBased on the findings, “perceived risk of non-compliance” and “awareness of Anti-Money Laundering Act 2001 and Financial Action Task Force standard” were significantly related to the level of compliance towards the AML regimes. Meanwhile, “compliance cost” did not influence the compliance behaviour of professional accountants. Moreover, the findings demonstrated that awareness programs among the reporting institutions should be enhanced, specifically the professional accountants.Practical implicationsThis study recommends the professional bodies particularly professional accountants in Malaysia to establish a blueprint as a guideline for money laundering reporting.Originality/valueThis is one of the pioneer studies looking into AML compliance determinants among the professional accountants in Malaysia. This study will provide insights on the current practices and recommend ways to improve the current AML reporting practices among the professional accountants.

Money Mule Risk Assessment: An Introductory Guidance for Financial Crime Compliance Officers

Money mule phenomenon is a global threat that inflicts the financial system. It is one of money laundering concerns affecting the banking institutions and require enigmatic compliance effort. Criminals such as fraudsters, scammers and cyber attackers use money mules to launder their ill-gotten proceeds. The principal aim of engaging money mule is to hide the money trail and thus stymie any possible effort to investigate the underlying criminal activity. The proceed of fraud or scam is rarely directed to the criminal’s account. Therefore, it is vital for bank’s financial crime compliance officers to be able to perform money mule risk assessment when conducting money mule case investigation. The assessment begins with risk identification from Know Your Customer (KYC) information and transaction monitoring. The output from the money mule risk assessment would be useful in building up Suspicious Transaction Report (STR). This article introduces the concept of money mule risk assessment which would be beneficial to academicians and anti-money laundering practitioners.

Money laundering risk judgement by compliance officers at financial institutions in Malaysia: the effects of customer risk determinants and regulatory enforcement

PurposeThis paper aims to provide an empirical analysis of the effects of regulatory enforcement and customer risk determinants on money laundering risk judgment. The study further explores the moderating impact of regulatory enforcement on compliance officers in the banking and money service business (MSB) sectors. The analysis is conducted to find the important factors that contribute to the issues of risk judgement among compliance officers to establish effective anti-money laundering (AML) and countering financing of terrorism compliance at the financial institutions, as highlighted in the National Risk Assessment Report 2017 by the Central Bank of Malaysia.Design/methodology/approachAn experimental study with four different scenarios of case studies distributed to 124 compliance officers at the banking and MSB sectors was conducted via online platforms. The paper uses a quantitative approach via structural equation modelling.FindingsThe result shows a significant effect of customer risk determinants and regulatory enforcement on money laundering risk judgement, taking into account competency as the control measure. A further test on the interaction effects of both determinants shows a significant result on the money laundering risk judgement. The empirical evidence indicated that regulatory enforcement influenced compliance officers’ money laundering risk judgement and suspicious transaction report submission. In other words, the banking and MSB sectors’ AML compliance significantly depends on the regulators’ enforcement activity.Research limitations/implicationsThis study is limited to two independent variables: regulatory enforcement and customer risk determinants. Future studies may consider other factors affecting compliance officers’ money laundering risk judgement, such as technical competency, knowledge management, digitalization and technology and ethical issues.Practical implicationsThis study provides several theoretical and practical implications. Emphasizing the excellent quality of judgement and, eventually, good quality of reporting the suspicious transactions will not be achieved merely from enforcing fines and punishment, but comprehensive measures must be taken. Increasing the competency and training, educating the compliance officers, supporting the industry and practitioners with incentives and digitalization, enhancing the campaign and awareness among the public and standardizing the policy shall be the good initiatives for the regulatory enforcement to establish.Originality/valueThis paper provides a valuable contribution to the body of knowledge and fulfills the significant gaps in the literature on money laundering, not to mention, the integration between behavioural studies and anti-money laundering compliance, which has scarcely been statistically evident from the research studies.

Implementing Anti-money-laundering Goals: New Technologies or Coordination between Related Agencies?

ABSTRACT This paper is to investigate whether anti-money-laundering (AML) improvement in a gaming tourism destination is driven by the integration of new technologies, or by other factors such as financial inclusion and close coordination between companies and related government bodies. The quantitative method of ordinary least squares (OLS) multivariate regression is applied to determine the degree to which money-laundering activities in Macau reduced between 2007 and 2017. This study reveals a strong positive relationship between the number of suspicious transaction reports (STRs) and the amount of private-sector domestic credit as a percentage of GDP. The relationship between investment in IT as a percentage of GDP and the number of STRs is statistically insignificant, but there is a positive association with the number of STRs in the gaming tourism industry. Close coordination between industry players and various AML agencies has also had a positive impact on STR detection. Besides, this study will be of benefit to the gaming tourism destination, showing that casinos can cooperate openly with financial institutions and government bodies to fight money laundering, which will help to ensure that gaming tourism destination maintains a positive image sustainably.

Clustering of the European Union member states based on money laundering measuring indices

The number of enforcement actions and fines for non-compliance with anti-money laundering (AML) regulations continues climbing year after year, and the year 2021 was no exception to this tendency. Globally, authorities remain harsh, and AML fines in Europe, the United States, and the United Kingdom have been increasing (Global Anti-Money Laundering Regulations, 2021). According to the UN estimations, the amount of money annually laundered worldwide amounts to 2–5% of the world’s Gross Domestic Product (GDP), or in absolute numbers - to 800 billion-2 trillion US dollars. Such high figures indicate that national governments are indeed facing a serious problem of money laundering. In this article, clustering is employed to group the EU member states by their money laundering measuring indices in order to assess the EU legal framework in terms of money laundering prevention. State clustering could help the relevant EU institutions, such as Financial Intelligence Units (FIUs), Europol, International Monetary Fund (IMF), national governments and others, to develop the most effective measures to diminish the problem of money laundering and to complement their regulatory framework. Money laundering is usually associated with criminal activities that generate large amounts of illegal financial resources. In the most general sense, money laundering refers to the process of disguising the true origin, ownership, disposal and movement of particular proceeds, property or property rights. The results of the empirical research propose that money laundering reduction calls for a higher number of suspicious transaction reports (STRs), lower levels of corruption and improvement of the legal framework in terms of money laundering prevention in the EU. The research methods cover comparative and systematic literature analysis, and hierarchical cluster analysis. The cluster analysis of the EU member states (28 countries) uses the number of reports filled with FIU between 2006-2014, the 2012-2020 Basel AML Index and the 1998-2018 CPI data.

ANTI-MONEY LAUNDERING AND ANTI-TERRORISM FINANCING OBLIGATIONS FOR THE MONEY SERVICES BUSINESS IN MALAYSIA: AN APPRAISAL

The money services business (MSB) is a financial institution comprising money-changing business, remittance business and wholesale currency business. As a financial institution, the MSB is subjected to the anti-money laundering and counter financing of terrorism (AML/CFT) requirements in Malaysia. Thus, the objective of this article is to examine the AML/CFT legal requirements to the MSB sector in Malaysia. This study employed doctrinal legal research by analysing the primary and secondary legal sources. Thus, this study analyses the importance of AML/CFT preventive measures, which are (i) risk-based approach; (ii) customer due diligence; (iii) record-keeping; (iv) suspicious transaction report; and (iv) AML/CFT compliance programme. Despite the AML/CFT statutory obligations, the study found that the MSB is at high risk for these crimes due to the lack of AML/CFT compliance. Thus, having continuous compliance and rigorous enforcement by authorities is necessary for combating these organised crimes.

Anti-Tipping off Perspective to Target Company Bank's Suspicious Transaction Report in Merger Activity

The purpose of this study is, to explain the legal concept and regulation of anti-tipping off in the banking sector, and to explore about the position of the Suspicious Transaction Report belonging to the target company bank in the merger activity based on anti-tipping off provisions. This is Normative legal Research with a statutory approach, a conceptual approach and a comparative approach. The background of the problem in this paper is, there is no strong legitimacy about definition and limitation of the meaning of the phrase ‘other parties’ in article 12 paragraph (1) Anti Money Laundering Law, which regulate about anti tipping off, wether the absorbing company bank is the 'other parties' of target company bank on the merger activity or not, when target company bank delivered it suspicious transaction reports to absorbing company bank prior to the merger. The results and discussion concluded that Anti-tipping off is a provision that prohibits tipping off. Tipping off itself is an action by a senior officer or Management or Employee of the Reporting Party (inter alia, Bank) to disclose facts related to a Suspicious Transaction Report that has been reported to Financial Intelligence Unit (in casu, PPATK). This is concrete and manifested in the provisions of Article 12 paragraph (1) of the Anti Money Laundering Law. Besides that, Viewed from the anti-tipping off perspective, all the rights owned by the target company Bank prior to the merger, ex officio, become the rights of the absorbing company, since the target company Bank legally merges into a part of the absorbing company. Based on that, it can be concluded that with respect to merger activities, the absorbing company banks are not ‘other Parties’ from the target company Bank.

ANTI-TIPPING OFF PERSPECTIVE TO TARGET COMPANY BANK’S SUSPICIOUS TRANSACTION REPORT IN MERGER ACTIVITY

The purpose of this study is, to explain the legal concept and regulation of anti-tipping off in the banking sector, and to explore about the position of the Suspicious Transaction Report belonging to the target company bank in the merger activity based on anti-tipping off provisions. This is Normative legal Research with a statutory approach, a conceptual approach and a comparative approach. The background of the problem in this paper is, there is no strong legitimacy about definition and limitation of the meaning of the phrase ‘other parties’ in article 12 paragraph (1) Anti Money Laundering Law, which regulate about anti tipping off, wether the absorbing company bank is the ‘other parties’ of target company bank on the merger activity or not, when target company bank delivered it suspicious transaction reports to absorbing company bank prior to the merger. The results and discussion concluded that Anti-tipping off is a provision that prohibits tipping off. Tipping off itself is an action by a senior officer or Management or Employee of the Reporting Party (inter alia, Bank) to disclose facts related to a Suspicious Transaction Report that has been reported to Financial Intelligence Unit (in casu, PPATK). This is concrete and manifested in the provisions of Article 12 paragraph (1) of the Anti Money Laundering Law. Besides that, Viewed from the anti-tipping off perspective, all the rights owned by the target company Bank prior to the merger, ex officio, become the rights of the absorbing company, since the target company Bank legally merges into a part of the absorbing company. Based on that, it can be concluded that with respect to merger activities, the absorbing company banks are not ‘other Parties’ from the target company Bank

IMPLEMENTATION OF PRINCIPLES IN IDENTIFYING SERVICE USERS REGARDING THE PREVENTION AND ERADICATION OF MONEY LAUNDERING OFFENSE

The implementation of principles of identifying service users and suspicious financial transaction report submission for profession aims to prevent money laundering offense by postponing transaction, blocking, investigating and temporarily suspending transaction which is carried out by PPATK (Financial Transaction Reporting and Analysis Center). The method used in this study was juridical normative or legal doctrinal research, which is a legal research using secondary data conducted by emphasizing and juridical aspects. Legal-normative research is a library research, which is a research on secondary data including private documents, books, and official documents issued by government. The normative approach emphasized juridical issues regarding the legal rules on money laundering offense. The result of the study of the implementation of the principles in identifying service users regarding the prevention and eradication of money laundering offense isidentifyingservice user while having a business relationship involving suspicious financial transaction related to money laundering offense. The informant questions the validity of information provided by the service user, which necessitate the implementation of the principle of identifying the service user in carrying out banking transaction. The factors promoting the occurrence of money laundering offense in various countries consist of 9 aspects, namely: globalization, technological advancement, banks’ strict secrecy policy, the possibility of saving using an alias or anonymous, the emergence of electronic money, the possibility of layering practice, the confidentiality of lawyer-client and accountant-client relationships, the government unseriousness in eradicating money laundering offense and the lack of money laundering criminalization.

The Mechanism for Recording and Analyzing Information about the Risks Contained in the Reports of Suspicious Transactions: Foreign Experience

The article considers the foreign experience of functioning and application of the mechanism for accounting and analysis of information about risks contained in reports on suspicious transactions for the purpose of its further application in Russian conditions. The relevance is due to the need to improve the system for recording and analyzing information about risks contained in reports on suspicious transactions transmitted to in Rosfinmonitoring. Due to the involvement of noncredit nonfinancial organizations in the process of countering the proceeds of crime, the financing of ter- rorism and the financing of the proliferation of weapons of mass destruction, the number of incoming reports to the Federal financial monitoring service is only increasing. All messages received are evaluated to determine whether they are suspicious or not. However, as the number of messages increases, the existing mechanism becomes less effective, and it needs to be updated and refined.The analysis of foreign experience was carried out on the basis of methods of theoretical and practical analysis, system analysis, comparison and classification methods. The methodology combines a review of the literature, analysis of research results of scientific specialists to comprehensively cover the goal.The study revealed that the analysis of suspicious transaction reports is used to assess the application of the Anti-Money Laundering/Combating the Financing of Terrorism regime, the level of risk awareness and compliance with risk management strategies. Under Anti-Money Laundering / Combating the Financing of Terrorism, it is useful to consider best practices to develop a mechanism for recording and analyzing risk information contained in suspicious transaction reports submitted to the Federal financial monitoring service.

The Implementation Of The Notary Careful Principle In Implementing The Position As A Public Official

The purpose of this study are: 1) To Know and Analyze the Application of the Principle of Notary Precautions in Carrying Out His Position As a Public Official. 2) To find out and analyze the legal consequences of an authentic notarial deed that does not apply the precautionary principle in carrying out his position as a public official. This research uses the Sociological Juridical Approach Method. The data used in this study are primary, secondary and tertiary data which can support the assessment, which are then analyzed using the Descriptive Analysis and Qualitative Analysis methods. Based on the results of data analysis, it can be concluded that: 1) Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 9 Of 2017 Regarding the Application of the Principle of Recognizing Service Users for Notaries, requires the Notary to be careful in recognizing Service Users and must submit suspicious Transaction Reports to the Reporting Center Financial Transaction Analysis (PPATK) to avoid Notaries as a Means in Money Laundering Activities and provide legal protection to Notaries. 2) The position of an authentic deed which is proven later as money laundering is the responsibility of the tappers because in the Material Aspect (materiele bewijskracht) The information set forth in the official deed (official report) submitted before the Notary (party deed) must be assessed correctly.

Cooperation between Financial Intelligence Units in the European Union: Stuck in the middle between the General Data Protection Regulation and the Police Data Protection Directive

Financial Intelligence Units (FIUs) hold a central position in the chain of actors responsible for the monitoring of money movements in the European Union. In support of their role, which is to receive, analyse and disseminate suspicious transaction reports, they have been furnished with significant information processing powers. At present, FIUs feature prominently in the EU’s anti-money laundering and counterterrorist financing agendas and plans to further enhance their powers of information exchange are underway. At the same time, however, the legal challenges that arise from their constant empowerment, particularly for the protection of personal data, are being overlooked. This article focuses on the cooperation between FIUs in the EU and argues that the latter takes place under a complex legal framework, which raises significant challenges for data protection. In particular, it highlights the present-day uncertainty over the data protection framework that governs their operations and discusses whether FIUs should be subject to the General Data Protection Regulation or to its law enforcement counterpart, the Police Data Protection Directive. The remaining of the article focuses on the ‘ FIU.net ’ – the decentralized network for information exchanges between EU FIUs – and on the data protection challenges that emerged from the recent integration of this network into Europol.

A causal model of the declaration intention of banks for suspected money-laundering transactions based on organizational commitment perspective

PurposeAnti-money laundering has attracted much global attention, driving banks to invest in the establishment of suspicious transaction report mechanisms for the declaration of suspicious transactions. However, very few studies discuss how to influence bank employees to proactively declare suspicious transactions. Therefore, the purpose of this study is to, based on an organizational commitment perspective, establish a causal model that can assist banks to identify key factors affecting the intention to declare suspicious transactions.Design/methodology/approachThis study first summarized five factors – regulatory focus, organization climate, situational constraints, personality traits and role stress – and their composition constructs as the basis for measurements. An interview-based survey of nine Taiwanese banks was conducted. Then, this study adopted the decision-making trial and evaluation laboratory method to analyse the interplay between the five factors to identify the causal model and to explore the differences in the effects of the key factors, arising from the different organizational and job patterns, on the intention to declare suspicious transactions.FindingsThe results show that regulatory focus and organizational climate are the most important causal factors affecting employees’ intention to declare suspicious transactions, whereas role stress and personality traits are the most influenced effect factors. In addition, this study also confirmed that under different organizational and job patterns, the understanding of employees will change.Originality/valueThis paper provides insight into the interplay between the five factors based on an organizational commitment perspective. The findings can assist banks in managing and monitoring the implementation of the suspicious transaction report mechanism.

Looking at ‘Crying Wolf’ from a Different Perspective: An Attempt at Detecting Banks Under- and Over-Reporting of Suspicious Transactions

This study aims to assess banks’ compliance in reporting suspicious transactions. It does so by estimating an econometric model on the suspicious transaction reports (STRs) filed by individual Italian banks from each of the provincial districts they operate in. Regressors include (1) indicators of banks’ operational activities, (2) measures of money laundering risk and (3) proxies of economic activity, all of which at local level. At an operational level, the model provides a tool that supervisory authorities can use to detect potentially under-reporting intermediaries, thus better targeting off-site controls and on-site inspections. More in general, the results provide some insights on banks’ reporting behavior at large. The main threat to the effectiveness of anti-money laundering systems is considered the asymmetry in the incentives: since sanctions apply only to omitted reports, banks have an incentive to over-report, thus potentially flooding the authorities with noise (‘crying wolf’ syndrome). Results show that the STR-filing strategies adopted by the banks being scrutinized may not necessarily give rise to this scenario.

Analysis of Bahrain’s anti-money laundering (AML) and combatting of terrorist financing (CTF) practices

PurposeThis paper aims to examine the level of anti-money laundering (AML) and combatting terrorist financing (CTF) practices incorporated within the legal framework of the Kingdom of Bahrain. The paper also studies the application of AML/CTF legislation in regulatory practice and implementation. Bahrain is an important state within the Middle-East region and is an integral part to the Gulf Cooperation Council (GCC). The paper analyzes Bahrain’s compliance to international AML/CTF standards and presents recommendations on remaining deficiencies.Design/methodology/approachThe paper studies the level of AML/CTF legislation enacted by the Kingdom of Bahrain by first examining the regulatory application, and then, the level of implementation. To understand the level of AML/CTF implementation, the paper uses literature on increased prosecution, penalties and reports for AML/CTF crimes in the Kingdom of Bahrain. In addition, the paper analyzes Bahrain’s compliance level to international standards of AML/CTF legislation and regulation.FindingsThe paper finds evidence of significant progress in the application of best practices of AML/CTF within the Kingdom of Bahrain. The paper also finds an increase in levels of implementation – i.e. suspicious transaction reports, investigations and prosecutions – with respect to AML/CTF violations. Additionally, the paper finds a limited number of deficiencies in Bahrain’s effort to establish strong reporting and enforcement mechanisms.Practical implicationsBahrain is an important member of the international trade network and one of the fastest growing non-oil economies in the region. The country sought to diversify the economy, with more industry- and service-intensive sectors. The level of AML/CTF implementation represents an important risk-averse approach to financial services in the country. Evidence of the country’s strengthening approach is an important factor in determining foreign investment confidence and the country’s policy on combatting terrorism financing.Originality/valueCommentators have previously recognized key deficiencies in Bahrain’s enactment and application of AML/CTF legislation. However, the analysis does not incorporate externalities arising from regulatory delay in domestic AML/CTF policy. The following paper studies the progress made by Bahrain since 2000-2001 and subsequent attempts at improving enforcement to maintain international compliance.

Global knowledge management of suspicious transaction reporting system in Japan

Purpose The purpose of this study is to make clear the structure of suspicious transaction reporting system in Japan from perspective of knowledge management. Because of the institutionalization of law, suspicious transaction reports in Japan have increased, but most of these reports are from financial institutions. Moreover, it cannot be said that the effect is used completely. It is important to increase the accuracy of the data mining method and incorporate the concept of knowledge management. Furthermore, it is desirable to use suspicious transactions from a global “knowledge management” perspective. Design/methodology/approach Based on the case of the Japanese transaction reporting system, Global knowledge management of suspicious transaction reporting system would be considered. Findings It is effective for money laundering countermeasures to deepen knowledge management of data → information → knowledge → wisdom. This brings the refinement of typology at the transaction unit to the upper level. This repetition has become more advanced and generalized knowledge. Knowledge transferred from national stage to international stage is organized as further information → knowledge → wisdom by collecting data based on that knowledge. By repeating this systematization in the process of knowledge management, global prevention measures against money laundering would be disseminated. As the result of these efforts, effective counter measures against money laundering could be sharper than before. Originality/value This is the first study about the analysis of suspicious transaction reporting system in Japan linked to the global knowledge management.