Money Laundering and Terrorist Financing: Real Global Cases, Behavioural Theories and Internal Control Mechanism
Money laundering is a process to make ‘dirty money’ appear to be clean. The money laundering activities affect not only the criminal justice systems, but they also have the capacity to destabilise financial institutions and financial systems. While illustrating the five real global cases which are involved in money laundering and terrorist financing, this paper also discusses the criminal behavioural causation theories as to reasonably analyse the behavioural aspect of the perpetrators. Notably, the main cause for the recent hike in money laundering and terrorist financing offences is due to leakages in internal control. Thus, a few possible weaknesses from the internal control mechanisms are highlighted as to give a clearer picture on this issue. Finally, this paper also includes some discussions on the proposed mitigation risk mechanisms as to improve effectiveness and good governance towards the implementation of policies and regulation on money laundering and to counter the terrorist financing.
KeywordsCriminal behavioural causation theories Internal control Mitigation risk mechanism Good governance Perpetrators
We wish to thank the Accounting Research Institute, Universiti Teknologi MARA (UiTM), Malaysia, and the Ministry of Education, Malaysia, for providing the support for this project. In fact, this paper constitutes a small component of a bigger research project on the role of DNFBPs in mitigating money laundering and terrorist financing in the market place. In particular, we express our gratitude to the researchers of the AML/CFT research cluster at the Accounting Research Institute of UiTM.
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