The latest trends in money laundering techniques and how law enforcement agencies can stay ahead of the curve

Abstract

Money laundering masks the illicit origins of funds, allowing offenders to present 'dirty' money as genuine and usable, obscuring its connection to criminal deeds.1 It is a well-known process typically involving three stages - placement, layering, and integration. Given the familiarity with money laundering techniques, this dissertation will not provide an in-depth definition but will focus on evaluating the latest trends and legislative responses. Money laundering methods are constantly evolving, especially with recent technological innovations in financial services.2 This evolution enables criminals to circumvent anti-money laundering (AML) systems. Consequently, law enforcement agencies need help to detect money laundering and identify appropriate policy responses. There is concern that current AML legislation needs to be updated and able to address new techniques.3 Therefore, research is required to analyse gaps in existing policies and propose reforms to enhance the efficacy of AML regimes.