Recent trends in money laundering

Abstract

This paper illustrates how criminals currently launder money in Germany, Liechtenstein, and Switzerland. Semi-structured expert interviews were conducted with 50 money launderers and 50 compliance and prevention experts, whose responses were subjected to qualitative content analysis. Based on the findings therefrom, a quantitative survey of 200 compliance officers was conducted. Together, these two methods revealed the concrete techniques currently used to launder money in Europe. Contrary to popular belief, money laundering is found not to be associated with high costs, and can even generate significant profits. As the findings of the qualitative study are based on semi-standardised interviews, they are limited to the 100 participants’ perspectives. By identifying concrete methods of money laundering, this study’s findings provide compliance officers, law enforcement agencies, and legislators with valuable insights into how criminals act. Whereas prior literature primarily focuses on organisations and mechanisms aimed at fighting money laundering, this article instead describes how criminals avoid detection by analysing the perspectives of prevention experts and the criminals themselves. Acting on this information should enhance the effectiveness of combating and preventing money laundering.