Alternative Money Laundering Methods

Money Laundering under the Shadow of Informal Transfer System

Abstract

Due to technological and IT developments around the world, we are witnessing a kind of economic and financial paradigm shift, which results that a large part of the financial accounts are moving towards a new trend where cash does not dominate, but electronic accounts and similar cash-saving payment methods are becoming more and more common. In addition, it can be observed that part of the world’s population, in the absence of appropriate financial institutions and infrastructure, still carries out financial transactions based on traditions, using informal value transfer systems. Although, these alternative solutions are not essentially designed for money laundering, offenders nevertheless prefer to use it, by virtue of their anonymity, speed and safety, to legalise “dirty” money. This study seeks to demonstrate that, among the alternative methods of money laundering, informal value transfer systems, by their very nature, possess and meet the specific requirements of those who wish to launder illegal money, and that their role is thus gradually being appreciated at the threshold of the new millennium.