Possible Money Laundering Methods of Organised Crime in the European Union

Absztrakt

Introduction: Organised crime, as a form of group criminal activity, poses a significant threat to both individual states and European Union society as a whole. There is an internationally accepted legal definition of organised crime and organised criminal groups, but there are countless concepts in the criminological literature. The common element of these concepts is the pursuit of maximum profit through criminal activity. The large amounts of material goods acquired in this way must be laundered by these organisations to give the appearance of legality. Therefore, effective action against organised crime is based on the effective tracing and confiscation of the illegally acquired assets of criminal organisations, for which knowledge of money laundering techniques is essential.

Aims: The purpose of this article is to review and present the most common money laundering techniques used by organised crime, based on international and domestic (Hungarian) scientific literature and official Europol publications.

Method: The research is based on the above-mentioned authoritative literature and Europol reports.

Results: According to both academic literature and Europol, organised crime groups use both older, tried-and-tested methods (operating underground banking systems, smuggling cash to offshore countries, money mules, front men) and relatively newer money laundering techniques, such as exploiting the opportunities offered by the online space and cryptocurrencies) and seek to exploit weaknesses in the underlying legislation, the internal compliance rules of the banking system, and the lack of vigilance on the part of the authorities responsible for filtering money laundering. This article also examines the legal and organisational possibilities for effective action in the future.

Conclusions: The study points out that criminals seek to exploit weaknesses in financial systems by using money mules, shell companies, and straw men, but it also highlights opportunities for effective action: internationally coordinated action (e.g. European Money Mule Action) and the use of artificial intelligence-based software in the financial sector.