A Dearth of Known Knowns? Empirical Research into Money Laundering Methodology: A Systematic Literature Review

• In Event: WG Organized Crime and Criminal Networks Panel 1. Methods for studying organized crime

Abstract

Purpose: The present article provides a comprehensive summary of the existing empirical research into money launderers’ modi operandi and considers its policy implications, most notably regarding the legitimacy of today’s anti-money laundering regimes.

Design/Methodology/Approach: A Systematic Literature Review was performed via databases KrimDok, KrimLit, Web of Science, and Google Scholar. After the initial search had yielded n=3.465 results, we selected n=22 studies for data extraction and synthesis pursuant to predefined inclusion and exclusion criteria as well as a bespoke hierarchy of evidence.

Findings: The article paints a kaleidoscopic – convoluted, sometimes even contradictory – picture of money laundering methodology, thus indicating significant differences in the sophistication and geographical scope of delinquents’ modi operandi. Nonetheless, virtually all studies included in the final sample agree that money launderers frequently use figureheads, invest in assets which may be repurposed for other criminal activities, and misuse the financial sector.

Originality/Value: The article’s findings are rendered more palatable through the formulation of two Weberian ideal-types: the blue-collar and the white-collar money launderer. In light of the four categories of risk typified by Donald Rumsfeld and Slavoj Žižek, we moreover question the popular narrative regarding a “dearth” of empirical research into money laundering methodology.

Authors

• Timo Hauler, Universität Leipzig

• Katrin Höffler, University of Leipzig