Money dirtying and money laundering of high-level corruption: transnational financial flows and satellite jurisdictions

• In Event: Money laundering from a variety of criminal markets: the role of offenders and of intermediaries

Abstract

The paper examines the money flows related to different types of high-level corruption through a qualitative analysis of more than 60 case studies. The paper investigates the most frequent schemes and modi operandi employed to transfer bribes and corruption payments (i.e. money dirtying) and subsequently clean corruption proceeds (i.e. money laundering), and also the role of intermediaries in these schemes. Also, the study identifies the key satellite countries that serve as conduits for facilitating and concealing corruption-related financial flows. In particular, it explores their geographical distribution, the role in corruption schemes, and their demographic, social, economic and financial characteristics. The paper suggests the existence of a global market of corruption, where countries commonly identified as highly corrupt often serve as the source of corruption funds, while other developed countries – despite ranking well in Transparency International scores – play a key role as conduits in corruption related flows. The paper is based on the preliminary research carried out as part of the EU co-funded project FALCON, "Fighting Corruption & Organised Crime".

Authors

• Giorgia Cascone, Transcrime - Università Cattolica del Sacro Cuore

• Giovanni Nicolazzo, Transcrime - Università Cattolica del Sacro Cuore

• Caterina Paternoster, Università Bocconi

• Michele Riccardi, Transcrime - Università Cattolica del Sacro Cuore