A Critical Realist Inquiry into the Nature and Conditions of Anti-Money Laundering Violations in Banking and Investment Sectors

• In Event: Euroc: Crimes and regulation in the financial and cryptocurrency markets

Abstract

Over the past few decades, global efforts to prevent money laundering have centred on compelling various professional sectors to self-regulate their activities. This includes the financial sector, where banks are often seen as critical gatekeepers, responsible for preventing illicit funds from entering into the legitimate economy. However, despite the expansion of anti-money laundering controls within regulated firms, non-compliance incidents have persisted. While existing research predominantly focuses on the banking sector, little attention is paid to anti-money laundering efforts within the investment sphere. This paper, by focusing on banking and investment sectors, attempts to understand how these violations manifest across two different areas of the financial services industry within the UK. Using a critical realist methodology, the paper explores the conditions under which such violations occur by analysing a series of enforcement cases, drawn from open-source media and enforcement notices, involving individual and organisational actors. The paper contributes to criminological discourse by providing insights into how the organisational structures, cultures, and human capacities present in these cases interact to enable or hinder adherence to anti-money laundering laws.

Author

• Korry Robert, University of Manchester