Financial Risk Management Strategies of Small to Medium Illicit Drug Enterprises

• In Event: The Varieties of Money Laundering

Abstract

Financial Risk Management Strategies of Small to Medium Illicit Drug Enterprises

Objective: This presentation examines laundering methods undertaken by low-level and mid-level operators in the illicit drug trade.
Data: It draws on in-depth qualitative interviews across six field sites in the US and the UK.
Results: It shows that although a significant proportion of the proceeds from the illicit drug trade is disposed of through ordinary cash transactions, offenders employ different laundering strategies, including reporting revenue as taxable income, using proxies to launder funds, and investing in the legitimate economy.
Implications: Ultimately, most illicit entrepreneurs engage in business strategies to diminish their criminal involvement and/or establish themselves in the legitimate economy, a finding which can be used to develop exit pathways for those involved in low- to mid-level illicit enterp

Author

• R. V. Gundur, Flinders University