Behind the criminal economy: using UK tax fraud investigations to understand money laundering myths and models

• In Event: The variety of money laundering: empirical research and criminological perspectives (EUROC)

Abstract

We present an in-depth exploratory analysis of untapped data from the UK’s tax enforcement agency. We examine a sample of money laundering investigations (n = 31) over a three-year period, together involving 52 suspects. Against these cases, we test the applicability of the most widely used international model of money laundering: the three-stage model of placement, layering and integration (FATF, 2019). We also examine who was responsible for the offences and which laundering methods they used. Overall, the results undermine the utility and validity of the ubiquitous three-stage model and point the way towards fruitful future research in looking at cash courier recruitment and the cost-benefit decisions behind choosing between different money laundering methods. This study has relevance for academics, law enforcement, policy-makers and industry professionals alike. Although this research was undertaken (with permission) whilst the first author worked at HMRC, the research was independent and all views are the author's own and do not represent those of HMRC.

Authors

• Rian Matanky-Becker, HM Revenue and Customs

• Ella Cockbain, UCL