van Koningsveld, Jan --- "Money laundering – ‘You don’t see it, until you understand it’: rethinking the stages of the money laundering process to make enforcement more effective" [2013] ELECD 936; in Unger, Brigitte; van der Linde, Daan (eds), "Research Handbook on Money Laundering" (Edward Elgar Publishing, 2013) 435

Book Title: Research Handbook on Money Laundering

Editor(s): Unger, Brigitte; van der Linde, Daan

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9780857933997

Section: Chapter 31

Section Title: Money laundering – ‘You don’t see it, until you understand it’: rethinking the stages of the money laundering process to make enforcement more effective

Author(s): van Koningsveld, Jan

Number of pages: 17

Abstract/Description:

Money laundering is considered to be a serious threat to the financial system, both at a national and an international level. On a regular basis, media coverage directs its attention at fraud cases in which money laundering plays a major role. Given the relevance and seriousness of the problem, it is not surprising that policy makers have made quite some effort to tackle money laundering. However, several publications highlight that the approach to combating money laundering has numerous shortcomings and does not appear to be truly effective. The main reasons are a combination of a lack of (a) sufficient knowledge and skills, and (b) the capacity of law enforcement officers regarding the techniques and methods of money laundering (Algemene Rekenkamer 2008, p. 20).In my opinion, the classic idea of money laundering as a three-phase process is not only incorrect and incomplete, but also antiquated (see Figure 31.1). My criticism does not concern the first two stages, but the third. I am of the opinion that this final stage should be subdivided into two separate parts, being justification and finally investment (integration), in order to avoid serious mistakes in legislation and investigation.