The historical journey of money laundering, preceding and following Meyer Lansky, to today's transaction laundering

Abstract

This study aims to analyse money laundering, starting from the beginning of the 20th century, with a critical evaluation of a new technological approach to transaction laundering. Hence, its main objective is to answer the research question: How has the evolution of money laundering throughout history helped to meliorate a present method, transaction laundering? All laundering techniques have their peaks and downfalls; therefore, several models refrained from continually becoming adopted and meliorated with technological advancements that simplify money laundering operations. The question evolved in considering if new trends are emerging or whether the internet is simply being a facilitator. In addition to the literature review, a methodology was created, which constituted of semi-structured interviews, conducted amongst professional personnel working closely to money laundering. This assisted in obtaining in-depth information on the subject of transaction laundering. With the analysis of the results, it was determined that transaction laundering, although a new phenomenon, is not necessarily creating new emerging trends, as research was indicated that traditional forms of money laundering have become digitalised. It resulted that transaction laundering is being anonymised and untraced, hence the need for caution towards the employment of new technology. It was also concluded that there has arisen a need for continuous training amongst entities that work in reducing financial crimes. Moreover, further studies are needed to determine certain procedures taken by organisations to combat ongoing changes in transaction laundering.