Leveraging AML Procedures To Combat Illicit Trafficking In Narcotic Drugs

Criminals need to convert their revenue from drug trafficking into legal money. For this reason, they engage in money laundering activities. Drug traffickers often use the placement, layering, and integration processes to money laundering. Businesses should take advantage of money laundering policies and procedures in combating drug trafficking. Drug trafficking is a major crime, and anyone who washes or abuses money in this trafficking is criminal.


Abstract


This Article was written by Ehi Eric Esoimeme, Consultant to Anti-Money Laundering. The paper aims to examine the different methods that drug dealers employ to launder their illicit funds and the strategies that countries can adopt to combat the laundering of the Proceeds of Illicit Trafficking in Narcotic Drugs.



Design/Methodology/Approach 


This paper uses selected drug trafficking case studies, i.e., R v. Adam Maybury and Caroline Wakefield; R v. Daniel Harris; and R v. Nicholas Strange and Neil Strange to help build awareness with the regulatory, enforcement and customs authorities as well as reporting entities about the risks and vulnerabilities of money laundering, and how to mitigate them. This is the only Article to adopt this kind of approach.


Findings


This paper determined that with a host of measures, including enhanced cooperation among law enforcement, financial institutions, and judiciary; the adoption of legislation that criminalizes the laundering of the proceeds of all serious crimes; establishing a financial intelligence unit; repealing bank secrecy laws; and establishing effective anti-money laundering programs in banks, i.e., customer due diligence, enhanced customer due diligence, recordkeeping, account monitoring, suspicious activity reporting and training for officers and employees, countries can reduce the risks associated with the laundering of the Proceeds of Illicit Trafficking to the barest minimum.


Originality/Value


This paper examined the different methods that drug dealers usually adopt to launder their illicit funds through selected drug trafficking case studies i.e., R v. Adam Maybury and Caroline Wakefield; R v. Daniel Harris; and R v. Nicholas Strange and Neil Strange and expounded on the ten strategies listed by William R. Schroeder to combat money laundering using the United Kingdom as a case study. This is the only Article to adopt this kind of approach.



Keywords


Drug Trafficking, Money Laundering, Financial Intelligence Unit, Bank Secrecy Laws, Suspicious Transaction Reporting, Customer Due Diligence, Record Keeping.



You can read the full article here: Leveraging Anti-Money Laundering Policies And Procedures To Combat Illicit Trafficking In Narcotic Drugs



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