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The role of accounting in money laundering and money dirtying

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  • Compin, Frédéric

Abstract

This paper examines the processes involved in the misapplication of accounting knowledge from the angle of financial crime. It analyses the importance of accounting knowledge in the construction of money laundering operations and the development of money dirtying. It shows that contrary to a widely held idea, money laundering and money dirtying techniques are not based on the same accounting practices and deviant mechanisms. This paper explores three degrees of integrating accounting knowledge in the organization of financial crime procedures. It sums up the motivations of white-collar criminals and demonstrates that the preparation of a money laundering operation differs from the financing of terrorist activities.

Suggested Citation

  • Compin, Frédéric, 2008. "The role of accounting in money laundering and money dirtying," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(5), pages 591-602.
    • Handle: RePEc:eee:crpeac:v:19:y:2008:i:5:p:591-602
    DOI: 10.1016/j.cpa.2007.01.001
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    1. Francesca M. Calamunci, 2022. "What happens in criminal firms after godfather management removal? Judicial administration and firms’ performance," Small Business Economics, Springer, vol. 58(1), pages 565-591, January.
    2. Dillard, Jesse & Vinnari, Eija, 2017. "A case study of critique: Critical perspectives on critical accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 43(C), pages 88-109.
    3. Ethem Ilbiz & Christian Kaunert, 2022. "Sharing Economy for Tackling Crypto-Laundering: The Europol Associated ‘Global Conference on Criminal Finances and Cryptocurrencies’," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    4. Norton, Simon D., 2018. "Suspicion of money laundering reporting obligations: Auditor compliance, or sceptical failure to engage?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 50(C), pages 56-66.
    5. Ball, Kirstie & Canhoto, Ana & Daniel, Elizabeth & Dibb, Sally & Meadows, Maureen & Spiller, Keith, 2020. "Organizational tensions arising from mandatory data exchange between the private and public sector: The case of financial services," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    6. Sargiacomo, Massimo & Everett, Jeff & Ianni, Luca & D'Andreamatteo, Antonio, 2024. "Auditing for fraud and corruption: A public-interest-based definition and analysis," The British Accounting Review, Elsevier, vol. 56(2).

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