Accounting and Money Laundering

This study sheds light on some aspects of money laundering and the role of accounting by examining how does money laundering persist and continue to increase or go undetected for extended periods of time given the institutional settings of increasing regulation, increasing monitoring and control systems at financial institutions, and increasing attention by accounting professionals. The study consists of three individual papers all connected to the common theme of accounting and money laundering. This area of research is important for several reasons. First, the problem of money laundering is a global problem, it occurs in both developed and developing countries, and in some cases, money is moved across borders to be laundered. The propagation of money laundering facilities furthers criminal activity. One of the aims of this research program is to help shed light on the mechanisms and practices used to facilitate money laundering, with a focus on accounting techniques. Second, the research seeks to understand what happens within financial institutions, and how their systems and processes, given the tight controls, allow money to be laundered. Third, does anti-money-laundering regulation deter money laundering activity? This research agenda has implications beyond the research community. By understanding how money laundering strategies work, how accounting is implicated, and the impact of regulators and regulation, the research can be used to help prevent and detect money being launderedwhich can then lead to a reduction in the crimes that generate the proceeds to be laundered.