Accounting Research Institute - Higher Institutions' Centre of Excellence (HICoE)
Wednesday, October 10, 2012
Research Topics Related to Money Laundering
Research interest in the area of Money Laundering is a fairly new phenomenon. Though money laundering activities have started many years ago, research in this kind of financial crime is very limited. Money laundering is the process or activity undertaken by money launderers (or fraudsters) to conceal the sources of "dirty money" that are obtained from illicit means. Just like the concept of a laundery machine that is used to clean dirty linens, the dirty money (which is illegal)is put through various mechanisms so as to the ligitimise its existence. Once ligitimized, the "clean money" can be used as normal instrument for business transactions. In Malaysia, money laundering crimes involved those classified as predicate offences under the Anti-Money Laundering and Counter Financing of Terrorism Act 2001 (AMLATFA 2001). Among the predicate offences include: illegal gambling, illegal deposit taking, sale of illegal drug, criminal breach of trust, fraud, drug trafficking, embezzlement, racketeering, tax evasion and human traficking. For research purposes, there remains a gap in the following areas:
(1) Developing AML/CFT Training & Competency Framework for AML-CFT Investigators
(2) AML-CFT Fraud Risk Indicators
(3) Training & Competency Framework for AML-CFT Professionals
(4) Cost of AML-CFT Compliance
(5) Assessing Cost of AML-CFT Fraud
(6) Cost Effectiveness Model for CFT Regime
(7) AML-CFT in Non Profit Organizations
(8) Tax Evasion
(9) AML-CFT Awareness Among Designated Non Financial Business & Professionals (DNFBP)
Upcoming entries will discuss each of the above proposed research topics