Traditional and electronic methods used in committing the crime of money laundering: An analytical study

Abstract

The money laundering crime takes place through three stages, namely placement, camouflage, and integration, during which the perpetrators use traditional and well-known means such as loans, setting up fictitious companies, life insurance, etc. In the face of the response of law enforcement authorities to these well-known methods, money laundering criminals have exploited the technological development in the field of telecommunications, information technology, and Internet networks. They also took advantage of the information revolution in money laundering operations and the returns from these operations or from their criminal activities. As this development opened new horizons them to expand their criminal activities and operations, money launders were able to circulate their illegal funds and mask their sources easily and very quickly. Thus, the money laundering crime evolved from the traditional methods to the electronic and virtual world using technical means, websites, electronic programs, and smart applications that contributed to the development of banking operations and the conduct of financial transactions through them. So, they had the opportunity to launder their illegal money through electronic money, virtual banks, electronic money transfer, internet clubs, and smart cards, in which case these means were used via internet networks and websites.