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Conclusion

Corruption is recognised as a serious global issue. It has significant effects on economic development, political stability and transnational crime. Similarly, the bribery of foreign officials (a form of corruption) is considered a widespread phenomenon in international business transactions, including trade and investment. Corruption and bribery have been included in the FATF designated categories of offences for money laundering (22).

The professional status of PEPs enhances the legitimacy of transactions and financial activity, and correspondingly reduces the risk of such activity raising suspicion. PEPs can use their positions of influence to protect themselves and criminal associates from investigation.

International experience shows that corrupt PEPs employ similar methods to launder the proceeds of corruption to those used by other criminal money launderers. The methods outlined in this paper demonstrate how the proceeds of corruption are laundered. Knowledge of money laundering methods and associated indicators may help reporting entities to detect and mitigate attempts to launder the proceeds of corruption.


Footnotes

  1. See fn. 3, p. 112.
Last modified: 08/07/2015 11:15