NCJ Number
232679
Date Published
October 2010
Length
6 pages
Annotation
This paper examines the ways in which covert movements of currency and bearer negotiable instruments are currently being conducted in transactions that involve the proceeds of crime.
Abstract
In an effort to counter the laundering of criminal proceeds through legitimate financial institutions, financial institutions and other designated businesses in most countries are required to report certain financial transactions to government regulators. In order to avoid having transactions with criminal proceeds detected under these laws, many criminals may retain the proceeds of their crimes in cash or use bearer negotiable instruments as money laundering instruments. Although not a new technique, the illegal movement of cash and bearer negotiable instruments across borders is likely to continue, using new strategies to avoid regulatory controls. Cash can be taken to countries with weaker financial regulatory regimes, where it is easier to place money in the financial system without generating a record. Criminals can take cash abroad in order to pay for illicit services. Others might legitimately carry cash when visiting or traveling out of countries with cash-based economies. Bearer negotiable instruments (BNIs) are non-cash monetary instruments that may contain the instruction "pay to the bearer." Regulatory measures have been adopted in Australia to make large cash transfers and BNIs across international borders illegal. This, however, requires detection methods sufficient to counter the many ways in which criminals attempt to smuggle cash and BNIs across borders. Increased detection and enforcement auction, coupled with intensive data collection and analysis, are the most effective ways to address these means of laundering criminal proceeds. 1 table, 2 figures, and 18 references