Reexamining the 'Placement-Layering-Integration' Model of Money Laundering

Paul Gilmour*, Brian Omondi, Hatice Feyza Alkaç., Bing Han, Abigail Carre, Dina Kapardis, Ceri Halfpenny

*Corresponding author for this work

Research output: Book/ReportCommissioned report

Abstract

This report explores the traditional framework of money laundering, known as the ‘Placement–Layering–Integration’ (P-L-I) model, to reassess its relevance and efficacy in the context of modern financial systems and emerging technologies. Through an in-depth analysis of recent academic literature, case studies, and international guidelines, this study critically evaluates how the conventional stages of money laundering have evolved or may be bypassed in today’s digital and global financial environment. This report identifies the model’s current limitations, adaptability, and need for a revised framework that addresses contemporary challenges in money-laundering schemes facilitated by technological advancements, such as cryptocurrencies, online-banking platforms, and digital wallets.

Key questions this report intends to address include:

• How do modern financial technologies challenge the traditional phases of the money laundering process?
• In what ways can the current ‘Placement–Layering–Integration’ model be updated or supplemented to effectively combat money laundering in the digital age?
• What role do emerging technologies play in both facilitating and preventing money laundering, and how can regulatory bodies adapt?
• Are there identifiable patterns or new methodologies in money laundering that bypass traditional detection frameworks, and how can these be integrated into existing models?

The report advocates for a two-pronged approach that updates and broadens the understanding of money laundering and moves beyond the limits of the outdated P-L-I model. First and foremost, money laundering should simply be viewed as any activity that generates benefit from any criminal conduct. Second, money laundering involves the transfer of value: it does not matter whether this value is represented as cash, indirect monetary gain, or through intangible assets. Through adopting this new approach, law enforcement officials, policy makers and other professionals will better appreciate the variety of money-laundering methods and the context in which money launderers operate towards strengthening international anti-money laundering efforts.
Original languageEnglish
PublisherThe Institute of Money Laundering Prevention Officers
Commissioning bodyThe Institute of Money Laundering Prevention Officers
Number of pages27
Publication statusPublished - 10 Sept 2024

Fingerprint

Dive into the research topics of 'Reexamining the 'Placement-Layering-Integration' Model of Money Laundering'. Together they form a unique fingerprint.

Cite this