Estimating the destination of Mexican-based laundered funds: an application of the modified Walker-Unger model. Issue 1 (20th August 2021)

• Record Type: Journal Article
• Authors: Roman, Juan; Machuca, Ana; Schaefer, Thomas
• Is Part Of: Journal of money laundering control. Volume 25:Issue 1(2022)
• Page Start: 224
• Page End: 248
• Publication Date: 2021-08-20
• Subjects: Mexico -- Money laundering -- Illicit finance -- Walker-Unger model; Money laundering -- Periodicals; Money laundering investigation -- Periodicals; 364.168
• DOI: 10.1108/JMLC-01-2021-0008
• Languages: English
• ISSNs: 1368-5201

Abstract

Abstract : Purpose: This study aims to apply the modified Walker-Unger model to show the degree of attractiveness of a country for Mexican-based money launderers to send their illicit funds for the 2000–2015 time period. Design/methodology/approach: The modified Walker-Unger model is used to conduct the analysis, as it combines several independent variables related to an illicit financial activity. These allow the researcher to investigate the attractiveness of a market to money launderers and the possible economic effects of money laundering. In total, 13 categories of indicators were used, namely, gross national product per capita; banking secrecy; government attitude; society for worldwide interbank financial telecommunication membership; financial deposits; conflict; corruption; Egmont group membership; language; trade; culture, colonial background; and physical distance. Findings: Model results suggest the preferred destinations for Mexican-based money launderers from 2000 to 2015 were Bermuda (i.e. from 2000–2004), Canada (i.e. in 2005 and 2006) and Monaco (i.e. from 2007–2015). Research limitations/implications: Timing and availability of reliable data after 2015. Practical implications: Aids in continuing to empirically validate the Walker-Unger model. There is little literature on models that quantify money laundering activity. Social implications: May aid policymakers in targeting anti-money laundering policy to more relevant countries. Originality/value: The first empirical investigation that looks to quantify money launderer activity in Mexico. Contributes to the limited literature of quantitative investigations on money laundering.