Understanding and Preventing Money Laundering

Internal Auditing, 19(5): 22-25, September-October 2004

12 Pages Posted: 21 Feb 2008 Last revised: 6 May 2014

See all articles by Elizabeth V. Mulig

Elizabeth V. Mulig

University of Dallas

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Date Written: 2004

Abstract

The abilities and skills of internal auditors suit them well for the war against money laundering. Forensic accounting skills, as well as audit expertise, are needed to help in combating this crime. The development of internal policies, procedures, and controls to prevent money laundering fits within the accountant's abilities and expertise. Money laundering can be defined as a process in which illegally obtained money (e.g. from drug trafficking, terrorist activity or other serious crimes) is given an appearance of having originated from a legitimate source. Although the basic goals of money laundering are no different today than from decades ago, money laundering is now taking place in a high-tech global environment. This article provides background and recent developments in efforts to combat money laundering.

Keywords: money laundering, forensic accounting, corporate governance

JEL Classification: M40

Suggested Citation

Mulig, Elizabeth V. and Smith, Murphy, Understanding and Preventing Money Laundering (2004). Internal Auditing, 19(5): 22-25, September-October 2004. Available at SSRN: https://ssrn.com/abstract=1091011

Elizabeth V. Mulig

University of Dallas ( email )

1845 E. Northgate Dr.
Irving, TX 75026
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

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