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Facilitation of money laundering by Dutch SMEs

Nijenhuis, D. (2017) Facilitation of money laundering by Dutch SMEs.

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Abstract:This thesis examines the determinants of seemingly legitimate SMEs and their managers, that facilitate career criminals by laundering their money. This facilitation is approached from corporate governance, financial constraint and behavioral economics perspectives. The data includes restricted police data on board members’ criminal history. A matched and non-matched sample is used. Results indicate that facilitation is positively related to the following constructs: the legal form PLLC, leverage, board members’ age category 26-35, being female and extensive criminal history. The criminal history, however, is characterized by less severe crimes. Facilitation is negatively related to board size and a firm’s liquidity. Additionally, results indicate that facilitating firms have a greater tendency to not comply with their obligation to publish financial statements at the chamber of commerce. Facilitating board members typically launder for one career criminal. Facilitators and career criminals typically have had previous legal dealings prior to the facilitation, are the spouses of career criminals or are their family members. Females tend to especially launder for their spouses. Underlying crimes are in most of the cases narcotics related crimes and fraud. Common laundering methods are fictitious labor contracts (cost laundering) and the use of company bank accounts (balance sheet laundering).
Item Type:Essay (Master)
Clients:
Dutch Police
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:70 social sciences in general, 83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/73339
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