Date of Conferral

2023

Degree

Ph.D.

School

Management

Advisor

Maja Zelihic

Abstract

The Covid-19 pandemic has increased concerns over money laundering and terrorist financing and their impacts on societies and the world’s finance and economic systems. Some financial institutions are failing to detect and track new emerging financial crime threats. The purpose of this qualitative descriptive case study was to identify predicate offense typologies that U.S. banking and financial services company compliance managers use to reduce the risks of money laundering and terrorist financing. To understand the concepts of predicate offense and financial crime risks, Gary Becker’s economic theory of criminal behavior was the conceptual framework that grounded this study. The population was comprised of 15 compliance managers and anti-money laundering investigators. Data sources included semistructured interviews, semistructured observations, and document reviews from business and finance academic journals. Coding, thematic analysis, and content analysis revealed eight main themes as predicate offense typologies: structuring, fraud, cybercrime, human trafficking, illicit arms trafficking, illicit drug trafficking, real estate money laundering, and trade-based money laundering. Four subthemes were identified: red flags, key indicators, typology-specific common signs, and 95% or above. The insights drawn from this study may contribute to efforts by compliance managers to increase transparency and close gaps in the anti-money laundering and counter terrorist financing compliance framework, which could enhance business practice. Implications for positive social change include a reduced risk of bank failures, increased employment opportunities, and promotion of public awareness about financial crimes.

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