Money Laundering Crime — A Study in the Legal Structure, Responsibility of Legal Entities, and International Combating Mechanisms

Abstract

Money laundering is considered one of the most dangerous economic crimes in the digital age, due to its negative impacts that extend to various sectors of the state and society, and even transcend national borders to threaten economic and security stability at the international level. This study aims to analyze the legal framework of money laundering by reviewing its physical and moral elements, and explaining its stages, as well as its traditional and modern methods, while focusing on the resulting economic, social, and political effects. The study also addresses one of the most significant developments in this field: the recognition of criminal liability of legal persons, particularly financial and banking institutions that may become involved in such operations. This is achieved by identifying the justifications for establishing such liability, its scope, conditions, and the prescribed penalties, whether financial sanctions such as fines and confiscation, or preventive measures such as closure and prohibition from practicing the activity. Finally, the study reviews international efforts to combat this crime, most notably the Vienna Convention of 1988, relevant European and Arab conventions, while identifying the main obstacles that still hinder effective combating, primarily banking secrecy, weak supervisory bodies, and slow international cooperation. The study concludes that combating money laundering requires advanced national legislation, subjecting all financial institutions to strict regulatory obligations, serious activation of international cooperation, along with educational and preventive policies to reduce the predicate offenses that generate such illicit funds.