Customer Reviews

Dirty Dealing: The Untold Truth About Global Money Laundering and International Crime

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The subtitle of this book promises the "untold story" of dirty international financial dealings. That's not quite what it delivers, because the book compiles already-published accounts, public reports and Congressional testimony, and adds to them. Given that money laundering involves drug dealers, terrorists and slavers, the book has some titillating asides about sex, violence and filthy money. Author Peter Lilley explains precisely how money laundering works, including an introduction to the practices and techniques that have proven most successful. While praising the author's reportorial depth, we note one dilemma that emerges from such thoroughness: we hope this book doesn't fall into the hands of someone who wishes to take up money laundering but is unsure how to proceed. Business people who want to avoid being victimized should take particular note of the chapter discussing well-known checks-and-balances, controls and best practices.

The fully revised and updated third edition of Dirty Dealing: The Untold Truth About Global Money Laundering, International Crime And Terrorism by global crime expert Peter Lilly is an informed and informative study of international corruption and crime as resulting in over two trillion US dollars being siphoned for illegal purposes every year. Introducing readers to a methodical and documented account based upon expertly researched information and analysis, Dirty Dealing provides a progressive basis for comprehending the global funding of international terrorism, major national and international organized criminal groups, the impact of the internet and "cyber laundering", and international anti-money laundering strategies for all types of corporate and multinational businesses. A seminal work of considerable scholarship and insight, Dirty Dealing is very strongly recommended reading for students of economics, criminology, and global terrorism.

Money laundering is the engine behind the ever expanding scourge of global organised crime. After reading this book one has an appreciation of the magnitude of the problem and a basic understanding of the mechanics behind laundering. Money laundering is conceptually fairly simple. As Lilley confirms there have been developed no truly new vehicles for money laundering since the early days when criminals washed their proceeds by mingling them with clean money from businesses with high cash turnovers such as launderettes. The internalisation of the business environment, the proliferation of sophisticated financial instruments, the speed of new technology (fax, the internet), and the removal of (intra-EU) border controls are factors that contribute to the widening repertoire of launderers, going beyond banks to include the global world of business. Despite this surface complexity it appears that schemes remain variations on a few basic old themes. These methods encompass surprisingly simple mechanisms as hard cash deliveries and invoices for fictitious consultancy services to complex multi-jurisdictional offshore structures. Anonimity (of false identity) is the pivotal element in all. Complicity of high-level officials and decision-makers and lax oversight procedures from financial institutions help tremendously in lowering the transaction costs for criminals (and increasing them for law enforcement). Reining in money laundering is - given the geographical scope of the dealings, the seamless meshing with the legal economy, the superficial diversity of schemes, and the enormous volumes of cash involved - a significant challenge. It relies to a large extent on a "soft" approach, sensitising banks, businesses and their employees to take personal responsibility in reporting suspicious transactions. Opportunism and greed make this very hard to do.

Lilley's book reads like a kind of consultancy report, suitable for quick access to the facts (insofar as known) but it is not a great literary treasure. Sometimes it looks more like a dressed-up powerpoint presentation, with lists of bullet points to summarise key facts. There's a fair amount of repetition as well. I guess the book could be quite easily condensed to two thirds of its present volume. Surprisingly, Lilley discusses some of the better known laundering setups - such as the black market peso exchange system, or the Bank of New York case - very summarily. A book such as Nick Kochan's The Washing Machine does a better job here.

Common to much of the laundering literature is the paradoxical feeling that, although laundering is conceptually simple (despite the occasional technical complexity), it remains hard to grasp exactly how the washing ties into the criminals' business models. For example, why exactly are "International Business Corporations" the key laundering vehicles for drug traffickers? What other instruments to they use? What other criminal entrepreneurs make use of IBCs? A simple typology of laundering mechanisms - derived from a few basic operational principles and linked into logic of various type(s) of illicit business - could be of great help here. Maybe the authors are hard to fault as the details of these setups are probably not even known or privy to criminal investigators. The suggestion to draw up a clear typology may also run counter to Lilley's assertion that "laundering is just as likely to be a self-perpetuating cycle or continuum as opposed to a clearly definable process with a discernible beginning and conclusion." Despite this assertion it seems still a good idea to systematise the book's ideas in a few clear conceptual frameworks.

Lilley's book is useful as a broad, general survey of laundering (and terrorist financing, which is of a different nature), but one will have to read further afield to get a better understanding for how laundering and trafficking mesh in creating viable, criminal business models. I'd give the book 3,5 stars.

Dirty Dealing reads more like a 2-day introductory seminar on money laundering. It covers the basics. I was looking for more detailed information regarding the machinations of multi-jurisdictional offshore structures related specifically to viaticals. Didn't find that here.