Financial risk management strategies of small to medium illicit drug enterprises: considering low-level money laundering

• DOI: 10.1007/s12117-023-09501-5
• Publication Date: 2023-09-19T02:01:49Z
• Authors: Mark Berry; Mike Salinas; R. V. Gundur
• Keywords: Money Laundering; Taxable income; Illicit drug; Investment; Drug Trafficking

Abstract The illicit drug trade generates billions of dollars in revenue per year, much which comes from wholesale and retail sales late the supply chain. Yet, methods retailers low-level wholesalers use to launder this remain poorly understood. Using in-depth interviews with entrepreneurs United States Kingdom, article analyses laundering strategies among such market actors. Our findings indicate that a significant proportion their proceeds are disposed through relatively small-scale ‘everyday’ cash transactions (< $1,000) effectively untraceable. For those generating more substantial revenues, variety accessible uncomplicated employed, as reporting revenues taxable income, using proxies funds, investment capital within legal enterprise. Ultimately, we identify uncomplicated, yet largely effective, criminal amongst our sample low- medium-level sellers. Though sums at an individual level trivial, ‘mass minor offences’ nature likely accounts for share laundered Western consumer markets.