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Updated: Dec 3, 2025

Visualizing Hyporheic Flow Through Bedforms Using Dye Experiments and Simulation
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Estimating money laundering flows with a gravity model-based simulation.

Joras Ferwerda1, Alexander van Saase2, Brigitte Unger2

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Summary
This summary is machine-generated.

This study empirically analyzes money laundering flows, identifying country preferences of criminals. It distinguishes between domestic proceeds, foreign investments, and transit money, enabling tailored enforcement strategies.

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Area of Science:

  • Economics
  • Criminology
  • Financial Crime

Background:

  • Understanding money laundering flows is crucial for effective enforcement strategies.
  • Different laundering typologies (local, foreign investment, transit) require distinct policy approaches.
  • Previous estimates relied on assumptions; empirical data is needed to understand launderer preferences.

Purpose of the Study:

  • To empirically determine country preferences of money launderers.
  • To simulate global money laundering flows.
  • To differentiate between domestic, foreign, and transit money laundering for policy insights.

Main Methods:

  • Utilized a unique dataset of suspicious money laundering transactions from the Dutch Institute for Criminal and Unexplained Wealth (iCOV).
  • Employed an econometric gravity model to test assumptions about country characteristics influencing launderer decisions.
  • Developed an iterative simulation model to estimate global money laundering flows.

Main Results:

  • Empirically identified key country characteristics influencing money launderer decisions.
  • Provided the first estimates differentiating between domestic crime proceeds laundering, international dirty money investment, and transit money flows.
  • Quantified the distinct patterns of global money laundering.

Conclusions:

  • Empirical evidence refines our understanding of money laundering dynamics.
  • Distinguishing between laundering types is essential for targeted and effective anti-money laundering policies.
  • The findings support the development of more nuanced and effective global enforcement strategies.