Crime and Money: Understanding the Logic of Routine Activity Theory

Running Head: Research Report
Research Report
Crime and Money

Research Report
The theory which is discussed in the article is named as “logic of routine activity theory”.
The theory advices that the levels and the patterns of crime can be understood only in terms of
the ways in which the people behave and give chances to offend, surveillance and expected
interventions by individual. The people who repay to those who have actually financed the
crimes are themselves involved in the money laundering offence. It is unfortunate that the
analysis of the effect on investing resources on floor and then of anti money laundering
processes on crime levels has actually established very less notice both empirically and
theoretically. According to Halliday in 2014, he founded that there is very less proof collected
about such type of effects.
There are some methods of disguising and laundering crime proceeds used. They are: export
of currency, disguise of ownership, false justification (loan back, payroll, speculation and book
keeping), untraceable.
Export of Currency: Importing and exporting of the transactions is a cliché amalgamation
technique used in disguising the money laundering particularly for moving illegal funds in
between the countries. The launder sets up the import firm in the foreign country and also export
firm in the home country. The export firm exports the goods in the foreign nation import firm.
The import firm sends illegal funds for paying for the goods.
Disguise of Ownership: In this method, the actual owners or criminals disguise the real
ownership and then control the proceeds of the conduct in terms of crime by making the
proceeds to have come from legitimate source.
False Justification:
 Loan Back: It is money laundering ignoring scheme in which the money is deposited in
the foreign bank and then again borrowed back by shell firm which is controlled by
holder of the bank account.
 Payroll: Payroll agents could easily feel vulnerable to money laundering in few ways.
People who claim that they are the employer and employees both. Creation of ghost
employees etc.
 Book Keeping: Book keeping sometimes can make the illegal money laundering look
legitimate on papers. Accountants and book keepers can unknowingly be used as the