Cyber-Laundering and Its Impacts on Auditors: A Conceptual Paper

Abstract

This concept paper explores how cyber-laundering affects auditors and the difficulties they encounter in identifying and preventing this emerging form of financial crime. Cyber-laundering is the act of utilizing digital currencies and online platforms to facilitate money laundering activities, which complicates the tracking of illegal financial transactions by auditors. The study emphasizes that cyber-laundering attracts money launderers due to the anonymity, lack of face-to-face interaction, as well as rapid transaction speed. It also discusses the placement, layering, and integration process of cyber-laundering, which makes it harder for auditors to detect and prevent fraud. Risks associated with cyber-laundering, including reputation, regulatory, and geographical are also identified. The literature review part analyzes the impact on auditors, various elements of cyber-laundering, and the process involved. The study highlights a research gap in understanding the effects of cyber-laundering on auditors and suggests the necessity for thorough research in this area. The paper ends with recommendations for enhancing public awareness and education on cyber-laundering. To effectively tackle cyber-laundering, a multidisciplinary strategy is necessary, along with continuous attempts to improve auditors' skills in dealing with this complex financial crime.