Methodological innovation and effective action

Abstract

PurposeThe purpose of this paper is to develop reflections on the contribution that innovative research and proper methodology can give to the fight against financial and economic crime, mentioning some potential instances of concrete application deriving from the Italian financial intelligence unit's experience and know‐how.Design/methodology/approachThe paper sketches the Italian system's main feature and the UIC's main aim, which is not to run after the single criminal, but rather to find out how a pathology reveals itself because this may be the starting point for further investigative actions. It shows how over time UIC focused on developing special abilities and proper instruments, to search for significant clues of money laundering and terrorist financing phenomena, which deserve the enforcement's attention. Meeting this challenge requires commitment, and a continuous effort of research and methodological refinement.FindingsJust reacting to financial crime (through the traditional means of investigation, information exchange, international co‐operation, punishment, etc.) is not enough. We need to prevent it, preserving the system from its threat. A better knowledge will allow us to model, simulate and forecast criminal action more accurately, and to intervene more properly to prevent it. Collecting and crossing information from different aspects and approaches allow the transformation of information into systemic knowledge, which in turn we can use for developing further information.Research limitations/implicationsThe computing power and speed, the use of “intelligent” search engines and the application of statistical methodologies interact to derive meaningful pictures, to give shape to decisive conditions and descriptive indications. Different, complementary approaches have been worked out by aiming at modelling illicit behaviour directly.Practical implicationsSynergies are essential in this regard. For these goals to be achieved, the contribution from everyone's expertise and knowledge is precious and may prove crucial. Co‐operative relationships have to be developed with similar qualified national and international research centres.Originality/valueThe paper addresses regulators, enforcers and academics, showing how they can take advantage of developing synergies between innovative methodology and their specific expertise in the field of anti‐money‐laundering and anti‐terrorism‐financing action.