AN IN-DEPTH ANALYSIS OF THE CAUSES, TRENDS, IMPACTS, AND REMEDIAL STRATEGIES FOR MONEY LAUNDERING IN CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study The term money laundering rose to global prominence in the early 1990s, though its historical roots extend back to the United States in the 1930s, notably following the Prohibition era. During this period, bootleggers, having gained immense profits from the illegal alcohol trade, sought mechanisms to legitimize their illicit earnings by integrating them into lawful business channels. The expression “money laundering” thus metaphorically captures the process of cleansing unlawfully acquired wealth to make it appear legally obtained. According to Artur (2018), money laundering poses a significant threat to the credibility and stability of global financial systems. In the context of Cameroon—an economy experiencing rapid development—this issue has escalated into a major concern requiring rigorous investigation. The increasing complexity of the nation’s financial systems has heightened their vulnerability to organized financial crimes, including the laundering of illicit funds (Ayul & Wase, 2021). Conceptually, money laundering refers to the practice wherein individuals or groups attempt to disguise the origins, ownership, and final destination of funds obtained through illegal means. The objective is to create the illusion that these proceeds are derived from lawful activities. As defined by Zali (2018), money laundering involves a deliberate sequence of financial transactions designed to transform “dirty” money into apparently legitimate assets. This criminal process often exploits formal financial institutions, with methods such as wire transfers and check deposits commonly used to circulate and obscure the sources of illicit capital. Moreover, money laundering has broader socio-economic implications. It undermines legitimate economic activities by diverting capital from productive enterprises, thereby exacerbating income inequality, sustaining poverty, and potentially inciting social instability. To effectively combat this crime, it is essential to invest in institutional capacity building, strengthen regulatory frameworks, and enhance international collaboration. In addition, raising public awareness through education campaigns can foster a culture of compliance and vigilance by informing citizens of the risks and societal costs associated with money laundering. The use of emerging technologies such as blockchain, artificial intelligence (AI), and advanced data analytics can also significantly improve the capacity to detect, trace, and prevent money laundering activities. Given these realities, the present study aims to critically investigate the causes, patterns, impacts, and potential solutions to money laundering in Cameroon, drawing attention to the unique features and challenges within the national context. 1.2 Statement of the Problem Bob Blunden (2019) succinctly defines money laundering as the process through which illicit funds undergo a series of financial transactions, eventually re-emerging as funds that appear legitimate. Chen (2020) expands this analogy by noting that, after undergoing this metaphorical “laundering cycle,” illegally acquired money can appear even more legitimate than lawfully earned income. Once “cleaned,” such funds are seamlessly integrated into legal financial and business systems, making it nearly impossible to trace their criminal origins. The process typically begins with money from unlawful activities and concludes when its origins have been thoroughly disguised. For instance, cybercriminals and internet fraudsters frequently channel their illicit profits through business ventures, presenting the appearance of legitimate operations and commercial success. Efforts to counter money laundering have become a critical global priority, cutting across legal, political, and economic domains. Various national and international instruments have been implemented to address the issue. According to scholars like Moh Zali and Ach Maulidi (2018), robust anti-money laundering (AML) regulations are indispensable to maintaining financial integrity and institutional trust, particularly given the immense sums often involved in such transactions. In view of these considerations, this study sets out to critically examine money laundering in Cameroon—specifically its underlying causes, operational mechanisms, socio-economic and institutional impacts, and strategies for prevention and resolution. 1.3  Objectives of the Study The main purpose of this study is An In-Depth Analysis of the Causes, Trends, Impacts, and Remedial Strategies for Money Laundering in Cameroon. Specifically, the study will; 1.Examine the causes of money laundering in Cameroon 2.Assess the patterns of money laundering in Cameroon  3.Assess the consequences of money laundering in Cameroon 4.Proffer strategies for mitigating the occurrence of money laundering in Cameroon 1.4 Research Questions The following questions have been prepared for the study: 1.What are the causes of money laundering in Cameroon? 2.What are the patterns of money laundering in Cameroon? 3.What are the consequences of money laundering in Cameroon? 4. What are the strategies for mitigating the occurrence of money laundering in Cameroon? 1.5 Research hypotheses H0: There are no consequences for money laundering in Cameroon Ha: There are consequences for money laundering in Cameroon 1.6  Significance of the Study  The results will help law enforcement agencies stay up to date on the most recent strategies employed by criminals engaged in money laundering. It will also assist financial institutions in meeting regulatory requirements, enhancing detection systems, and putting strong anti-money laundering (AML) procedures into place. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to a critical assessment of money laundering in Cameroon: causes, patterns, consequences, and solutions 1.7 Scope of the study The scope of this study is An In-Depth Analysis of the Causes, Trends, Impacts, and Remedial Strategies for Money Laundering in Cameroon. Empirically, this study will examine the causes of money laundering, assess the patterns of money laundering, assess the consequences of money laundering in Cameroon and proffer strategies for mitigating the occurrence of money laundering in Cameroon. Geographically, the study will be delimited to residents of Buea, Cameroon. 1.8 Limitation of the study In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.  More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.  1.9 Definition of Terms Money Laundering: refers to the process of making illegally obtained proceeds (such as funds from criminal activities) appear legal or "clean" by passing them through a complex sequence of banking transfers or commercial transactions. Money Launderers: are individuals or entities responsible for carrying out the process of money laundering. Criminals: are those individuals engaged in illegal activities that generate proceeds, which may then be subjected to the money laundering process to conceal their illicit origin.