Money laundering and its organizational variation in China: An organizational economics framework

Abstract This article develops an organizational economics framework to analyse the money-laundering strategies of illegal entrepreneurs and examine how Professional Money Launderers (PMLs) structure their organizations to serve drug traffickers, telecom fraudsters and illegal gambling rings. Drawing on 52 semi-structured interviews, it argues that the volume of criminal proceeds and the level of exposure risk determine illegal entrepreneurs’ willingness to rely on PMLs, while task variability and time pressure shape PMLs’ organizational structure. It advances understanding of PMLs’ organizational structure and the role of cryptocurrency in money laundering.