Major International Competition Funding and Money Laundering Risks

Abstract

The sports sector is often liable for illegal activities, such as money laundering. Football, the most popular sport in the world, is one of several places where illegal money might enter, with the UNODC estimating that the sport facilitates the laundering of roughly USD 140 billion annually. The aim of this paper is to identify the main money laundering schemes used in the sports industry and to provide a complete plan for mitigating these risks. Key methods of money laundering in the sports sector, such as football example, are considered. Key cases of illicit activities in football are considered in the context of money laundering and other criminal offences. A comprehensive strategy is proposed to prevent money laundering in professional sports, including anti-money laundering (AML) and counter-terrorism funding (CTF) legislation and regulations, due diligence, transparency, sanctions, whistleblower protection, international collaboration, training and education, and the use of cutting-edge technology such as AI and machine learning. These preventative measures require constant awareness and innovation to be successful and include establishing a regulatory organization with responsibility for regulating money dealings in the sports industry, due diligence, transparency, sanctions, whistleblower protection, international collaboration, training and education, and the use of cutting-edge technology. This paper’s results may be used by researchers and analysts, professional associations, non-governmental organizations, legislators, and the general public.