AN EVALUATION OF FRAUD DETECTION IN THE CONTEXT OF FORENSIC ACCOUNTING AND THE MEASURES TAKEN TO COMBAT MONEY LAUNDERING CRIMES

Abstract

The financial system has become widespread and gained a global dimension. Due to globalization, commercial activities between many countries have intensified. While countries with secure digital systems in commercial activities conduct their transactions without issues, the systems used in underdeveloped or less developed countries constantly lay the groundwork for financial crime cases. The methods used for money laundering generally involve transferring the money abroad, moving it to tax haven countries, and conducting transactions through fictional companies. Countries combat money laundering through special institutions they have established or through security measures implemented by banks. In this study, using qualitative research methodology (document review and literature analysis), money laundering methods observed worldwide and in Turkey were examined, and the importance of the Forensic Accounting profession, which is used to uncover money laundering cases and is being developed further, was highlighted. The study concludes from literature review and research findings that forensic accounting cannot operate as fully desired worldwide. In addition, there are certain deficiencies in training professional practitioners in the field of Forensic Accounting in Turkey. It has been determined that there is a need to train professional practitioners in the field of Forensic Accounting for the detection of money laundering crimes in Turkey and for the prevention or uncovering of such crimes. Thus, a contribution was made to the field of accounting by drawing attention to the importance of forensic accounting activities. In subsequent studies, researchers are advised to not only develop forensic accounting but also to demonstrate how the profession might transform when necessary.