The Early Warning Model Study Of The Public Officials’ Money Laundering Based On Fund Flow

Since the reform and opening-up policy carried out, the social andeconomic construction has made great achievements, the people’sliving standard has also been significantly improved, but somedisharmony factors still exist. As the absence of an effectiveregulatory system and regulatory measures, the temptation toaccumulate wealth by making use of the authority or resourcesin hand of public officials is increasing. In recent years, not only thenumber of upstream crimes of public officials increases every year,the amount involved is also rising. After accumulating wealth bycorruption and accepting bride, they put on a coat of legitimacy forthe illegal income of upstream crimes through various channels. Inmost cases, as the upstream crimes and fund transfer havegood invisibility, it is found that the loss of major funding is difficultyto recover after criminals transfer funds. How to warn public officials’money-laundering effectively has become an important problemwhich troubled government agencies, discipline inspectiondepartments and the financial institutions. Therefore, the earlywarning study of public officials’ money-laundering has importantresearch value to effectively guard against and restraint public officials’ money-laundering.This paper studies the early warning model of the public officials’money-laundering from fund flow perspective. The main contentsummarized as follows:(1)Based on classified study of public officials’ money-launderingcases, generalize and summarize the fund flow’s characteristics ofthe public officials’ money-laundering.From the formal money-laundering cases of illegal public officials,this paper had abstracted the critical and common points of upstreamcapital source and downstream capital transfer path. Then, the paperconcludes the fund flow characteristics of illegal public officials’money-laundering.(2)Based on the case data collected, conduct descriptivestatistical analysis of public officials’ money-laundering.The case data is come from lots of judged cases of public officialson money-laundering from2004to2014.And select30effectivesample data which is accord with case information table. Bydescriptive statistical analysis from personal characteristics, jobcharacteristics, environment characteristics and fund flowcharacteristics, this paper discussed he influencing factors of publicofficials’ money-laundering.(3)Construct an early warning model of public officials’ money-laundering which is based on fund flow.From an empirical perspective, this paper summarized the majorfactors of public officials’ money-laundering, builded an early warningmodel of public officials’ money-laundering through factor analysis,calculated the warning threshold as well. This warning model was proved effective which can predict the public officials’money-laundering through empirical test.