There is no doubt that the Coronavirus has had, and is still having, a devastating effect on so many people and the worldwide economy: everything about the way we live and work has changed. But what has this meant for money launderers: has it become easier to launder money?

As it’s done for most of society already, Covid-19 has forced criminals to change the way they behave. They have to find new ways to wash their funds and move goods as borders are shut, ferries are cancelled, and flights are grounded.

One way they have done this is to exploit Money Mules. Although this isn't a new concept, money launderers are now using the good nature and heightened anxiety due to the pandemic to target more vulnerable individuals.  Criminals use phishing emails: one example is  where the email says that the funds will go to 'coronavirus 'relief efforts making the mule believe they can not only earn extra money but also help others in need.

The mule is asked to withdraw that money as cash, with a commission for themselves, before depositing it back into an account owned by the money launderers. The money launderers discourage the mules from sharing information about the “donations” that they are handling by saying there is an urgent need to pay for coronavirus medicines. Mules are also  instructed to say this if they are questioned by their bank.

As well as coronavirus-related charities the money launderers can also claim to be government official bodies, the World Health Organisation (WHO) or non-profit organisations which will make their causes seem real to the targeted individuals. Once again the criminals are preying on people's concerns and anxieties about the pandemic.

Another scam where criminals are using the Coronavirus pandemic to their advantage involves supplies which are in high demand. This involves the fraudulent procurement of medical equipment and personal protective equipment to obscure their involvement in money laundering.  One way criminals carry out this fraud is to send fraudulent emails to a business mirroring those sent by their legitimate business partners but the email will get them to redirect payment to the money launderer's own bank accounts.

Fraudulent investments scams are also being used by money launderers where they get businesses to invest in products that they claim can prevent, detect or even cure COVID-19.

These schemes clearly create additional risks for banks, financial institutions and other businesses – as they may unwittingly process payments or even provide financing on behalf of fraudulent traders. It has become more difficult to detect instances of money laundering efficiently during the pandemic as everyone's spending habits have changed. This is due to less social spending together with all us carrying out more card and online shopping to avoid cash transactions. Therefore many of the existing rules in place for monitoring transactions may not work.

The pandemic has severely impacted some authorities’ ability to implement measures to detect, prevent and investigate money laundering and terrorist financing. However they have been vigilant in warning that the virus is quickly changing the ways criminals seek to move illicit goods and funds across international borders. As always there is a need to close the gaps to detect, prevent and investigate these crimes, despite the challenges presented by the pandemic.