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10 January 2026 Preprint DAI-2604

Legitimate Extraction: Sophisticated Laundering Hides in Plain Sight

Hedging as the Fourth Money Laundering Stage

Murad Farzulla

Abstract

Analysis of AML regulation efficacy, examining the fourth stage of anti-money laundering frameworks and the paradoxical relationship between hedging instruments designed for protection and their potential use for illicit wealth transfer.

Suggested Citation

Murad Farzulla (2026). Legitimate Extraction: Sophisticated Laundering Hides in Plain Sight. Farzulla Research Working Paper DAI-2604. DOI: 10.2139/ssrn.6145046

BibTeX

@misc{farzulla2026hedgingparadox,
  author = {Farzulla, Murad},
  title = {Legitimate Extraction: Sophisticated Laundering Hides in Plain Sight},
  year = {2026},
  howpublished = {Farzulla Research Working Paper DAI-2604},
  doi = {10.2139/ssrn.6145046},
  url = {https://farzulla.org/papers/hedging-paradox}
}

Topics

Financial Markets AML/CFT