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10 January 2026 Preprint Economic Pharmakon

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. Dissensus AI Working Paper DAI-2604. DOI: 10.2139/ssrn.6145046

Methodology

Regulatory frameworks Game theory Case study analysis

Topics

Financial Markets AML/CFT