Awareness level of Money Muling in the Money Laundering chain among Cypriots

Money Muling, a critical facet of contemporary financial crime, involves deceiving individuals into wittingly or unwittingly aiding criminals in laundering illicit funds through their bank accounts typically for a commission. Despite growing awareness and enforcement efforts against money muling, gaps persist in understanding public awareness levels and factors influencing awareness, particularly in Cyprus. Against a backdrop of economic challenges exacerbated by COVID-19, global conflicts and geo-political challenges, individuals may be more vulnerable to fraudulent schemes.
This research aims to assess the awareness among Cypriot citizens regarding money muling and identify factors influencing this awareness. The study's importance lies in its potential to contribute to combating financial crime by enhancing public awareness and developing targeted educational strategies. The gap in research is the limited understanding of Cypriot citizens' awareness levels and the factors that shape this awareness regarding money muling.
This thesis adopts a quantitative research approach to analyse awareness levels towards money mules among a diverse respondent demographic. The study begins with data preparation, including coding and transformation of survey responses and variables. Descriptive analysis provides insights into demographic characteristics and initial awareness levels. Factor analysis, specifically Principal Component Analysis (PCA), is then utilized to distil survey variables into interpretable components. The PCA results inform subsequent multiple regression analysis, where PCA components serve as predictors to identify factors significantly influencing awareness levels.
The study reveals a moderately low awareness level among Cypriots indicating a basic understanding but significant room for improvement. Factors such as Cybersecurity and Financial Crime awareness, Digital Financial Literacy, and Financial Fraud Awareness were found to significantly influence awareness levels. The findings are intended to inform more effective strategies for raising awareness and preventing unwitting involvement in money muling, ultimately contributing to a more vigilant and informed society in Cyprus.
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These findings have important implications for policymakers, law enforcement, financial institutions, educators, and public awareness campaigns, providing actionable insights to develop targeted interventions and strengthen efforts in combating financial crimes.