Corruption in International Banking and Financial Systems (From Australian Institute of Criminology Conference: Transnational Crime, March 9 and 10, 2000, Canberra, Australia, P 1-9, 2000, -- See NCJ-187199)

• NCJ Number: 187200
• Author(s): Lynne Walker
• Date Published: 2000
• Length: 9 pages
• Sale Source: Australian Institute of Criminology
• Publication Format: Document
• Publication Type: Report (Study/Research)
• Language: English
• Country: Australia

Annotation

This report describes cases of corruption in international banking and financial systems and explains common elements of this type of activity and lessons to be learned by those interested in crime prevention, crime detection, and prosecution.

Abstract

The three cases involved the Bank of Credit and Commerce International, Operation Casablanca, and the Bank of New York. The analysis notes that the existence of corruption within banking and financial systems allows for the operation of money laundering over a long period before detection occurs. The mingling of illicit funds with the huge volume of legitimate transactions provides cover, especially when employees work with the criminals to deflect adverse attention from authorities and regulators. Other elements that may not have involved criminal intent include poor regulation and agreeing to undertake duties of an auditor without obtaining enough knowledge of the entire organization. Further elements include association with suspect entities in the hope of promoting their own aims, poor or nonexistent application of the rule of knowing the customer, and poor supervision of employees. Efforts by Australian law enforcement to prevent or address situations such as those involved in the three cases depend on the legislative context; an Australian Law Reform Report recommends changes to existing law.