NCJ Number
195057
Journal
Journal of Financial Crime Volume: 9 Issue: 2 Dated: November 2001 Pages: 105-108
Date Published
November 2001
Length
4 pages
Annotation
This article provides an introduction to underground banking including the historical development of underground banking practices and the modern applications of those practices.
Abstract
The article provides an overview of the use of so-called underground banking systems including the historical and cultural development of those practices, the geographic locations where such activities occur, the types of enterprises that use underground banking systems (e.g., money laundering operations, organized crime, and terrorist networks), estimates of the scope of the problem of underground banking, and the difficulty of adequately measuring the utilization rates of these practices. Key features of underground banking identified by the author are remittance and trust. The author draws parallels between the difficulties in regulating licit banking institutions and the difficulties in regulating illicit (underground) banking institutions. Complimentary integration of regulatory approaches and highly developed international enforcement cooperation are presented and discussed as crucial features of an effective approach to reducing the illicit movement of money. The limitation on the efficacy of this approach through high-level governmental corruption is noted. 13 notes