Protecting the Integrity of the Financial System (From The Regulation and Prevention of Economic Crime Internationally, P 191-194, 1995, Jonathan Reuvid, ed. -- See NCJ-160747)

• NCJ Number: 160758
• Author(s): J Reuvid
• Date Published: 1995
• Length: 4 pages
• Sale Source: Kogan Page Ltd
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: United Kingdom

Annotation

This chapter examines various issues associated with anti- money laundering policies designed to protect the transparency and integrity of the economic and financial systems.

Abstract

The main motivation for banks and financial institutions to cooperate with law enforcers is based on the maintenance of reputation. Another aspect of the relationship between banks and other financial institutions with law enforcement agencies and the entire anti-money laundering system is the cost burden on banks of competing with reporting procedures. In effect, the achievement of transparency can reduce the efficiency of financial systems so that competition between banks and financial systems having these costly controls and banks and financial systems of countries that tolerate or even enforce banking secrecy is unequal. Since criminal operators search out locations where banking secrecy is high, the only way to attack criminal organizations and promote transparency simultaneously is to harmonize equal criteria for both controls and transparency between countries worldwide. Investigations into the Bank of Credit and Commerce International (BCCI) confirmed how the international payments system was used by money laundering networks and demonstrated the need to modify bank secrecy laws so that responses to investigating law enforcement agencies may be coordinated internationally.