Regulation of Offshore Banking Services and Financial Entities

• NCJ Number: 218509
• Journal: European Journal on Criminal Policy and Research Volume: 12 Issue: 3-4 Dated: 2006 Pages: 279-298
• Author(s): Federica Curtol; Andrea Di Nicola; Sara Martocchia; Ernesto U. Savona
• Date Published: 2006
• Length: 20 pages
• Publication Format: Article
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: Netherlands

Annotation

This study identified factors likely to influence whether organized crime would ensue from the regulation of offshore banking services, company law, and financial entity regulations.

Abstract

The results of the case study analysis indicated 15 variables in 6 main categories for the legislative quality indicators that were likely to influence whether organized crime would ensue from the regulation of offshore banking services, company law, and financial entities at the European Union (EU) level. The 6 categories are identified as: (1) external simplicity; (2) internal simplicity/clarity of structure; (3) external consistency; (4) internal consistency; (5) accuracy/clarity of content; and (6) enforceability. Within these categories, 15 specific factors are identified through which the 6 categories can be measured. These include questions about the volume of regulation, the length of articles, the consistency in the system, the consistency between the means and the ends, the consistency among rules, references to other regulations, risk of misinterpretation, difficulty of translation, sanctions, applicability, and harmonization among EU member states. Another 15 variables in 3 main categories are identified for the market vulnerability indicators. The categories are attractiveness/profitability; attractiveness/risk of being detected and punished; and accessibility. Within these categories, 15 specific factors are identified through which the 3 categories can be measured, including costs and benefits to operators, value of the product, access to product factors, time length of a transaction, discretionary power of officials, turnover of officials, and requirements for operating in the market. The identification of these factors represents a step toward the goals of project MARC, which is to develop a legislative crime risk assessment mechanism at the EU level. Tables, footnotes, references