Responding to Money Laundering: International Perspectives

Book Cover......Page 1
Half-Title......Page 2
Title......Page 4
Copyright......Page 5
Contents......Page 6
Acknowledgements......Page 8
Introduction......Page 10
Notes on Contributors......Page 16
Part I Trends and Implications......Page 22
1.  INTRODUCTION......Page 24
2.  THE ITALIAN EXPERIENCE......Page 25
3.  THE INTERNATIONAL CONTEXT......Page 26
4.  ELEMENTS OF A POLICY OF PREVENTION......Page 28
1.  INTRODUCTION......Page 30
2.2  Not only drugs?......Page 32
2.3  Trends in Transnational Criminal Organizations......Page 33
B)  Colombian Cartels......Page 34
C)  Sicilian Mafia19......Page 37
D)  Russian Organized Crime Groups......Page 39
2.4  Trend toward Professionalism. From the Hand Wash to a Launderette System......Page 42
2.5  Trend toward Complexity? Old and New Methods, Mechanisms and Schemes of Money Laundering......Page 43
A)  Placement......Page 44
B)  Layering......Page 47
C)  Integration......Page 48
D)  Examples......Page 49
E)  Observations......Page 52
3.1  Introduction......Page 53
PREVENTION POLICIES......Page 54
CONTROL POLICIES......Page 56
INTERNATIONAL COOPERATION......Page 57
3.2.1  The United Nations......Page 58
3.2.3  Financial Action Task Force......Page 60
3.2.4  The Basle Committee on Banking Regulations and Supervisory Practices......Page 62
3.3.1  The Council of Europe......Page 63
3.3.3  Caribbean Financial Action Task Force......Page 64
3.3.4  Inter-American Drug Abuse Commission......Page 65
3.3.5  Bilateral Treaties......Page 66
4.2  Fragments of an Analytical Framework......Page 67
4.3.1  Tentative Aggregation of Data......Page 70
4.3.2  Convergencies and Divergencies in Criminal Organizations and Activities......Page 72
4.3.3  Convergencies and Divergencies in Money Laundering Activities......Page 76
4.3.4  Convergencies and Divergencies in Criminal Policies......Page 77
4.3.5  Convergencies and Divergencies in Regulatory Policies......Page 78
4.3.6  Convergencies and Divergencies in International Cooperation......Page 80
4.4.1  Substantial versus Formal International Cooperation......Page 81
4.4.3  Better Regulation to Supplement Criminal Law......Page 83
4.4.4  Six Points for Immediate Action......Page 84
4.5  Conclusions......Page 86
NOTES......Page 88
1.  INTRODUCTION......Page 92
2.  AN ECONOMIC ANALYSIS OF THE DECISION TO LAUNDER MONEY......Page 94
(1)  Indicators, Surveys and Samples......Page 99
(3)  Expenditure vs. Incomes......Page 100
(1)  Fixed Ratios......Page 101
(3)  An Econometric Approach (Tanzi)5......Page 102
4.3  Empirical Estimates......Page 103
5.1  The General Problem......Page 104
5.2  Different Definitions and Indirect Measures......Page 105
5.3  Direct Measures and the Hidden Economy Approach......Page 107
6.  CONCLUSIONS......Page 109
NOTES......Page 110
1.  GLOBALIZATION AND MONEY LAUNDERING......Page 112
2,  QUANTITATIVE ASPECTS OF MONEY LAUNDERING......Page 113
3.  THE ALLOCATION OF LAUNDERED MONEY......Page 115
4.  EFFECTS ON ECONOMIC POLICY......Page 116
5.  ON POLICY COORDINATION AND MONEY LAUNDERING......Page 120
NOTES......Page 123
Part II Tuning the Instruments......Page 126
1.  INTRODUCTION......Page 128
I.  THE STRUCTURE OF INTERNATIONAL CRIMINAL LAW AND THE ROLE OF INTER-STATE COOPERATION IN PENAL MATTERS......Page 131
A.  Inter-state Cooperation in Penal Matters......Page 132
1.  Mutual Legal Assistance......Page 133
2.  The Newest Modality: The Obligation to Trace, Immobilize and Confiscate Criminal Proceeds......Page 134
3.  The Recognition of Foreign Penal Judgements......Page 135
1.  The “Bilateral Approach”......Page 136
2.  The “Bilateral Approach” In Practice: US Experience with Mutual Legal Assistance Treaties......Page 137
a.  The Swiss Treaty......Page 138
c.  The Turkish and Italian Treaties......Page 140
C.  The “Integrated Approach”......Page 141
A.  The 1988 United Nations Drug Convention......Page 143
1.  Seizure and Forfeiture......Page 144
2.  Mutual Legal Assistance......Page 145
3.  Money Laundering......Page 146
B.  The Council of Europe’s 1990 Laundering Convention......Page 147
1.  Seizure and Forfeiture and Mutual Legal Assistance......Page 148
2.  Money Laundering......Page 150
A.  The EC Directive......Page 152
B.  The Financial Action Task Force and the Caribbean Financial Action Task Force......Page 153
C.  OAS Initiatives to Combat Money Laundering......Page 156
IV.  NATIONAL STRATEGIES TO CONTROL MONEY LAUNDERING......Page 158
B.  Enable Authorities to Trace, Freeze and Confiscate Illicit Proceeds......Page 159
D.  Require Financial Institutions to Report Large Cash Transactions and All “Suspicious” Transactions......Page 160
F.  Provide for Inter-state Cooperation in Criminal Matters......Page 161
V.  INDIVIDUAL RIGHTS ISSUES RAISED BY EFFORTS TO COMBAT MONEY LAUNDERING......Page 162
A.  Right to Privacy Considerations......Page 164
1.  Insufficient Procedural Protections......Page 165
C.  Presumption of Innocence Considerations......Page 167
E.  Right to Counsel Considerations and Criminal Liability of Defense Attorneys......Page 168
VI.  CONCLUSIONS......Page 169
NOTES......Page 176
1.  INTRODUCTION......Page 208
2.1  Cash, cash economies, currency exchange and deposit......Page 209
2.2  Layering and Integration......Page 214
3.  INTERNATIONAL LAUNDERING......Page 217
4.  MUTUAL LEGAL ASSISTANCE......Page 221
5.  ENTERPRISE CRIME......Page 224
6.  SUMMARY AND CONCLUSIONS......Page 226
NOTES......Page 229
l.  INTRODUCTION: MONEY LAUNDERING AS A STAGE IN CRIMINAL ENTREPRENEURIAL ACTIVITY......Page 234
NES FOR A REVIEW OF COUNTER-STRATEGIES .........Page 235
TYPE ASSOCIATION AND RELATED PROBLEMS OF DOUBLE CRIMINALITY .........Page 237
RENEURIAL ACTIVITIES .........Page 243
EY LAUNDERING AND THEIR CENTRAL IMPORTANCE IN INVESTIGATIONS INTO CRIMINAL ENTREPRENEURIAL ASSOCIATIONS .........Page 245
ISIONS AGAINST MONEY LAUNDERING. THE “MONEY LAUNDERING ENTERPRISES” .........Page 248
AL ECONOMY FOR LAUNDERING PURPOSES .........Page 250
ITY OF PREVIOUSLY CONSOLIDATED SECTIONS OF THE CRIMINAL ECONOMY, THE DISTANT BACKGROUND OF WHICH CAN NO LONGER BE RECONSTRUCTED .........Page 253
RATION BETWEEN COUNTRIES CONCERNED WITH “TRAFFICKING” AND THOSE CONCERNED WITH “LAUNDERING”, THE NEW STRASBURG CONVENTION AND INTERNATIONAL CONFISCATION .........Page 255
1 Situation type no.1......Page 259
2 Situation type no.2......Page 261
NOTES......Page 263
2.  TAX AND CRIMINAL HAVENS......Page 268
BookmarkTitle:......Page 270
4.  A TYPICAL EXAMPLE: THE FORMATION ABROAD OF UNDECLARED AND UNACCOUNTED ASSETS......Page 272
5.  THE INTERNATIONAL INEFFICIENCY IN CONTROLLING CRIMES COMMITTED BY THE USE OF OFF-SHORE COMPANIES......Page 273
6.  IN FAVOUR OF NEW INTERNATIONAL INSTRUMENTS AGAINST THE ABUSE OF OFF-SHORE COMPANIES......Page 274
NOTES......Page 275
1. INTRODUCTION......Page 278
1.2  The issues for regulators......Page 279
1.3  BCCI and money laundering......Page 282
2.  THE CRIMINAL JUSTICE ACT 1993......Page 284
2.1  Some evidence about suspicious transaction reporting in the UK......Page 285
3.  THE FUTURE OF MONEY LAUNDERING REGULATION IN EUROPE......Page 292
4.  THE DETECTION OF MONEY LAUNDERING......Page 293
5.  CONCLUDING ANALYSIS......Page 296
NOTES......Page 299
Recommendation 12......Page 300
Recommendation 16......Page 301
Recommendation 21......Page 302
1.2  Unresolved issues of implementation for discussion......Page 303
Key elements of compliance from a corporate risk management perspective......Page 304
Illustrative Australian legislative disharmonies......Page 306
16 Legal exemptions or administrative “assurances”?......Page 308
2.3  Embedding compliance precepts......Page 309
3.1  Enforced self-regulation......Page 310
3.2  Suspect transaction reporting......Page 311
3.3  Anti-smurfing deposit aggregation requirements......Page 314
4.  ACCOUNTABILITY FOR NON-COMPLIANCE WITH MONEY LAUNDERING CONTROLS......Page 316
4.1  Extending accountability via corporate discipline and disclosure......Page 317
4.2  BCCI and accountability19......Page 318
5.  CONCLUSION: CONTROLLING CORPORATE MONEY LAUNDERING......Page 321
NOTES......Page 322
2.  MONEY LAUNDERING IN PERSPECTIVE......Page 324
3.  THE EFFECTS OF THE PROCEEDS OF CRIME......Page 325
4.  ACTION AGAINST MONEY LAUNDERING......Page 326
Index......Page 328