IDEAS home Printed from https://ideas.repec.org/a/pal/jbkreg/v19y2018i2d10.1057_s41261-017-0041-4.html
   My bibliography  Save this article

Financial institutions and money laundering: A threatening relationship?

Author

Listed:
  • Erin Lawlor-Forsyth
  • M. Michelle Gallant

Abstract

Money laundering control is a complicated exercise that is not particularly well served by unequivocal assertions about its pernicious impacts. Drawing on the legendary demise of the Bank of Commerce and Credit International and four modern American tales of disciplinary action, this paper examines the threatening relationship between money laundering and financial institutions. Located in the context of the evolution of money laundering regulation, the examination finds that neither of the factual narratives confirm that money laundering necessarily harms banks. Having identified an ambivalent relationship, the paper recommends enhanced focus on individual liability as a locus for the control of money laundering.

Suggested Citation

  • Erin Lawlor-Forsyth & M. Michelle Gallant, 2018. "Financial institutions and money laundering: A threatening relationship?," Journal of Banking Regulation, Palgrave Macmillan, vol. 19(2), pages 131-148, April.
    • Handle: RePEc:pal:jbkreg:v:19:y:2018:i:2:d:10.1057_s41261-017-0041-4
    DOI: 10.1057/s41261-017-0041-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41261-017-0041-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41261-017-0041-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brigitte Unger, 2007. "The Scale and Impacts of Money Laundering," Books, Edward Elgar Publishing, number 12690.
    2. Edwin M. Truman & Peter Reuter, 2004. "Chasing Dirty Money: The Fight Against Anti-Money Laundering," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 381, October.
    3. Ellinger, E.P. & Lomnicka, E. & Hare, C., 2011. "Ellinger's Modern Banking Law," OUP Catalogue, Oxford University Press, edition 5, number 9780199232093, Decembrie.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Uuriintuya Batsaikhan & Zsolt Darvas & Inês Gonçalves Raposo, 2019. "Reconciling contradictory forces: financial inclusion of refugees and know-your-customer regulations," Journal of Banking Regulation, Palgrave Macmillan, vol. 20(3), pages 260-273, September.
    2. Maxime Delabarre, 2021. "Interdependence Between States and Economies," SciencePo Working papers Main hal-03334550, HAL.
    3. Maxime Delabarre, 2021. "Interdependence Between States and Economies," Working Papers hal-03334550, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. B. Unger & F. van Waarden, 2009. "Attempts to Dodge Drowning in Data: Rule- and Risk-Based Anti Money Laundering Policies Compared," Working Papers 09-19, Utrecht School of Economics.
    2. Gnutzmann, Hinnerk & McCarthy, Killian J. & Unger, Brigitte, 2010. "Dancing with the devil: Country size and the incentive to tolerate money laundering," International Review of Law and Economics, Elsevier, vol. 30(3), pages 244-252, September.
    3. McCarthy, Killian J. & van Santen, Peter & Fiedler, Ingo, 2015. "Modeling the money launderer: Microtheoretical arguments on anti-money laundering policy," International Review of Law and Economics, Elsevier, vol. 43(C), pages 148-155.
    4. D. Bartolozzi & M. Gara & D.J. Marchetti & D. Masciandaro, 2019. "Designing The Anti-Money Laundering Supervisor: Theory, Institutions And Empirics," BAFFI CAREFIN Working Papers 19126, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    5. Friedrich Schneider, 2008. "Money laundering and financial means of organised crime: some preliminary empirical findings," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 10(3), pages 309-330.
    6. Godspower-Akpomiemie, Euphemia & Ojah, Kalu, 2018. "Money laundering, Tax havens, Transparency and Board of Directors of Banks," MPRA Paper 89550, University Library of Munich, Germany.
    7. Friedrich Schneider, 2010. "Turnover of organized crime and money laundering: some preliminary empirical findings," Public Choice, Springer, vol. 144(3), pages 473-486, September.
    8. Bartolozzi, D. & Gara, M. & Marchetti, D.J. & Masciandaro, D., 2022. "Designing the anti-money laundering supervisor: The governance of the financial intelligence units," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 1093-1109.
    9. Unger Brigitte & van Waarden Frans, 2009. "How to Dodge Drowning in Data? Rule- and Risk-Based Anti Money Laundering Policies Compared," Review of Law & Economics, De Gruyter, vol. 5(2), pages 953-985, December.
    10. Abdul Karim Aldohni, 2018. "Is Ethical Finance the Answer to the Ills of the UK Financial Market? A Post-Crisis Analysis," Journal of Business Ethics, Springer, vol. 151(1), pages 265-278, August.
    11. Tomas Williams & Pablo Slutzky & Mauricio Villamizar-Villegas, 2019. "Drug Money and Bank Lending: The Unintended Consequences of Anti-Money Laundering Policies," Working Papers 2019-5, The George Washington University, Institute for International Economic Policy, revised May 2020.
    12. Brigitte Unger, 2013. "Can Money Laundering Decrease?," Public Finance Review, , vol. 41(5), pages 658-676, September.
    13. Fabrizio Colella & Keith Maskus & Alessandro Peri, 2024. "Unintended Consequences of Money-Laundering Regulations," RF Berlin - CReAM Discussion Paper Series 2403, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    14. Abroskin A.S. (Аброскин, А.С.) & Abroskina N.A. (Аброскина, Н.А.), 2016. "Methods of Analysis of Shadow of Cross-Border Capital Flows [Методы Анализа Теневых Трансграничных Потоков Капитала]," Working Papers 2134, Russian Presidential Academy of National Economy and Public Administration.
    15. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    16. Raffaella Barone & Donato Masciandaro & Friedrich Schneider, 2022. "Corruption and money laundering: You scratch my back, i’ll scratch yours," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 318-342, February.
    17. Lucia dalla Pellegrina & Giorgio Di Maio & Donato Masciandaro & Margherita Saraceno, 2020. "Organized crime, suspicious transaction reporting and anti-money laundering regulation," Regional Studies, Taylor & Francis Journals, vol. 54(12), pages 1761-1775, December.
    18. Schneider, Friedrich, 2010. "The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results," IZA Discussion Papers 4860, Institute of Labor Economics (IZA).
    19. Emma Galli & Ilde Rizzo & Carla Scaglioni, 2020. "Is transparency spatially determined? An empirical test for Italian municipalities," Applied Economics, Taylor & Francis Journals, vol. 52(58), pages 6372-6385, December.
    20. Tiffany Cheng-Han Leung & Robin Stanley Snell, 2021. "Strategies for Social and Environmental Disclosure: The Case of Multinational Gambling Companies," Journal of Business Ethics, Springer, vol. 168(3), pages 447-467, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jbkreg:v:19:y:2018:i:2:d:10.1057_s41261-017-0041-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.