bluuebunny/crossref_metadata_2025 huggingface dataset:
The IW Threat from Sub‐State Groups: An Interdisciplinary Approach
Authors: Rathmell Andrew , Overill Richard , Valeri Lorenzo , Gearson John
Published: January 2008

This article is concerned with answering the question: What is the extent and nature of the Information Warfare (IW) threat from sub‐state radical political groups? Although there has been a great deal of speculation and theorising about the potential threat from terrorist groups, there has been little open source research on this subject. Even at a classified level, it appears that intelligence agencies are struggling with the construction of methodologies for threat assessment.
Trends in Computer Crime
Authors: Overill Richard E.
Published: January 2008

In this article the historical development of computer crime is traced and analysed. Some major examples of the phenomenon are examined with particular reference to financial and commercial information systems and institutions. The varied motivations of computer criminals are also considered. Finally, some lessons for today's financial and commercial IT communities are offered.
R v Crown Court at Southwark, ex parte Bowles
Authors: Sarker Rinita L.
Published: January 2008

The benefits of accountants seeking prompt independent legal advice to protect both themselves and their clients during criminal investigations has been reinforced by the recent House of Lords case of R ? Crown Court at Southwark, ex parte Bowles.
Trust and the Intermediary: The Benefits of Licensing TTPs and the Problem of Official Interception
Authors: Leach John
Published: January 2008

There can be no doubt that electronic commerce will become increasingly important to our economic well‐being in the decade ahead. It will allow people and organisations to conduct their current commerce electronically, and it will usher in new patterns of commerce as people identify and take advantage of the new opportunities E‐commerce brings. Much E‐commerce will be little more than the electronic execution of current commercial practice. To the degree that we see a role for the intermediary in current business practice, we will see the role for the electronic equivalent in E‐commerce. However, the change from conventional to electronic commerce will generate the need for an additional type of intermediary that has no direct counterpart in conventional commerce.
Warfare and Extortion
Authors: Jones A.
Published: January 2008

In recent years, particularly since the dissolution of the Soviet Union, there has been a noticeable increase in the quantity and types of arms for sale in the international market. A variety of organisations, other than nation states, throughout the world provides a ready and willing market for this commodity. Once in the hands of such groups, the weapons are put to the only use that they have, although the reasons for their use vary. Perhaps the three most easily defined types of such non‐nation state groups are the terrorist, the guerrilla and the criminal. While the motives of each are reasonably well defined, the boundary between, in particular, the terrorist and the criminal groups is increasingly difficult to determine.
Cayman Islands: Privacy — A Balancing Act in Changing Times
Authors: Alberga Michael L.
Published: January 2008

Over ten years ago, the leaders of the G‐7 countries began to focus on the serious problem caused by the ravenous appetites from within many of their own countries for the consumption and use of illicit drugs and the resulting problems of the large sums of money which were being amassed by persons involved in the many stages of this illicit and dangerous activity. Law enforcement agencies had failed to stem the tide of supply or demand, and with demand increasing there was an urgent need for action.
Hong Kong: Intellectual Property Piracy and the Internet
Authors: Fitzpatrick David
Published: January 2008

It is to be expected that Hong Kong's population would take strongly to the Internet, if only because there are few competing attractions in the Special Administration Region. Local television is distinctly low‐brow and the great outdoors are poisonously polluted. According to the Office of the Telecommunications Authority (OFTA) there are presently about 300,000 Internet users in Hong Kong (population 6.2 million) and the volume of traffic has increased from 30 million minutes in April 1996 to 1.1 billion minutes in the corresponding month in 1997.
Italy: Economic Crime and International Cooperation
Authors: Serio Mario
Published: January 2008

It is a well‐known fact, and one to which a large amount of due consideration has been devoted over the past years by a number of governments, that the international implications of crime are increasing and that, through them, a wide range of serious criminal activities are perpetrated more easily, more rapidly and more efficiently than before. It is also a fact that the process is being facilitated by the large‐scale use of technology and that the internationalisation of crime walks hand in hand with its globalisation.
Italy: Comment on the Money Laundering Section of the Italian Penal Code
Authors: Zaccagnini Carlo
Published: January 2008

The first legislative step undertaken by the Italian Parliament to detect money laundering dates back to Decree 59, issued in March 1978 and brought into force by Law 191/1978. The Decree introduced s. 648 bis into the Italian Penal Code; it was entitled ‘Substitution of money or funds deriving from armed robbery, racketeering or kidnapping for reward’. The new offence was based on the structure of s. 648 ‘Handling stolen goods’; the crime was punishable with a sentence of between four and ten years' imprisonment. The introduction of s. 648 bis was required for two reasons: on the one hand, to address the concern arising from the numerous terrorist kidnappings and blackmail occurring in Italy at that time; on the other, to strengthen the criminal repression of the ‘specified unlawful activities’.
New Zealand: A Current Analysis of the New Zealand Serious Fraud Office
Authors: Shameem Shaista
Published: January 2008

The New Zealand Serious Fraud Office (NZSFO) was set up in 1989 in response to issues arising out of the 1980s financial crisis, in particular the share‐market crash of 1987. In the short period of about a year the total sum thought to be involved in corporate fraud schemes in New Zealand had increased dramatically, from NZ$10m–15m before 1988 to NZ$50m–70m in 1989. Consequently, the Department of Justice proposed setting up a specialist institution and legal mechanisms for the investigation of serious or complex fraud.
Practices of Exchange and Networking in Russia
Authors: Ledeneva Alena V.
Published: January 2008

Western researchers studying the former Soviet Union first paid attention to the phenomenon of blat — to do with the use of informal contacts and networks to obtain goods and services or to influence decision making — in the 1950s. Yet although the importance of blat has been pointed to, there have been no attempts — and in fact no possibility — to study it. This article is based on original data gathered in 56 in‐depth interviews conducted during fieldwork in Russia in August 1994‐April 1995. The window of opportunity for such research occurred after people ceased being inhibited talking about blat, while still having a fresh memory of the Soviet period. These materials are unique. They enabled the author, first, to develop an ethnography of blat — that is to present it as a distinctive form of social relationship or social exchange articulating private interests and human needs against rigid control of the state; second, to record the daily problems which represent the ex‐Soviet system in a light not readily seen by an outsider; and third, to conceptualise the phenomenon of blat thus relating it to other informal practices. In this article focus will mostly be on the third angle of the research.
The Management of Electronic Crime — Prevention and Containment
Authors: German Peter M.
Published: January 2008

Technology continues to revolutionise our lives. Instant access to cash, electronic banking, international wire transfers, the electronic purchase of securities and instant credit authorisations are but a few visible examples of this revolution. Soon, first world countries will be fully immersed in the age of the ‘smart card’ — the plastic card which represents money and embodies the cashless society.
Conspiracy to Defraud: Gilmore Decision Highlights Gap in UK Extradition Law
Authors: Candler Linda
Published: January 2008

In the USA, conspiracy to defraud is a statutory offence. Title 18, US Code, s. 371, the general conspiracy statute, provides that:
A ‘Snapshot’ of the G8 Initiatives on International Financial Crime
Authors: Ali Shazeeda
Published: January 2008

International financial crime is without doubt one of the major challenges facing the world today. Its elimination remains a priority of world leaders and in 1998 when representatives of the G8 assembled to discuss possible solutions to critical global issues, tackling international financial crime was at the top of their agenda.
Future Trends in Financial Crime
Authors: Johnstone Peter , Haines Jason
Published: January 2008

The Treaty of Amsterdam was signed on 2nd October 1997. Under Title IV the provisions of the Treaty on European Union are considerably modified and issues relating to freedom of movement, security and justice are subject to considerable new developments. One MP has questioned exactly what these new provisions amount to ‘… a 3,000 mile service for a car from hell’ or is it ‘… a fundamental reconstruction of the Union?’ It is arguably closer to the latter, as the proposals form the basis of a provision which provides the basis for an enlarged community.
Sri Lanka: Prosecutions of Bribery and Corruption
Authors: Marsoof Saleem
Published: January 2008

The recent legislation on bribery and corruption enacted in Sri Lanka is part of the global awakening to the demoralising effect of corruption in society. Prior to 1994, the law relating to bribery was contained in ss. 158, 159 and 160 of the Penal Code of Sri Lanka and the Bribery Act No. 11 of 1954. The Bribery (Amendment) Act No. 20 of 1994 enacted by the Parliament of Sri Lanka, has not only brought about a structural change in the enforcement machinery in respect of offences under the Bribery Act, but has also for the first time made ‘corruption’ an offence. By the Commission to Investigate Allegations of Bribery and Corruption Act No. 19 of 1994, a permanent Commission (henceforth referred to as ‘the Commission’) has been set up for the investigation of offences of bribery and corruption. The Commission is intended to be an independent body free from extraneous pressures including government influence. The powers exercised earlier by the Bribery Commissioner, have now been vested in this Commission. It was the thinking of the Government of Sri Lanka that the Bribery Commissioner, being a public servant and a Head of a Government Department, is susceptible to the influence of corrupt public officers.
Developing Countries: Public Education to Combat Corruption and Economic Crime — The Future for Developing Countries
Authors: Lester John
Published: January 2008

Many developing countries, and indeed a significant number of developed countries, need a practical strategy to launch future education and prevention programmes. This article offers constructive advice on how to educate the public and gain support to combat the abuses of government officials and private individuals. Corruption prevention services involve the study of systems and procedures to reduce opportunities to commit corruption and economic crime offences. A detailed review of these services is not included in this article but public education involves making these services widely known throughout the public and private sectors.
The Plight of Victims of Economic Crime: Investors as Victims
Authors: Nel Hendrik C.
Published: January 2008

An ‘investor’ is defined by the Oxford Dictionary as ‘one who invests money’. However, this traditional definition does not include the other stakeholders in the modern corporation: persons such as employees, members of the pension fund, suppliers, the assured, depositors and the large numbers of people whose savings are invested by institutional investors.
Money Laundering, Criminal Assets and the 1998 Proposed Reforms
Authors: Gallant Michelle
Published: January 2008

In November 1998, the Home Office Working Group on Confiscation, a group convened in 1990 to monitor the operation of confiscation and money‐laundering legislation, released its third report, a comprehensive examination of the confiscation and money‐laundering control regimes in England and Wales. The report recommends numerous changes, some of which fill gaps in the present framework and others that radically alter the methods deployed to ensure that criminal profits do not lie secure in the hands of their owners. Previous reports heavily influenced subsequent legislative developments so it is anticipated that this document foreshadows the legislative course to be pursued by the Labour Government in the near future.
A Perspective on International Organised and Economic Crime from Interpol
Authors: Kendall Raymond
Published: January 2008

It has been said many times that the criminal has no boundaries, and that is true, more than ever before, now that technology is opening up the world in a manner that we could not have dreamed of 10 or 20 years ago.
Denial of Service Attacks: Threats and Methodologies
Authors: Overill Richard E.
Published: January 2008

SCOPE AND DEFINITIONS The provision of any service requires the utilisation of resources. In a digital context these resources might be processor cycles, memory capacity, disk space or communications bandwidth. A Denial of Service (DoS) attack implies either the removal of those resources by some external event or their pre‐emption by a competing process; this should be understood to include rerouting or replacing a service. The sole objective of a DoS attack is thus to prevent the normal operation of a digital system in the manner required by its customers and intended by its designers. As such, DoS attacks on the mission‐critical or business‐critical infrastructure systems of financial, commercial or other enterprises offer the potential for sabotage, blackmail or extortion operations.
Secretary of State for Trade and Industry v Baker and Others
Authors: Sarker Rinita
Published: January 2008

Discovery and inspection of documents are not only the primary investigative tools of any litigator but are also crucial to ensuring fair play between fighting litigants. Access to documents has traditionally only excluded those documents covered by litigation privilege. However, the recent case of Secretary of State for Trade and Industry v Baker and Others [1998] 1 All ER 673 constitutes a marked departure from the established view of litigation privilege and the categories of document protected by that privilege.
Duty of Employers to Disclose Breaches of Contracts: BCCI v Ali and Others
Authors: Jaffer Masooma
Published: January 2008

In BCCI v Ali, the court was faced with the question whether an employer is under a duty to disclose breaches of contract where they may give rise to risks to the physical, financial and psychological welfare of the employee.
Regulatory Challenges Posed by Investor Protection
Authors: Mahmood Shiraz
Published: January 2008

This paper considers the recent evolution of the British regulatory system and discusses what, in the author's opinion, may become some of the challenges that face regulators, thus ultimately affecting the effectiveness of investor protection, as we move into a new millennium. However before examining the aforementioned matters it is worth considering the bases for investor protection and how it benefits financial markets.
Canada: Cooperation between Regulators and Law Enforcement
Authors: Murphy Daniel P.
Published: January 2008

‘The fight against financial crime is one of the major challenges of our times. We emphasise that, as both financial services and crime become increasingly globalised, this challenge can only be met if all major financial centres work together. Effective cooperation between financial regulators and law enforcement authorities at the international level is an essential element of this…
Hong Kong and the PRC: Mutual Legal Assistance — A Chinese Puzzle
Authors: Fitzpatrick David
Published: January 2008

At the stroke of midnight on 30th June, 1997 Hong Kong was returned to the People's Republic of China. China takes justifiable pride in what has to date been a smooth transition, but the government in Beijing is now confronted by a demanding reality, the need to make detailed arrangements regulating the legal ties between the Hong Kong Special Administrative Region (SAR) and the sovereign power. Not the least of the problems concern the degree and means by which mutual legal assistance in criminal matters will be made available. The puzzle for the People's Republic is that Hong Kong's dependent status begs a high degree of mutual cooperation with China, but the procedural safeguards that exist to govern Hong Kong's cooperation with third jurisdictions may not easily be used as a model: the safeguards built into the current legislation would operate to exclude the sovereign power! On the other hand, if future cooperation between Hong Kong and China is to take place without safeguards local and international confidence may suffer.
The Protection of Offshore Confidentiality: Policy Implications and Legal Trends
Authors: Antoine Rose‐Marie B.
Published: January 2008

The principle of offshore financial confidentiality is a controversial issue in offshore law. On the one hand, offshore jurisdictions view confidentiality in financial matters as an essential ingredient in the offshore industry which deserves to be protected. On the other, onshore states are increasingly hostile to confidentiality and have been willing to take drastic measures to undermine it.
Deciding to Fight Corruption
Authors: Osborne Denis
Published: January 2008

Honest people the world over have always fought corruption. ‘Everyone’, everywhere, complains about it. Now there is increasing awareness of the damage caused by corruption to the economy and to society, and a greater concern to act. This may be attributed, in part, to increasing levels of literacy and general education over the past generation, and to the increasing levels of information brought to most people in most countries over the past decade.
Policing Plastic
Authors: Watts W.A.
Published: January 2008

The adage ‘prevention is better than cure’ has merit in all areas of crime management — after all, most victims of crime would far rather not suffer from it in the first place than see it detected or cleared up after the event — and is of especial relevance to matters of fraud involving plastic money.
Antonelli v Secretary of State for Trade and Industry (1998) 1 All ER
Authors: Haines Jason D.
Published: January 2008

Mr Samuel Antonelli, the appellant, was a property agent, who accepted that he was conducting an estate agent's business in the UK until 1985. Earlier in his life he had worked in the realty business in Detroit. There in the recorder's court he was convicted in 1973 of the crime of burning real estate other than a dwelling house between 1st and 8th December, 1971, an offence contrary to Ch. 750, s. 73 of the Michigan Criminal Law Act. On 12th June he was ordered to serve between 2.5 and ten years' imprisonment for that offence. He did not serve the sentence but left for Israel and from there came to the UK. He did not return to serve his sentence.
Australia: ‘Big Bang’ — The Implications
Authors: Gilligan George
Published: January 2008

The purpose of this paper is to provide some reflections on the Australian experience of ‘Big Bang’ regulatory reform. The analysis is confined to the recent legislation passed on 1st July, 1998 and the reform processes that fuelled these regulatory innovations.
France: International Judicial Cooperation in the Fight Against Economic Crime
Authors: Pelsez Elisabeth
Published: January 2008

In an interview given to a French magazine in July 1998, the Public Prosecutor for Geneva, Bernard Bertossa, a signatory to the Geneva Appeal, made the following statement about the globalisation of financial crime: ‘I have to admit, I was far from suspecting that it had become so widespread … each year the cases of crime which we deal with in Geneva represent hundreds of millions of dollars.’ The journalist interviewing him asked: ‘How long docs it take to trace the route of funds which go around the world in a matter of moments?’ The Swiss magistrate replied, ‘if their path is complex enough it can take at least ten years or so …’
The Price of Probity
Authors: Rider Barry A.K.
Published: January 2008

When the time comes to look back at the last two decades of the 20th century, a future historian would be forgiven for thinking we were almost obsessed with organised crime, corruption and money laundering. Of course, when one considers the ignominious fall from favour of so many world leaders, in circumstances where serious corruption was at least alleged, if not self‐evident, the exposure of rampant financial malpractice in intergovernmental organisations, the penetration of entire economic and political structures by, for what of a better notion, we describe as organised crime, then perhaps our historian's impression might not be too far from the truth. Although it is possible to find the odd comment in international meetings, about the serious implications of economic crime and the like, before the 1980s, these a few and far between. Most are related to complaints from developing countries about the unwillingness of developed countries to assist in the enforcement of exchange control laws. In fact, it was not until November 1980 that the Commonwealth, an organisation or rather association of states whose justification has increasingly been based on its ability to recognise and address problems related to small and relatively fragile economies, began to concern itself, at governmental level, with the implications of what appeared to be a growth in serious economic abuse. At the Commonwealth Law Ministers' Meeting in Barbados in that year, the ministers accepted the recommendations of a report, commissioned a year earlier by the then Director of the Commonwealth Secretariat's Legal Division, Mr Kutlu Fuad, and written by the present author, which led to the instigation of a Commonwealth programme against serious economic crime. It is interesting to note that certain Commonwealth governments had expressed concern during the 1970s not so much about abusive conduct on the part of conventional criminals, but on the part of those seeking to ‘bust’ the economic sanctions that had been imposed on Rhodesia and later South Africa. Indeed, it was claimed by some that, for example, South Africa was deliberately attempting to destabilise the economies of the ‘front‐line states’ through a programme of economic sabotage and crime. In those days, there was little talk, even in such organisations as ICPO‐Interpol, about the threat of organised crime. Terrorism, whether by individuals or by state agencies, was then considered to be a matter almost beyond the remit of traditional law enforcement agencies. It was much later that most came to recognise that organised crime and terrorist organisations may well be one and the same.
Organised Crime and Corrupting the Political System
Authors: Gilligan George
Published: January 2008

There are increasing levels of concern in many countries about the threat posed by organised crime to established political structures and processes. This analysis considers some of the issues associated with the political influence of organised crime.
Internet Payment Systems and their Security Risks
Authors: Smith Russell G.
Published: January 2008

This paper examines the security risks associated with conducting commercial transactions through the use of electronic technologies such as the Internet. It will not deal with the many other problems which arise out of online commerce such as those relating to misleading and deceptive practices which create particular concerns for consumer protection agencies. Instead, it focuses on the ways in which the various electronic payment systems may be abused for fraudulent purposes.
Insider Abuse: A Plea for Criminalisation
Authors: de Graaff H.J.
Published: January 2008

Insider dealing is a young offence. The Securities and Exchange Act came into force in the US in 1934 and insider dealing was made a criminal offence in various European countries during the past 25–30 years. In 1987 the European Commission submitted to the Council a proposal for a directive to coordinate the regulations on insider dealing, which ultimately resulted in the Council Directive coordinating regulations on insider dealing (89/592/EEC). Finally, the Convention on Insider Dealing was signed in Strasbourg on 20th April, 1989.
Frauds against the Revenue
Authors: Kumar B.V.
Published: January 2008

Economists who have studied the economics of crime and other illegitimate activities have pointed out that criminals behave according to economic axioms and tend to evaluate the marginal costs and marginal benefits of such activities. Criminals, as economic agents, consider the probability of capture, conviction and penalisation as costs of the process of criminal activity. These rational individuals often recognise that these probabilities are quite low, at least in many countries, and crime occurs as a result.
Bulgaria: Combating Corruption
Authors: Kanstantinova Svetla
Published: January 2008

Corruption is one of the biggest challenges of our time. There is corruption in every country, regardless of its location on the map, and whether it is rich or poor. It is a negative phenomenon that affects everyone: it destroys public policy to its foundations, leads to misuse of resources, destabilises the foundations of even a good government, infringes on the private sector and impedes its progress. It exacerbates poverty, interferes with social and economic development and undermines the foundations of democracy. Instead of fair price, quality and innovation‐based competition, corruption promotes bribery, hinders trade and obstructs new investments.
Slovenia: Ethics and Good Governance
Authors: Stroligo Klaudijo
Published: January 2008

In any state at all regulated, by accepting a term of office, a government also undertakes to respect those basic principles on which the legal and social order of the state is founded. So, for example, in Slovenia, the president of the government and ministers, on election to the National Assembly, swear that they will respect the Constitution and the law and that they will behave in accordance with the well‐being of all citizens of Slovenia. With this apparently symbolic statement, a minister binds not only himself but the state administration as a whole.
The Mutual Evaluation Process: A Methodology of Increasing Importance at International Level
Authors: Sansonetti Riccardo
Published: January 2008

This paper describes the experience of the mutual evaluations of the Financial Action Task Force on Money Laundering (FATF) that have been carried out since 1992. It focuses on the mutual evaluation process, which is one of the cornerstones of the FATF and has proven to be the most successful element of its activities. The purpose of the mutual evaluation process is to provide a comprehensive and objective assessment of the extent to which the country in question has moved forward in implementing the 40 Recommendations — the effective measures to counter money laundering and to highlight areas in which further progress may still be required.
The Control of Insider Trading — Smoke and Mirrors!
Authors: Rider Barry A.K.
Published: January 2008

There was a time in Britain when even senior representatives of the financial services industry were prepared to be quoted in the press as expressing doubts as to whether there was anything intrinsically wrong with directors and other corporate insiders taking advantage of their better knowledge about their companies in their own investment dealings. Indeed, some even went so far as to say that this was both proper and natural. True it is that, in Britain or for that much in continental Europe, there are few, even among the groves of academia, that would have advanced the theories justifying insider dealing that Professor Henry Manne so clearly articulated in ‘Insider Trading and the Stock Market’. Nonetheless, in what was then the leading book on the law and practice of the stock market, the authors, a leading Queen's Counsel and an eminent stockbroker, expressed the view in 1972 that a stockbroker who learnt even privileged information should not allow this to operate to the detriment of his client. Having said this, Sir Winston Churchill complained that it was defamatory to assert that advantage had been taken of ‘inside information’ during the so‐called Marconi scandal in 1911, and there are comments in a report to the House of Commons by special commissioners as early as November 1696 roundly criticising promoters of over‐valued stock selling out, in the entrepreneurial fashion eloquently advocated by Professor Manne, on the basis of their privileged knowledge and position. Thus, discussion of the pros and cons of insider dealing, at least in Britain, has tended to be emotional rather than based on economic or even pseudo‐economic analysis of empirical data. Even the surveys that have been conducted on attitudes to the practice would hardly impress a statistician.
Letter of Credit Fraud
Authors: Kumar B.V.
Published: January 2008

In spite of built‐in checks and due diligence procedures adopted and implemented by governmental agencies, financial institutions and insurance companies, nothing can prevent human ingenuity from breaching those barriers in order to commit financial fraud. A recent case detected by the Directorate General of Revenue Intelligence (DRI), India, having international ramifications, is a pointer to many such frauds that might have been committed and have gone undetected for many years.
Japan and UK: The Financial ‘Big Bang’ — Lenders' Liability and Consumer Protection
Authors: Miyajima Mitsue
Published: January 2008

‘Japan's amazing ability to disappoint.’ This was the title on the front cover of the Economist, 26th September, 1998 issue. Although this referred to Japan's government's inability to solve its huge financial problems, the same may be said about its ability to materialise its much‐heralded and ambitious programme of so‐called ‘Big Bang’ financial deregulation if the reform lacks substance such as proper protective measures for consumers as well as a transparent and accountable regulatory process. ‘Free, Fair and Global’ — the three basic principles put forward by the former prime minister Ryutaro Hashimoto upon unveiling his plan to launch Big Bang on 11th November, 1996 — rings hollow to the car of those who suffered a huge financial loss due to mis‐selling of high‐risk financial products.
South Asia: Precursor Control — Current and Emerging Trends
Authors: Jayasuriya D.C.
Published: January 2008

According to UNDCP's World Drug Report published in 1997, the illicit drug industry's annual turnover is estimated to be US$400bn, roughly equivalent to 8 per cent of total international trade. The profit in the drugs business depends heavily on the availability of precursors. Only opium and cannabis — which are not as costly as heroin and some other drugs — are consumed in a relatively raw form without being chemically processed. Other drugs of abuse require precursor chemicals in their manufacture. In the case of opium, for example, a farmer will be offered only US$80 for 1 kg of opium. With the availability of chemicals, this opium will be converted, in stages, into heroin. The street value of 1 kg of heroin in the United States, for instance, is US$290,000. This staggering profit is only possible if the illicit drug industry can access the chemicals they need for the conversion.
To Disclose or Not to Disclose: If That Is the Question What Is the Answer?
Authors: Moscarino George J. , Tuell Parcher Laura , Shumaker Michael R.
Published: January 2008

The corporate disclosure decision is one of the most difficult decisions any corporation, its management and counsel will face. If a corporation learns that it or one of its employees has engaged in a fraud or crime, the corporation, through its officers and directors, must decide whether it should disclose the fraud or crime to the government and, if the decision to disclose is made, what the scope of the disclosure should be. These decisions are fraught with dangers which threaten to expose the corporation and its employees to civil and criminal liability.
‘Chinese Walls’
Authors: Grant Michael , Talbot Lorraine
Published: January 2008

The handling of conflicts of interest has become an increasingly important concern for modern professional advisers, in particular lawyers, accountants, brokers and financial advisors. This concern has become exacerbated because of the convergence of a number of factors, namely the bureaucratisation of many areas of professional advisory work, the emergence of megafirms and large national and multi‐national partnerships dealing with this work, coupled with a customer base dominated by large corporations and governments. Indeed, it is the demand of these customers that partly accounts for the emergence of larger advisory firms. However, the outcome of this process has inevitably created severe conflicts of interest problems for such conglomerate professional practices and large advisory firms, problems that they have attempted to contain through the use of what has become commonly known as Chinese walls.
A Bit of an Ending: The Bre‐X Litigation, Class Actions and the Liability of Professionals
Authors: Gallant Michelle
Published: January 2008

The notion of suing professionals — lawyers, brokers, accountants — appears to make good financial sense. It seems fiscally sensible because, while an offender may melt into the night, take up residence in a foreign haven or otherwise dissipate his assets, established professionals usually have sufficient property at their disposal to make their pursuit through the civil court economically prudent. Shareholders in the Bre‐X affair sought, through a class action, to hold analysts and stockbrokers accountable for losses sustained when the price of Bre‐X shares suddenly collapsed in 1997. A decision in late November 1999 not to appeal a ruling of an Ontario Superior Court signals but a tiny ending to a messy multi‐million‐dollar scandal and to the quest to attach responsibility to a group of professionals. It is a tiny ending because it was the individualistic character of the legal issues in the context of the exigencies of the Ontario legislation, rather than the merits of the underlying claim, that foreclosed this attempt to hold professionals liable for financial losses.
China: Responsibilities of the Procuratorate and the Necessity for Cooperation in Combating Economic Crime
Authors: Yu‐Zhong Dai
Published: January 2008

China is a developing country. It is establishing a socialist market economy in a country with a socialist legal system. Since the start of the adoption of reform policy and of being open to the outside world, China has made remarkable advances under the guidance of Deng Xiaoping's theories. At a time when the country has devoted its efforts to economic construction and development, great attention has been paid to building a socialist democracy and a legal system that lays great emphasis on anti‐corruption and a clean government, combating economic crime and meting out punishment to offenders. In recent years, mechanisms have been put in place for punishing corruption, in which each government department takes responsibility for its own behaviour. There has been, therefore, excellent cooperation between different departments in the fulfilment of their function and in combating internal economic crime, resulting in a move towards corruption‐free government.
Israel: Money Laundering: At the Crossroads
Authors: Harpaz Guy , Colombo Sylviane
Published: January 2008

The lucrative enterprise of money laundering, the threat it poses to the integrity and stability of financial sectors as well as to the democratic societies themselves, and the means to counteract it, all have long been the object of academic debate across the globe. However, interested parties in Israel, such as law enforcement agencies, banks and legal scholars, have not played a vociferous role in this debate, and Parliament for its part has refrained so far from introducing anti‐money‐laundering legislation. Recently a Bill entitled ‘Prohibition of Money Laundering’ (‘the Bill’) has been introduced to the Israeli Parliament. The Bill has passed first reading, and it is cur‐rently being debated in the committee stage before being brought to second and third readings. It is not unlikely that the Bill will crystallise into legislation in the near future. The proposed legislation bears far‐reaching legal, economic and policy implications. It is thus surprising that it has not sparked off an extensive debate in the legal literature. This paper will, hopefully, aid in stimulating such a debate.
Japan: Yakuza and Economic Crime in the USA
Authors: Karim Nadim
Published: January 2008

The debate on taking ‘the profit out of crime’ in most countries has been linked to an increasing recognition of the threat to national and international stability represented by organised crime groups. These groups, in so far as their goal is financial gain, are businesses and are therefore often structurally and operationally able to take full advantage of services provided by other groups or on occasion work with such through an associated or integrated strategy. One of the most lethal organised crime groups in this respect are the Yakuza, or ‘Boryukudan’. The sum total of their criminal activity produces an annual yield of countless millions through various ‘activities’ including money laundering and corporate blackmail. The majority of these activities are carried out by centralised organisations capable of operating through a host of jurisdictions. It has become quite evident, particularly with respect to the last 15 years, that the Yakuza have been able to obtain a powerful ‘stranglehold’ over the economic sectors in several different countries. It will be the purpose of this paper, therefore, to analyse the severity of this impact with particular respect to the situation in the USA and Japan. With the advent of an ever diversifying global marketplace, the opportunities seem endless. And the ‘nightmare’ for law enforcement agencies has just begun.
Regulating against White‐Collar Crime in the Financial Services Sector
Authors: Gilligan George P.
Published: January 2008

As the forces of globalisation gather pace, national economics are becoming more internationalised and interdependent, and the power of individual nation‐states is being diminished in relative terms. Increasingly, individual countries are less able to control their national economics. One consequence of these developments is that regulatory structures and processes are becoming more internationalised and a variety of modes of global governance is emerging. These shifts in regulatory power are apparent in the growing influence of bodies such as the Basle Committee on Banking Supervision (BCBS); the Financial Action Task Force (FATF); the International Organisation of Securities Commissions (IOSCO); the Organisation of Economic Cooperation and Development (OECD); and the World Trade Organisation (WTO). Similar shifts are facilitated through networks of specific agreements between professional and industry associations, and state‐sanctioned self‐regulatory organisations (in particular through Memoranda of Understanding — MoUs). However, although there is a trend towards growing regulatory harmonisation, different national and cultural influences impact upon national systems of regulation, and in international contexts these values may conflict. Given these developments, it is becoming increasingly important to understand how regulatory structures and standards function in different countries. Two elements that are constant in nearly all jurisdictions are the acknowledgement of public‐interest concerns in regulatory systems and the need for compliance with regulatory standards. This paper considers the issue of regulating against white‐collar crime in the financial services sector in the contexts of promoting regulatory compliance and the representation of notions of the public interest.
Fighting Public Officer and Corporate Crimes
Authors: Acquaah‐Gaisie Gerald
Published: January 2008

‘Public officials’ are those who hold positions of responsibility and trust in a country, including politicians and top civil servants. Article 1 of the UN Code of Conduct for Public Officials 1996 states that a public office implies:
The Sovereignty of Fraud and the Fraud of Sovereignty: OLAF and the Wise Men
Authors: Tupman Bill
Published: January 2008

This paper discusses the politicisation of fraud within the European Union and continues the author's scries on fraud, supranational investigative arrangements and cross‐border crime. During 1999, the fight against European Community budget fraud became a controversy of central importance within the European Union. This was not because such fraud is wide‐spread, but because as a criminal offence of an all‐European nature it was the point of least resistance from which to construct a European criminal code and a European FBI. During 1998 the corpus juris was proposed as the proto‐criminal code and the next stage in the fight against fraud. This situated the anti‐fraud strategies debate into the conflict between member states and the Commission's alleged agenda for a European superstate. Moreover, with European parliamentary elections approaching, nationalists and Eurosceptics had an interest in exaggerating the problem of fraud in order to depict central European institutions as wasteful and corrupt as well as a threat to the nation‐state. Although since the introduction of the doctrine of subsidiarity, national sovereignty is a fraud in the European context, fraud is also a sovereign issue.
Financial Services Regulation and Liability of Corporations
Authors: Png Cheong Ann
Published: January 2008

The spectacular performance of the US financial market in recent years, the financial crises in South‐East Asia and Russia and the collapse of one of the most established merchant banks in the world are landmark events in economic history that have prompted concerns around the globe. The advent of the information age and globalisation means that the consequences of these events are felt more readily and extensively than ever before. Sustainability of financial growth and avoidance of future crises raise questions with a common denominator — good governance. With one of the principal financial centres in the world, it is trite to suggest that the need for good governance in the UK cannot be overstated. Protecting investors against abusive and fraudulent practices in the financial services industry has always assumed great importance. Since its emergence as an international financial and trading centre in the 13th century, the City of London has consistently emphasised the values of market confidence and integrity. In the Financial Services and Markets Bill, which is currently being read in Parliament, it is stated that its object is to maintain confidence in the financial markets, to promote public awareness and understanding, to secure an appropriate degree of protection for consumers through recognising the different degree of risks involved in different transactions and the different degrees of expertise and experience of different consumers, and to reduce the extent to which financial undertakings are used for the furtherance of financial crime.
Where Does Advocacy End and Obstruction Begin?
Authors: Silets Harvey L. , Overbey Daniel L.
Published: January 2008

‘Even in the very few instances where the accused has intrusted his defender with a full confession of his crime, we hold it to be clear that he may still be lawfully defended. The guilt of which he may be conscious, and which he may have so disclosed, he has still a right to see distinctly proved upon him by legal evidence … Human beings are never to be run down like beasts of prey, without respect to the laws of the chase.’
The Struggle Against Corruption — A Comparative Analysis
Authors: Haynes Andrew
Published: January 2008

The struggle against corruption is not an area where any state has had a sufficiently high success rate to become complacent, particularly when bearing in mind the evidence of the scale on which such crimes are being committed. This lack of success applies in terms of both the number of prosecutions brought and, at least in those states where the burden of proof rests on the state, the success rate in attaining successful prosecutions. Particular problems arise for developing countries. This paper considers reasons for the increase in the scale of the problem, and the steps a developing country will need to consider in terms of staff and institutional development, in addition to changes in its criminal and civil law. By comparison, it also looks at successful developments in developed countries that highlight approaches to the problem which may have an impact if used elsewhere.
Liability in Defamation and Negligence Following Breach of Bank Secrecy
Authors: Latimer Paul
Published: January 2008

Laws regulating securities markets such as the Securities and Exchange Commission laws in the USA, the Financial Services and Markets Act 1999 (UK), the Australian Corporations Law and the Australian Securities and Investments Commission Act 1989 (Commonwealth) (hereafter ASIC Act) and their parallels around the world seek to achieve market integrity, investor confidence and an informed market as a result of disclosure of information relevant to the market. These laws should result in the efficient operation of the market and a competitive market. They aim to ensure that the market reflects the forces of genuine supply and demand, and that imperfections in the market such as fraud, or mismatch or non‐disclosure of information, are corrected.
Nigeria: Confiscation of the Proceeds of Corruption
Authors: Olaleye‐Oruene T.O.
Published: January 2008

The eradication of corruption is feasible only through the confiscation of the proceeds of corruption. This could be achieved through the joint efforts of national governments, the international community and with the political will in the North. In this paper, it is proposed that zero tolerance to corruption by municipal reforms and international cooperation, could be demonstrated by confiscation of the proceeds of corruption, the billions of dollars illegally kept abroad through money laundering by kleptocrats. The proceeds of corruption should be monitored and policed by an international organisation like the International Criminal Tribunal. The body would avert the disappearance of the money into the black holes of foreign private accounts.
Singapore: New Insider Trading Legislation
Authors: Chandran Ravi
Published: January 2008

Hitherto, perhaps the most striking gap in Singapore's insider trading legislation has been the lack of effective civil remedies for insider trading. This and several other issues have been addressed in the recent Securities Industry (Amendment) Bill 1999, which came into effect in February 2000.
South Africa: Money Laundering — The Duty to Report under the Law
Authors: Itzikowitz A.
Published: January 2008

Money laundering in South Africa received legislative attention as recently as 1992. The advances in technology and particularly electronic funds transfers brought a dramatic increase in organised crime. Furthermore, with its return to the international arena, South Africa was becoming increasingly attractive for drug traffickers, not only as a transit destination but also as an end destination. This paper gives a historical overview of the legislation dealing with money laundering, focusing particularly on the duty to report.