Convention on laundering,search, seizure and confiscation of the proceeds from crime

Convention on laundering, search, seizure and confiscation of the proceeds from crime     

The United Kingdom threat assessment of serious organised crime

The United Kingdom Threat Assessment describes and assesses the threats posed to the UK by serious organized criminals and considers how those threats may develop in the future.     

Fueling global crime: the mechanics of money laundering

Money laundering has been practiced in one form or another for thousands of years, dating back well before the birth of Christ, when highly motivated merchants moved their wealth beyond the confiscatory grasp of local rulers. Only in the recent past was the name ‘money laundering’ given to this financial hocus‐pocus. Popularly believed to have derived from Mafia ownership of Laundromats through which an endless stream of cash generated by extortion, prostitution and gambling flowed, ‘money laundering’ did not attract serious interest until the 1980s, and even then it fell primarily within a drug trafficking context. The phenomenon has pushed its way into the public consciousness as a mechanism used not only by traditional ‘underworld’ organizations, but some corporate and financial sector entities as well as individuals. Perhaps the events of 11 September 2001 did more to change the perception of money laundering as public discourse is now focused on methods used by terrorists to secure financing for their nefarious deeds. In point of fact, transnational criminality generally is exploding on a global level and money laundering is the lynchpin of their success. This article presents an overview summary of basic money laundering methods and is meant to help lay the foundation for further exploration.     

Chinese organized crime and situational context: comparing human smuggling and synthetic drugs trafficking

This article criticizes the ‘ethnic’ conception of organized crime and puts forward an alternative view that does not put ethnicity first, but rather social networks and situational context. It focuses upon Chinese organized crime, a phenomenon where the preoccupation with ethnicity is paramount, and compares findings from extensive research into two different transnational criminal activities that are carried out by Chinese offenders in the Netherlands. The first topic, human smuggling, is well researched, whereas research into the second topic, trafficking in precursors (the basic ingredients for the production of synthetic drugs), is largely lacking. The article highlights the major theoretical and empirical similarities and differences between these two criminal activities and discusses the relevance of the main findings for theory and research.     

Money laundering laws as a political instrument: the social cost of arbitrary money laundering enforcement

The paper explains the reasons for modern money laundring legislation, namely to reduce the incidence of certain primary offences. Whereas enactment and effectuation of this legislation is costly, its postive effects typically materialize in other jurisdictions (positive external effects). The paper shows that international covenants seek to give direct incentives to overcome the possible underprovision in anti-money laundering legislation and enforcement. The paper also shows how, in such an international context, anti-money laundering legislation can be easily misused as a political weapon in the cross-border fight against "unwanted individuals" and gives concrete examples for such an arbitrary enforcement.

The judicial review of legislation in the United Kingdom: a public choice analysis

The Human Rights Act 1998 unprecedentedly enabled the senior courts in the United Kingdom to review parliamentary enactments for compatibility with the European Convention on Human Rights. This article seeks to analyze within the framework of public choice economics two phenomena arising from this development that are counterintuitive: What made Parliament voluntarily invite the judiciary to monitor its acts? Why has Parliament consistently complied with rulings of the Judicial House of Lords that challenged primary legislation over the last 10 years? It argues that the Act was designed in a way that fulfilled the electoral commitments of the enacting majority by supplying promised policies to its constituencies, while minimizing agency costs and information problems in favor of Parliament’s corporate interests. Significantly, the Act left intact the veto powers of Parliament and the European Court of Human Rights in Strasbourg. As such, it disincentivized the Judicial House of Lords to risk costly overturns of its rulings by Parliament for straying too far from the range of the ideal policy positions spanned by Parliament and Strasbourg. Drawing from the empirical evidence of the past decade, it will be shown that in nearly all cases the Law Lords have either upheld the compatibility of challenged statutes, reaffirmed parliamentary preferences, or followed the jurisprudence of the Strasbourg Court.     

Sex crime legislation: Proactive and anti-therapeutic effects

Therapeutic jurisprudence may have its major role within law practice, but analysis of the law from a therapeutic perspective is a task that should not be neglected; how a piece of legislation is designed and formulated certainly influences the therapeutic outcome of a legal process. This article uses sex legislation as an example to demonstrate how the old rape law based on coercion has anti-therapeutic effects on rape victims. If the law requires resistance, it implies that a woman is sexually available until she resists physically, resulting in an attitude that a woman reporting rape without injuries should be mistrusted. This mistrust of the victim and the victim's attendant feelings of self-blame aggravate the victim's trauma. On the other hand, a modern rape law based on lack of consent gives the signal that a woman is not available until she has given her consent, resulting in a different starting position for the investigation. Since the will of the victim must be respected, the victim herself must be respected in the legal process. Furthermore, being able to tell one's story in a respectful atmosphere can be more important for the well-being of the victim than the outcome of the reported case.     

Organized crime,money laundering and legal economy: theory and simulations

This paper proposes a dynamic model to simulate the relationships between the profits of organized crime, money laundering and legal investments. We develop a macro framework in which organized crime can increase its possibilities to invest in the legal sector by resorting to effective but costly money laundering schemes. The model explores the conditions under which the effectiveness of money laundering causes a positive trend in the legal assets owned by the criminal organizations. We use the model to simulate the total amount of legal wealth generated by organized crime through drug trafficking in different world regions, with particular attention to Europe.     

Extra-territorial money laundering legislation: criminal sanction,deterrence, and the African PEP

Many of the provisions of the major international conventions on money laundering concluded by Western-dominated international agencies have rightly metamorphosed into anti-money laundering domestic criminal legislation in several African countries. It is the contention of this paper that this development has happened only haphazardly, and it has been mainly at the prodding of Western financial institutions and donor agencies. African leaders themselves have shown little enthusiasm for the raft of legislations being encouraged (and in many cases enacted) as useful tools in prosecuting cases of money laundering involving politically exposed persons (PEPs). It is further contended that the reason for this antipathy lies in the fact that although these legislations have been construed on universal principles, they have ipso-facto, been construed outside the socio-legal context of the African PEP.