Corruption and Anti-Money-Laundering Systems: Putting a Luxury Good to Work

Systems of laws, regulations, and institutions developed to counter money laundering provide powerful tools for fighting corruption. Currently, however, the potential benefits anti‐money‐laundering (AML) systems can provide in fighting corruption go largely unrealized, especially in developing countries. This mismatch poses a puzzle: Why are developing countries failing to best capitalize on their expensive AML systems by using them to fight corruption? The article is built on three core claims. The first claim is that it is logical to use AML systems for anti‐corruption purposes because of a pronounced overlap in the standards required for each and the rising costs of the former. The second section demonstrates specifically how AML systems could significantly augment anti‐corruption efforts, focusing on the importance of financial intelligence, asset confiscation, and international cooperation. Finally, although powerful outsiders have successfully diffused AML systems among developing countries, a lack of “ownership” in the latter explains why these systems are often established only as tokens to enhance international legitimacy and reputations.     

Law in South Africa and the Legitimacy Crisis

South Africa is presently confronting the possibility of a fundamental change in its political structure. In this context it is useful to consider the special character of the South African legal system and its role in the on-going legitimacy crisis in that country. This article attempts to delineate some of the principal dimensions of law and the types of legitimation issues in South Africa. It suggests that students of law and criminal justice have much to learn from the study of the South African case.     

LAW ENFORCEMENT AND THE RULE OF LAW: IS THERE A TRADEOFF?

This essay assesses whether a strong evidence‐based argument can be made to support the proposition that when police violate the rule‐of‐law they do more harm than good with respect to their collective, as well as personal, interests. The assessment is undertaken to counter the common presumption among police officers that circumstances often justify cutting legal corners in the interests of public safety. The essay first examines what research shows about the facilitators of police law breaking. It then examines seven reasons why violating the rule‐of‐law works against the instrumental interests of the police themselves. After assessing the strength of the evidence against the instrumental benefit of violating the rule‐of‐law, suggestions are made about research that is needed to make the case more compelling. In conclusion, the essay discusses how empirical knowledge might be most productively used to change the culture of contemporary policing.     

IMPROVED PERFORMANCE IN LOCAL ECONOMIC DEVELOPMENT: A WARM EMBRACE OR AN ARTFUL SIDESTEP?

This article examines the extent to which changing approaches to performance management have had an impact on a range of agencies responsible for local economic development programmes in Britain. It explores the possibility that the effectiveness of public programmes could be more sharply highlighted and incorporated in the performance review of organizations. It demonstrates that major improvements have occurred but that overall the planning and management of local economic development remains largely incremental. While the FMI (Financial Management Initiative) has led to greater understanding of the extent to which corporate and programme accountability can be achieved in public agencies, it is not clear that sufficient momentum has been achieved for future changes to be self-generating. Further progress in performance management continues to be dependent on strong external pressures to publicize, probe and reward demonstrable improvements in public sector performance.