More than talk!

Citation

Hong Xing, L. (2010), "More than talk!", Journal of Money Laundering Control, Vol. 13 No. 1. https://doi.org/10.1108/jmlc.2010.31013aaa.001

More than talk!

Article Type: Editorial From: Journal of Money Laundering Control, Volume 13, Issue 1

Mr Chris Blackhurst, the City Editor, writing in the Evening Standard (Monday 7 September 2009) referred to 1,500 prosecutors, police officers, investigators and lawyers meeting “unnoticed” in Cambridge “in the quiet confines of Jesus College, Cambridge to discuss economic crime”. The Cambridge Symposium on Economic Crime now in its 27th year was established by Professor Barry Rider, to identify and address the many and varied risks thrown up not simply by the perpetration of economic crime, but also the problems that result from law enforcement and regulatory intervention. For example, the burden in terms of cost and risk that has been placed on those who mind other people's wealth, in the name of fighting money laundering, may itself have contributed to the failure of those concerned with compliance to focus on the excesses and abuses which while not causing no doubt contributed to the near collapse of the western banking system.

The selection of a theme for each symposium has been surprisingly prophetic. Last year, it was “Banking on trouble” a title selected in October 2007! This year it was “The enemy within” emphasising the risks to stability presented by insiders and those who by one means or another are able to work from within an institution or business. Notwithstanding this over arching theme and the fact that the majority of the 350 speakers and panellists to a greater or lesser degree focussed on internal and system threats, the symposium addresses in over 40 workshops, many of which convene annually, a host of issues relating to the control of financial crime and abuse. The significance of the level of discussion that takes place is underlined by the fact that the delegates and speakers, from over 90 countries, were joined by 36 ambassadors, high commissioners and heads of inter-governmental agencies. Those participating ranged from governors of central banks to under cover cops.

With such a rich tapestry, it is difficult to separate out specific issues, however, of particular interest was the issue of criminal penetration. Following the call for action by the former Chairman of the UK's FSA, the European Commission set up a study with the aid of police, intelligence and other officials in selected European Union countries to examine penetration of retail financial institutions by organised crime. While not yet published, officials from a number of jurisdictions focussed on this serious and real threat to stability and security. Of particular interest were examples provided by the City of London police of cases where organised crime had penetrated the structures and operations of businesses in Britain. Another significant issues with senior police officers claiming that the war on drugs – in most jurisdictions had been lost, was the utility and cost benefits of the panoply of regulatory and other devices that have been put in place to detect criminal wealth. Regulators from around the world discussed candidly the use of financial information and in particular its use in the disruption of organised crime and highly profitable enterprise crime. The new risks that such a strategy, place on the institutions that innocently mind other peoples money have yet to be fully appreciated, let alone addressed. In particular, the legal liabilities to third parties that may well arise when a bank of other institution co-operates with law-enforcement agencies in attempting to disrupt suspected criminal activity. That such risks are not theoretical has been evidenced by civil proceedings in a number of jurisdictions, including the UK.

The symposium does not offer solutions – this is not to say that in the corners of the proceedings, given the extraordinary facility for networking, major cases have not been identified and developed – including the BCCI. As Chris Blackhurst records in his article – “where there were 50 delegates there are now 1500” – testament enough to the relevance and importance of this unique, non-profit making enterprise.

Li Hong Xing29th September 2009