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Financial institutions and money laundering: A threatening relationship?

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  • 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
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    References listed on IDEAS

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    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, January.
    3. Ellinger, E.P. & Lomnicka, E. & Hare, C., 2011. "Ellinger's Modern Banking Law," OUP Catalogue, Oxford University Press, edition 5, number 9780199232093.
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    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," Working Papers hal-03334550, HAL.
    3. Maxime Delabarre, 2021. "Interdependence Between States and Economies," SciencePo Working papers Main hal-03334550, HAL.

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