SUB Hamburg

B/121195

Combating MoneyLaundering and TerrorismFinance: Past and CurrentChallenges

Edited by

Navin BeekarryInternational Anti-Money Laundering, Corruption and Asset Recovery Expertand Doctor of Juridical Science Candidate, International FinanceGeorge Washington University School of Law, USA

An Elgar Research CollectionCheltenham, UK • Northampton, MA, USA

Contents

Acknowledgements ixIntroduction Navin Beekarry xiii

PART I RISK-BASED APPROACH TO COMBATING MONEYLAUNDERING/TERRORISM FINANCING

1. Lucia Dalla Pellegrina and Donato Masciandaro (2009), 'The Risk-Based Approach in the New European Anti-Money LaunderingLegislation: A Law and Economics View', Review of Law andEconomics, 5 (2), 931-52 3

2. David Chaikin (2009), 'Risk-Based Approaches to CombatingFinancial Crime', Journal of Law and Financial Management, 8 (2),December, 20-27 25

3. Andrew Proctor (2005), 'Supporting a Risk-Based Anti-MoneyLaundering Approach Through Enforcement Action', Journal ofFinancial Regulation and Compliance, 13 (1), 10-14 33

4. Dionysios S. Demetis and Ian O. Angell (2007), 'The Risk-BasedApproach to AML: Representation, Paradox, and the 3rd Directive',Journal of Money Laundering Control, 10 (4), 412-28 38

5. Louis de Koker (2009), 'Identifying and Managing Low MoneyLaundering Risk: Perspectives on FATF's Risk-Based Guidance',Journal of Financial Crime, 16 (4), 334-52 55

PART II THE ANTI-MONEY LAUNDERING/COMBATING TERRORISMFINANCING INTERNATIONAL STANDARDS: COMPLIANCEISSUES

6. Navin Beekarry (2011), 'The International Anti-Money Launderingand Combating the Financing of Terrorism Regulatory Strategy: ACritical Analysis of Compliance Determinants in InternationalLaw', Northwestern Journal of International Law and Business, 31(1), January, 137-93 77

7. Andrew Haynes (2008), 'Money Laundering: From Failure toAbsurdity', Journal of Money Laundering Control, 11 (4), 303-19 134

8. Jackie Johnson (2008), 'Third Round FATF Mutual EvaluationsIndicate Declining Compliance', Journal of Money LaunderingControl, 11 (1), 41'-66 151

9. Robin Sykes (2007), 'Some Questions on the FATF 40+9 and theMethodology for Assessing Compliance with the FATF 40+9Recommendations', Journal of Banking Regulation, 8 (3), May,236-43 171

Combating Money Laundering and Terrorism Finance: Past and Current Challenges

. 10. Jackie Harvey (2008),'Just How Effective is Money LaunderingLegislation?', Security Journal, 21 (3), July, 189-211 179

* 11. J.C.Sharman (2009), 'The Bark is the Bite: InternationalOrganizations and Blacklisting', Review of International PoliticalEconomy, 16 (4), October, 573-96 202

12. Joras Ferwerda (2009), 'The Economics of Crime and MoneyLaundering: Does Anti-Money Laundering Policy Reduce Crime?',Review of Law and Economics, 5 (2), 903-29 226

13. Richard K. Gordon (2011), 'Losing the War Against Dirty Money:Rethinking Global Standards on Preventing Money Laundering andTerrorism Financing', Duke Journal of Comparative andInternational Law, 21,503-65 253

PART III THE INTERNATIONAL ANTI-MONEY LAUNDERING ANDCOMBATING TERRORISM FINANCING REGULATION14. Eleni Tsingou (2005), 'Global Governance and Transnational

Financial Crime: Opportunities and Tensions in the Global Anti-Money Laundering Regime', Centre for the Study of Globalisationand Regionalisation Working Paper No. 161/05, May, University ofWarwick, 1-25 319

15. Rainer Hiilsse and Dieter Kerwer (2007), 'Global Standards inAction: Insights from Anti-Money Laundering Regulation',Organization, 14 (5), September, 619-36 344

16. Barry A.K. Rider (2003), 'Financial Regulation and Supervisionafter 11th September, 2001', Journal of Financial Crime, 10 (4),336-58 362

17. John Christensen (2007), 'The Long and Winding Road: TacklingCapital Flight and Tax Evasion', paper prepared for the seminarMoney Laundering, Tax Evasion and Financial Regulation,Transnational Institute, June 12-13, April, 1-22 385

18. J.C. Sharman (2008), 'Power and Discourse in Policy Diffusion:Anti-Money Laundering in Developing States', InternationalStudies Quarterly, 52 (3), September, 635-56 407

19. Monica Serrano and Paul Kenny (2003), 'The InternationalRegulation of Money Laundering', Global Governance, 9 (4),October-December, 433-39 429

PART IV THE ECONOMICS OF MONEY LAUNDERING20. Peter J. Quirk (1997), 'Macroeconomic Implications of Money

Laundering', Trends in Organized Crime, 2 (3), Spring, 10-14 43921. Donato Masciandaro (1999), 'Money Laundering: the Economics

of Regulation', European Journal of Law and Economics, 7 (3),May, 225-40 444

Combating Money Laundering and Terrorism Finance: Past and Current Challenges

22. Peter Reuter and Edwin M. Truman (2004), 'How Much Money isLaundered?', in Chasing Dirty Money: The Fight Against MoneyLaundering, Chapter 2, Washington, DC: Peterson Institute forInternational Economics, 9-24, references 460

23. John Walker and Brigitte Unger (2009), 'Measuring Global MoneyLaundering: "The Walker Gravity Model'", Review of Law andEconomics, 5 (2), 821-53 478

24. Jim Thomas (1999), 'Quantifying the Black Economy:"Measurement Without Theory" Yet Again?', Economic Journal,109 (456), June, F381-F389 511

25. Richard K. Gordon (1999), 'Anti-Money-Laundering Policies:Selected Legal, Political, and Economic Issues', in CurrentDevelopments in Monetary and Financial Law, Volume I, Chapter15, Washington, DC: International Monetary Fund, 405-19 520

PART V THE INTEGRATION OF ANTI-MONEY LAUNDERING ANDCOMBATING TERRORISM FINANCING26. Bruce Zagaris (2002), 'The Merging of the Counter-Terrorism and

Anti-Money Laundering Regimes', Law and Policy in InternationalBusiness, 34(1), 45-108 537

27. Matthew Levitt (2003), 'Stemming the Flow of Terrorist Financing:Practical and Conceptual Challenges', Fletcher Forum of WorldAffairs, 27 (1), Winter/Spring, 59-70 601

28. Bias Bantekas (2003), 'The International Law of TerroristFinancing', American Journal of International Law, 97 (2), April,315-33 613

29. Richard Barrett (2009), 'Time to Reexamine Regulation Designedto Counter the Financing of Terrorism', Case Western ReserveJournal of International Law, 41 (1), 7-18 632

30. Michael Levi (2010), 'Combating the Financing of Terrorism: AHistory and Assessment of the Control of "Threat Finance'", BritishJournal of Criminology. Special Issue: Terrorism: CriminologicalPerspectives, 50 (4), 650-69 644

PART VI SECTORAL ISSUES IN ANTI-MONEY LAUNDERING ANDCOMBATING TERRORISM FINANCING31. Benton E. Gup and Navin Beekarry (2009), 'Limited Liability

Companies (LLCs) and Financial Crimes', Journal of MoneyLaundering Control, 12 (1), 7-18 667

32. J.C. Sharman and David Chaikin (2009), 'Corruption and Anti-Money-Laundering Systems: Putting a Luxury Good to Work',Governance: An International Journal of Policy, Administration,and Institutions, 22 (1), January, 27—45 67 9

viii Combating Money Laundering and Terrorism Finance: Past and Current Challenges

' 33. David J. Middleton and Michael Levi (2004), 'The Role ofSolicitors in Facilitating "Organized Crime": Situational Crime

' Opportunities and their Regulation', Crime, Law and SocialChange, 42 (2-3), 123-61 698

34. Ross S. Delston and Stephen C. Walls (2009),' Reaching BeyondBanks: How to Target Trade-Based Money Laundering and TerroristFinancing Outside the Financial Sector', Case Western ReserveJournal of International Law, 41 (1), 85-118 737

35. Samuel McSkimming (2010), 'Trade-Based Money Laundering:Responding to an Emerging Threat', Deakin Law Review, 15 (1),37-63 771

36. Peter Reuter and Edwin M. Truman (2004), 'Money Laundering:Methods and Markets', in Chasing Dirty Money: The Fight AgainstMoney Laundering, Chapter 3, Washington, DC: Peterson Institutefor International Economics, 2 5 ^ 3 , references 798