J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- book
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.001.0001
- Subject:
- Political Science, International Relations and Politics
A generation ago, not a single country had laws to counter money laundering; now, more countries have standardized anti-money laundering (AML) policies than have armed forces. This book investigates ...
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A generation ago, not a single country had laws to counter money laundering; now, more countries have standardized anti-money laundering (AML) policies than have armed forces. This book investigates whether AML policy works, and why it has spread so rapidly to so many states with so little in common. It asserts that there are few benefits to such policies but high costs, which fall especially heavily on poor countries. It tests the effectiveness of AML laws by soliciting offers for just the kind of untraceable shell companies that are expressly forbidden by global standards. The book demonstrates that it is easier to form untraceable companies in large rich states than in small poor ones; the United States is the worst offender. Despite its ineffectiveness, AML policy has spread via three paths. The Financial Action Task Force, the key standard-setter and enforcer in this area, has successfully implemented a strategy of blacklisting to promote compliance. Publicly identified as noncompliant, targeted states suffered damage to their reputation. Subsequently, officials from poor countries became socialized within transnational policy networks. Finally, international banks began using the presence of AML policy as a proxy for general country risk. Developing states have responded by adopting this policy as a functionally useless but symbolically valuable way of reassuring powerful outsiders. Since the financial crisis of 2008, the G20 has used the successful methods of coercive policy diffusion pioneered in the AML realm as a model for other global governance initiatives.Less
A generation ago, not a single country had laws to counter money laundering; now, more countries have standardized anti-money laundering (AML) policies than have armed forces. This book investigates whether AML policy works, and why it has spread so rapidly to so many states with so little in common. It asserts that there are few benefits to such policies but high costs, which fall especially heavily on poor countries. It tests the effectiveness of AML laws by soliciting offers for just the kind of untraceable shell companies that are expressly forbidden by global standards. The book demonstrates that it is easier to form untraceable companies in large rich states than in small poor ones; the United States is the worst offender. Despite its ineffectiveness, AML policy has spread via three paths. The Financial Action Task Force, the key standard-setter and enforcer in this area, has successfully implemented a strategy of blacklisting to promote compliance. Publicly identified as noncompliant, targeted states suffered damage to their reputation. Subsequently, officials from poor countries became socialized within transnational policy networks. Finally, international banks began using the presence of AML policy as a proxy for general country risk. Developing states have responded by adopting this policy as a functionally useless but symbolically valuable way of reassuring powerful outsiders. Since the financial crisis of 2008, the G20 has used the successful methods of coercive policy diffusion pioneered in the AML realm as a model for other global governance initiatives.
Brigitte Unger, Lucia Rossel, and Joras Ferwerda (eds)
- Published in print:
- 2021
- Published Online:
- February 2021
- ISBN:
- 9780198854722
- eISBN:
- 9780191888922
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198854722.001.0001
- Subject:
- Economics and Finance, International, Microeconomics
This book showcases a multidisciplinary set of work on the impact of regulatory innovation on the scale and nature of tax evasion, tax avoidance, and money laundering. We consider the international ...
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This book showcases a multidisciplinary set of work on the impact of regulatory innovation on the scale and nature of tax evasion, tax avoidance, and money laundering. We consider the international tax environment an ecosystem undergoing a period of rapid change as shocks such as the financial crisis, new business forms, scandals and novel regulatory instruments impact upon it. This ecosystem evolves as jurisdictions, taxpayers, and experts react. Our analysis focuses mainly on Europe and five new regulations: Automatic Exchange of Information, which requires that accounts held by foreigners are reported to authorities in the account holder’s country of residence; the OECD’s Base Erosion and Profit Shifting initiative and Country by Country Reporting, which attempt to reduce the opportunity spaces in which corporations can limit tax payments and utilize low or no tax jurisdictions; the Legal Entity Identifier which provides a 20-digit identification code for all individual, corporate or government entities conducting financial transactions; and the Fourth and Fifth Anti-Money Laundering Directives, that criminalize tax crimes and prescribe that the Ultimate Beneficial Owner of a company is registered. Working from accounting, economic, political science, and legal perspectives, the analysis in this book provides an assessment of the reforms and policy recommendations that will reinforce the international tax system. The collection also flags the dangers posed by emerging tax loopholes provided by new business models and in the form of freeports and golden passports. Our central message is that inequality can and has to be reduced substantially, and we can achieve this through an improved international tax system.Less
This book showcases a multidisciplinary set of work on the impact of regulatory innovation on the scale and nature of tax evasion, tax avoidance, and money laundering. We consider the international tax environment an ecosystem undergoing a period of rapid change as shocks such as the financial crisis, new business forms, scandals and novel regulatory instruments impact upon it. This ecosystem evolves as jurisdictions, taxpayers, and experts react. Our analysis focuses mainly on Europe and five new regulations: Automatic Exchange of Information, which requires that accounts held by foreigners are reported to authorities in the account holder’s country of residence; the OECD’s Base Erosion and Profit Shifting initiative and Country by Country Reporting, which attempt to reduce the opportunity spaces in which corporations can limit tax payments and utilize low or no tax jurisdictions; the Legal Entity Identifier which provides a 20-digit identification code for all individual, corporate or government entities conducting financial transactions; and the Fourth and Fifth Anti-Money Laundering Directives, that criminalize tax crimes and prescribe that the Ultimate Beneficial Owner of a company is registered. Working from accounting, economic, political science, and legal perspectives, the analysis in this book provides an assessment of the reforms and policy recommendations that will reinforce the international tax system. The collection also flags the dangers posed by emerging tax loopholes provided by new business models and in the form of freeports and golden passports. Our central message is that inequality can and has to be reduced substantially, and we can achieve this through an improved international tax system.
Sam H. Ahmedzai and Martin F. Muers
- Published in print:
- 2005
- Published Online:
- November 2011
- ISBN:
- 9780192631411
- eISBN:
- 9780191730160
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780192631411.003.0019
- Subject:
- Palliative Care, Patient Care and End-of-Life Decision Making, Pain Management and Palliative Pharmacology
This chapter examines dyspnoea associated with amyotrophic lateral sclerosis (AML). It explains that dyspnoea is a common symptom in motor neurone diseases. Opioids have been found effective in ...
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This chapter examines dyspnoea associated with amyotrophic lateral sclerosis (AML). It explains that dyspnoea is a common symptom in motor neurone diseases. Opioids have been found effective in reducing the distress of dyspnoea but non-pharmacological measures can also relieve symptoms in many cases. Non-invasive ventilation may also be considered for some patients but careful discussion with patient and family is essential.Less
This chapter examines dyspnoea associated with amyotrophic lateral sclerosis (AML). It explains that dyspnoea is a common symptom in motor neurone diseases. Opioids have been found effective in reducing the distress of dyspnoea but non-pharmacological measures can also relieve symptoms in many cases. Non-invasive ventilation may also be considered for some patients but careful discussion with patient and family is essential.
J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.003.0001
- Subject:
- Political Science, International Relations and Politics
This chapter traces the legal history of money laundering and the policies used to counter it as they have arisen over the past few decades. It first provides an overview of the main characteristics ...
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This chapter traces the legal history of money laundering and the policies used to counter it as they have arisen over the past few decades. It first provides an overview of the main characteristics of the contemporary practice of money laundering before discussing the origins as well as the structure and nature of anti-money laundering (AML) policy. The AML policy is founded on one fundamental logic: if most crime is profit driven, then lowering the profits will lower the incidence of crime. In this sense, just as money laundering is a derivative crime, by definition linked to a predicate offense, so too the ultimate object of AML policy is not to reduce money laundering as such but rather to reduce the predicate crimes like terrorism and tax evasion. This chapter also examines international cooperation in the fight against money laundering and the process of policy diffusion involved in the implementation of AML measures across the globe.Less
This chapter traces the legal history of money laundering and the policies used to counter it as they have arisen over the past few decades. It first provides an overview of the main characteristics of the contemporary practice of money laundering before discussing the origins as well as the structure and nature of anti-money laundering (AML) policy. The AML policy is founded on one fundamental logic: if most crime is profit driven, then lowering the profits will lower the incidence of crime. In this sense, just as money laundering is a derivative crime, by definition linked to a predicate offense, so too the ultimate object of AML policy is not to reduce money laundering as such but rather to reduce the predicate crimes like terrorism and tax evasion. This chapter also examines international cooperation in the fight against money laundering and the process of policy diffusion involved in the implementation of AML measures across the globe.
J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.003.0002
- Subject:
- Political Science, International Relations and Politics
This chapter examines whether anti-money laundering (AML) policy works by testing two alternative views. The first is whether AML policy has produced a major reduction in predicate crime, in line ...
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This chapter examines whether anti-money laundering (AML) policy works by testing two alternative views. The first is whether AML policy has produced a major reduction in predicate crime, in line with the logic first used to justify a “follow the money” approach (effectiveness in absolute terms). The second is whether the AML system has delivered benefits to society greater than the costs the system itself has imposed (cost-effectiveness). The chapter evaluates the effectiveness of AML policy as well as the costs and benefits of the AML system in rich countries compared with developing countries such as Barbados, Mauritius, and Vanuatu. It also considers the disconnect between standard policy prescription and local circumstances by focusing on the experience of Nauru. Finally, it assesses the effectiveness of the global AML system in dealing with corruption and kleptocracy in poorer countries.Less
This chapter examines whether anti-money laundering (AML) policy works by testing two alternative views. The first is whether AML policy has produced a major reduction in predicate crime, in line with the logic first used to justify a “follow the money” approach (effectiveness in absolute terms). The second is whether the AML system has delivered benefits to society greater than the costs the system itself has imposed (cost-effectiveness). The chapter evaluates the effectiveness of AML policy as well as the costs and benefits of the AML system in rich countries compared with developing countries such as Barbados, Mauritius, and Vanuatu. It also considers the disconnect between standard policy prescription and local circumstances by focusing on the experience of Nauru. Finally, it assesses the effectiveness of the global AML system in dealing with corruption and kleptocracy in poorer countries.
J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.003.0003
- Subject:
- Political Science, International Relations and Politics
This chapter examines whether anti-money laundering (AML) policy works using a direct test. It first considers the nature of anonymous shell companies and how they have consistently been used by a ...
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This chapter examines whether anti-money laundering (AML) policy works using a direct test. It first considers the nature of anonymous shell companies and how they have consistently been used by a wide variety of actors as the mainstay of various money-laundering schemes and related financial crimes, including tax evasion, alleged corporate bribery, drug trafficking, and arms trafficking. The centrality of this issue is further supported by a number of policy reports on money laundering. The chapter also explains the logic of the direct test, which was premised on emulating the profile of a would-be money launderer by electronically soliciting offers for anonymous shell companies and purchasing a subset of those on offer. Finally, it presents the results of the test and discusses their significance. It suggests that anonymous companies are probably the greatest single potential threat to the effectiveness of AML policy.Less
This chapter examines whether anti-money laundering (AML) policy works using a direct test. It first considers the nature of anonymous shell companies and how they have consistently been used by a wide variety of actors as the mainstay of various money-laundering schemes and related financial crimes, including tax evasion, alleged corporate bribery, drug trafficking, and arms trafficking. The centrality of this issue is further supported by a number of policy reports on money laundering. The chapter also explains the logic of the direct test, which was premised on emulating the profile of a would-be money launderer by electronically soliciting offers for anonymous shell companies and purchasing a subset of those on offer. Finally, it presents the results of the test and discusses their significance. It suggests that anonymous companies are probably the greatest single potential threat to the effectiveness of AML policy.
J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.003.0005
- Subject:
- Political Science, International Relations and Politics
This chapter examines how socialization and symbolic competition have contributed to the diffusion of anti-money laundering (AML) policy, arguing that when catalyzed by blacklisting, both mechanisms ...
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This chapter examines how socialization and symbolic competition have contributed to the diffusion of anti-money laundering (AML) policy, arguing that when catalyzed by blacklisting, both mechanisms tend to exert more pressure the more countries adopt the AML policy. It first considers developing countries' initial contact with the AML regime (excluding those blacklisted in 2000–2001) through their encounters with outreach programs conducted by international organizations. It suggests that socialization enables individuals to play an appropriate role given dominant cues. In the context of the global AML regime, the most important drivers of socialization are argued to be the evaluation process and participation in the plenary meetings of the Financial Action Task Force (FATF) and the other regional AML bodies. The chapter also distinguishes the conception of competition from that used by other scholars: competition is a manifestation of structural power that prompts symbolic responses.Less
This chapter examines how socialization and symbolic competition have contributed to the diffusion of anti-money laundering (AML) policy, arguing that when catalyzed by blacklisting, both mechanisms tend to exert more pressure the more countries adopt the AML policy. It first considers developing countries' initial contact with the AML regime (excluding those blacklisted in 2000–2001) through their encounters with outreach programs conducted by international organizations. It suggests that socialization enables individuals to play an appropriate role given dominant cues. In the context of the global AML regime, the most important drivers of socialization are argued to be the evaluation process and participation in the plenary meetings of the Financial Action Task Force (FATF) and the other regional AML bodies. The chapter also distinguishes the conception of competition from that used by other scholars: competition is a manifestation of structural power that prompts symbolic responses.
J. C. Sharman
- Published in print:
- 2011
- Published Online:
- August 2016
- ISBN:
- 9780801450181
- eISBN:
- 9780801463198
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801450181.003.0007
- Subject:
- Political Science, International Relations and Politics
This book examines why more than 180 states, large and small, rich and poor, have adopted a standard set of anti-money laundering (AML) policies, apparently without reference to local conditions. It ...
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This book examines why more than 180 states, large and small, rich and poor, have adopted a standard set of anti-money laundering (AML) policies, apparently without reference to local conditions. It considers a method based on becoming directly involved with spreading and then breaking (AML) rules, as well as the role of power in the process of policy diffusion. It also discusses AML as a key policy area seen by the G20 as a model for how to conduct global financial reform. The book argues that a large majority of states have been pressured to adopt a standard policy template by the exercise of new, indirect, but nevertheless very effective forms of global coercion. It also contends that diffusion has occurred not because it solves the problem of criminals abusing the financial system or related offenses but because AML policy is now a symbol of what all modern, progressive states must have.Less
This book examines why more than 180 states, large and small, rich and poor, have adopted a standard set of anti-money laundering (AML) policies, apparently without reference to local conditions. It considers a method based on becoming directly involved with spreading and then breaking (AML) rules, as well as the role of power in the process of policy diffusion. It also discusses AML as a key policy area seen by the G20 as a model for how to conduct global financial reform. The book argues that a large majority of states have been pressured to adopt a standard policy template by the exercise of new, indirect, but nevertheless very effective forms of global coercion. It also contends that diffusion has occurred not because it solves the problem of criminals abusing the financial system or related offenses but because AML policy is now a symbol of what all modern, progressive states must have.
Thomas K. Cheng
- Published in print:
- 2014
- Published Online:
- September 2014
- ISBN:
- 9780804789394
- eISBN:
- 9780804791625
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804789394.003.0011
- Subject:
- Law, Competition Law
This chapter discusses how the role of the state in competition is not purely a competition law issue in China. As is to be expected given the pervasive presence of the state in Chinese society, the ...
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This chapter discusses how the role of the state in competition is not purely a competition law issue in China. As is to be expected given the pervasive presence of the state in Chinese society, the issue has broader political economy implications and cannot be satisfactorily resolved until these broader issues are addressed.Less
This chapter discusses how the role of the state in competition is not purely a competition law issue in China. As is to be expected given the pervasive presence of the state in Chinese society, the issue has broader political economy implications and cannot be satisfactorily resolved until these broader issues are addressed.
Eleni Tsingou
- Published in print:
- 2014
- Published Online:
- June 2014
- ISBN:
- 9780199683963
- eISBN:
- 9780191763410
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199683963.003.0010
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter provides an overview of the role of the European Union in the emergence, consolidation and development of the governance of money laundering. In particular, it identifies three sets of ...
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This chapter provides an overview of the role of the European Union in the emergence, consolidation and development of the governance of money laundering. In particular, it identifies three sets of factors that explain the role of the European Union in the global Anti-Money Laundering (AML) regime. These are the motivation and policy content of the AML regime as driven by key states; the promotion of particular standards through global, regional, and national organizations; and the proliferation of AML practices among both regulators and the regulated. The chapter finds that European states (though no EU coalition of states) have significant influence in the shaping of global AML standards; they are also at the vanguard of the peer review process that leads to their global diffusion. At the same time, the European Commission has developed extensive expertise on AML to guide global debates and ‘translate’ the resulting rules into EU policy.Less
This chapter provides an overview of the role of the European Union in the emergence, consolidation and development of the governance of money laundering. In particular, it identifies three sets of factors that explain the role of the European Union in the global Anti-Money Laundering (AML) regime. These are the motivation and policy content of the AML regime as driven by key states; the promotion of particular standards through global, regional, and national organizations; and the proliferation of AML practices among both regulators and the regulated. The chapter finds that European states (though no EU coalition of states) have significant influence in the shaping of global AML standards; they are also at the vanguard of the peer review process that leads to their global diffusion. At the same time, the European Commission has developed extensive expertise on AML to guide global debates and ‘translate’ the resulting rules into EU policy.