Economic crime ‐ the financial system as a victim

Abstract

Outlines the ways in which economic crime uses the financial system to both commit the crimes and hide the proceeds, so that the ability of the financial system to create wealth is impaired by loss of trust in that system. Points out, however, that economic crime generates profits for participants in the financial system, not all completely unworthy. Gives an example of how individual institutions and a financial centre have been used for hiding ill‐gotten gains: this is Jersey, which was used by former Nigerian President General Abacha and his associates. Indicates the investigations that have been made by regulators into how financial institutions have handled the proceeds of corruption, and the ways in which the financial system can be reformed, taking the Jersey Financial Services Commission as the example.