Banks governance and public‐private partnership in preventing and confronting organized crime, corruption and terrorism financing
| Date | 17 July 2009 |
| Published date | 17 July 2009 |
| Pages | 199-209 |
| DOI | https://doi.org/10.1108/13590790910971757 |
| Author | Patrick Hardouin |
| Subject Matter | Accounting & finance |
Banks governance and
public-private partnership in
preventing and confronting
organized crime, corruption
and terrorism financing
Patrick Hardouin
Economic Affairs and International Security, Paris, France
Abstract
Purpose – The financial sector is critical for the effectiveness of the fight against organized
crime, corruptionand terrorism. The purpose of this paperis to discuss principles of governanceof the
sector and the complexity of the activities targeted. Its aim focuses on the need for public-private
partnership.
Design/methodology/approach – The paper is based on a definition of the strategic situation of
the financial sector, a review of basics of its governance at global and firms levels and an analysis of
activities targeted. It discusses global harmonization versus local diversity; know your customer
principle, separation of the compliance function, definition of risks; difficulties of investigation, facets
of organized crime, “follow the money” principle and terrorism; size of terrorist and organized crime
money, money laundering and terrorist financing; chain of terrorist financing (sourcing, moving
including reverse money-laundering and Hawala, storing, using funds); relationship between
organized crime and terrorism; complementary roles of informal and legal channels. This leads to the
definition of the role of states and of the financial industry and of their cooperation.
Findings – A public-private partnership is needed, based on anti-terrorism networking and a
strategy for cooperation aiming at reinforcing national and private capabilities with respect and
adaptation of the legal framework.
Research limitations/implications – Based on an in-depthinvestigation of terrorismfinancing and
links with organizedcrime, the paper does not investigatecorruption finances.
Practical implications – The paper gives a design of the practical content of a strategy for
public-private cooperation.
Originality/value – The paper provides banks andpublic agencies with an integratedanalysis of the
need for public-privatepartnership and of its content.
Keywords Banks, Corporategovernance, Corruption, Terrorism,Money laundering, Partnership
Paper type General review
The paperintroduces the matter in remindingthe strategic situationof the financial sector
in preventing and confronting corruption, organized crime and terrorism financing.
It discusses some principles of governanceof the financial sector and it elaborates on the
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
A first version of the paper has been presented at The Cambridge 26th International Symposium
on Economic Crime “Banking on trouble”, Session XIX “Governance as a frontline tool in the
prevention and control of financial crime and corruption”, Jesus College, University of
Cambridge, September 6, 2008.
Banks
governance
199
Journal of Financial Crime
Vol. 16 No. 3, 2009
pp. 199-209
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790910971757
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