Financial crimes: the constant challenge of seeking effective prevention solutions
| Published date | 10 October 2008 |
| DOI | https://doi.org/10.1108/13590790810907227 |
| Pages | 383-397 |
| Date | 10 October 2008 |
| Author | Picard Michel |
| Subject Matter | Accounting & finance |
Financial crimes: the constant
challenge of seeking effective
prevention solutions
Picard Michel
Royal Canadian Mounted Police, St Bruno, Canada
Abstract
Purpose – Financial market-related crimes seem to continually increase in number as well as in the
amount of illicit profits. This emerging situation has obliged governments and self-regulated bodies to
act aggressively on the issue. This paper provides a snapshot of the evolution timeline of financial
crimes and discussion in support of the fight against this plague.
Design/methodology/approach – Based on financial crime literature and field work.
Findings – Improvement in the expertise and degree of refinement employed by both organized
crime and criminal businessmen.
Research limitations/implications – Some information originates from confidential sources and
consequently could not be further developed.
Originality/value – Contemporary picture of the current situation. Some recommendations were
submitted to regulatory authorities who are examining and adjusting their actions accordingly.
Keywords Crimes, Financialmarkets, White collar workers,Canada
Paper type Research paper
Introduction
Enron is to financial markets what the events of September 11, 2001, were to public
safety and terrorist prevention activities. The enormous amplitude of this scandal
raised the bar of potential financial frauds. Unfortunately, the aftermath of Enron did
not seem to slow down fraudulent criminal activities as a barrage of financial crimes
just kept making the news. In the last decade, multiple frauds have involved billions of
dollars. Are we powerless before these deceitful individuals? Are we behind in terms of
knowledge, resources and tools necessary to the fight? Many, if not most, appear to
think so. Furthermore, no tangible progress has been made to balance the probability
of gaining illicit profits with the risks of being caught. Some might add that even when
caught, punishment typically remains a slap on the wrist.
Over the years, authorities have been focusing, and rightly so, on serious crimes
such as drug trafficking, contraband and organized crime. We must admit that
anything falling outside this scope did not receive much attention as resources were
limited. This was the especially the case with financial crimes. However, economic and
financial market integrity recently joined the list of priorities of governments,
especially after Enron. Obviously, one could not risk the degradation of the pillars
of its prosperity and the trust of its population. So, here we are, trying to find
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
This paper is the result of the author’s personal analysis and does not represent the views or
opinions of the RCMP or the Canadian Government. The author also acknowledges the
collaboration of Sgt Paul Garside in the redaction and review process.
Financial crimes
383
Journal of Financial Crime
Vol. 15 No. 4, 2008
pp. 383-397
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790810907227
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