Modulating corruption and money laundering through the Bretton Woods Institutions: the case of less developed countries (LDCs)
| DOI | https://doi.org/10.1108/JMLC-03-2021-0026 |
| Published date | 25 June 2021 |
| Date | 25 June 2021 |
| Pages | 467-480 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Ejike Ekwueme |
Modulating corruption and money
laundering through the Bretton
Woods Institutions: the case of
less developed countries (LDCs)
Ejike Ekwueme
School of Advanced Study Institute of Advanced Legal Studies,
University of London, London, UK
Abstract
Purpose –The purpose of this paper is to readily bring to the fore, the vital dimension that the
Bretton Woods Institutions, exemplified by both the International Monetary Fund (IMF) and the
World Bank, has brought into the global economic template to dampen the momentum of corruption
and money laundering through the impact of their activities in less developed countries (LDCs). The
original mandate of the two institutions was to address the balance of payments and developmental
issues of countries as a result of the devastating effects of the Second World War. However, this
could not be achieved in an atmosphere engulfed with corruption and money laundering. As a
result, it became necessary for them to intervene albeit through direct or indirect mechanisms
demonstrated by the use of soft law bodies such as Basel Committee on Banking Supervisors (BCBS)
and Financial Action Task Force(FATF).
Design/methodology/approach –This paper relies on primary legal documentations such as BCBS,
FATF, articlesof both IMF and World Bank to mention but a few in the analysis. Thepaper is doctrinal.
Findings –There is undoubtedly glaring indications that through the efforts of both IMF and the Bank,
tremendousinroad has been made in LDCs in modulating thetempo of the malaise.
Research limitations/implications –This paper is addressed to the authorities that are concerned
about the scourgeof the malaise and the impact to pay more attention tothe mechanisms of soft laws used by
the BrettonWoods Institutions to get their anti-corruptionmessage through in LDCs.
Originality/value –This lies on the fact that the efforts of both IMF and the Bank have awakened the
importancethat should be attached to some soft laws in curtailingthe issues.
Keywords Money laundering, FATF, Corruption, IMF, BCBS, Soft laws, World Bank
Paper type Research paper
Introduction
There are few fascinating and interesting issues about any inquisition concerning
corruption and money laundering.To begin with, there is presently the consensus amongst
financial crime observers which obviously is inclusive of the academia, that corruption in
whatever form it presentsitself is a negative activity and is not good for society. There is the
understanding that the term is also used to indicate bribery and it lacks a conflating
universal definition. It is also present in every country irrespective of the robust nature of
their “checks and balances”. There was a time in the past that there was this erroneous
impression that there are no victims for the crimes of corruption and money laundering.
Rationalising corruption/bribery or money laundering as victimless crimes simply
demonstrates short-sightedness of the actors in achieving personal or business goals
(Available at https://fcced.com/is-bribery-a-victimless-crime/ accessed 20/12/2020).
Corruption and
money
laundering
467
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 467-480
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2021-0026
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