Money laundering prevention: the challenge of insurance termination for outlaw biker gangs’ club houses
| Date | 03 April 2024 |
| Pages | 1040-1050 |
| DOI | https://doi.org/10.1108/JMLC-01-2024-0003 |
| Published date | 03 April 2024 |
| Author | Petter Gottschalk |
Money laundering prevention: the
challenge of insurance
termination for outlaw biker
gangs’club houses
Petter Gottschalk
Department of Leadership and Organizational Behavior,
BI Norwegian Business School, Oslo, Norway
Abstract
Purpose –The purpose of this paper is to discuss the legal barriers to termination of an insurance
arrangementwhere there is suspicion of money laundering when payinginsurance premiums.
Design/methodology/approach –Trials in court between insurance firm and outlaw biker gangs
regardinginsurance of their clubhouses.
Findings –Protectionof insured seems more important than prevention ofmoney laundering.
Research limitations/implications –This is a case studythat cannot be generalized.
Practical implications –Anti money launderingis difficult when competing with otherconsiderations.
Social implications –Accusations of money laundering is not sufficient to terminate an insurance
contract.Rather, solid evidence is needed.
Originality/value –This is a real case of failing anti-moneylaundering efforts.
Keywords CSR, Legal license, Social license, Outlaw bikers, Courtroom, Theater
Paper type Research paper
Introduction
Violations of the corporate social license to operate can have dramatic consequences for
companies and executives. Different from the legal license to operatethat refers to
compliance with laws and regulations, the social license refers to conformance with norms
and values in society (Cui et al., 2016;Haines et al.,2022;Mel
e and Armengou, 2016;Saenz,
2019). An example of a seriousviolation is Danske Bank in Denmark in a money laundering
scandal (Bruun Hjejle, 2018;Kalnins, 2021), where the bank was heavily sanctioned and the
chief executive dismissed and suedprivately by shareholders (Bøe, 2022a,2022b;Noem
et al.,2022). No real money laundering was detected at the time that would represent
violation of the legal license. Rather, only holes in the anti-money laundering routines were
detected that represent violation of the social license. Nevertheless, the bank pleaded guilty
on violation of anti-moneylaundering regulations.
Preventing money laundering is an important challenge for financial institutions,
brokerage firms, andothers assigned with the control task by state legislatures(DutchNews,
2020;Ismail, 2022). This article presents a case study of an insurance company in Norway
that attempted to terminate insurance policies for outlaw bikers’club houses based on
suspicions that insurance premiums were paid by money from organized crime involving
drugs, weapons, extortion,assaults or arson (Beyer-Olsen, 2011;Bolstad, 2016;Kripos, 2016;
JMLC
27,6
1040
Journalof Money Laundering
Control
Vol.27 No. 6, 2024
pp. 1040-1050
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2024-0003
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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