Ritualisation and money laundering in the Swiss banking sector
| Date | 02 January 2018 |
| DOI | https://doi.org/10.1108/JMLC-04-2017-0013 |
| Pages | 89-103 |
| Published date | 02 January 2018 |
| Author | Aidan Carlin,Mark Eshwar Lokanan |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Ritualisation and money
laundering in the
Swiss banking sector
Aidan Carlin
University of Newcastle Business School, Newcastle Upon Tyne, UK, and
Mark Eshwar Lokanan
Faculty of Management, Royal Roads University, Victoria, Canada
Abstract
Purpose –This paper aims to highlight the relationship between money laundering and the patterns of
behaviourevident throughout the larger structural environmentof the Swiss banking sector. In particular, the
paper used HSBC as a prototype case of structural ritualisation to show that the normalisation of corrupt,
unethical behaviour in the bankingenvironment has shaped and influenced the behaviour and actions of the
embeddedgroup actors.
Design/methodology/approach –The paper useda contentanalysis methodological approach of media
sources to collect data.The content analysis was categorised into six core ritualised symbolicpractices (RSP)
categories–corruption, reputation, blame, ignorance,regret and criticism.
Findings –The findings revealthat the highly ranked RSPs involving corruption,reputation, blame, regret,
ignorance and criticism influence the embedded group’s patterns of behaviour,and they formed part of the
cognitivescript that dictated their behaviour andactions in the Swiss banking sector.
Practical implications –The paper added to the calls by Swiss policymakersfor amendments to Swiss
bank secrecylaws to reflect the changing landscape of international banking and finance.
Originality/value –This is the first paper of its kind to study ritualisedillegal practices related to money
launderingin the Swiss banking sector.
Keywords Money laundering, Corrupt, Illegal behaviour, Ritualization
Paper type Research paper
1. Introduction
Switzerland, a landlocked country located to the west of Central Europe, is well-known as
one of the world’s most competitive financialcentres. As it is a federal directorial republic, it
is also known as the Swiss Confederation. Federalism “describes the union of equal
governing bodies, whoseindependence is to be preserved by their very union”(Coordinating
Committee for the Presence of Switzerland Abroad, 1992). In this sense, Switzerland has
over the years ignored calls to integrate into the EU. Of late, however,banks in Switzerland
have been accused of being complicit in money laundering activities by EU authorities
(Rubenfeld, 2016), and they have been under pressure to reduce, and preferably abolish,
long-standing Swiss banking confidentiality rules. HSBC, in particular, has been accusedof
having severe “organisational deficiencies”which “have allowed money laundering to take
place in the bank’s Swiss subsidiary”(Garside, 2015, paragraph 1).
The objective of this article is to researchthe heavily debated topic of money laundering
in the Swiss banking sector. We particularly focus on the contextual features surrounding
an embedded group of actors and the banking culture that seems to have neutralised and
Ritualisation
and money
laundering
89
Journalof Money Laundering
Control
Vol.21 No. 1, 2018
pp. 89-103
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-04-2017-0013
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
To continue reading
Request your trial