Money laundering
Money laundering refers to the process of concealing the source of legally and illegally and grey area obtained monies.
The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount of money laundered, either worldwide or within their national economy. In 1996 the International Monetary Fund estimated that two to five percent of the worldwide global economy involved laundered money. However, the Financial Action Task Force on Money Laundering (FATF), an intergovernmental body set up to combat money laundering, admitted that “overall it is absolutely impossible to produce a reliable estimate of the amount of money laundered and therefore the FATF does not publish any figures in this regard”.[1] Academic commentators have likewise been unable to estimate the volume of money with any degree of assurance.[2]
Regardless of the difficulty in measurement, the amount of money laundered each year is in the billions (US dollars) and poses a significant policy concern for governments.[2] As a result, governments and international bodies have undertaken efforts to deter, prevent and apprehend money launderers. Financial institutions have likewise undertaken efforts to prevent and detect transactions involving dirty money, both as a result of government requirements and to avoid the reputational risk involved.
Computer crime
Computer crime refers to any crime that involves a computer and a network.[1] The computer may have been used in the commission of a crime, or it may be the target.[2] Netcrime refers to criminal exploitation of the Internet.[3] Cybercrimes are defined as: “Offences that are committed against individuals or groups of individuals with a criminal motive to intentionally harm the reputation of the victim or cause physical or mental harm to the victim directly or indirectly, using modern telecommunication networks such as Internet (Chat rooms, emails, notice boards and groups) and mobile phones (SMS/MMS)”.[4] Such crimes may threaten a nation’s security and financial health.[5] Issues surrounding this type of crime have become high-profile, particularly those surrounding cracking, copyright infringement, child pornography, and child grooming. There are also problems of privacy when confidential information is lost or intercepted, lawfully or otherwise.
Internationally, both governmental and non-state actors engage in cybercrimes, including espionage, financial theft, and other cross-border crimes. Activity crossing international borders and involving the interests of at least one nationstate is sometimes referred to as cyber warfare. The international legal system is attempting to hold actors accountable for their actions through the International Criminal Court.
White-collar crime
The term white-collar crime only dates back to 1939. Professor Edwin Hardin Sutherland was the first to coin the term, and hypothesize white-collar criminals attributed different characteristics and motives than typical street criminals. Mr. Sutherland originally presented his theory in an address to the American Sociological Society in attempt to study two fields, crime and high society, which had no previous empirical correlation. He defined his idea as “crime committed by a person of respectability and high social status in the course of his occupation” (Sutherland, 1949). Many denote the invention of Sutherland’s idiom to the explosion of U.S business in the years following the Great Depression. Sutherland noted that in his time, “less than two percent of the persons committed to prisons in a year belong to the upper-class.” His goal was to prove a relation between money, social status, and likelihood of going to jail for a white-collar crime, compared to more visible, typical crimes. Although the percentage is a bit higher today, numbers[which?] still show a large majority of those in jail are poor, “blue-collar” criminals, despite efforts to crack down on white-collar, and corporate crime. The introduction of white-collar crime was a relatively new issue to criminology at that time. He was urging other criminologists to stop focusing on the socially and economically disadvantaged. The types of individuals who committed these crimes lived successfully and were respected by society in general-also criminologists; because these criminals were held to such a high regard, these individuals were given a blind eye to the crimes they committed.
Other fiscal laws were passed in the years prior to Sutherland’s studies including antitrust laws in the 1920s, and social welfare laws in the 1930s. After the Depression, people went to great lengths to rebuild their financial security, and it is theorized this led many hard workers, who felt they were underpaid, to take advantage of their positions.
Much of Sutherland’s work was to separate and define the differences in blue collar street crimes, such as arson, burglary, theft, assault, rape and vandalism, which are often blamed on psychological, associational, and structural factors. Instead, white-collar criminals are opportunists, who over time learn they can take advantage of their circumstances to accumulate financial gain. They are educated, intelligent, affluent, confident individuals, who were qualified enough to get a job which allows them the unmonitored access to often large sums of money. Many also use their intelligence to con their victims into believing and trusting in their credentials. Many do not start out as criminals, and in many cases never see themselves as such.[1]