Criminal Capital

A “Great Evil”

At first glance, money laundering may appear to be a bloodless crime. Unlike murder or theft, it seemingly has no victims. Some nations don’t even criminalize money laundering. On further inspection, however, money laundering stands out as a crime that aids and abets nefarious activity around the globe. Drug traffickers are only one of the criminal groups who launder money in the international finance system. Despots, terrorists, pirates, pornographers, hackers, sex traffickers and identity thieves, among others, all try to make their ill-gotten gains appear legitimate.

Criminals typically need the help of savvy lawyers and bankers. Their dirty money often lands on the balance sheets of large banks. The United States vigorously pursues money laundering as a crime. In 2009, the US government fined UBS $780 million for facilitating crime. In 2013, Wegelin & Co., Switzerland’s oldest private bank, shut its doors after pleading guilty to aiding tax evasion. The British government replaced its Financial Services Authority (FSA) with the Financial Conduct Authority (FCA) on suspicion that the FSA was a “watchdog that didn’t bark.”

Washing Dirty ...