Nikos Passas

Anomie and corporate deviance

This paper elaborates on Mertons theory of anomie, while aiming at the enhancement of our understanding of processes conducive to corporate deviance. It attempts to consolidate points made by theorists operating in diverse, often considered as conflicting, orientations or perspectives. A “synthetic” or “integrated scheme” is, thus, put forward, which can help appreciate the background against which corporate deviance is likely to occur. Moreover, it is argued that contemporary societies are inherently conducive to anomic trends. Such trends bring about not only lower-class deviance and crime — to which anomie theory has been traditionally applied — but also high-class and corporate deviance. Against claims by some scholars that the former is a matter of greater concern, it is suggested that the latter is at least as serious a problem and that it has significant implications for the social order.

The thin line between legitimate and criminal enterprises: subsidy frauds in the European Community

This paper describes and analyses a large fraud against the financial interests of the European Community (EC). On the basis of this case and our interviews with officials in five EC countries, we highlight structural impediments to the control of such frauds, draw parallels with other research on organisational crime and suggest that the distinction between “organised crime” and “white-collar crime” be abandoned in favour of an “enterprise model” of crime. We conclude by pointing out that legal changes and strict controls alone cannot substantially reduce the huge potential for EC frauds, especially in view of the abolition of ECs internal borders in 1993. Antifraud policies must also address the underlying structural factors.

Migrant labor remittances in South Asia

This paper provides a strategic overview of key issues relating to the remittance industry in the South Asia region. The paper builds on recent research on remittances that prominently features the South Asia region. Rather than duplicate that work, this study focuses only on the regions distinguishing characteristics, namely: a large migrant population of semiskilled and unskilled workers largely concentrated in the Persian Gulf countries, particularly Saudi Arabia and the United Arab Emirates, contributing to rising remittance flows; the presence of dedicated public institutions and government financial incentives aimed at facilitating and providing support for temporary migration and remittance inflows; the existence of large state bank branch networks with immense potential for a more effective and efficient remittance financial market; and the widespread use of trade-related informal remittance channels by both legal and illegal migrants.

The regulation and supervision of informal remittance systems

Attempts to clamp down on the transfer of funds for terrorism following the attacks of September 11 2001 have included calls to regulate and supervise informal monetary transfer systems. This paper outlines how informal transfer systems operate, and points to the difficulties inherent in investigating and regulating them. The recent efforts on the part of the Financial Action Task Force to regulate informal remittance organizations are described. The authors argue that because there is insufficient theoretical and practical experience with formal and informal remittance regulation and supervision, international and domestic policies currently being developed should not impose an overly excessive level of regulation, which might stifle rather than promote the growth of an innovative yet accountable and transparent sector.

Indicators of hawala operations and criminal abuse

Indicates the importance of the Informal Value Transfer System (IVTS) and hawala in particular as a means whereby immigrant workers can send remittances to their home countries, and the reasons for suspecting that these systems can be used to transfer funds which support terrorist activities. Lists the indicators of IVTS activity. Lists and discusses the possible indicators of criminal abuse: different charging, recording or collection methods for some clients, some large transactions not recorded, large sums transferred daily or from a single customer, unusual or unsound transactions, and transfers to traders or companies engaged in a very different kind of business or in illegal activities. Argues that a large daily turnover may be the most important indicator, since this can indicate that money is going out one door in order to come back through the other, which means money laundering.

Setting global CFT standards: a critique and suggestions

Purpose – The purpose of this paper is to raise the question of whether the combating the financing of terrorism (CFT) arsenal following the attacks of 11 September 2001 was developed and applied too fast, to the point of being unnecessarily costly, ineffective, unfair and even counterproductive.Design/methodology/approach – An outline of two private sector contributions follows two illustrations of areas in which CFT policies may be resting on shaky assumptions, missing their targets and rendering the international community more vulnerable to extremist actions: the regulation of cross‐border fund transfers and commodities trade.Findings – Many of the control functions have been de facto outsourced to the private sector without proper guidance and accountability.Originality/value – The paper goes beyond a mere critique of current regulatory and control arrangements to suggest concrete ways in which the private sector can support the objectives of CFT policies more efficiently and productively.

Law enforcement challenges in hawala‐related investigations

Defines hawala, which in Arabic means “transfer”; what distinguishes it from other fund transfer methods is its informality, reliance on trust and networks, and lack of records. Describes how it can be used to finance terrorism and launder money, evade tax and so on. Discusses the many problems for law enforcement arising from the lack of records in hawala, or sometimes an excess of confusing records, and the mix of various businesses which tend to coexist with hawala transactions; also linguistic issues, cultural and legal or administrative differences between communities and countries, and “benami” accounts, which are false name or nominee accounts often accepted in ethnic groups that also engage in hawala. Concludes that the success of law enforcement efforts to solve cases depends on international cooperation, but that this is not always forthcoming; excessive zeal may sour working relationships, and it may not be easy even to know whether policies are working.

False Accounts: Why Do Company Statements Often Offer a True and Fair View of Virtual Reality

This article draws attention to the systematic and organised criminal acts committed by legitimate enterprises and professionals, focusing on accounting fraud. Firstly, the extent and consequences of ‘false accounting’ are considered, then a theoretical framework is outlined which focuses on structural issues commonly found in financial scandals around the world. The Gokal/BCCI fraud is summarised as a case study offering insights into the motives and modi operandi of accounting frauds. The analysis centres on theoretical and practical lessons to be learned from this case, which is placed in the context of evidence from other frauds in Europe and the USA. The article points to the importance of strains and pressures perpetrators are subject to, the rationalisations they use, the organisational culture and anomie. The author concludes with an outline of the policy implications.

Overview of Crimes and Antiquities

In 1987, grave robbers in Peru stole the largest gold object ever found from an ancient royal tomb in the archeological site of Sipan (Atwood 2004). Weighing in at just under 3 pounds, the piece was a backflap, ripped off the skeletal remains from the tomb of an important warrior–priest. Ten years later, the backflap was recovered in the parking lot of a hotel in Philadelphia as part of sting operation conducted on the part of the Federal Bureau of Investigation (FBI) (FBI 2009). The undercover agents had offered

Structural sources of international crime: Policy lessons from the BCCI Affair

1.6 million for it (Brodie et al. 2000: 15). In 1998, the backflap was finally returned to Peru and is now on display in the Museo de la Nacion in Lima (Rose 1998).