Combating financial crime: intended and unintended consequences

This book, a product of the Financial Integrity Hub (FIH), explores the societal costs of combating financial crime and the balance between security imperatives, individual rights, and the integrity of global financial systems. It examines the ethical dilemmas and practical challenges faced by policymakers, practitioners, and the public as they navigate the evolving landscape of anti-money laundering and counter-terrorism financing (AML/CTF) regimes.

While designed to safeguard societies and economies, measures from these regimes can erode privacy, stifle legitimate activity, and exacerbate inequalities. Through analysis and real case studies, this book scrutinises the ethical and legal dilemmas arising from expanded surveillance, showing how the pursuit of security can undermine civil liberties and invite abuse. It assesses the impact of regulatory frameworks on non-profit organisations, vulnerable populations, and businesses, drawing attention to the unintended consequences of well-intentioned policies. It also examines the expanding role of technology in surveillance, raising critical questions about the future of privacy in an increasingly interconnected world. The book highlights the intersection of financial crime and environmental exploitation, demonstrating the far-reaching effects of illicit activity.

Through a global lens, it evaluates regulatory approaches including unexplained wealth orders, risk-based assessments, and emerging tools like Central Bank Digital Currencies. It exposes gaps in current frameworks, questioning whether they adequately address evolving threats of terrorist financing and complex financial crimes. By engaging with these challenges, the book calls for a more nuanced approach to financial crime control, one that protects society without undermining its core values.

Essential reading for legal professionals, policymakers, academics, law enforcement agencies, financial institutions, and anyone concerned with the global fight against financial crime, this book provides critical insights into its ethical and legal dimensions. It encourages reflection on unintended consequences and advocates for a fair, responsible, and balanced approach to safeguarding financial integrity.