A Theory of "Crying Wolf": The Economics of Money Laundering Enforcement, 2007-2081. sayılarInternational Monetary Fund, Western Hemisphere Department, 2007 - 54 sayfa The paper shows how excessive reporting, called "crying wolf", can dilute the information value of reports. Excessive reporting is investigated by undertaking the first formal analysis of money laundering enforcement. Banks monitor transactions and report suspicious activity to government agencies, which use these reports to identify investigation targets. Banks face fines should they fail to report money laundering. However, excessive fines force banks to report transactions which are less suspicious. The empirical evidence is shown to be consistent with the model's predictions. The model is used to suggest implementable corrective policy measures, such as decreasing fines and introducing reporting fees. |
İçindekiler
Introduction | 4 |
Solving the Model | 13 |
Comparative Statics | 22 |
Telif Hakkı | |
2 diğer bölüm gösterilmiyor
Sık kullanılan terimler ve kelime öbekleri
action set AmSouth Bank auditing auditors bank monitors bank reports Banking Secrecy Act best is implementable caused by money comparative statics Corollary 9 Criminal Earnings crying wolf problem decrease defensive medicine disclosure economic equation equilibria are implemented excessive reporting false negatives FinCEN fines F formally Furthermore government investigation high signal higher I₁ IC₁ II(M implemented with fines implies increased fines Information Laffer curve Intuitively investigation effort kľ² laundering is prosecuted law enforcement likelihood of money low signal material transactions maximal optimal money laundering enforcement money laundering volumes monitoring and reporting number of reports prior probability probability of money product information proof of Proposition prosecuting money laundering prosecution rate pure strategy R₁ reporting cost reporting fees reporting threshold reports all transactions Reuter and Truman SAR filing Sarbanes-Oxley Act Second Best equilibria shows social welfare social welfare function suspicious activity report Third Best equilibria underground economy USA Patriot Act