The Role of National Government in the Restraint of Global Economic Crime

Although people talk of a new world order and the globalisation of market economies, the problem presented by serious fraud has, until recently, been left largely to be addressed by countries independently, despite the fact that much of the problem is global in scope and breadth. The response to fraud has been largely fragmented and reactive — with countries initiating change as they intuitively perceive the threat posed by fraud, primarily to their economy but also to national integrity, public confidence and in some cases to national security. As individual governments have moved to tackle the problem presented by fraud within the confines of their own boundaries, the experienced fraudster has recognised the need for expansion beyond these boundaries. This need for geographical expansion coupled with the innate adaptability of the experienced white‐collar criminal has resulted in the increased internationalisation of white‐collar crime. The proliferation of legally protected bank secrecy laws has reinforced this motive to be nomadic — to fragment both primary and secondary criminal conduct across international boundaries. In response to this new and expanded threat, countries and organisations have come together in an attempt to address the issue, and in some cases have undertaken significant efforts of international and regional cooperation to control globalised fraud.