Edited by Brigitte Unger and Daan van der Linde
Chapter 24: Dirty complexity: money laundering through derivatives
Trading in financial derivatives has increased exponentially in recent decades. This is especially true with respect to over-the-counter (OTC) derivatives. Given the relative opacity, complexity and size of the derivatives markets (particularly the OTC segments) they may be hospitable breeding grounds for money laundering. From the turn of the twenty-first century up to the global financial crisis (GFC) originating in 2007, trading in OTC derivatives between sophisticated market participants in some of the largest markets was not substantially directly regulated. Amongst other things, this generated concerns with respect to the integrity of audit trails in these markets (FATF 1999, p. 13;hereinafter 1999 FATF Report). In the wake of the GFC, proposals for regulatory reform in OTC derivatives market infrastructure have been forthcoming in many jurisdictions. Amongst developed economies, the US, in particular, has made notable progress at time of writing.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.