[The risk impersonated by transnational political corruption to international commercial and development banking]

By

Acknowledgement

Iwould take this opening to thank my study supervisor, family and associates for their support and guidance without which this study would not have been possible.

DECLARATION

I, [type your full first names and last name here], declare that the contents of this dissertation/thesis comprise my own unaided work, and that the dissertation/thesis has not previously been submitted for academic written test in the direction of any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

The article will elucidate conceptual issues that arise for the study of corruption when several coexisting, contradictory norms for allocating different modes of transactions across society exist. One significant cause for their coexistence is fast change of the institutional directions that assigns transactions over transactional modes. Two cases are explored and studied: (1) transition from the family-based to the modern normative grid and (2) transition from the socialist to the market-based economy. Corruption is considered as illegitimate intrusions of market or family modes of transaction into political or bureaucratic fields.

Table of Contents

CHAPTER 1: INTRODUCTION6

Background of study7

Problem Statement8

Research Aims and Objectives8

Rationale/ Nature of study9

Research Question10

CHAPTER 2: LITERATURE REVIEW11

What is public corruption and how does it destabilise development and financial banking?11

Three case studies12

The Bank of New York15

Riggs National Bank17

CHAPTER 3: METHODOLOGY20

Data Analysis21

Chapter 1: Introduction

This paper will explore threat that public corruption poses to both world's development banking and commercial banking sectors. As the former prosecutor, the former World Bank corruption investigator, and now as the banking supervisor and investigator, author has observed first-hand how corrupt actors act as the parasite on both development banks (such as World Bank) and commercial banks, targeting former to steal millions of US dollars annually, and infecting latter by channeling proceeds from corruption and bribery into legitimate banking systems around world.

Money laundering facilitates this corruption, as corrupt actors often operate under radar screens of both development and commercial banks by concealing and laundering illicit funds. In this paper, author will illustrate how these corrupt actors operate, using three case studies involving Lesotho Highlands Water Project (LHWP), Bank of New York (BONY) money laundering investigation, and Riggs National Bank prosecution. The author will then offer the number of recommendations aimed at reducing threat posed to development and commercial banks from public corruption.

Background of study

In dealing with political corruption, this definition becomes the clear guide. This means that when the politician robs or burglarizes the household, it is not corruption but simply robbery or burglary. Political corruption is confined to those illegal activities engaged in by politicians who, in course of their services as elected officials, use their positions to consummate an illegal operation that otherwise could have not been possible. In political corruption, politician receives either the bribe in lieu of fair competition or the quid pro quo. Political corruption also occurs when “property is obtained from another by wrongful use of actual or threatened force, violence, or fear, or under color of official ...