Financial Crime and Corruption — A Reader’s Guide

Policy Prescriptions and the Informal Economy

The excerpt on reducing cash transactions offers a detailed set of policy recommendations aimed at curbing the informal economy. These include mandatory use of ZPP payment cards for business-to-business transactions, requiring exchange offices to report transactions above 1000 DM, and imposing a withholding tax on cash withdrawals. The text also proposes that checks be made payable only to the beneficiary and valid for five working days. These measures are presented as concrete steps, not theoretical discussions, and they reflect a hands-on approach to combating financial crime. Notably, the author acknowledges an extreme measure—channeling all foreign trade payments through the Central Bank—but advises against it except as a last resort. This section demonstrates that the book contains prescriptive, operational advice alongside its analytical content.

Geographic and Institutional Scope

The table of contents reveals a strong focus on Eastern Europe and the former Soviet bloc, with chapters on corruption in Central and Eastern Europe, kleptocracies of the East, Russia's missing billions, and specific cases like Milosevic's treasure island and Macedonia's Augean stables. However, the scope is not limited to that region; it also includes Africa (begging your trust), maritime piracy, and global issues such as the economics of conspiracy theories and the future of the SEC. This geographic and institutional variety suggests that the book functions as a compendium of case studies and essays rather than a unified argument. Readers should expect a mosaic of topics rather than a single narrative thread.

The Author's Voice and Structural Choices

Vaknin's writing is direct and opinionated, often blending analysis with advocacy. For instance, the recommendation to reduce payroll taxes for non-cash salaries is paired with a proposal to levy a tax on cash withdrawals—a clear policy stance. The text also includes rhetorical questions and imperative statements, such as "Thought should be dedicated to the possibility of employing independent laboratories." Structurally, the book is divided into many short chapters, each addressing a distinct topic, which allows for quick reference but limits depth. The inclusion of an appendix on drug legalization and chapters on organ trafficking and arms sales indicates that the author defines financial crime broadly, encompassing activities that generate illicit revenue. This structural choice reinforces the impression of a collection of essays rather than a systematic study.

Readers approaching Financial Crime and Corruption should be prepared for a work that is more eclectic than its catalog subjects suggest. The book offers a mix of policy proposals, case studies, and opinion pieces, with a strong emphasis on Eastern Europe. It is best read as a series of independent essays rather than a cohesive monograph. Those interested in specific topics—such as money laundering techniques or corruption in transition economies—may find individual chapters useful, but the work as a whole resists easy categorization.