SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 
 

References (15)

Beta

 


 



The Impact of Switzerland's Money Laundering Law on Capital Flows through Abnormal Pricing in International Trade

Maria E. De Boyrie
New Mexico State University

Simon J. Pak
Pennsylvania State University - Management Division

John S. Zdanowicz
Florida International University - Department of Finance


undated

EFMA 2001 Lugano Meetings; CIBER Working Paper

Abstract:     
Switzerland's banking institutions have historically been recognized as facilitators of the movement and the repositories of capital from other countries. In January of 1998, Switzerland adopted new and very stringent anti-money laundering statutes. Bankers and other financial institutions must now report suspicious transactions to Swiss banking authorities and block the funds from these transactions. Charles Intriago, Publisher of Money Laundering Alert stated, "The Swiss have now set the world standard for money laundering controls, and they're more advanced than the U.S." Although a vast amount of illegal and suspicious capital flows are conducted in the financial service industry, there are alternative methods of moving money and avoiding detection by government agencies. One such technique is through the manipulation of import and export prices in international trade transactions. The objective of this research is to determine the impact of Switzerland's money laundering law on the movement of money through false invoicing in international trade. This study evaluates every reported import and export transaction between the United States and Switzerland during the period from 1995 to 2000. The study indicates that there were significant changes in the degree of abnormal international trade pricing subsequent to the enactment of Switzerland's anti-money laundering law. The study supports the view that individuals and companies will find substitute techniques and channels to launder money when central banking authorities enact legislation that only focuses on financial institutions.

Keywords: Capital flight, money laundering, imports/exports, trade, transfer pricing

Working Paper Series

Date posted: April 29, 2001 ; Last revised: June 22, 2001

Suggested Citation

De Boyrie, Maria E., Pak, Simon J. and Zdanowicz, John S., The Impact of Switzerland's Money Laundering Law on Capital Flows through Abnormal Pricing in International Trade (undated). EFMA 2001 Lugano Meetings; CIBER Working Paper. Available at SSRN: http://ssrn.com/abstract=268444 or doi:10.2139/ssrn.268444


Export to: Export Citation What's this?

Contact Information

Maria E. De Boyrie (Contact Author)
New Mexico State University ( email )
Las Cruces, NM 88003
United States
575-646-3252 (Phone)
575-646-2820 (Fax)
Simon J. Pak
Pennsylvania State University - Management Division ( email )
30 East Swedesford Road
Malvern, PA 19355-1443
United States
John S. Zdanowicz
Florida International University - Department of Finance ( email )
University Park
11200 SW 8th Street
Miami, FL 33199
United States
(305)348-2771 (Phone)
(305)348-4182 (Fax)
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 5,218
Downloads: 600
Download Rank: 11,586
References: 15

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apollo1 in 0.172 seconds.