Brief Explanation of Economic and Financial Crime.

Summary

This video delves into the history and concept of economic and financial crime, emerging in the 20th century. It distinguishes between traditional and economic crimes, with the latter often committed by individuals with high social status for financial gain. The video highlights 'white-collar crime', emphasizing that crime is not confined to any social class. Profiling the typical offender as a skilled, financially-focused individual, it critiques the focus on street crime over these white-collar offenses. Economic and financial crimes, as defined by Europol, involve illegal acts for financial or professional advantage, and their growth is linked to economic globalization and inadequate oversight.

Takeaways

• 📚 Economic and financial crimes emerged in the 20th century, distinct from traditional crimes.
• 👔 Bonger in 1905 differentiated economic crime, often committed for property, from traditional crimes.
• 🎩 Sutherland in 1940 highlighted 'white-collar crime', committed by individuals with high social status.
• 🔍 White-collar crime is a research tool to study crimes by the upper classes, not just a description of criminals.
• 💼 These crimes often require access to certain jobs or positions of power to be executed.
• 👤 The typical economic crime perpetrator is a 36-45-year-old male working in finance with a high position.
• 💰 The motive behind economic crimes is usually economic gain, such as financial or professional advantage.
• 🌐 Economic crimes are linked to corruption, tax evasion, fraud, and money laundering, among others.
• 🌐 Europol defines economic crime as illegal acts for financial or professional advantage.
• 🌐 The growth of economic crimes is attributed to economic globalization and lack of oversight.

Q & A

What is the historical context of economic and financial crime?

Economic and financial crimes began to emerge in the 20th century. Bonger in 1905 was among the first to distinguish between traditional crimes and economic crimes, which are committed by businessmen for property derived from capitalism and speculative logic.

How did Sutherland contribute to the understanding of economic and financial crime?

Sutherland, in 1940, addressed the issue of 'white-collar crime', arguing that these crimes are committed by people with high social status and power, showing that crime occurs across all social classes.

What is the purpose of the term 'white-collar crime'?

The term 'white-collar crime' is used as a research tool to guide the study and analysis of crimes committed by individuals belonging to the upper classes of society, rather than to describe crimes or criminals directly.

What are some examples of white-collar crimes mentioned in the script?

Examples of white-collar crimes include fraud, abuse of power, corruption, and mismanagement.

Why does Sutherland criticize the focus on traditional crime over white-collar crime?

Sutherland criticizes the lack of attention on white-collar crime and the fact that efforts are primarily made to abolish scenario or street crime, which is where most convictions and prison sentences occur.

What is the typical profile of a white-collar criminal according to the script?

A study concluded that a typical white-collar criminal is a man aged 36-45, working in the financial area, often an employee of a company, committing crimes against his own employer, usually holding a high position, with high skills and knowledge, and having worked in the same company for more than 10 years.

What motivates white-collar criminals to commit crimes, according to the script?

White-collar criminals commit crimes not as a career goal but due to greed and the benefits they can gain from the weaknesses of the instances of controllers.

How does the script suggest that economic and financial crimes are evolving?

The script suggests that due to constant social and economic changes, new ways of committing white-collar crimes, such as new methods of money laundering, may emerge.

What is the definition of economic crime according to Europol as mentioned in the script?

According to Europol, economic crime, also known as financial crime, refers to illegal acts committed by an individual or a group to obtain a financial or professional advantage, with the main motive being economic gain.

How does the globalization of the economy contribute to the growth of economic and financial crimes?

The evolution and growth of economic and financial crimes are due to the globalization of the economy and the lack of supervision associated with it.

How do economic and financial crimes impact the economy and market rules?

Economic and financial crimes tend to go against the normal functioning of the economy and established market rules, causing disruptions and potentially undermining trust and stability.

Outlines

00:00

💼 Introduction to Economic and Financial Crime

This paragraph introduces the concept of economic and financial crime, tracing its origins to the 20th century. Bonger in 1905 distinguished economic crime from traditional crime, focusing on property-related offenses stemming from capitalism. Sutherland in 1940 highlighted 'white-collar crime', emphasizing that individuals of high social status also commit crimes, challenging the stereotype of criminals being poor and opportunistic. White-collar crime is used as a research tool to study crimes by the upper classes, which may require access to certain positions or power. Examples include fraud, abuse of power, and corruption. Sutherland criticized the focus on street crime over white-collar crime, which often goes unnoticed. A study identified a typical profile of such criminals: middle-aged men working in finance with high positions and long tenure, motivated by greed rather than career advancement. The paragraph also discusses the evolution of these crimes due to social and economic changes, and contrasts them with crimes committed by lower-class individuals.

Keywords

💡Economic and Financial Crime

Economic and financial crime refers to illegal acts committed with the primary motive of obtaining financial or professional advantage. This concept is central to the video's theme, as it sets the stage for discussing the history and evolution of such crimes. The script mentions that these crimes began to emerge in the 20th century and are not limited to any particular social class, challenging the stereotype that crime is predominantly a problem of the poor.

💡White-collar crime

White-collar crime is a term introduced by Sutherland in 1940 to describe crimes committed by individuals of high social status and power. In the video, it is used to emphasize that economic crimes are not exclusive to the lower classes but are also committed by the 'rich and honorable.' The script points out that white-collar crimes are often overlooked in favor of more visible street crimes.

💡Bonger

Bonger, mentioned in the script, was one of the first to distinguish between traditional crimes and economic crimes in 1905. His work is significant as it laid the groundwork for understanding economic crimes as those committed by businessmen for property gain, which is a key concept in the video's historical context.

💡Sutherland

Sutherland's work is highlighted in the video for his contribution to the understanding of white-collar crime. His research showed that crime is not confined to any particular social class, which is a crucial point in the video's argument about the pervasive nature of economic and financial crimes.

💡Fraud

Fraud is one of the types of economic crimes discussed in the video. It is defined as the use of deceit to obtain an unfair or illegal advantage, typically in a financial context. The script uses fraud as an example of the kinds of crimes that can be committed by individuals in positions of power within a company.

💡Abuse of Power

Abuse of power is another form of economic crime mentioned in the script. It refers to the misuse of one's authority or position to commit illegal acts, often for personal gain. This concept is integral to the video's discussion of how those in high positions can exploit their roles for financial advantage.

💡Corruption

Corruption is defined as the abuse of public power for private gain. In the video, it is cited as a common type of economic crime that can occur at various levels of society, from individuals to large corporations, and is a significant part of the broader issue of economic and financial crime.

💡Mismanagement

Mismanagement, as discussed in the video, refers to the poor handling of resources or responsibilities, often leading to financial loss or other negative outcomes. It is presented as a type of economic crime that can be committed by those in charge of companies or organizations.

💡Money Laundering

Money laundering is the process of making illegally-gained proceeds (i.e., 'dirty money') appear legal (i.e., 'clean'). The video mentions it as a new way of committing economic crimes that has emerged with the changing economic landscape, indicating its relevance to contemporary financial crime discussions.

💡Europol

Europol is the law enforcement agency of the European Union and is mentioned in the script to provide a definition of economic crime. Their definition is used to anchor the video's discussion on the nature and scope of economic and financial crimes, emphasizing the international aspect of these illegal activities.

💡Globalization

Globalization is the process by which businesses and other organizations develop international influence or start operating on an international scale. The video script connects the growth of economic and financial crimes to the increasing globalization of the economy, suggesting that the interconnectedness of markets and the lack of oversight can facilitate such crimes.

Highlights

Economic and financial crimes began to emerge in the 20th century.

Bonger in 1905 distinguished between traditional crime and economic crime.

Economic crime is often committed by businessmen for property gain.

Sutherland in 1940 introduced the concept of 'white-collar crime'.

White-collar crime is committed by individuals with high social status and power.

Crime occurs across all social classes, including the rich and 'honorable'.

White-collar crime is a research tool for studying crimes by the upper classes.

Access to certain jobs or positions of power is sometimes necessary for white-collar crimes.

Examples of white-collar crimes include fraud, abuse of power, and corruption.

Sutherland criticized the lack of attention on white-collar crime.

Economic crimes have a 'profile': a man aged 36-45 working in finance with a high position.

The criminal typically has high skills, knowledge, and has worked in the same company for over 10 years.

Crimes are committed out of greed, exploiting weaknesses in control systems.

New ways of committing white-collar crime emerge due to social and economic changes.

Lower-class individuals may develop normative ways of committing crimes like drug selling and illegal gambling.

Economic crime, as defined by Europol, involves illegal acts for financial or professional advantage.

Economic and financial crimes disrupt the normal functioning of the economy and market rules.

The growth of economic crime is linked to economic globalization and lack of supervision.

Transcripts

In this video I will introduce you to the history and concept of Economic and Financial

Crime.

To understand the concept and definition of economic and financial crime, it is necessary

to go back in history and understand that these are types of crimes that began to emerge

in the 20th century.

Bonger, in 1905 was among the first to make the distinction between traditional blood

crime/scene and economic crime, where the latter is committed by businessmen about "property",

derived from capitalism and speculative logic (example, a change of something by purely

logical means from its normal characteristics) Sutherland, later, in (1940), also addressed

the issue of "white-collar crime", and argued that this type of crime is committed by people

with great social status and power.

He thus shows that crime occurs across all social classes and that even the rich and

"honorable" commit crimes, contrary to the idea that the criminal was someone poor in

opportunity and with low income.

White-collar crime is not used to describe crimes and/or criminals, but rather as a research

tool to guide the study and analysis of crimes committed by individuals belonging to the

upper classes of society.

This type of crime may not be committed by all individuals, this is because sometimes

it is necessary to have access to certain jobs or positions of power to be carried out.

What kind of crimes are these?

(Fraud, Abuse of power, corruption, mismanagement, etc.

In contrast, Sutherland criticizes the lack of attention on this type of crime and the

fact that efforts are only made to abolish scenario / or street crime, which is usually

where people are convicted and sent to prison the most.

A study that investigated more than 350 economic crimes, concluded a "profile" for this type

of criminal - we are talking about a man, aged 36-45, who works in the financial area

and if so, is an employee in that company, commits crimes against his own employer and

usually has a high position.

The criminal has high skills and knowledge.

Also, he has worked in the same company for more than 10 years and commits the crime not

as a career goal, but for his greed – benefits from the weaknesses of the instances of controllers.

Due to constant social and economic changes, new ways of committing these types of "white-collar

crime" may emerge, such as new ways of laundering money.

On the other side of the coin, lower-class individuals may develop normative ways of

committing certain crimes, such as selling drugs and/or illegal gambling.

Concept of the Economic and Financial Crime According to Europol, "Economic crime, also

known as financial crime, refers to illegal acts committed by an individual or a group

of people to obtain a financial or professional advantage.

The main motive in such crimes is economic gain."

In practice, this and other existing concepts are related to various illicit acts, such

as corruption, tax evasion, fraud, abuse of power, money laundering, etc..

All and other forms of "economic and financial crime" tend to go against the normal functioning

of the economy and the established market rules.

The evolution and growth of this type of crime are due to the globalization of the economy

and the lack of supervision associated with it.