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7 Illicit Behaviour

Martin Liebi, Jerry W. Markham, Sharon Brown-Hruska, Pedro De Carvalho Robalo, Hannah Meakin, Peter Tan

From: Regulation of Commodities Trading

Edited By: Dr Martin Liebi, Professor Jerry Markham

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 26 July 2021

Securities — Money laundering — Sanctions and monetary obligations

This concluding chapter explores regulations on illicit behaviour, including violations of embargo sanctions, bribery of government officials, and money laundering. Embargoes and financial related sanctions against ‘rogue’ countries are economic in nature and are designed to coerce such countries into conformance to international norms. Sanctions may be applied to particular economic sectors, or a country's economy may be entirely embargoed, sometimes with humanitarian exceptions. Moreover, sanctions may be applied to import and exports of commodities, but are also often applied to prevent access to banking and other financial services. Meanwhile, the US prohibits the bribery of foreign government officials in order to obtain business through the Foreign Corrupt Practices Act of 1977. The US has also led the world in combatting money laundering, which typically involves the deposit of proceeds from illicit activities into what appear to be legitimate banking or brokerage accounts. The Securities and Exchange Commission and the Commodities and Futures Trading Commission impose anti-money laundering requirements on the broker-dealers and futures commission merchants they regulate. Those requirements include supervisory programmes designed to prevent and detect use of firm accounts for money laundering.

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