U.S. flag

An official website of the United States government, Department of Justice.

NCJRS Virtual Library

The Virtual Library houses over 235,000 criminal justice resources, including all known OJP works.
Click here to search the NCJRS Virtual Library

Financial Institutions Fraud

NCJ Number
American Criminal Law Review Volume: 49 Issue: 2 Dated: Spring 2012 Pages: 773-824
Ross Anderson; Matthew Nicholson; Colum Weiden
Date Published
52 pages
This article reviews the development and application of three Federal criminal statutes that govern offenses by or against financial institutions: the Bank Fraud Statute; the Financial Institutions Reform, Recovery, and Enforcement Act; and the Bank Secrecy Act.
Regarding the Bank Fraud Statute (BFS), the article focuses on 18 U.S.C. section 1344, whose purpose is to protect the interests of the Federal Government as an insurer of financial institutions. In order to obtain a conviction under section 1344, the Government must show that the defendant knowingly executed or attempted to execute a scheme or artifice to either defraud; or through false or fraudulent pretenses, representations, or promises, obtain the monies or other property of a financial institution. BFS legal defenses and penalties are also outlined. The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) was enacted in 1989 in the wake of the widespread savings and loan association failures of the 1980s. This statute enabled the restructuring of the Federal Depository Insurance System, abolishing the insolvent Federal Savings and Loan Insurance Corporation, and shifting its regulatory responsibilities to the Federal Deposit Insurance Corporation. In addition, this statute created the Office of Thrift Supervision within the Department of the Treasury. FIRREA amended the Federal Deposit Insurance Act to improve supervision, enhance enforcement powers, and define and expand the direct civil and criminal liability for financial institutions and personnel that fail to use safe and sound banking practices. In 1970, Congress enacted the Currency and Foreign Transactions Reporting Act, commonly called the Bank Secrecy Act (BSA). Its purpose is to address tax evaders' and organized crime's increasing use of financial institutions to launder unreported income. The article focuses on BSA's record-keeping and reporting requirements. 399 notes


No download available