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Regulation, White-Collar Crime and the Bank of Credit and Commerce International

NCJ Number
188787
Journal
Howard Journal of Criminal Justice Volume: 40 Issue: 2 Dated: May 2001 Pages: 166-179
Author(s)
Basia Spalek
Editor(s)
Tony Fowles, David Wilson
Date Published
May 2001
Length
14 pages
Annotation
This article explored and described the impact of the closure of the Bank of Credit and Commerce International (BCCI) upon its former employees.
Abstract
This article presented findings of a study that explored the consequences and impacts upon a group of employees who worked for the BCCI, an organization in which white-collar violations took place. The BCCI was registered in Luxembourg in 1972 and expanded into an organization containing over 400 branches in 73 different countries employing approximately 11,000 people. Former employees of the BCCI were interviewed and the financial, emotional, and psychological effects of the closure of this bank on their lives were documented. Interviews revealed employees bearing significant financial costs including, the loss of money from deposits held at the bank and the staff provident fund, the loss of earnings and being charged high rates of interest on mortgage accounts. The emotional impact included anxiety, depression and anger. The psychological impact was having a stigma attached as a result of being associated with a bank labeled as corrupt. The employees tended to view themselves as victims of fraudulent activities. The detrimental effects upon their lives were linked to regulatory and media responses to the bank rather than to any crimes committed, creating an issue of “secondary victimization”. The study illustrated the importance of considering the actions of regulatory authorities and the media in cases of white-collar crime and their impact on the individuals whose lives are caught up in “white-collar scandal."

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