At Moody’s Analytics, our team of industry experts always have their finger on the pulse of what’s happening in the world of financial crime. It’s a busy space to exist in – criminals are constantly changing their tactics; technologies are evolving all the time and a seemingly endless string of new stories make headlines every day.
So how do our experts keep on top of the latest trends and identify common threats affecting our community? Thankfully, financial crime is a topic with a wealth of literary resources available to educate and inspire at a moment’s notice.
In this article, we asked subject matter expects from across the Moody’s Analytics KYC team to share the best financial crime books currently sitting on their shelves. Review our list and decide which books need to be added to your 2023 financial crime reading list.
This incredible true story proves it’s all about who you know. Written by Wall Street Journal reporters Tom Wright and Bradley Hope, Billion Dollar Whale tells the story of Jho Low, a Malaysian businessman who used his personal connections to the country’s former Prime Minister, Najib Razak, to achieve new levels of wealth and influence over some of the world’s most elite individuals.
Billion Dollar Whale explains how Low persuaded Razak to create an investment fund financed with government money, which he went on to manage behind the scenes. Major investment banks around the world, including the likes of Goldman Sachs, helped to raise billions of dollars for the fund. Eventually, billions of dollars would suddenly vanish, setting into motion a series of events that would end with Low as a fugitive. He is still on the run to this day.
Chor Teh, Director of Financial Crime Compliance at Moody’s Analytics says that Billion Dollar Whale paints a vivid portrait of “the relationships, purpose of funds and source of funds that must all come together to form the true art of money laundering. The unquestioning acceptance of Low into some of the world’s most powerful inner circles serves as a reminder that we must all learn to stay awake and ask the tough questions at every opportunity.”
By now, many of us are well acquainted with the story of the Panama Papers. But have you heard the firsthand account of the journalists who broke this astonishing tale of hidden wealth?
The Panama Papers explains how its authors found themselves at the center of the largest data leak in history and the lengths they went to in order to untangle the purposefully complex ownership structures responsible for concealing the wealth of the rich and famous around the world.
Sverker Tornhagen, Moody’s Analytics Financial Crime Compliance Industry Practice Lead shares why he couldn’t put this book down, “The Panama Papers describes very well how powerful people hide their money in complex financial networks. It took four hundred journalists working in secret for a year to uncover cases involving heads of state, politicians, businessmen, big banks, the mafia, diamond miners, art dealers and celebrities. This is a real-life thriller that will help you appreciate the true scope of the problem of hidden ownership.“
Money Men sheds light on one of the biggest scandals in the history of the German stock market: Wirecard. Once considered the fintech darling of Germany and company worth billions, Wirecard would eventually be revealed as a massive global fraud. Money Men is a firsthand account from Dan McCrum, the journalist who pulled back the curtain on the German fintech. He explains how a single tip to investigate Wirecard led to a series of strange and dangerous revelations involving shadowy figures, fake offices, and threatening letters.
Enrico Aresu, ESG Compliance and Financial Crime Expert at Moody’s Analytics shares his thoughts on Money Men, “In my opinion this book is a must read for compliance professionals for two main reasons. One, it is a captivating real-life example of how regulations are not enough to protect our society, their implementation is key, and, in this regard, supervisory authorities need to play an active role. And secondly, the story of Money Men demonstrates the importance of embedding compliance and governance in a company’s operations from day one. It was Wirecard’s failure to do so that allowed this level of fraud to take place...”
This tale of deception, hacking and theft stretches across continents and industries, from Hollywood, California to the secretive courts of Pyongyang. Lazarus Heist explains the unsavory work of the Lazarus Group, an anonymous association of hackers working on behalf of North Korea to disrupt systems around the world. Leveraging leading technology, the group has managed to evolve into one of the most brutally effective criminal organizations active today.
Alex Pillow, KYC Decoded host, and Director of Market Strategy at Moody’s Analytics, says that the Lazarus Heist “reads like a Hollywood heist thriller and goes around the world and back in characters, sub-plots, and action. What starts off as a cybercrime read ends as a lesson in anti-money laundering that anyone working in financial crime prevention can learn from."
If you’d like to hear from the author himself, listen to this episode of the Moody’s Talks: KYC Decoded podcast in which Alex sits down with the book’s author Geoff White for a deep dive into the incredible true story of this shady hacker consortium.
According to Moody’s Analytics Director and Practice Lead for Financial Crime Compliance Hera U. Smith, “If you’re interested in understanding the politics and psychology behind sanctions, The Art of Sanctions by Richard Nephew is an absolute must-read. For practitioners, it is always easier to implement something (i.e. sanctions) if you understand the motivations behind it. This book helps professionals build a foundation to do just that.”
First published in 2017, The Art of Sanctions presents Nephew’s perspective on the application of sanctions as a foreign policy tool, leveraging his first-hand experience leading the design and implementation of sanctions on Iran. Nephew shares the guidelines he has developed for planning and executing a sanctions strategy, as well as advice for how to adapt along the way. The author bases these guidelines on what he considers to be two key factors: pain and resolve, which he explores in more depth in his book.
Kleptopia brings together four different stories of corruption and dirty money for a real-life thriller that stretches from Russia all the way to the White House. Award-winning investigative journalist Tom Burgis exposes how rampant global kleptocracy really is and the ways in which it's successfully infiltrating our economies and threatening our democracies.
Moody’s Analytics Head of the Financial Crime Due Diligence Practice (Americas), Bill Hauserman says, “I consider Kleptopia to be required reading for any fincrime professional. If what Burgis has written doesn't wake people up, nothing will. The book covers events from recent history but also sets the stage for how pervasive money laundering got in the United States and Europe throughout 2019 - with real involvement by powerful administrations in the United Kingdom and US making too much money to shut it down. Much has progressed in creating transparency in global commerce, but the simple fact is that total money laundered has not decreased. Kleptopia is the first non-fiction book to paint a picture I wished was fiction.”
In his book, journalist and author Oliver Bullough presents the concept of a world operating parallel to ours called, “Moneyland.” Residents of Moneyland are exceptionally rich individuals who rely on a complex network of opaque shell companies, opening and closing at a moment’s notice, to conceal their wealth and assets for their own gains. This of course comes at an unimaginable cost to everyday people.
Bullough concisely covers the decisions and historical moments that have led to the creation of this concealment culture and how wealth and power are being acquired and weaponized in plain sight in the 21st century.
Hugo Veazey, Financial Crime Compliance Lead at Moody’s Analytics asks, “What can be said about this book and the author that hasn't already been said? I would consider it a must read if you have even a passing interest in the anti-money laundering space and, quite frankly, if you've ever rolled your eyes, like I have at how apparently simple it is for the financial elite to circumvent tax laws with almost total impunity.”
Listen to our KYC Decoded episode “UBOs and Why They Matter” to hear more from author Oliver Bullough on the critical importance of determining ultimate beneficial ownership.
Red Notice tells the true story of Chicago native Bill Browder who was leading one of the largest investment funds in Russia following the collapse of the Soviet Union. That is, until he was eventually - on Putin’s orders - expelled from the country in the early 2000s. Considered a real-life political thriller, the story covers Browder’s exposure of corrupt oligarchs, the raiding of his Moscow offices in 2007 and the eventual murder of his Russian attorney, Sergei Magnitsky who paid the ultimate price for his pursuit of truth and justice.
Susan White, Senior Director at Moody’s Analytics says that “Red Notice is a must read given the current sanctions environment. Bill Browder's unlikely journey from hedge fund manager to human rights advocate is an astonishing story that ends with the creation of the OFAC Global Magnitsky Sanctions. His story and its most tragic elements, drive home an important message about our common duty to call out corruption when we see it.”