CAPITALISM'S ACHILLES HEEL Dirty Money and How to

416 NOTES
The Bank for International Settlements compiles “External Loans
and Deposits of Reporting Banks vis-à-vis Individual Countries (Non-
Bank Private Sector),” which is available at www.bis.org. This is a modification
to earlier figures on “Cross-Border Bank Deposits of
Non-Banks.” The current data set covers overseas deposits of private
noncitizens. The data are not particularly useful in analyzing flight capital
because they cover only bank deposits at a reporting date, not the
flow of money into and out of bank accounts outside the account
holder’s country of residence. Thus it represents only a fraction of accumulated
flight capital lodged abroad.
8. Related to the author by a World Bank official, Washington, D.C., not
for attribution.
9. World Bank, “List of Debarred Firms,” as of January 28, 2005,
web.worldbank.org/.
10. International Monetary Fund and World Bank, “Enhancing Contributions
to Combating Money Laundering: Policy Paper,” April 26, 2001,
13, www.imf.org/external/np/ml/2001/eng/042601.PDF.
11. Ibid., 3.
12. Eduardo Aninat, Daniel Hardy, and R. Barry Johnston, “Combating
Money Laundering and the Financing of Terrorism,” Finance & Development,
September 2002, www.imf.org/external/pubs/ft/fandd/2002/
09/aninat.htm.
13. Interview by the author with a former World Bank official, Karachi,
Pakistan, not for attribution.
14. The World Presidents’ Organization, headquartered in Alexandria, Virginia,
draws its membership from former members of the Young
Presidents’ Organization. The Young Presidents’ Organization, headquartered
in Irving, Texas, has 8,000 members in 75 countries. Members
are presidents or managing directors of companies that meet
criteria based on sales and number of employees. I was the first member
of YPO based in Africa.
15. The Bank for International Settlements in Basel, Switzerland, recommends
that commercial banks have a ratio of capital to loans of
not more than 1 to 12.5, producing a capital adequacy ratio of 8
percent. See “International Convergence of Capital Measurement
and Capital Standards—A Revised Framework, June 2004—Part
2,” www.bis.org/publ/bcbs107b.pdf.