ANALYSISVirtual world fi nancial crime: legally fl a w e d January 2013Virtual world fi nancial crime: legally fl awed CLARE CHAMBERS-JONES Associate Professor in Banking and Finance Law, University of the West of England Financial crime is a complex topic but when it is coupled with the legal, jurisdictional and sovereignty issues of the internet and virtual worlds, it becomes even harder to regulate. Undoubtedly fi nancial crime, via the internet (cyber fi nancial crime) is a continuous threat and it is one that is increasing at an alarming pace. The law is trying hard to keep pace with the evolution of technology which is creating opportunities for criminals to exploit technology. The aim of this article is to discuss, in the context of the increase and evolution of virtual worlds, the economic crime committed within them. The article also discusses the application of real-world laws to the virtual world's crimes and considers (i) whether the laws are ill-fi tting because of the inability to match the virtual world crime with the legislative provision; and (ii) the sovereignty and jurisdictional confl icts that arise when drafting legislating to encompass the wide remit of fi nancial crime. Firstly, the article will consider how cybercrime has been defi ned and will contextualise the issue of inadequate regulation within the sphere of virtual worlds. Secondly, the article will consider and defi ne the concepts of virtual environment and virtual community so as to determine the nature and presence of crime in the virtual world. There is currently no standard defi nition of "virtual community" and therefore there is a necessity to build this fi eld of literature.
The article argues that there is a predisposition on the part of criminals to fi nd loopholes in technology and the law to commit crimes, which can be demonstrated by literature documenting cybercrimes. Thirdly, the article considers virtual worlds and criminality, and how and why criminals use virtual worlds to perpetrate their crimes. Fourthly, the article considers examples of cases of cyber fi nancial crime, arguing that the sentences that have been laid down for perpetrators do not match the crimes the criminals have perpetrated because of the ill-fi tting legislation.The fi fth element of the article then moves on to examine the international legal perspective of cybercrimes by detailing various cases of cybercrime with a view to analysing some but by no means all of the issues related to regulation of the virtual world. The three countries that are examined are the United States, Australia and Nigeria, chosen as examples due to the present complexities of enacting new cyber laws into their domestic legislation. These countries provide an effective illustration of how complex cyber legislation drafting can be on a domestic level and as such legislating on an international level is fraught with drafting diffi culties. Finally, the article concludes that although virtual worlds are not lawless they use ill-fi tting real-world laws for crimes committ...