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Journal of Financial Crime
Journal Prestige (SJR): 0.228
Number of Followers: 366  
  Hybrid Journal Hybrid journal (It can contain Open Access articles)
ISSN (Print) 1359-0790
Published by Emerald Homepage  [345 journals]
  • Judicial corruption: the case of Nigeria
    • Pages: 926 - 939
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 926-939, October 2018.
      Purpose The purpose of this paper is to diagnostically explore the phenomenon of judicial corruption in Nigeria, its causative factors and generate strategies such as sonic therapeutic intervention, among others, that would facilitate an amelioration of the situation. The judiciary which is supposed to be last hope of justice for the Nigerian citizenry has been proven beyond reasonable doubt to have been infected with the virus of corruption, and therefore, an urgent call for action to rectify the situation is imperative. Design/methodology/approach The study uses a qualitative approach rooted in case study tradition. Findings The findings showed that power and testosterone, cheating proclivity, family pressure, qualitative passion and ignorance, low self-control, inordinate kleptocratic desire, unrestrained mind and sensory modalities, phenomenological mindset and identity crisis as endogenous contributive factors of judicial corruption in Nigeria. Research limitations/implications The limitation of the study stemmed from the fact that inasmuch as a perception of corruption and corruption are cultural phenomena, the study results cannot be generalizable. Practical implications The practical implication of the research is rooted in the fact that the Nigerian judiciary can gain from the study results and recommendation(s) if implemented without fear or favor for the overall renewal of the judiciary and the nation at large. Social implications The study is geared toward ameliorating the Nigerian corrupt judiciary or repositioning the judiciary on its pivotal dignity, and hence, its social implication cannot be overemphasized inasmuch as a positive social change would prevail if the study results and recommendation(s) are aligned with and implemented. Originality/value Inquiry on judicial corruption through the lens of qualitative research with Nigeria as a case study is highly understudied, and hence, this research fills the gap in the financial crime literature.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:34Z
      DOI: 10.1108/JFC-02-2017-0011
  • Viewing organised crime and terrorist organisations through the financial
           threats they pose to society
    • Pages: 940 - 950
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 940-950, October 2018.
      Purpose The purpose of this paper is to examine whether there is a meaningful difference, viewed from a financial perspective, in distinguishing between organised crime and terrorist organisations, with regard to the control and mitigation of the threats that they pose to society. Design/methodology/approach The paper uses conceptual models obtained from enterprise theory and economics, as well as criminology, and makes use of case studies through the application of these models. Findings The paper finds that when viewed from a financial perspective, there is no meaningful difference in distinguishing between the groups because many have undergone processes of convergence and transformation, such that they assume each other’s operational and motivational characteristics. However, the answer also depends on how precisely one defines each type of illicit group as well as the transitions they undergo. Originality/value The value of this paper is that it applies two separate models on interactions between organised crime and terrorist organisations, the terror–crime continuum and interaction spectrum, to real life situations. After assessing their validity for more recent examples of such illicit groups, it then provides a balanced argument as to distinguishing between organised crime and terrorism. One limitation towards the paper’s originality, however, is that it draws mainly from pre-existing literature.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:30Z
      DOI: 10.1108/JFC-02-2017-0012
  • Terrorism, organised crime and threat mitigation in a globalised world
    • Pages: 951 - 961
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 951-961, October 2018.
      Purpose The gruesome attacks of 11 September 2001 signalled a powerful paradigm shift in international politics: governments previously accustomed to military menaces were now being increasingly threatened by independent, non-state actors. Consequently, a plethora of literature emerged, looking to better understand the nature of these actors. An aspect that has attracted substantial interest is the inter-relation between terrorism and organised crime (OC). This paper aims to answer the question as to whether, for the purpose of controlling and mitigating the threat they pose to society, there is meaning in differentiating between terrorist organisations (TOs) and organised crime groups (OCGs). Design/methodology/approach The first section of the paper will provide an account of the various kinds of threats posed by OCGs and TOs. The subsequent section will question whether it is possible, in today’s globalised era, to distinguish between these two actors, while the last sections will ask if such a differentiation is desirable. Findings OCGs and TOs display a clear divergence: the former’s motivation is financial while the latter’s political. With the end of the Cold War, however, each type of organisation has been building up the capabilities of the other, helped by the force of global networks. As such, these two actors now exist within the same body – a continuum – that renders their separation difficult. As to the question of desirability, the separation of the two phenomena has often led to the adoption of highly disproportionate militarised and securitised measures, resulting in a dangerous blending of law enforcement and security service methodology. Originality/value Many have argued for the separation of the “terrorist” from the “criminal”, on the grounds that the former is particularly heinous and deserving of more severe measures. Others have studied the evolution of these two phenomena to understand whether the lines separating them have been blurring and the extent to which this affects law-enforcement. This paper goes beyond notions of feasibility and poses the following question: has the traditional separation of these phenomena led to a desirable regime'
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:27:19Z
      DOI: 10.1108/JFC-02-2017-0015
  • Terrorism financing and money laundering: two sides of the same coin'
    • Pages: 962 - 968
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 962-968, October 2018.
      Purpose The purpose of this paper is to analyse how terrorism financing can be assimilated with money launderning when the amounts ofmoney involved differ so markedly. Not only is the cost of financing terrorist attacks minimal compared to the huge sums often at stake in financial crimes, but also the psychological profile of terrorists, who are reclusive by nature, contrasts starkly with that of financial criminals, who are usually fully integrated members of society. When terrorism financing is equated with money laundering this represents a utilitarian approach in that it facilitates the creation of a security strategy and stifles criticism of criminogenic capitalismthat turns a blind eye to tax evasion. Design/methodology/approach The analysis is conceptual, focussing on the assimilation of terrorism financing with money laundering. There is an interview with a French magistrate, specialized in the fight against corruption and white-collar crime, and data have been collected from international organizations and scholarly articles. Findings The fight against money laundering and money dirtying has clearly sparked numerous controversies around evaluation, scope, criminal perpetrators and a lack of vital cooperation between administrative and judicial services. Social implications This paper raises questions about the reasons behind the linking of money laundering and money dirtying by states and players in public international law and why the fight against money laundering is very much overshadowed by their focus on terrorist financing in dealing with the growing threat of Islamic State, otherwise known as ISIS or ISIL, in the Middle East and West Africa. Originality/value The paper enables the reader to raise the question of similarities between the fight against money laundering and the fight against terrorism financing.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:27:13Z
      DOI: 10.1108/JFC-03-2017-0021
  • Workplace fraud and theft in SMEs
    • Pages: 969 - 983
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 969-983, October 2018.
      Purpose This paper aims to investigate employee fraud within small enterprises in the Nigerian mobile phone sector. It also seeks to understand the key factors that motivate employees to engage in fraudulent behaviours against their employers, and the consequences of these fraudulent behaviours on small businesses (SMEs) in Nigeria. Design/methodology/approach The empirical study involves the use of quantitative research. Data were collected through structured questionnaires from 159 business owners, sales representatives, cashiers and suppliers. Frequency distribution, percentages, Pearson correlation and multiple regression analysis were used to analyse the collected data. Findings The findings from this research show a significant relationship between personal and organisational factors and employee theft. Particularly, organisational factors made the strongest positive contribution to employee theft. The research also revealed that employee theft had significant effects on employers but less significance on employees. In addition, the research revealed that many businesses did not have preventive measures against employee theft in their firms. The findings of this study were compared with existing literature. Originality/value This study shows the relationship between different factors that could cause an employee to engage in fraudulent behaviours, particularly in SMEs in Nigeria.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:44Z
      DOI: 10.1108/JFC-03-2017-0025
  • Implementing national policing agendas and strategies for fraud at local
    • Pages: 984 - 996
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 984-996, October 2018.
      Purpose The purpose of this study is to assess, since the 2006 Fraud Review, recommendations, strategies and consequential organisational and other changes at national, regional and local levels relating to fraud, using the Northeast as a case study. It also notes that implementation may have been influenced by institutional changes and related emerging governmental policy agendas and institutional changes relating to organised crime, terrorism and cybercrime. Design/methodology/approach The research for the paper was undertaken by desk reviews of primary and secondary material. The paper also involved face-to-face interviews with personnel from the regional fraud unit and the three North-east police forces’ fraud units. The interviews were semi-structured and were conducted on grounds of anonymity for the personnel and the forces involved, with a focus on trends and issues. The personnel were invited to comment on a draft of the paper in terms of accuracy of the information they provided; no revisions or additions were proposed. Interpretation of that information is the sole responsibility of the author. Findings The paper finds that, despite the decade since the Fraud Review, issues of effectiveness or relevance of national fraud strategies, absence of incentives and identifiable benefits and continuous influence of competing agendas on police priorities continue to marginalise fraud as a mainstream police function and limit the level of resource committed to what also continues to be a rising area of criminality. Research limitations/implications The research looks at the recommendations, strategies and consequential organisational and other changes at national, regional and local levels through implementation by four policing units in the North-east. It also notes that implementation may have been influenced by institutional changes and related emerging governmental policy agendas and institutional changes relating to organised crime, terrorism and cybercrime. While the research is limited in that, it draws on the experience of three local and one regional fraud unit; its findings support further research about the implementation of strategies and agendas in practice on the ground. Practical implications The research validates many of the findings by Her Majesty’s Inspectorate of Constabulary (HMIC) and supports the need to review national strategies to ensure effective implementation at local level for what also continues to be a rising area of criminality. Social implications The research raises important issues concerning public concern over fraud where majority of frauds are of high volume, low value with low levels of recovery and usually targeted at individuals but where the policing responses are targeted elsewhere. Originality/value The research is the first study on the local implementation of national strategies on fraud and raises positive and less positive aspects of how far national strategies and intentions are addressed on the ground.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:13Z
      DOI: 10.1108/JFC-04-2017-0027
  • Be like water: developing a fluid corruption prevention strategy
    • Pages: 997 - 1023
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 997-1023, October 2018.
      Purpose Based on the authors’ study, the purpose of this paper is to establish a foundation for assessing and deciding the most feasible corruption prevention activities with significant impact in reducing corruption in the Indonesian public sector. To accomplish this objective, this paper applies multiple theoretical perspectives simultaneously to better understand the behavioral aspects of corruption prevention strategy in Indonesia. Design/methodology/approach This paper is part of the authors’ study to assess the corruption problem in the Indonesian public sector in the past decade primarily through examination of major corruption cases to highlight various behavioral issues that became the root causes of rampaging corruption in the country. This paper also discusses how such issues undermine the effectiveness of the existing corruption prevention strategy as well as how to properly address them. Findings The authors establish that there are numerous overlooked behavioral issues that have rendered existing corruption prevention measures in the Indonesian public sector ineffective in hampering the regeneration of corruption. Gaining sufficient understanding on how public officials’ view on corruption is shaped by their culture and society is crucial in ascertaining what needs to be done to prevent corruption from reoccurring in the future. This study demonstrates that transformative learning needs to be systematically carried out to re-engineer organizational mindset to make it intolerant to corruption which includes unlearning the embedded knowledge of corruption. To support the execution of organizational unlearning discernment must be exercised to enable anti-corruption messages to be sent to the target groups. Nevertheless, due to various inherent behavioral issues within the Indonesian public institutions stimulating anti-corruption discernment is in itself a profound challenge. To promote anti-corruption discernment in the Indonesian public sector, this study proposes the Shame-oriented Anti-corruption Discernment Stimulation (SADS) which focuses on the “management of shame” in stimulating anti-corruption discernment within public institutions in Indonesia. Research limitations/implications This study is self-funded and is relying primarily on documentary analysis in highlighting the behavioral issues that determine the success and failure of corruption prevention strategy in Indonesia. Future studies may benefit from interviews with experts in Indonesian culture as well as indigenous people who can offer a broader view on how self-conscious emotions such as shame and guilt are actually experienced in different regions in Indonesia. Practical implications This paper contributes to the development of corruption prevention strategy by proposing a framework for systematically stimulating anti-corruption discernment within organizations that are part of collectivistic societies. Originality/value This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:54Z
      DOI: 10.1108/JFC-04-2017-0031
  • The case studies of fraud prevention mechanisms in the Malaysian medium
    • Pages: 1024 - 1038
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1024-1038, October 2018.
      Purpose The purpose of this paper is to identify the extent and type of fraud scheme, prevention mechanisms and challenges experienced by the Malaysian medium enterprises. Design/methodology/approach The multiple case studies approach has been used in this study. The data were collected through interviews with the directors, owners, managers and supervisors of three medium-size enterprises. Findings The findings suggest that the fraud cases experienced by the enterprises were related to broken trust and non-cash larceny. The implementation of fraud prevention mechanisms in the enterprises seem to be very limited because of resources and budget constraints. Practical implications The findings of the study have an alarming implication for the owners and directors of the selected medium-size organizations. They seem to have shown proactivity and to have responded to fraud in their organizations by implementing fraud prevention mechanisms; however, not to the extent that large organizations have done. This fact may expose the companies to the risk of losing their competitiveness and the ability to survive in the marketplace. Originality/value This paper contributes to the growing literature on the studies of fraud scheme and the fraud prevention mechanism in the medium-size enterprises, particularly in the context of developing country. Prior studies in these areas have predominantly been undertaken by large organizations of developed countries, which offer different environment, litigation and institutional setting thus limits the generalizability of fraud prevention mechanism to small- and medium-size businesses.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:21Z
      DOI: 10.1108/JFC-05-2017-0034
  • Healthcare fraud under the microscope: improving its prevention
    • Pages: 1039 - 1061
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1039-1061, October 2018.
      Purpose The purpose of this paper is to make readers aware of the extensiveness of healthcare fraud in the USA and how it involves and affects the government, healthcare providers, insurance companies, patients and the public. In addition, recommendations are made that may help control this pervasive type of fraud. Design/methodology/approach A range of different journal publications, information from government health institutions and law enforcement websites, healthcare fraud cases and healthcare laws are used as a basis to provide information about how fraudsters are committing healthcare fraud and how to prevent this fraud from occurring. Findings Despite increased funding and prosecution efforts by the government, healthcare fraud continues to be a major threat to the US economy and public. While healthcare fraud will never be eradicated, specific efforts can be deployed to help rein in these complex fraud schemes. Practical implications The paper provides a useful resource of information on healthcare fraud for healthcare providers, insurance companies, patients and the public that may help combat healthcare fraud and prevent financial losses. Social implications Every dollar saved from combating fraud could be used to improve access to more or better health services and can, thereby, save lives. Originality/value This paper provides recommendations regarding healthcare fraud that could help prevent this large drain on the US economy.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:49Z
      DOI: 10.1108/JFC-05-2017-0041
  • Helping auditors identify deception through psycholinguistics
    • Pages: 1062 - 1076
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1062-1076, October 2018.
      Purpose This paper reviews an array of psycholinguistic techniques that auditors can deploy to explore written and oral language for signs of deception. The review is drawn upon to propose some elements of a forward research agenda. Design/methodology/approach Relevant literature across several disciplines is identified through keyword searches of major bibliographic databases. Findings The techniques highlighted have considerable potential for use by auditors to identify audit contexts which merit closer audit investigation. However, the techniques need further contextual empirical investigation in audit contexts. Seven specific propositions are presented for empirical testing. Originality/value This paper assembles literature on deceptive communication from a wide range of disciplines and relates it to the audit context. Auditors’ attention is directed to potential linguistic signals of fraud risk, and opportunities for future research are suggested. The paper is consciousness-raising, has pedagogic purpose and suggests critical elements for a future research agenda.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:40Z
      DOI: 10.1108/JFC-05-2017-0042
  • Corporate disclosure on anti-corruption practice
    • Pages: 1077 - 1093
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1077-1093, October 2018.
      Purpose This paper aims to determine the extent of anti-corruption information disclosure in the sustainability reports originating from Gulf countries. Design/methodology/approach This study utilizes a deeply rooted content analysis technique of corporate sustainability reporting, covering 66 Gulf Cooperation Council (GCC) firms during 2014. Findings Strengthened by the application of the institutional theory, insight into the results points to a state of limited maturity regarding the disclosure of anti-corruption procedures in the region. More specifically, the results highlight the compliance in the reporting of conduct code, while reporting information on whistleblowing was significantly less in comparison. Firms in Qatar and the UAE ultimately release better informed reports, inclusive of detailed information on internal anti-corruption practices. Originality/value The aim of this study is to determine the extent of sustainability reporting in GCC companies under coercive isomorphism concept, with a special interest in the disclosure of anti-corruption practices. Ultimately, addressing the following questions: To what extent the GCC companies disclose their anti-corruption practices in the sustainability reports' What areas of anti-corruption disclosure the GCC is more concerned in their sustainability reports' To what extent do external forces under coercive isomorphism explain the extent of anti-corruption'
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:50Z
      DOI: 10.1108/JFC-05-2017-0045
  • Human aspirations or human rights'
    • Pages: 1094 - 1104
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1094-1104, October 2018.
      Purpose The purpose of this paper is to engender new thinking regarding the intersection between universal human rights and development, and associated programmes. This leads to three subsidiary objectives: demonstrating the mutually reinforcing relationship between human rights and development; considering the practical divide between having and exercising a right; understanding the impact of non-state actors; and emphasising the ways in which state capacity and social capabilities need to be enhanced to both transform the consideration of human rights into a meaningful development catalyst and treat development as a significant contributor to human rights endeavours. Design/methodology/approach The paper begins by exploring the historical and contemporary understanding of the relationship between development and human rights – arguing for the increasing recognition of their mutually reinforcing relationship. The second section analyses the controversy regarding the existence of genuine “universal” human rights; followed by considering whether human rights are mere aspirations or genuine rights – exposing the difficulty of monitoring, evaluating, and enforcing adherence to human rights mandates, particularly given the growth of non-state actors, such as multinational corporations (MNCs)/transnational corporations (TNCs). The paper closes with a call to strengthen social capabilities and state capacities to consolidate the union between development and human rights. Findings Credence is broadly given to the moral argument for including human rights within a development framework. However, the economic argument remains largely neglected and certainly under-emphasized. Human rights and development should not be viewed or pursued as separate ends in themselves – competing objectives for separate organisations or programmes – but as mutually reinforcing. Both drive the same goal: the inclusive, equitable and qualitative development of human well-being. Further, to transform human rights into meaningful development catalysts one needs to be able to “exercise” the given rights – which in turn calls for strengthening social capabilities and state capacities. Originality/value Unlike some previous works, this paper does not prescribe a particular remedy. Rather, accepting the intangibility of human rights and the associated large degree of subjectivity, it provokes the reader to move beyond the strictures of conventional theories and frameworks. For example, the difference between “having” and “exercising” a right – a stark feature of actual practice has frequently been omitted from theoretical discussion. Likewise, the role of non-state actors, such as MNCs and TNCs, and the way in which their power can impede or support development goals and human rights is a relatively new point of discussion demanding further exploration.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:48Z
      DOI: 10.1108/JFC-09-2017-0079
  • Anti-bribery compliance incentives
    • Pages: 1105 - 1110
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1105-1110, October 2018.
      Purpose This paper aims to discuss an innovative approach to eliminating bribery in multinational corporations. In particular, the concept of using incentive systems to fight corruption is assessed. Design/methodology/approach Based on the analysis of ten formal and ten informal expert interviews with both prevention experts and corrupt employees, a combination of bonus-malus payments is developed. Findings A performance matrix could be used to incentivize both compliance and productivity. Research limitations/implications This study’s findings are limited to the perspectives of 20 interviewees. Hence, it is possible that a study with a larger sample conducted in different countries or at a different time would have led to different results. Practical implications The identification of gaps in existing anti-bribery compliance mechanisms is meant to provide compliance officers and legislators with valuable insights into how undesirable behavior could be prevented. Originality/value It is found that eliminating the wrong incentives and establishing the right ones could make significant strides in advancing the fight against bribery.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:25:58Z
      DOI: 10.1108/JFC-09-2017-0081
  • Customs, mores and culture in determining the scope of law and financial
           crime control – relevance of Savigny and Lord Denning’s analysis
    • Pages: 1111 - 1122
      Abstract: Journal of Financial Crime, Volume 25, Issue 4, Page 1111-1122, October 2018.
      Purpose The purpose of this paper is to evaluate the role of customs and morality on financial crime control in developing countries, against the background of inherited foreign laws and international best practice. Design/methodology/approach The research is explanatory, descriptive and exploratory, relying extensively on existing anti-graft journals, text books, decided cases, constitutional provisions, statutory provisions and United Nation Conventions. Findings The research findings and analysis propose that the existing financial crime control measures in developing nations fail to consider local customs and circumstances in formulating anti-corruption policies and laws; consequently, a meaningful and effective financial crime control in developing nations, especially in Nigeria, requires the customs and culture to be examined and evaluated with a view to designing a pragmatic policies and laws. Originality/value The paper contributes practical options to observed lapses in the existing financial control laws, especially corruption. The paper will be valuable to African Governments, corporations and the academic community.
      Citation: Journal of Financial Crime
      PubDate: 2018-11-30T10:26:09Z
      DOI: 10.1108/JFC-09-2017-0083
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