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Journal Cover Journal of Financial Crime
  [SJR: 0.158]   [H-I: 5]   [372 followers]  Follow
    
   Hybrid Journal Hybrid journal (It can contain Open Access articles)
   ISSN (Print) 1359-0790
   Published by Emerald Homepage  [341 journals]
  • Editorial
    • Pages: 2 - 4
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 2-4, January 2018.

      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:48Z
      DOI: 10.1108/JFC-10-2017-0089
       
  • Forgetting corruption: unlearning the knowledge of corruption in the
           Indonesian public sector
    • Pages: 28 - 56
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 28-56, January 2018.
      Purpose Based on the authors’ study, the main purpose of this paper is to ascertain a systematic long-term solution for the corruption problem in the Indonesian public sector from the knowledge management perspective. To achieve its objectives, this paper applies multiple perspectives and theories of corruption and knowledge management on the corruption problem in Indonesia. Design/methodology/approach This paper is based on the authors’ study to assess the corruption problem in the Indonesian public sector in the past decade through the examination of reports from various institutions and other relevant documents to highlight various behavioral issues in knowledge management in the Indonesian public sector and how they relate to corruption. Findings The authors establish that a major factor behind corruption’s ability to regenerate over time in the Indonesian public sector is the fact that it has become part of knowledge conversion in Indonesian public institutions for so long that removing it would be a very challenging task. To remove corruption from Indonesian public institutions is to remove it from the existing knowledge conversion spiral within these institutions by means of organizational unlearning and re-learning. The primary focus of the unlearning and re-learning process should be to eliminate the knowledge of corruption, in both tacit and explicit forms, and replace it with the knowledge of good governance, accountability and integrity. Through systematic organizational unlearning and re-learning along with other more repressive measures, the risk of corruption in public institutions in Indonesia will gradually diminish over time. Research limitations/implications This study is relying on documentary analysis to highlight the trend in behavioral problems in relation to knowledge conversion in the Indonesian public sector. Future studies should incorporate interviews with corruption offenders and local leaders to gain a more accurate view of how knowledge conversion plays its role in the growth and regeneration of corruption in the Indonesian public sector. Practical implications This paper contributes to the development of corruption eradication strategy by proposing a framework for systematically removing corruption knowledge from an organization. With this, framework resources can be allocated more effectively and efficiently to achieve the objectives of corruption prevention. 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: 2018-01-23T12:08:24Z
      DOI: 10.1108/JFC-07-2016-0048
       
  • Kleptocracy in Nigeria
    • Pages: 57 - 69
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 57-69, January 2018.
      Purpose The purpose of this study is to sonographically explore kleptocracy in Nigeria’s nascent democracy and evaluate how democracy can mitigate kleptocratic behavior amongst Nigerian political elite for a positive social change using sonic therapeutic intervention lens. Design/methodology/approach The author inductively generated data through document analysis in this qualitative study. Findings The results of the study showed that kleptocracy has been an age-long politico-financial crime in Nigeria. The author proffered sonic therapeutic intervention to simultaneously enhance democratic values and mitigate kleptocracy among the Nigerian leaders. Research limitations/implications The limitations of the study stemmed from the fact that it cannot be generalized. Practical implications The practical implications of the study stemmed from the fact that any leader can take advantage of the research findings and apply the recommendations to themselves for personal transformation without incurring any costs. Social implications The social implication of the study is rooted in the fact that if the Nigerian leadership implement the recommendation(s) of the study, there will be a positive social change in the country inasmuch as financial crime will be mitigated. Originality/value The originality of the study stemmed from the fact that this inquiry filled the gap in financial crime literature and there was no such study ever conducted in the discipline.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:42Z
      DOI: 10.1108/JFC-08-2016-0053
       
  • Reflections on Rwanda’s approaches to crime related asset recovery
    • Pages: 70 - 80
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 70-80, January 2018.
      Purpose In this paper, the author intends to showcase the effectiveness of the Rwandan legal regime governing criminal asset recovery. This paper aims to advocate for a need to enforce laws, which seems to be dormant, and to ensure fairness of action when confiscating or seizing assets that initially belongs to bonafide third parties. Design/methodology/approach The author assesses the effectiveness of law No. 42/2014 of 27/01/2015 governing the recovery of offence-related assets in Rwanda and compares it with established international standards provided in major conventions to which Rwanda is a party. Primary and secondary sources of legal research have been used. Primary sources include international conventions, domestic laws and case laws. Secondary sources include books, chapters, journal articles and policy papers. Findings In this paper, the author submits that the law on crime-related asset recovery suffers from strategic deficiencies and gaps and posits that the process of asset recovery should be streamlined and balanced to meet the aims of crime prevention. Originality/value This research paper is a first of its kind. Through positive criticism, it showcases that Rwanda is doing well through the establishment of relevant laws to combat crime. However, it proposes solutions to identify gaps. This paper is original and has never been published anywhere else, and all sources used have duly been recognized.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:09:15Z
      DOI: 10.1108/JFC-09-2016-0060
       
  • Pyramids, Ponzis and fraud prevention: lessons from a case study
    • Pages: 81 - 94
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 81-94, January 2018.
      Purpose This paper aims to empirically identify factors that increase consumer vulnerability to pyramid scheme fraud and compares/contrasts dynamics and implications of pyramid and Ponzi fraud. Design/methodology/approach Statistical techniques, including multiple regression, are used to analyze participant data (with over half a million individuals) from a now-defunct US-based pyramid scheme, Fortune Hi-Tech Marketing. Findings Findings suggest that this pyramid scheme flourished in counties with identifiable affinity groups: religious communities, Hispanic populations and certain age cohorts (e.g. recently retired). Recruitment success varied significantly between geographic regions, with the highest levels of recruitment in the South. While prior research finds a possible positive relationship between education and Ponzi participation, this is not the case in the pyramid scheme studied. Furthermore, while Ponzi schemes might be pro-cyclical, collapsing during contractions when participants seek to extract their money, this pyramid scheme exhibited counter-cyclical behavior. Practical implications State and federal regulators, as well as consumer protection advocates, should learn from analysis of past pyramid scheme cases. Such analysis informs allocation of scarce resources and supports the case for targeted, active education. Clarifying differences between Ponzi and pyramid fraud helps to support clear and effective intervention. Originality/value This is the first research to analyze national participant-level data from a pyramid scheme to inform future action. While it confirms some past findings, such as the connection to affinity fraud, it adds to collective knowledge on pyramid schemes and the differences between pyramid and Ponzi fraud.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:09:04Z
      DOI: 10.1108/JFC-10-2016-0062
       
  • Anti-money laundering disclosures and banks’ performance
    • Pages: 95 - 108
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 95-108, January 2018.
      Purpose The purpose of this paper is to explore the extent of anti-Money laundering (AML) disclosures in the annual reports and websites by differentiating between UAE Islamic and conventional banks, and examine the effect of AML disclosure on UAE bank’s performance. Design/methodology/approach This study uses content analysis to explore the extent of AML disclosure in the annual reports and the dynamic panel data two-step robust system to study the impact of the AML disclosures on banking performance. Findings The findings show that AML disclosure is at a low level for all UAE banks, conventional and Islamic banks. The results also show that the degree of AML disclosure on the websites of the banks is higher than that in the annual reports. Research limitations/implications The sample for this study comes only from banks traded on UAE markets. Thus, the results may not be generalizable to banks traded on other financial markets. Practical implications Because of the cross-border character of the money laundry practices, our study suggests the UAE central bank to internationalize the AML regulations and develop an international AML regime as efforts to respond to the international development of the money laundry practices. Originality/value This is the first study that develops an index to measure the AML disclosure and contributes significantly in providing greater insight in respect to AML disclosure in banking industry within the emerging markets.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:56Z
      DOI: 10.1108/JFC-10-2016-0063
       
  • Bitcoin transactions: a digital discovery of illicit activity on the
           blockchain
    • Pages: 109 - 130
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 109-130, January 2018.
      Purpose The purpose of this paper is to determine if Bitcoin transactions could be de-anonymised by analysing the Bitcoin blockchain and transactions conducted through the blockchain. In addition, graph analysis and the use of modern social media technology were examined to determine how they may help reveal the identity of Bitcoin users. A review of machine learning techniques and heuristics was carried out to learn how certain behaviours from the Bitcoin network could be augmented with social media technology and other data to identify illicit transactions. Design/methodology/approach A number of experiments were conducted and time was spend observing the network to ascertain how Bitcoin transactions work, how the Bitcoin protocol operates over the network and what Bitcoin artefacts can be examined from a digital forensics perspective. Packet sniffing software, Wireshark, was used to see whether the identity of a user is revealed when they set up a wallet via an online wallet service. In addition, a block parser was used to analyse the Bitcoin client synchronisation and reveal information on the behaviour of a Bitcoin node when it joins the network and synchronises to the latest blockchain. The final experiment involved setting up and witnessing a transaction using the Bitcoin Client API. These experiments and observations were then used to design a proof of concept and functional software architecture for searching, indexing and analyzing publicly available data flowing from the blockchain and other big data sources. Findings Using heuristics and graph analysis techniques show us that it is possible to build up a picture of behaviour of Bitcoin addresses and transactions, then utilise existing typologies of illicit behaviour to collect, process and exploit potential red flag indicators. Augmenting Bitcoin data, big data and social media may be used to reveal potentially illicit financial transaction going through the Bitcoin blockchain and machine learning applied to the data sets to rank and cluster suspicious transactions. Originality/value The development of a functional software architecture that, in theory, could be used to detect suspicious illicit transactions on the Bitcoin network.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:22Z
      DOI: 10.1108/JFC-12-2016-0078
       
  • Accountability of senior compliance management for compliance failures in
           a credit institution
    • Pages: 131 - 139
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 131-139, January 2018.
      Purpose In most industries, legal entities of a certain size and complexity must have a compliance function. Such requirement is either set forth by regulatory law or the governance rules of the relevant organisation. In the highly regulated credit industry, the role and responsibilities of the compliance function are more precisely defined than in other industries. This paper aims to analyse the personal accountability of senior compliance officers in a bank’s compliance function when there is a failure of proper compliance. Design/methodology/approach This paper is based on a keynote addressed at Jesus College, University of Cambridge, 7 September 2016. The author approaches the issue of senior compliance management by analysing development of international financial regulation with respect to legal requirements for compliance function. Subsequently, the author determines what constitutes senior compliance management and applies the various legal regimes to situations of compliance failures. Findings While the accountability of the chief compliance officer and deputy for compliance failures is not set forth in regulatory law, courts and scholars have acknowledged such personal responsibility exists resorting to principles of civil law (contracts or torts), criminal law or employment law. Approaches and questions for this legal analysis are similar in a civil law as well as in common law jurisdiction. The most relevant breach of contract of the chief compliance officer will be an omission to act (forbearance), i.e. the failure to properly organize the compliance function and/or to immediately report a compliance risk to the board. Research limitations/implications Scholarly work in the law of compliance is still somewhat limited, thus the research also includes practitioners’ observations. The accountability of senior compliance management for compliance failures represents a growing trend in corporate governance to seek individual accountability for corporate misconduct; see, for example, US Department of Justice (DOJ) in its so-called Yates memorandum on “individual accountability for corporate wrongdoing”. Practical implications In incidents of non-compliance, banks and their compliance officers should be able to exculpate themselves if they can demonstrate proper organization of the compliance function. Originality/value The originality of this general review is to focus the analysis of accountability of senior compliance management on the credit industry and to consider latest developments in international financial regulation, such as the supervisory review and evaluation process (SREP) by the European Central Bank (ECB) in the single supervisory mechanism (SSM) or the corporate governance principles for banks by the Basel Committee on Banking Supervision (BCBS).
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:09:14Z
      DOI: 10.1108/JFC-11-2016-0074
       
  • Strengthening the effectiveness of whistleblowing system
    • Pages: 140 - 154
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 140-154, January 2018.
      Purpose The purpose of this paper is to identify and map out various aspects and key elements, which are necessary to strengthen an effective and systematic whistleblowing system (WBS) and ensure adequate protection in accordance with the characteristics typical of Indonesia. Design/methodology/approach This research emphasizes the extensive use of literature review and previous research that analyze whistleblowing as an issue and ethical challenge in public institutions. This research also reviews documents pertaining to the formulation and implementation of existing WBS. Additionally, this research also analyzes some cases experienced by a number of whistleblower figures in Indonesia as a contribution and recommendation to parties interested in formulating a more effective and systematic WBS. Findings An effective and systematic WBS, assuring adequate protection, needs a number of key elements which will be identified and mapped out in this research and, subsequently, categorized into several aspects covering human and ethical culture; policy; legal protection; organizational structure; and procedures and process in accordance to Indonesia’s specific characteristics. Practical implications The paper can be a source to explore anti-corruption policy and the prevention approach of corruption based on Indonesian perspectives. Originality/value This paper is a significant undertaking aimed at raising public trust in public institutions and providing adequate protection to whistleblowers. It also contributes by encouraging the public organization to prevent corruption and other wrongdoing, which, nowadays, are common in Indonesia.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:45Z
      DOI: 10.1108/JFC-11-2016-0069
       
  • Tax malfeasance of high net-worth individuals in Malaysia: tax audited
           cases
    • Pages: 155 - 169
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 155-169, January 2018.
      Purpose This paper aims to analyse the profiles of high net-worth individuals (HNWIs) who were caught for tax malfeasance during a tax audit and to examine factors that influence tax malfeasance among HNWIs in Malaysia. Design/methodology/approach This paper examined 235 HNWIs who were involved in tax malfeasance after audited by the Inland Revenue Board Malaysia from year 2009 to 2013. A research model was developed to examine the influence of four independent variables which are tax rate, level of income, source of income and taxation performed by tax professionals on tax malfeasance. Findings Multiple regression was used to test the proposed research model. The findings show that source of income and taxation performed by tax professionals influence tax malfeasance among HNWIs in Malaysia. This study also uncovers no significant relationship between tax rate and level of income with tax malfeasance of HNWIs. Originality/value This study could be the first in Malaysia that has used actual audited data in examining tax malfeasance among HNWIs. This study provides important insights not only to the Malaysian tax authorities but also to tax authorities and tax researchers in other parts of the world, given the fact that tax malfeasance of HNWIs is a prevalent and universal problem.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:54Z
      DOI: 10.1108/JFC-11-2016-0070
       
  • Preventing malfeasance in low corruption environments: twenty public
           administration responses
    • Pages: 170 - 186
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 170-186, January 2018.
      Purpose Corruption undermines good governance. Strategies for preventing malfeasance in low-corruption environments require a different approach to that applied in high-corruption environments. This paper aims to ask if criminological theories and practice contribute to the study and prevention of corruption in public organizations' Do crime prevention techniques help us in preventing corruption' Design/methodology/approach Empirical data demonstrate that the overwhelming majority of public officials in rich countries demonstrate high levels of integrity; yet, significant sums are invested in anti-corruption agencies and prevention strategies. This paper reports on recent work with an anti-corruption agency, which forced us to re-think how to deliver an anti-corruption agenda in a low-corruption environment. The authors build on their research of public sector corruption in rich countries to develop a set of 20 situational corruption prevention measures for public administrators. Findings The result, with lessons from crime prevention, is a prevention tool to support continued good governance in low-corruption environments. Figure 1 is a template that readers can apply in their own environments. Figure 2 is the authors’ attempt to populate this template based on the research reported here. Originality/value The matrix of situational corruption prevention techniques provides two original approaches. First, it recasts the language of crime prevention into a non-confrontational approach to avoid alienating honest public officials. Second, the matrix incorporates common public sector functions to guide the development of context specific corruption prevention techniques.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:09:11Z
      DOI: 10.1108/JFC-04-2017-0026
       
  • Can “harmonization” antidote tax avoidance and other financial
           crimes globally'
    • Pages: 187 - 209
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 187-209, January 2018.
      Purpose The purpose of this research paper is to underscore that harmonization of laws, much as it might not offer a lasting cure of tax avoidance and other forms of financial crimes, can enhance the fight against it and subsequently help to forestall it. Tax avoidance has remained an intractable challenge and costs governments astronomical sums of money, largely because taxation is a sensitive issue in the realm of sovereign national jurisdictions. The first part of this paper involves a review of empirical data on tax avoidance to create a context for evaluating theoretical issues on tax avoidance and how they are manifested in practice. It draws examples in a cross-jurisdictional perspective given the global character of tax avoidance and evasion as financial crimes. The last part of this paper discusses possible recommendations that could be implemented to tackle tax avoidance and its attendant challenges on economies. Design/methodology/approach The author has carried out a scoping review of the literature on tax avoidance and myriad of ways used to commit it globally. There was a wealth of data on tax avoidance, evasion, money laundering and harmonization of laws, which was reviewed and applied in undertaking this study. These data were sourced from published academic books, journal articles and online data sources/websites. This paper reflects on and internalizes most recent empirical data on tax avoidance and evasion such as unprecedented leak of millions of files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca – the so-called “Panama papers”, which has revealed the extent of tax avoidance globally. It also goes an extra length (literally speaking) to underscore important measures that ought to be introduced to address tax avoidance, evasion and money laundering once and for all. Findings The findings of this paper confirm that while harmonization of law has its inherent shortcomings, it is necessary to enhance individual state’s ability to deal with overlapping interstate challenges such as tax avoidance. This paper proffers a thorough analysis of tax avoidance, the varied context in which it is manifested with a view to evaluate measures that could be adopted by states to minimize or forestall it globally. Research limitations/implications This paper has used data on tax avoidance and cognate areas in underscoring inherent challenges in current measures against tax avoidance globally. There were not many studies carried out on the role of harmonization in bolstering states’ efforts against tax avoidance and other financial crimes. Practical implications Paying taxes or avoiding paying it has a direct bearing on people, societies and national governments. It is therefore important that states adopt measures to curtail tax avoidance – because it costs governments a lot of revenue. Originality/value Though studies have been conducted on tax avoidance and cognate areas, this paper articulates that harmonization could greatly enhance the fight against it globally. This paper will appeal to tax authorities, banks, governments, policy makers, oversight financial institutions and those who have a vested interest in regulation of financial crimes globally.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:49Z
      DOI: 10.1108/JFC-06-2016-0045
       
  • Liability for negligently issued anti-mafia certificates
    • Pages: 210 - 217
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 210-217, January 2018.
      Purpose This paper aims to analyse the different forms of liability that might apply under Italian private law to anti-mafia advisors who negligently perform their duties, with particular regards to auditors concerning the drafting of mandatory anti-mafia certificates as bidding documents for public procurement contracts. Design/methodology/approach The analysis is based on the comparative law methodology of dissociation of “legal formants”, that is, on the study of separate contributions by each element of the legal system – from black-letter provisions to judicial dicta, from scholars’ arguments to administrative practices – to the making of legal rules in a given setting. Findings Neither case law nor academic writing is abundant on this topic. Yet, it can be fairly assumed that an advisor who negligently drafts anti-mafia certificates might incur both contractual and tortious liability. Originality/value The paper investigates an area, which has so far been largely unexplored, and, thus, contributes to paving the way for a better understanding of the legal framework applicable to the cases under examination.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:09:10Z
      DOI: 10.1108/JFC-10-2016-0066
       
  • The cost of not wanting to know – the professions, money laundering
           and organised crime
    • Pages: 218 - 229
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 218-229, January 2018.
      Purpose This paper aims to advocate the development and re-emphasis of “epistemic virtue” in relevant professional ethical codes so that attention is re-focussed on the responsibility of relevant professionals to close windows of opportunity for financial wrongdoing and money laundering that are left open through the widespread practice of “wilful blindness”. Design/methodology/approach This study is an exploration of the duty to know or find out in the accountancy profession via discussion and illustration of how failures in this field contributed to the financial crash; a relation of these failures to “seek the truth” to the concept of “epistemic virtue”; and a discussion of how a lack of epistemic virtue is a necessary condition for the successful practice of money laundering. Findings This paper considers the case for establishing a new framework for recalibrating the professional ethic model so that the primacy of outward looking attitudes to knowledge is re-established at the heart of professional ethics. Research limitations/implications The paper advocates the adoption of specific training on outward looking epistemic values in all financially related professional bodies. Practical implications Review of ethical standards in the professions is required to ensure epistemic virtues are given due weight and prominence within them. Social implications The accumulation of criminal capital under legitimate guises by serious organised crime requires poses an ongoing threat to the integrity of economic markets. A key step to improving defences against this threat is the elevation of epistemic virtue in the professions. Originality/value To raise awareness and prominence of epistemic virtue as a necessary component of professional integrity.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:53Z
      DOI: 10.1108/JFC-11-2016-0071
       
  • Do white-collar offenders find prison more punitive than property
           offenders
    • Pages: 230 - 243
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 230-243, January 2018.
      Purpose The purpose of this paper is to use exchange rate theory to compare how white-collar offenders and property offenders rank the severity of various correctional sanctions. Design/methodology/approach The authors use survey data from 160 inmates incarcerated for white-collar and property crimes in a Midwestern state to compare how white-collar inmates differed from property inmates in ranking the goals of prison and the punitiveness of prison as compared to other alternatives. Findings White-collar offenders were no different than property offenders in terms of their assessment of the punitiveness of prison compared to the punitiveness of the four sanctions under consideration here. White-collar offenders were significantly more likely than property offenders to believe that the goal of prison is to rehabilitate rather than deter individuals from further crime. Research limitations/implications Because the authors defined white-collar offenders by their crime of incarceration, they may have captured offenders who are not truly white-collar offenders. Focusing on offenders who were in prison did not allow them to fully examine whether similarities between white-collar and property offenders can be attributed to adjustment to prison or some other variable. Practical implications Alternative sanctions may be useful in punishing white-collar offenders in a less expensive manner than prison. Results suggest white-collar offenders may be more amenable to rehabilitation than property offenders and may not experience prison much differently than other types of offenders. Originality value This research is important because it is the first of its kind to compare white-collar offenders’ views about the punitiveness of prison and the goals of incarceration with those of property offenders.
      Citation: Journal of Financial Crime
      PubDate: 2018-01-23T12:08:52Z
      DOI: 10.1108/JFC-11-2016-0073
       
  • Report on the debate regarding EU cash payment limitations
    • Pages: 5 - 27
      Abstract: Journal of Financial Crime, Volume 25, Issue 1, Page 5-27, January 2018.
      Purpose Response to suggestion that EU-wide cash payment limits would assist in the control of terrorism finance and money laundering. Design/methodology/approach Desk review and interviews Findings The inception impact assessment (IIA) is ill-conceived, not grounded on firm empirical evidence and harmful to both crime control and the legitimate interests and rights of the EU citizens. The action under discussion is presented as a measure against terrorism finance, serious crime and tax evasion. The problem is that these criminal acts correspond to very different methods, volumes, perpetrators, causes and control challenges. Cash payment limitations (CPLs) are nowhere near a panacea that can address all of them and cannot make any of them go away magically. Even when each of these crime challenges are considered on their own, the empirical linkage of CPLs to effective controls is not there. The evidence from EU countries with CPLs in place shows higher levels of informal economy, corruption, tax evasion and terrorism risks than those without. There is substantial evidence of non-cash, very serious and organized crime, while the amounts needed and used by terrorists in Europe are usually very small in cash transactions, way below the thresholds under consideration. In fact, determined offenders will shift to other methods and become more sophisticated, posing new problems to controllers. Displacement and incentives for better-organized crime may well be the main products of such measures. Originality/value It counters the argument that the cash payment limits can help reduce serious crime, while pointing to several adverse consequences on legitimate interests and human rights.
      Citation: Journal of Financial Crime
      PubDate: 2017-11-14T12:11:44Z
      DOI: 10.1108/JFC-06-2017-0058
       
 
 
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