Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
    - ACCOUNTING (132 journals)
    - BANKING AND FINANCE (306 journals)
    - BUSINESS AND ECONOMICS (1248 journals)
    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (212 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (235 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
    - INSURANCE (26 journals)
    - INTERNATIONAL COMMERCE (145 journals)
    - INTERNATIONAL DEVELOPMENT AND AID (103 journals)
    - INVESTMENTS (22 journals)
    - LABOR AND INDUSTRIAL RELATIONS (61 journals)
    - MACROECONOMICS (17 journals)
    - MANAGEMENT (595 journals)
    - MARKETING AND PURCHASING (116 journals)
    - MICROECONOMICS (23 journals)
    - PRODUCTION OF GOODS AND SERVICES (143 journals)
    - PUBLIC FINANCE, TAXATION (37 journals)
    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

BUSINESS AND ECONOMICS (1248 journals)            First | 1 2 3 4 5 6 7 | Last

Showing 601 - 800 of 1566 Journals sorted alphabetically
Investigación Administrativa     Open Access  
IPPR Progressive Review     Hybrid Journal  
Issues in Economics and Business     Open Access  
IZA Journal of Labor Economics     Open Access   (Followers: 17)
J : Multidisciplinary Scientific Journal     Open Access  
Jahrbuch für Regionalwissenschaft     Hybrid Journal  
Jàmbá : Journal of Disaster Risk Studies     Open Access   (Followers: 3)
Japan and the World Economy     Hybrid Journal   (Followers: 5)
Japanese Economic Review     Hybrid Journal   (Followers: 2)
Jindal Journal of Business Research     Full-text available via subscription  
Journal cover Sustainability Management Forum / NachhaltigkeitsManagementForum     Hybrid Journal  
Journal for Art Market Studies     Open Access   (Followers: 1)
Journal for Global Business Advancement     Hybrid Journal  
Journal for International Business and Entrepreneurship Development     Hybrid Journal   (Followers: 8)
Journal of Accounting & Organizational Change     Hybrid Journal   (Followers: 3)
Journal of Accounting and Economics     Hybrid Journal   (Followers: 44)
Journal of Adult Development     Hybrid Journal   (Followers: 6)
Journal of African Business     Hybrid Journal   (Followers: 1)
Journal of African Economies     Hybrid Journal   (Followers: 19)
Journal of Aggression Maltreatment & Trauma     Hybrid Journal   (Followers: 5)
Journal of Aging & Social Policy     Hybrid Journal   (Followers: 11)
Journal of Aging Studies     Hybrid Journal   (Followers: 13)
Journal of Agricultural Economics     Hybrid Journal   (Followers: 31)
Journal of Agronomy     Open Access   (Followers: 7)
Journal of Applied and Industrial Mathematics     Hybrid Journal  
Journal of Applied Business Research     Open Access   (Followers: 3)
Journal of Applied Corporate Finance     Hybrid Journal   (Followers: 18)
Journal of Applied Econometrics     Hybrid Journal   (Followers: 55)
Journal of Applied Economics     Open Access   (Followers: 13)
Journal of ASEAN Studies     Open Access   (Followers: 1)
Journal of Asia Business Studies     Hybrid Journal   (Followers: 1)
Journal of Asia-Pacific Business     Hybrid Journal  
Journal of Asian Economics     Hybrid Journal   (Followers: 3)
Journal of Banking & Finance     Hybrid Journal   (Followers: 173)
Journal of Banking Regulation     Hybrid Journal   (Followers: 27)
Journal of Behavioral and Experimental Finance     Full-text available via subscription   (Followers: 5)
Journal of Behavioral Decision Making     Hybrid Journal   (Followers: 22)
Journal of Behavioral Finance     Hybrid Journal   (Followers: 15)
Journal of Behavioural Economics and Social Systems     Open Access   (Followers: 2)
Journal of Bioeconomics     Hybrid Journal  
Journal of Business     Open Access   (Followers: 1)
Journal of Business     Open Access  
Journal of Business & Economic Statistics     Full-text available via subscription   (Followers: 38)
Journal of Business & Economics Research     Open Access   (Followers: 2)
Journal of Business & Financial Affairs     Open Access  
Journal of Business & Technology Law     Open Access   (Followers: 2)
Journal of Business Administration : The Association of Private Higher Education Institutions of Thailand     Open Access  
Journal of Business Administration and Social Sciences Ramkhamhaeng University     Open Access  
Journal of Business Administration Research     Open Access  
Journal of Business Analytics     Hybrid Journal  
Journal of Business and Behavioural Entrepreneurship     Open Access   (Followers: 1)
Journal of Business and Finance     Open Access   (Followers: 2)
Journal of Business and Management     Open Access   (Followers: 1)
Journal of Business and Management Research     Open Access   (Followers: 1)
Journal of Business and Management Sciences     Open Access  
Journal of Business and Management Studies     Open Access  
Journal of Business and Psychology     Hybrid Journal   (Followers: 13)
Journal of Business and Social Review in Emerging Economies     Open Access  
Journal of Business and Social Sciences     Open Access  
Journal of Business and Social Sciences Research     Open Access  
Journal of Business and Technical Communication     Hybrid Journal   (Followers: 7)
Journal of Business and Technology (Dhaka)     Open Access  
Journal of Business Case Studies     Open Access   (Followers: 3)
Journal of Business Continuity & Emergency Planning     Full-text available via subscription   (Followers: 24)
Journal of Business Cycle Research     Hybrid Journal  
Journal of Business Economics     Hybrid Journal   (Followers: 6)
Journal of Business Economics and Finance     Open Access   (Followers: 3)
Journal of Business Economics and Management     Open Access   (Followers: 2)
Journal of Business Ethics     Hybrid Journal   (Followers: 56)
Journal of Business Ethics Education     Full-text available via subscription   (Followers: 4)
Journal of Business in The Digital Age     Open Access  
Journal of Business Research     Hybrid Journal   (Followers: 22)
Journal of Business Strategy     Hybrid Journal   (Followers: 7)
Journal of Business Studies     Open Access  
Journal of Business Studies Quarterly     Open Access  
Journal of Business Thought     Full-text available via subscription  
Journal of Business Venturing Insights     Hybrid Journal   (Followers: 7)
Journal of Centrum Cathedra     Open Access  
Journal of Chinese Economic and Business Studies     Hybrid Journal  
Journal of Choice Modelling     Hybrid Journal   (Followers: 2)
Journal of Cognition and Development     Hybrid Journal   (Followers: 5)
Journal of Commodity Markets     Full-text available via subscription   (Followers: 1)
Journal of Comparative Asian Development     Hybrid Journal   (Followers: 1)
Journal of Comparative Economics     Hybrid Journal   (Followers: 13)
Journal of Competition Law and Economics     Hybrid Journal   (Followers: 34)
Journal of Consumer Behaviour     Hybrid Journal   (Followers: 26)
Journal of Consumer Policy     Hybrid Journal   (Followers: 13)
Journal of Consumer Research     Full-text available via subscription   (Followers: 49)
Journal of Contemporary European Research     Open Access   (Followers: 16)
Journal of Corporate Finance     Hybrid Journal   (Followers: 42)
Journal of Creating Value     Full-text available via subscription  
Journal of Cultural Economics     Hybrid Journal   (Followers: 2)
Journal of Cultural Economy     Hybrid Journal   (Followers: 8)
Journal of Customer Behaviour     Full-text available via subscription   (Followers: 4)
Journal of Data and Information Science     Open Access   (Followers: 4)
Journal of Derivatives & Hedge Funds     Hybrid Journal   (Followers: 6)
Journal of Design, Business & Society     Hybrid Journal   (Followers: 1)
Journal of Developing Areas     Full-text available via subscription   (Followers: 5)
Journal of Development Economics     Hybrid Journal   (Followers: 114)
Journal of Development Policy and Practice     Hybrid Journal   (Followers: 3)
Journal of Development Studies     Hybrid Journal   (Followers: 51)
Journal of Developmental Entrepreneurship     Hybrid Journal   (Followers: 5)
Journal of East-West Business     Hybrid Journal  
Journal of Eastern European and Central Asian Research     Open Access   (Followers: 4)
Journal of Econometrics     Hybrid Journal   (Followers: 82)
Journal of Economic & Financial Studies     Open Access   (Followers: 3)
Journal of Economic & Social Policy     Full-text available via subscription   (Followers: 11)
Journal of Economic Behavior & Organization     Hybrid Journal   (Followers: 48)
Journal of Economic Development, Environment and People     Open Access   (Followers: 11)
Journal of Economic Dynamics and Control     Hybrid Journal   (Followers: 44)
Journal of Economic Geography     Hybrid Journal   (Followers: 28)
Journal of Economic Growth     Hybrid Journal   (Followers: 36)
Journal of Economic Inequality     Hybrid Journal   (Followers: 21)
Journal of Economic Integration     Full-text available via subscription   (Followers: 4)
Journal of Economic Interaction and Coordination     Hybrid Journal  
Journal of Economic Methodology     Hybrid Journal   (Followers: 3)
Journal of Economic Policy Reform     Hybrid Journal   (Followers: 5)
Journal of Economic Psychology     Hybrid Journal   (Followers: 20)
Journal of Economic Structures     Open Access  
Journal of Economic Studies     Hybrid Journal   (Followers: 5)
Journal of Economic Surveys     Hybrid Journal   (Followers: 23)
Journal of Economics     Hybrid Journal   (Followers: 16)
Journal of Economics & Management Strategy     Hybrid Journal   (Followers: 10)
Journal of Economics and Business     Hybrid Journal   (Followers: 15)
Journal of Economics and Financial Analysis     Open Access   (Followers: 3)
Journal of Economics and Management Sciences     Open Access  
Journal of Economics and Political Economy     Open Access   (Followers: 6)
Journal of Economics and Public Finance     Open Access   (Followers: 2)
Journal of Economics, Business, & Accountancy Ventura     Open Access  
Journal of Economics, Finance and Accounting Studies     Open Access  
Journal of Economics, Management and Trade     Open Access  
Journal of Education and Work     Hybrid Journal   (Followers: 12)
Journal of Education for Sustainable Development     Hybrid Journal   (Followers: 8)
Journal of Electronic Commerce in Organizations     Full-text available via subscription   (Followers: 1)
Journal of Empirical Finance     Hybrid Journal   (Followers: 40)
Journal of Engineering and Technology Management     Hybrid Journal   (Followers: 4)
Journal of Enterprising Culture     Hybrid Journal   (Followers: 2)
Journal of Entrepreneurship     Hybrid Journal   (Followers: 17)
Journal of Entrepreneurship and Business Innovation     Open Access   (Followers: 9)
Journal of Entrepreneurship and Innovation in Emerging Economies     Hybrid Journal   (Followers: 4)
Journal of Environment & Development     Hybrid Journal   (Followers: 5)
Journal of Ergonomics     Open Access   (Followers: 8)
Journal of European Industrial Training     Hybrid Journal   (Followers: 2)
Journal of European Integration     Hybrid Journal   (Followers: 46)
Journal of Evolutionary Economics     Hybrid Journal   (Followers: 7)
Journal of Evolutionary Studies in Business     Open Access  
Journal of Family and Economic Issues     Hybrid Journal   (Followers: 4)
Journal of Financial Crime     Hybrid Journal   (Followers: 248)
Journal of Financial Econometrics     Hybrid Journal   (Followers: 31)
Journal of Financial Intermediation     Hybrid Journal   (Followers: 47)
Journal of Financial Regulation and Compliance     Hybrid Journal   (Followers: 9)
Journal of Financial Research     Hybrid Journal   (Followers: 13)
Journal of Financial Risk Management     Open Access   (Followers: 7)
Journal of Gambling Business and Economics     Full-text available via subscription   (Followers: 2)
Journal of Global Business Review     Open Access  
Journal of Global Optimization     Hybrid Journal   (Followers: 6)
Journal of Hazardous Materials     Hybrid Journal   (Followers: 12)
Journal of Health Management     Hybrid Journal   (Followers: 10)
Journal of Health Organisation and Management     Hybrid Journal   (Followers: 29)
Journal of Housing Economics     Hybrid Journal   (Followers: 10)
Journal of Human Resource Costing & Accounting     Hybrid Journal   (Followers: 6)
Journal of Indian Business Research     Hybrid Journal  
Journal of Indonesian Economy and Business     Open Access   (Followers: 1)
Journal of Industrial Economics     Hybrid Journal   (Followers: 23)
Journal of Industrial Relations     Hybrid Journal   (Followers: 22)
Journal of Industry, Competition and Trade     Hybrid Journal   (Followers: 10)
Journal of Innovation & Knowledge     Full-text available via subscription   (Followers: 3)
Journal of Innovation in Business and Economics     Open Access   (Followers: 1)
Journal of Institutional Economics     Hybrid Journal   (Followers: 16)
Journal of Intellectual Capital     Hybrid Journal   (Followers: 1)
Journal of Intelligence Studies in Business     Open Access   (Followers: 1)
Journal of Intergenerational Relationships     Hybrid Journal   (Followers: 4)
Journal of International Business Studies     Hybrid Journal   (Followers: 48)
Journal of International Education in Business     Hybrid Journal   (Followers: 2)
Journal of International Management, Educational and Economics Perspectives     Open Access  
Journal of International Scientific Researches     Open Access  
Journal of Law and Economics     Full-text available via subscription   (Followers: 80)
Journal of Law, Economics, and Organization     Hybrid Journal   (Followers: 49)
Journal of Legal Studies     Full-text available via subscription   (Followers: 46)
Journal of Management Analytics     Hybrid Journal  
Journal of Management and Development Studies     Open Access   (Followers: 1)
Journal of Manufacturing Processes     Full-text available via subscription   (Followers: 8)
Journal of Mathematical Economics     Hybrid Journal   (Followers: 4)
Journal of Media Economics     Hybrid Journal   (Followers: 3)
Journal of Medical Economics     Hybrid Journal   (Followers: 6)
Journal of Money Laundering Control     Hybrid Journal   (Followers: 248)
Journal of Multi-Criteria Decision Analysis     Hybrid Journal   (Followers: 1)
Journal of Multinational Financial Management     Hybrid Journal   (Followers: 5)
Journal of Nepalese Business Studies     Open Access  
Journal of Neuroscience, Psychology, and Economics     Full-text available via subscription   (Followers: 10)
Journal of New Business Ventures     Full-text available via subscription  
Journal of Nonprofit Education and Leadership     Full-text available via subscription   (Followers: 10)
Journal of Open Innovation : Technology, Market, and Complexity     Open Access   (Followers: 1)
Journal of Operations and Strategic Planning     Hybrid Journal  
Journal of Organizational Behavior     Hybrid Journal   (Followers: 61)
Journal of Organizational Behavior Management     Hybrid Journal   (Followers: 18)
Journal of Organizational Computing and Electronic Commerce     Hybrid Journal   (Followers: 1)
Journal of Participation and Employee Ownership     Hybrid Journal  
Journal of Payments Strategy & Systems     Full-text available via subscription   (Followers: 4)
Journal of Peasant Studies     Hybrid Journal   (Followers: 28)

  First | 1 2 3 4 5 6 7 | Last

Similar Journals
Journal Cover
Journal of Money Laundering Control
Number of Followers: 248  
 
Hybrid Journal Hybrid journal   * Containing 7 Open Access Open Access article(s) in this issue *
ISSN (Print) 1368-5201 - ISSN (Online) 1758-7808
Published by Emerald Homepage  [360 journals]
  • The thin line between corporate gift, hospitality and corruption: a legal
           study on Malaysia’s and the UK’s position

    • Free pre-print version: Loading...

      Authors: Nur Hazirah Ahamad Kuris , Mohd Zamre Mohd Zahir , Hasani Mohd Ali , Muhamad Sayuti Hassan
      Abstract: Corporate gift-giving and hospitality are some of the high-risk areas for corruption. This paper aims to see comparisons between the Malaysian Ministerial Guidelines and the UK Guidance and to analyse whether the guideline in Malaysia is adequate in dealing with corporate gift-giving and hospitality. The methodology used in this paper is qualitative research which is based on data collection through online searches, legal databases, information obtained from articles, books, statutes and related government publications. The findings show that the statutory guideline in Malaysia is immature, still not adequate, and lacks detailed regulations in determining gifts and hospitality as corruption (unclear boundary), as compared to the UK law which is more detailed. This paper explains on comparison of corporate gift giving and hospitality practise in Malaysia and the UK based on the statutory guidelines.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-05-11
      DOI: 10.1108/JMLC-03-2022-0040
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Money laundering in Ethiopia: an analysis of typologies and techniques

    • Free pre-print version: Loading...

      Authors: Messay Asgedom Gobena
      Abstract: The purpose of this study is to identify money laundering typologies and techniques in Ethiopia. This is a descriptive study that relies on primary data generated from interviewees drawn from the Ethiopian Financial Intelligence Center, Ethiopian Customs Commission, selected commercial banks and law enforcement agencies, as well as secondary data from government reports, media press, statutes and other online and offline sources. According to this study, criminals in Ethiopia used several laundering techniques, the most common of which are money laundering using financial institutions, trade-based money laundering, cash-based money laundering, money laundering through illegal hawala, shell companies, or anonymous beneficiaries. Criminals have recently been suspected of using financial technologies and virtual currencies to launder the proceeds of their illicit activities. The laundering strategies are extremely intertwined and their distinction remains highly blurred. Moreover, the typologies are operated transnationally, despite being highly tailored to Ethiopia’s political economy. This is one of the very few papers to date that provides the typologies and techniques of money laundering, specifically in the context of cash-intensive economies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-05-10
      DOI: 10.1108/JMLC-03-2022-0053
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Biases in risk assessments under EU anti-money laundering law – evidence
           of the better-than-average effect from Germany

    • Free pre-print version: Loading...

      Authors: Lars Haffke
      Abstract: Anti-money laundering (AML) obligations follow a risk-based approach, making their extent subject to the degree of AML risk. Money Laundering Reporting Officers (MLROs) must constantly assess risks, for example, by conducting annual risk assessments of the company. The purpose of this paper is to analyse whether MLROs’ risk assessments are biased in form of a better-than-average (BTA) effect, meaning whether they favourably assess their own company’s risk compared to that of the average competitor. Additionally, MLROs’ general risk assessment capabilities are researched. A survey of MLROs of German companies was conducted (n = 228). It tests for a BTA effect in participants’ risk assessments of their own company as well as for errors in risk assessments of other industries. MLROs’ risk assessments are biased by a BTA effect across all industries. They view their own company’s risk to be below that of the average competitor. Additionally, MLROs are not able to correctly assess industries’ AML risks compared to the national risk assessment. Risks were especially underestimated for high-risk industries. Biases were partially found to be higher among MLROs from the non-financial sector. Risk-based AML measures are likely to be at least partially ineffective, calling the risk-based approach into question. Regular trainings of MLROs need to include awareness for biases in risk assessments. A more stringent and effective supervision, especially in the non-financial sector, is called for. To the best of the author’s knowledge, this paper is the first to show that a BTA effect exists among MLROs.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-05-06
      DOI: 10.1108/JMLC-03-2022-0045
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The role of legal professionals in the European and international legal
           and regulatory framework against money laundering

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Elissavet-Anna Valvi
      Abstract: The aim of the present study is to shed light on the role of legal practitioners, namely, lawyers and notaries, in the fight against money laundering: Are they considered as facilitators or obstacles against money laundering' How does the global and the EU legal framework deal with the legal professionals' The research follows a deductive approach attempting to respond to questions such as: How do the lawyers’ and notaries’ societies react in front of the anti-money laundering measures that concern them and why' What are the discrepancies between the lawyers’ professional secrecy and the obligations that EU anti-money laundering legislation assigns them' This study disclosures the response of the European union and international legal and regulatory framework as well as the reflexes of the international and European legal professionals’ associations to this danger. It also demonstrates the reaction of lawyers against European union anti-money laundering legislation, to the point that it limits not only the confidentiality principle but also the position of the European judicial systems to the contradiction between this principle and the lawyers’ obligation to report their suspicions to the authorities. To fulfil the study goals, it was necessary to overcome some obstacles, like the limitation of existing sources. Indeed, transnational empirical research considering the professionals who facilitate money laundering is narrow. Besides, policymakers and academics only recently expressed more interest in money laundering and its facilitators. This paper fulfils an identified need to study the legal professionals’ role not only in money laundering practices but also in anti-money laundering policies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-05-03
      DOI: 10.1108/JMLC-12-2021-0139
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • A study of Malaysian anti-money laundering law and the impact on public
           and private sector

    • Free pre-print version: Loading...

      Authors: Fahmi Bin Adilah , Mohd Zamre Mohd Zahir , Hasani Mohd. Ali , Muhamad Sayuti Hassan
      Abstract: The objectives of this study are to analyse the present Malaysian law regarding money laundering, to identify advantages and disadvantages of the current anti-money laundering law, to analyse its impact on the public sector and the private sector and to make recommendations on any improvements that should be made. This study will use a qualitative method where the literature review method applies to collect primary and secondary data regarding anti-money laundering laws. Data has been collected from the various provisions of laws and text reading, such as books, articles, journals, law cases and thesis regarding anti-money laundering laws and those analysed with the content analysis method and the critical analysis method. This study found that Malaysia has one law regarding anti-money laundering and they have control over individual and corporate entities in Malaysia. This study found that Malaysia has one law regarding anti-money laundering and they have control over individual and corporate entities in Malaysia.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-27
      DOI: 10.1108/JMLC-02-2022-0035
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Using graph database platforms to fight money laundering: advocating large
           scale adoption

    • Free pre-print version: Loading...

      Authors: Milind Tiwari , Jamie Ferrill , Vishal Mehrotra
      Abstract: This paper advocates the use of graph database platforms to investigate networks of illicit companies identified in money laundering schemes. It explains the setup of the data structure to investigate a network of illicit companies identified in cases of money laundering schemes and presents its key application in practice. Grounded in the technology acceptance model (TAM), this paper aims to present key operationalisations and theoretical considerations for effectively driving and facilitating its wider adoption among a range of stakeholders focused on anti-money laundering solutions. This paper explores the benefits of adopting graph databases and critiques their limitations by drawing on primary data collection processes that have been undertaken to derive a network topology. Such representation on a graph database platform provides the opportunity to uncover hidden relationships critical for combatting illicit activities such as money laundering. The move to adopt a graph database for storing information related to corporate entities will aid investigators, journalists and other stakeholders in the identification of hidden links among entities to deter activities of corruption and money laundering. This paper does not display the nodal data as it is framed as a background to how graph databases can be used in practice. To the best of the authors’ knowledge, no studies in the past have considered companies from multiple cases in the same graph network and attempted to investigate the links between them. The advocation for such an approach has significant implications for future studies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-27
      DOI: 10.1108/JMLC-03-2022-0047
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • How money laundering (ML) affects the loan portfolio quality of Islamic
           banks'

    • Free pre-print version: Loading...

      Authors: Ijaz Hussain Shah , Kinza Aish , Islam Kashif
      Abstract: This research aims to examine the impact of money laundering (ML) and corruption on the asset quality of conventional and Islamic banks. The current study used the data of conventional and Islamic banks of Pakistan from 2012 to 2018. In this study, we used fully modified ordinary least squares, dynamic ordinary least squares and pooled ordinary least square methods to analyze the data. The results found that corruption and ML positively affect the conventional banking non-performing loans (NPLs). In contrast, corruption and ML harm the Islamic bank’s loan portfolio quality. To the best of the authors’ knowledge, the relationship between corruption, ML and NPLs in conventional and Islamic banks of Pakistan are examined for the first time. According to the study’s findings, bank authorities should establish an effective method for monitoring loan activities and developing new and innovative products in Islamic banks. Additionally, the Pakistani government needs to improve anti-corruption and anti-ML policies to earn investors’ trust.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-20
      DOI: 10.1108/JMLC-11-2021-0130
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Trade-based money laundering and informal remittance services:
           implications on the sustainability of the balance of payments of a small
           open economy

    • Free pre-print version: Loading...

      Authors: Sisira Dharmasri Jayasekara
      Abstract: This study aims to discuss the consequences of trade-based money laundering (TBML) and informal remittance services on the sustainability of the position of balance of payments and net foreign assets of a small open economy. This paper uses a case study design using facts related to TBML and informal remittance services on the balance of payment and net foreign assets of Sri Lanka. The contextual analysis reveals that the growth of the informal economy promotes informal remittance services in Sri Lanka. The policy decision to peg local currency to US dollars as a result of a shortage of foreign exchange had forced people to use informal channels for different purposes. The unclear and vague customer due diligence process of the anti-money laundering and countering the financing of terrorism (AML/CFT) regime also has forced people to use informal remittance services. Criminals especially drug traffickers have grabbed the promoted informal remittance services to transfer proceeds from Sri Lanka to overseas drug suppliers. On the other hand, systematic deficiencies in monitoring and regulation of movement of fund transfers and merchandise across borders provide opportunities for criminals to use different TBML techniques to transfer funds. These limitations force policymakers and regulators to think of developing a comprehensive payment ecosystem to prevent money laundering and terrorist financing. Therefore, the global initiative is required to move towards a payment ecosystem from a recommendation-based AML/CFT regime to reduce global crimes. This study was designed to discuss the implications of TBML and informal remittance services on the balance of payments and net foreign assets in a small open economy. The structure and size of the economy, the strength of the overall economy and the AML/CFT regime will play an important role in controlling criminal activities and combating money laundering of an economy; hence, the impact of TBML and informal remittance services will vary accordingly across the countries This paper is an original work done by the authors, which discusses the implications of TBML and informal remittance services on the balance of payments and net foreign assets of an emerging market context.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-18
      DOI: 10.1108/JMLC-03-2022-0042
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Integral representation method based efficient rule optimizing framework
           for anti-money laundering

    • Free pre-print version: Loading...

      Authors: Tamás Badics , Dániel Hajtó , Kálmán Tornai , Levente Kiss , István Zoltán Reguly , István Pesti , Péter Sváb , György Cserey
      Abstract: This paper aims to introduce a framework for optimizing rule-based anti-money laundering systems with a clear economic interpretation, and the authors introduce the integral representation method. By using a microeconomic model, the authors reformulate the threshold optimization problem as a decision problem to gain insights from economics regarding the main properties of the optimum. The authors used algorithmic considerations to find an efficient implementation by using a kind of weak mode estimate of the distribution and the authors extend this approach to classes of alerts or cases. The method provides a new and efficient alternative for the sampling method or the multidimensional optimization technique described in the literature to decrease the bias emanating from multiple alerts by smoothing the number of alerts across classes in the optimum and decrease the overlapping between scenarios at the case level. Using the method for real bank data, the authors were able to decrease the number of false positives cases by about 18% while retaining almost 98% of the true-positive cases. The model assumes that alerts from different scenarios are indifferent to the bank. To include scenario-specific preferences or constraints demands further research. The new framework presented in the paper is a flexible extension of the usual above-the-line method, which makes it possible to include bank preferences and use the parallelization capabilities of modern processors.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-18
      DOI: 10.1108/JMLC-12-2021-0137
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Too lengthy and too low: an analysis of the sanctions imposed by
           Argentina’s Financial Information Unit between 2016 and 2019

    • Free pre-print version: Loading...

      Authors: Juan Agustin Argibay Molina
      Abstract: This paper aims to evaluate how Argentina’s Financial Information Unit (Unidad de Información Financiera, FIU) has responded after detecting noncompliance with money laundering regulations. Specifically, it identifies the main lessons that can be drawn from analyzing the sanctions that the FIU imposed between 2016 and 2019. The issues that this article outlines suggest the need for a substantial rethinking of Argentina’s anti-money laundering regulations. Based on an analysis of the size of sanctions and the time taken to impose them, the study suggests that the regulatory framework in Argentina fails to comply with the international standards that require the imposition of effective, proportionate and dissuasive sanctions. This analysis suggests that there are serious issues regarding the regulation of the sanctions that Argentina’s FIU is responsible for imposing. Specifically, the way the exact amount of each fine is determined urgently needs to be redesigned. In other words, the system for establishing fines needs to take the fluctuations that are typical of Argentina’s economy into account. This paper has demonstrated that it is vital for the country to review its regulatory framework for the prevention of money laundering and to effectively apply sanctions when noncompliance is detected. A successful approach to both objectives will contribute to generate and align incentives to improve compliance levels and to fulfill international standards.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-15
      DOI: 10.1108/JMLC-01-2022-0023
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Compliance determinants of anti-money laundering regime among professional
           accountants in Malaysia

    • Free pre-print version: Loading...

      Authors: Masetah Ahmad Tarmizi , Salwa Zolkaflil , Normah Omar , Suhaily Hasnan , Sharifah Nazatul Faiza Syed Mustapha Nazri
      Abstract: Money laundering offences occur worldwide, with recent discussions involving issues related to the low levels of compliance among professional accountants towards the anti-money laundering (AML) regime. Under the regime, professional accountants are required to implement compliance programs (Know Your Customer, Clients Due Diligent, Record Keeping) and to submit any suspicious transaction report encounters to the authorities. Due to the lack of research in this sector, this study aims to examine the compliance determinants towards AML regimes among professional accountants in Malaysia. Premised on protection motivation theory, a questionnaire was developed and distributed among 1,100 professional accountants. Of which 275 questionnaires were returned and subjected to regression analysis. Based on the findings, “perceived risk of non-compliance” and “awareness of Anti-Money Laundering Act 2001 and Financial Action Task Force standard” were significantly related to the level of compliance towards the AML regimes. Meanwhile, “compliance cost” did not influence the compliance behaviour of professional accountants. Moreover, the findings demonstrated that awareness programs among the reporting institutions should be enhanced, specifically the professional accountants. This study recommends the professional bodies particularly professional accountants in Malaysia to establish a blueprint as a guideline for money laundering reporting. This is one of the pioneer studies looking into AML compliance determinants among the professional accountants in Malaysia. This study will provide insights on the current practices and recommend ways to improve the current AML reporting practices among the professional accountants.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-12
      DOI: 10.1108/JMLC-01-2022-0003
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The use of predictive modeling to identify relevant features for
           suspicious activity reporting

    • Free pre-print version: Loading...

      Authors: Emmanuel Hayble-Gomes
      Abstract: The purpose of this study is to explore and use artificial intelligence (AI) techniques for identifying the relevant attributes necessary to file a suspicious activity report (SAR) using historical customer transactions. This method is known as predictive modeling, a statistical approach which uses machine learning algorithm to predict outcomes by using historical data. The models are applied to a modified data set designed to mimic transactions of retail banking within the USA. Machine learning classifiers, as a subset of AI, are trained using transactions that meet or exceed the minimum threshold amount that could generate an alert and report a SAR to the government authorities. The predictive models are developed to use customer transactional data to predict the probability that a transaction is reportable. The performance of the machine learning classifiers is determined in terms of accuracy, misclassification, true positive rate, false positive rate and false negative rate. The decision tree model provided insight in terms of the attributes relevant for SAR filing based on the rule-based criteria of the algorithm. This research is part of emerging studies in the field of compliance where AI/machine learning technology is used for transaction monitoring to identify relevant attributes for suspicious activity reporting. The research methodology may be replicated by other researchers, Bank Secrecy Act/anti-money laundering (BSA/AML) officers and model validation analysts for BSA/AML compliance models.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-11
      DOI: 10.1108/JMLC-02-2022-0034
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Barriers and solutions to cross-border asset recovery

    • Free pre-print version: Loading...

      Authors: Ari Wibowo
      Abstract: This study aims to first analyze the inhibiting factors for cross-border asset recovery and, second, analyze the solutions to any barriers to cross-border asset recovery. This study was normative legal research with legal materials collected by document studies and literature studies. This study used a statute approach and a conceptual approach First, the inhibiting factors for cross-border asset recovery are regulation-related issues, lack of mutual legal assistance and extradition treaties, differences in legal systems and the interests of the country, where the assets are placed. Second, the solutions to the barriers to cross-border asset recovery are regulatory reforms and diplomacy strengthening. This study found some barriers and solutions to cross-border asset recovery. These can provide inspirations for subsequent studies to be reviewed in more depth. This study will be very useful for the Indonesian Government to formulate effective and efficient policies related to cross-border asset recovery. With effective and efficient policies related to cross-border asset recovery, it can prevent criminals from hiding their criminal assets abroad. To the best of the author’s knowledge, until now, there has been no study that comprehensively discloses the barriers and solutions related to the failure of the Indonesian Government to conduct cross-border asset recovery. Therefore, it is expected that this study will be very useful for the Indonesian Government and other researchers to conduct further studies on this issue.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-17
      DOI: 10.1108/JMLC-01-2022-0022
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of corporate lobbying on fraud and money laundering

    • Free pre-print version: Loading...

      Authors: Mahdi Salehi , Fatemeh Norouzi
      Abstract: This study aims to assess the effect of corporate lobbying power on fraud and money laundering in listed firms on the Tehran Stock Exchange. For the study, the information of 173 firms is assessed during 2013–2020, and a total number of 1,384 year-companies are analysed. In this paper, the Beneish model is used for fraud detection, and the clause of the auditor’s report on money laundering is used for the variable of money laundering. The multivariate regression, Logistic regression, the fixed effects of panel data, additional random effects tests, Hausman, least generalised squares and T + 1 are used by using the Stata Software. The obtained results indicate a direct and significant relationship between lobbying and fraud and lobbying and money laundering. Suppose the board members of firms are among the parliament members or the government cabinet (politicians) and/or major shareholders affiliated with state-owned and/or quasi-governmental institutions. In that case, the likelihood of corporate lobbying will be increased. The outcomes of the current study give great insight to developing countries due to the high volume of money laundering to reduce such a financial crime.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-16
      DOI: 10.1108/JMLC-01-2022-0017
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Regulated sector professionals and reporting suspicion of money
           laundering: is it a disproportionate burden'

    • Free pre-print version: Loading...

      Authors: Muhammet Emir Çelik
      Abstract: The purpose of the research paper is to determine the efficiency of all crimes approach, their relationship with a risk-based approach and the consequences on regulated sector professionals. And, therefore, what is meant by suspicion, how employees follow the requirements and how it affects the quality and quantity of suspicious activity reports. It also considers the economic and legal challenges the regulated sector faces while dealing with customers or clients. All in all, this paper investigates what does the anti-money laundering (AML) regime means for legal practice and how lawyers’ responsibility is affected. As the research is being conducted through the analytical methodology, the specific topic of “regulated sector professionals and reporting suspicion of money laundering” is analyzed. It evaluates the fact that the risk-based approach followed in Financial Action Task Force (FATF) recommendations and its adaptation in the UK with all crimes approach caused discrepancy in the judicial system and influenced regulated sector professionals negatively. The paper points out that in spite of protective amendments in terms of jurisdictional immunity, UK legislation has caused problems for regulated sector professionals, such as the potential of breaching a client confidentiality agreement and avoiding tipping-off, thus remaining under pressure by clients and facing the risk of losing their clients or obligation to record suspicions in case of court investigation. The question of money laundering and the FATF recommendations has had a considerable scholarship. However, the proposed study intends to precisely look at the efficiency of all crime approaches, their relationship with a risk-based approach and the consequences on regulated sector professionals. The proposed research will further determine the regulated sector’s economic and legal challenges while dealing with customers or clients. Unlike the existing scholarship, the proposed thesis will focus on what the AML regime means for legal practice and how lawyers’ responsibility is affected.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-15
      DOI: 10.1108/JMLC-01-2022-0018
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Money laundering in the United Arab Emirates: the risks and the reality

    • Free pre-print version: Loading...

      Authors: Fabian Maximilian Johannes Teichmann , Chiara Wittmann
      Abstract: This study aims to examine the possibility of laundering money through the United Arab Emirates (UAE), the perceived risk and the stark reality. That money laundering prevention mechanisms are being circumvented is evident by reference to the international assessments by the Financial Action Task Force and information from key informants. To develop effective improvements, the modus operandi of money laundering needs to be re-examined. The empirical findings are based on over 60 semi-standardized interviews with alleged criminal and expert compliance officers operating in an international arena. These findings were subject to a qualitative content analysis, while a further quantitative survey of around 200 compliance officers expanded on the techniques of money laundering. This served to explore whether there was a discrepancy between the presentation of money laundering in the literature in contrast to reality. Owing to the transnational nature of money laundering, the global financial market is dependent on the uniformity of anti-money laundering (AML) regulations. Despite immense progress, there are still several key weaknesses in the financial system of the UAE, such as the existence of Free Zones and the divergence of AML awareness. The scope of the interviews is limited to the personal experience of the informants. This is mediated by seeking uniformity in answers as well as literature support. This paper, supported by empirical evidence, discerns why the current regulatory measures are minimally effective. There is an unmistakable need for the international coordination of financial regulatory bodies. The literature describes the occurrence of money laundering, but no studies have engaged to examine the pragmatic mechanism in place which allow money laundering to persevere despite the significant improvements of AML policies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-11
      DOI: 10.1108/JMLC-01-2022-0014
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Combatting the financing of hate groups

    • Free pre-print version: Loading...

      Authors: Austin Eggers , Jeffrey Hobbs
      Abstract: This study aims to make the reader aware of recent changes in the white supremacist movement and how such changes have altered the ways in which the movement can be combatted. The authors study the movement in two periods: from 1970 to 2005 and from 2006 onward. The authors contrast the two periods and discuss the legal and financial issues within each. The authors find that while legal concepts such as vicarious liability and respondeat superior apply today just as they did before, new tools are needed to fight the new means of financing the movement. The main limitation of this study is the lack of quantitative data. Because the “alt-right” became popular around 2015, there has not been enough time for the construction of detailed data sets. While many law papers have explored the white supremacist movement, the financing side has gone under-analyzed in scholarly research. This is important in light of the rise of the internet, online payment processors, cryptocurrencies and remote organizing and fundraising. The 2017 Charlottesville rally was organized and financed via podcasts, online forums, encrypted chats and anonymous payments. Since then, the movement has mostly gone underground and has become more violent and radical as many members have come to believe that marches and politics do not help them. To the best of the authors’ knowledge, there are no papers in finance that deal extensively with this topic. The authors believe that the severity of the issue and the importance of its funding make this study a valuable source of information. The recent changes occurring within the movement are likely to become even more critical to its success or failure in the future.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-10
      DOI: 10.1108/JMLC-01-2022-0010
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Money laundering risk judgement by compliance officers at financial
           institutions in Malaysia: the effects of customer risk determinants and
           regulatory enforcement

    • Free pre-print version: Loading...

      Authors: Ainul Huda Jamil , Zuraidah Mohd-Sanusi , Yusarina Mat-Isa , Najihah Marha Yaacob
      Abstract: This paper aims to provide an empirical analysis of the effects of regulatory enforcement and customer risk determinants on money laundering risk judgment. The study further explores the moderating impact of regulatory enforcement on compliance officers in the banking and money service business (MSB) sectors. The analysis is conducted to find the important factors that contribute to the issues of risk judgement among compliance officers to establish effective anti-money laundering (AML) and countering financing of terrorism compliance at the financial institutions, as highlighted in the National Risk Assessment Report 2017 by the Central Bank of Malaysia. An experimental study with four different scenarios of case studies distributed to 124 compliance officers at the banking and MSB sectors was conducted via online platforms. The paper uses a quantitative approach via structural equation modelling. The result shows a significant effect of customer risk determinants and regulatory enforcement on money laundering risk judgement, taking into account competency as the control measure. A further test on the interaction effects of both determinants shows a significant result on the money laundering risk judgement. The empirical evidence indicated that regulatory enforcement influenced compliance officers’ money laundering risk judgement and suspicious transaction report submission. In other words, the banking and MSB sectors’ AML compliance significantly depends on the regulators’ enforcement activity. This study is limited to two independent variables: regulatory enforcement and customer risk determinants. Future studies may consider other factors affecting compliance officers’ money laundering risk judgement, such as technical competency, knowledge management, digitalization and technology and ethical issues. This study provides several theoretical and practical implications. Emphasizing the excellent quality of judgement and, eventually, good quality of reporting the suspicious transactions will not be achieved merely from enforcing fines and punishment, but comprehensive measures must be taken. Increasing the competency and training, educating the compliance officers, supporting the industry and practitioners with incentives and digitalization, enhancing the campaign and awareness among the public and standardizing the policy shall be the good initiatives for the regulatory enforcement to establish. This paper provides a valuable contribution to the body of knowledge and fulfills the significant gaps in the literature on money laundering, not to mention, the integration between behavioural studies and anti-money laundering compliance, which has scarcely been statistically evident from the research studies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-08
      DOI: 10.1108/JMLC-01-2022-0004
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Challenges resulting from hawala banking for anti-money laundering and
           anti-terrorist financing policies of Swiss banks

    • Free pre-print version: Loading...

      Authors: Fabian Maximilian Johannes Teichmann , Chiara Wittmann
      Abstract: The purpose of this paper is to illustrate threefold how hawala banking poses a problem for Swiss banks implementing anti-money laundering (AML) and anti-terrorist financing (ATF) policies as a fulfilment of Switzerland’s UN commitment. The first author interviewed compliance officers and suspected criminals on hawala banking mechanisms. The authors formally recorded interviews with compliance officers, but interviews with suspected criminals were not recorded to maximize their potential forthrightness. In total, the authors conducted 70 formal interviews and developed a questionnaire based on this, which was sent to 200 compliance officers. The authors subjected the interviews to qualitative analysis and developed a system of categories that the authors assessed by means of triangulation. By substantiating proposed theoretical challenges with empirical findings, future recommendations for regulatory procedures are based on analytical evidence. This study finds that hawala presents significant challenges for AML and ATF policies. Whilst it is possible to mediate the first two challenges laid out herein, it is the third hurdle that proves insurmountable. Ultimately, tolerating hawala banking passively counteracts any active effort made by implementing AML and ATF policies. Whilst the existing literature sufficiently connects hawala banking to terrorist financing, this study details how existing compliance measures are circumvented and the implications on the perceived commitment of Switzerland against financial crime.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-08
      DOI: 10.1108/JMLC-01-2022-0005
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Third-party and creditor rights: provisional attachment under §5 of
           the Indian PMLA, 2002

    • Free pre-print version: Loading...

      Authors: Sarthak Sethi , Kevin Davis
      Abstract: The purpose of this paper is to consider the effect of the Prevention of Money Laundering Act (PMLA), 2002 on the property rights of third parties, by evaluating whether the interpretation of the scheme of the PMLA, 2002 results in a deprivation of rights, by virtue of the provision for the provisional attachment of property.[AQ3] In doing so, this paper attempts to consider two sub-categories of third parties that stand affected by §5 of the PMLA, 2002. Primarily the authors analyse diverging judgements and case law across various high courts to evaluate the position of law with regards to attachment of property. To reach a precise legal conclusion, the authors consider the composite scheme of the PMLA, 2002 in their analysis. It has been concluded that there is a clear lack of judicial cohesion in the interpretation of the PMLA, 2002, and in the absence of a judgement by the Supreme Court of India, enforcement authorities have failed to correctly identify the boundaries of the offence of money laundering, resulting in a dangerous deprivation of rights. This paper fills a vacuum of detailed scholarship on anti-money laundering provisions in India, while also being contemporaneously relevant, as it considers the effects of the PMLA, 2002 on bona fide economic transactions and secured creditors.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-08
      DOI: 10.1108/JMLC-01-2022-0006
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The comparative analysis of regulations in the Italian Republic and the
           Russian Federation against cryptolaundering techniques

    • Free pre-print version: Loading...

      Authors: Katsiaryna Bahamazava , Stanley Reznik
      Abstract: In the age of DarkNetMarkets proliferation, combatting money laundering has become even more complicated. Constantly evolving technologies add a new layer of difficulty to already intricated schemes of hiding the cryptocurrency’s origin. Considering the latest development of cryptocurrency- and blockchain-related use cases, this study aims to scrutinize Italian and Russian antimoney laundering regulations to understand their preparedness for a new era of laundering possibilities. One of the most recommended ways to buy and sell cryptocurrencies for illegal drug trade on DarkNet was discovered using machine learning, i.e. natural language processing and topic modeling. This study compares how current Italian and Russian laws address this technique. Despite differences in cryptocurrency regulation, both the Italian Republic and the Russian Federation fall behind on preventing cryptolaundering. The main contributions of this paper: consideration of noncustodial wallet projects and nonfungible token platforms through the lens of money laundering opportunities, comparison of Italian and Russian antimoney laundering regulations related to cryptocurrency, empirical analysis of the preferred method of trading/exchanging cryptocurrency for DarkNet illegal trade using machine learning techniques and the assessment of how Italian and Russian regulations address these money laundering methods.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-08
      DOI: 10.1108/JMLC-01-2022-0016
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The abuse of hawala banking for terrorist financing in German-speaking
           countries

    • Free pre-print version: Loading...

      Authors: Fabian Maximilian Johannes Teichmann , Chiara Wittmann
      Abstract: The purpose of this article is to determine how terrorist financiers have continued to exploit hawala banking in German-speaking countries, despite regulations in place to prohibit this. The first author interviewed compliance officers and suspected criminals on hawala banking mechanisms. Formal interviews with compliance officers were recorded, but interviews with suspected criminals were not, to maximize their potential forthrightness. The number of interviews totaled to 70 and a questionnaire was based on this that was sent to 200 compliance officers. The interviews were analyzed with a qualitative analysis and developed a system of categories that, in turn, was assessed by means of triangulation. These interviews enabled the first author to translate the empirical findings into his own recommendations for improving regulatory procedures prohibiting the financing of terrorism. The paper finds that it is possible to circumvent compliance measures and exploit hawala banking to finance terrorism. Compliance officers consider the chances of detecting terrorist financing to be “low,” which is illustrated by mapping out the individual steps of the asset transfer. The conducted interviews enabled the first author to translate the empirical findings into his own recommendations for improving regulatory procedures prohibiting the financing of terrorism. The scope of application of results was duly considered. Whilst the existing literature sufficiently connects hawala banking to terrorist financing, this article details how existing compliance measures are circumvented. Emergent policies must consider the current vulnerabilities to improve their effectiveness.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-03-01
      DOI: 10.1108/JMLC-01-2022-0013
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Developing a laundered funds destination theory: applying the
           Walker–Unger gravity model to US-based money launderer country
           preference from 2000 to 2020

    • Free pre-print version: Loading...

      Authors: Juan Roman , Thomas Schaefer
      Abstract: Although economists and academics have studied money laundering for several decades, there continues to be gaps in the research due to a lack of reliable data on money laundering activity, and a lack of detailed sources and methods of collection in government-based reporting. The purpose of this study is to apply the Walker-Unger gravity model and examine US-based money launderer preference for the 2000-2020 time frame. This paper then compares those results with previous applications of the model and identifies trends, which may serve as the foundations of a money launderer preference theory. The results of the investigation ranked countries by preference of US-based money launderers and determined that there was consistency in country destination preference even during recessionary periods. The Walker–Unger gravity model as applied by Roman et al. (2021) is used to conduct the investigation, to maintain consistency in the application of the Walker–Unger model and further the objective of validating the attractiveness simulation. The model tests the predictive capability of the independent variables to establish the degree of attractiveness each country represents for the funds of US-based money launderers. A score is generated by the model, which is then used to analyze and interpret its significance in relation to all sampled countries. Model results reveal the countries with the highest attractiveness for US-based money launderers during 2000–2020 were Australia, the Bahamas, Bermuda, Canada, Cayman Islands, Norway, Monaco, Puerto Rico, Switzerland and the USA. Model results show that over the two decades the proportion of money flow scores changed but not to a degree that would alter the country preference of US-based money launderers. US-based money launderers tended to use the same countries for their illicit financial activities, regardless of the state of the legitimate economy. One of the limitations of the model is that it does not show the effect of money laundering on legitimate economic activity. The model results will give insight into the preferred destination of US-based money launderers and therefore frame one component of money laundering activities in the USA for the examined time period. A secondary objective of this study is to evaluate if any changes to US-based money launderer preferences occurred during the three most recent periods of economic downturn in the USA. The model results will give insight into the preferred destination of US-based money launderers and therefore frame one component of money laundering activities in the USA for the examined time period. A secondary objective of this study is to evaluate if any changes to US-based money launderer preferences occurred during the three most recent periods of economic downturn in the USA. The periods chosen are the 2001 9/11 terrorist attacks, the 2007/08 global financial crisis and the COVID-19 pandemic.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-21
      DOI: 10.1108/JMLC-01-2022-0002
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Combating the crimes of money laundering and terrorism financing in
           Nigeria: a legal approach for combating the menace

    • Free pre-print version: Loading...

      Authors: Olusola Joshua Olujobi , Ebenezer Tunde Yebisi
      Abstract: This study aims to investigate the Federal Government’s failure to combat money laundering and terrorism financing and the various hurdles to enforce the Money Laundering (Prohibition) Act, 2012 (as amended), effectively, which prohibits illegal earnings criminally induced investments in and out of Nigeria. This has had an impact on the country’s economic potential and its image in the international community. Despite many anti-corruption laws criminalising money laundering and terrorism financing, it is rated among the nations with the highest poverty index despite its immense natural resources. This study uses a conceptual legal method to help a doctrinal library-based investigation by using existing material. This study also makes use of main and secondary legislation, such as the Constitution, the Money Laundering (Prohibition) (Amended) Act 2012 and the Terrorism (Prevention) Act 2013 (as amended), as well as case law, international conventions, textbooks and peer-reviewed publications. A comparison of anti-money laundering legislation in Canada, the UK, Hong Kong, China and Nigeria was conducted, with lessons learned for Nigeria’s anti-money laundering and anti-terrorism financing laws. According to the findings, the Act is silent on the criminal use of legitimate earnings to fund terrorism and cultism. There is no well-defined legal framework for asset recovery and confiscation. In Nigeria’s legal system, this evident void must be addressed immediately. To supplement existing efforts to prevent money laundering, the research develops a hybrid model that incorporates the inputs of government representatives and civil society organisations. This study suggests a complete revision of the Act to eliminate ambiguity and focus on the goals of global anti-money laundering and anti-terrorist funding restrictions. One of the limitations of this study is the paucity of literature and data on money laundering and terrorist financing in Nigeria due to the secrecy around the crimes, which do not give room for the collection of statistical data and due to the transactional nature of the crimes. This is not to submit that no attempts have been made in the past or recent times to quantify the global value of money laundering and its effects on Nigeria’s economy. Such attempts have been inconclusive and inaccurate. The dearth of records on the magnitude of money laundering in Nigeria has limited generalising the research findings due to the limited access to some required information. However, this study is suitable for adoption in other sectors of the economy in dealing with clandestineness in money laundering and terrorism financing. Future researchers are commended to use the quantitative assessment method to appraise the effects of money laundering and terrorist financing laws and policies in Africa to supplement the current literature in the field. The research develops a hybrid model that incorporates the inputs of government representatives and civil society organisations. This study suggests a complete revision of the Act to eliminate ambiguity and focus on the goals of global anti-money laundering and anti-terrorist funding restrictions.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-17
      DOI: 10.1108/JMLC-12-2021-0143
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The effect of social and intellectual capital on fraud and money
           laundering in Iraq

    • Free pre-print version: Loading...

      Authors: Mahdi Salehi , Hasanain Ali Mohammed Al-Msafir , Saeid Homayoun , Grzegorz Zimon
      Abstract: This study aims to assess the relationship between intellectual and social capital and financial statement fraud and money laundering of Iraqi firms before and after the emergence of the Islamic State of Iraq and Syria (ISIS). In other words, this paper seeks to answer the question of “whether the intellectual and social capital can contribute favourably to fraud in financial statements and money laundering or not.” For the study, the multivariate regression model is used for hypothesis testing. Research hypotheses have also been examined using a sample of 35 listed firms on the Iraqi Stock Exchange during 2012–2018, using the panel data technique-based multivariate regression pattern and fixed-effect model. The results show a negative and significant relationship between social capital and intellectual capital, fraud in financial statements and money laundering. Besides, the results indicate a positive and significant effect of the interactive variable of ISIS on the relationship between social and intellectual capital and fraud in financial statements and money laundering. Since this paper is the first study on such a topic in the emergent markets, it provides helpful information for the users, analysts and legal institutions about intellectual capital and social capital that contributes significantly to fraud and money laundering of business units. Moreover, the study results help the development of science and knowledge in this field and fill the existing gap in the literature.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-16
      DOI: 10.1108/JMLC-12-2021-0142
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Accountability in anti-money laundering – findings from the banking
           sector in Finland

    • Free pre-print version: Loading...

      Authors: Juuli Juntunen , Henri Teittinen
      Abstract: The purpose of this study is to explore how the banking industry seeks to prevent money laundering and how the phenomenon is reflected in practice in the daily work of bank employees in Finland. This study is a qualitative case study by its nature. The concept of accountability has been used as a theoretical approach in the study. This study shows that knowing the customer is one of the most important factors in preventing money laundering. The risk-based approach, customer risk classification and bank’s internal instructions have partially clarified daily routines in anti-money laundering (AML). Technological developments and various payment services have generated new ways of money laundering, but technology has also made it easier to monitor cash flows through various monitoring systems. The challenge is constantly changing regulations concerning how to act in different situations for different customers. This study investigated the accountability of banks in AML in Finland and highlighted how bank employees implement accountability for AML in an ever-changing socio-technical context.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-14
      DOI: 10.1108/JMLC-12-2021-0140
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Plea bargain dilemma, financial crime and asset recovery

    • Free pre-print version: Loading...

      Authors: Muhammad Saleem Korejo , Ramalinggam Rajamanickam , Muhamad Helmi Md. Said , Erum Naseer Korejo
      Abstract: This paper aims to debate moral and legal dilemma embedded with plea bargaining (PB) and raises a question whether the approach of “PB” is a viable tool to tackle financial crimes and to what extent it contributes in recovery of stolen money. This paper critically examines the concept with reference to relevant laws of the USA, the UK, Pakistan and Nigeria. This study used legal scholarship, jurisprudence and other open source data to analyze issues in the application of PB as a viable tool in asset recovery and financial crimes. This paper provides that PB has certain moral and legal dilemma in terms of legality and punishment; the concept offers a sense of escape from criminal punishment by simply return of partial stolen money or “settlement” in exchange of discounted punishment even without imprisonment, thus incentivizing an offender. Further, the concept is unregulated, misapplied especially in developing world like Pakistan and Nigeria, where plea bargain laws are mostly manipulated by white-collar individuals. Therefore, this study recommends the amendment of relevant laws pertaining to PB; construction of “plea bargain handbook” to prevent arbitrariness and misapplication and to ensure transparency in its application; legislations like Speedy Trail Act; creation of “Fast Track-Model Courts” and a balancing system between “settlement” and “deterrence.” Perspectives on PB are brought to bear from financial crime and malpractice and recovery of stolen money.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-11
      DOI: 10.1108/JMLC-01-2022-0009
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • A critical analysis of the anti-money laundering legal and regulatory
           framework of Mauritius: a comparative study with South Africa

    • Free pre-print version: Loading...

      Authors: Ambareen Beebeejaun , Lubnaa Dulloo
      Abstract: Indeed, the value of money laundering globally is between 2% and 5% of the world’s gross domestic product, which represents $800bn to $2tn per year. There is therefore a dire and urgent need to curb money laundering offences at both national and international level. As such, the purposes of this research are to critically analyse the anti-money laundering (AML) laws and regulations of Mauritius, to identify loopholes in inherent in the Mauritian system and to suggest recommendations to enhance the AML laws in the country. To achieve these research objectives, the study will adopt the black letter methodology by analysing laws and regulations on AML of Mauritius and will also conduct a comparative analysis against the corresponding AML laws of South Africa. In fact, South Africa has been selected for the comparison to assess how Africa’s most powerful economic powerhouse is dealing with issues of money laundering and whether Mauritius may implement some of these measures to enhance its legal and regulatory framework on AML. The research sets out a comprehensive view on the AML legislative framework of South Africa and Mauritius. It has highlighted the mechanisms used in these two countries to combat money laundering is the risk-based approach. Finally, recommendations have been proposed to improve the existing AML frameworks of Mauritius and which can further protect the financial system of the country. However, these suggestions will depend on the evolution of financial crimes within and outside the jurisdiction, and ongoing amendments will always be required to rigidly protect Mauritius from money launderers. At present, to the best of the authors’ knowledge, this study will be amongst the first academic writings on the effectiveness of the legal and regulatory measures undertaken by the Mauritian authorities to deal with AML crimes in the country. The study is carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-02-08
      DOI: 10.1108/JMLC-12-2021-0141
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • From crime prevention to norm compliance: anti-money laundering (AML)
           policy adoption in Singapore from 1989–2021

    • Free pre-print version: Loading...

      Authors: Rishik Elias Menon
      Abstract: Policy mobility scholarship concerning anti-money laundering (AML) has typically favoured the study of power structures and interests to the neglect of the constructivist perspective and the local cultural–symbolic driving forces of policy adoption. This study aims to redress this, by analysing the shifting ideational drivers of AML policy in Singapore over the past 31 years through a thematic analysis of Singapore’s parliamentary debates (Hansard). Through a thematic analysis of Singapore's Hansard over the past 31 years, this study seeks to present a social constructivist perspective of AML policy adoption in Singapore. The thematic analysis reveals how the internal driving forces of AML policy in Singapore have shifted, from the idea of “crime prevention” in the early 1990s, to the symbolic value of “international norm compliance” by the 2010s. This constructivist perspective of AML policy adoption is particularly useful in complementing the existing materialist theories of AML policy diffusion and allows us to better appreciate the historical nuances of AML policy transfer across the globe. This research will provide a useful comparative case study for other policy mobility scholars interested in presenting a constructivist account of AML policy adoption in different jurisdictions. There is no literature in the field of policy mobility, explaining the diffusion/transfer of AML policy from a social constructivist perspective.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-21
      DOI: 10.1108/JMLC-12-2021-0134
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Financial intelligence (monitoring) of the transactions with virtual
           assets: new legislation and best practices of foreign countries

    • Free pre-print version: Loading...

      Authors: Maryna Utkina , Roman Samsin , Maksym Pochtovyi
      Abstract: This paper aims to illustrate how virtual assets are used in such criminal offenses as money laundering and seeks to study the role of financial intelligence (monitoring) of transactions with virtual assets effectively in combating money laundering. This research methodology includes system and structural methods that help analyze the theoretical, organizational and legal bases of the financial intelligence (monitoring) of transactions with virtual assets. The authors use the doctrinal legal research approach to analyze and describe the legislation connected to the financial intelligence (monitoring) operations with virtual assets. To identify critical issues of understanding the “virtual assets” and “cryptocurrency” essence, the peculiarities of the scientific community views on the given definitions, the authors use the method of terminological analysis and concepts operationalization. The authors use the extrapolation method to determine the possibility of implementing the analyzed best practices of foreign countries in the domestic practice of financial intelligence (monitoring) of transactions with virtual assets as an effective way in combating money laundering. This study demonstrates the role of financial intelligence (monitoring) of transactions with virtual assets as an effective way to combat money laundering. The article is devoted to comprehensively studying “virtual assets” and “cryptocurrency” concepts. The authors carried out a comparative analysis of these two concepts with the definition of their features and the main characteristics and features that separate them from each other. The authors also stressed the need for countries to strengthen the requirements for situations and activities with virtual assets, where there is a high level of risk in a risk-based approach.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-20
      DOI: 10.1108/JMLC-12-2021-0136
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Money laundering influence on financial institutions and ways to retaliate

    • Free pre-print version: Loading...

      Authors: Darshan Kumar , Mark Eshwar Lokanan
      Abstract: This paper aims to advance the professional knowledge, experience and expertise of anti-money laundering (AML) professionals by focusing on how money laundering (ML) impacts a variety of financial institutions (FIs) and in what ways the FIs can retaliate to detect, prevent and mitigate the risk of ML. This paper use data from secondary sources. Many FI cases have been included such as a bank money service business (MSB) and insurance companies. There should be a culture of compliance in organizations. Upper management, such as a designated committee or board members, should set the tone of compliance. Money launderers take advantage of every possible opportunity to convert illicit proceeds into clean proceeds with any institution or profession. This paper used a case study approach to study the nuances of money laundering activities in various jurisdictions.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-18
      DOI: 10.1108/JMLC-11-2021-0123
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Peculiarities of countering legalization of criminal income with the help
           of virtual assets: legislative regulation and practical implementation

    • Free pre-print version: Loading...

      Authors: Mykhailo Dumchikov , Oleg Reznik , Olha Bondarenko
      Abstract: The purpose of this paper is to define and characterize peculiarities of countering the legalization of criminal income with the help of virtual assets. The analysis of the legislative delineation and the realities of the practical implementation of the features of combating the legalization of criminal proceeds with the help of virtual assets in Ukraine was carried out with the help of general scientific methods of cognition. The systematic method helped identify the main ways to legalize criminal proceeds with the help of virtual assets. Using legal techniques, proposals will be formulated to amend draft legislation on legislative regulation of the concept of “virtual assets”. The generalization method was used to develop ways to combat the legalization of criminal proceeds with the help of virtual assets. The method of legal forecasting was used to substantiate the proposed areas of combating money laundering with the help of virtual assets. The method of extrapolation will be used to determine the possibility of implementing foreign experience in domestic practice to combat money laundering with the help of virtual assets. One of the relatively new and increasingly popular ways of money laundering is to commit this act with the help of virtual assets. Methods of money laundering through virtual assets include services for the conversion of virtual assets, P2P exchange, gambling sites, virtual asset mixers and the use of fictitious internet sites selling digital goods. The difficulty of counteracting the legalization of criminal proceeds with the help of virtual assets is primarily due to the lack of legislative regulation of the concept of “virtual assets” in Ukraine. Yes, the draft law is currently being finalized. Besides, even the current edition is not evaluated by the authors as perfect. After all, the issue of the content of the concept of “virtual assets” and its relationship with virtual securities, cryptocurrency and virtual property remains unresolved. One of the relatively new and increasingly popular ways of money laundering is to commit this act with the help of virtual assets. Methods of money laundering through virtual assets include services for the conversion of virtual assets, P2P exchange, gambling sites, virtual asset mixers and the use of fictitious internet sites selling digital goods. It is essential to intensify financial monitoring by financial control bodies over the activities of conversion service centers. Moreover, given the transnational nature of legalizing criminal proceeds, especially those committed through virtual assets, international cooperation in combating this crime is vital. The authors have proposed specific measures to ensure that a coherent consolidation of efforts can be built.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-18
      DOI: 10.1108/JMLC-12-2021-0135
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Central bank digital currency research around the world: a review of
           literature

    • Free pre-print version: Loading...

      Authors: Peterson K. Ozili
      Abstract: The purpose of this paper is to gain some insight into central bank digital currency research by reviewing the recent advances in central bank digital currency (CBDC) research in a way that would help researchers, policy makers and practitioners to take a closer look at CBDC. The paper uses a systematic literature review methodology. The review shows a general consensus that a CBDC is a liability of the central bank and it has cash-like attributes. The review also presents the motivation and benefits of issuing a CBDC such as the need to increase financial inclusion, the need to improve the conduct of monetary policy and to foster efficient digital payments. The review also shows that many central banks are researching the potential to issue CBDCs due to its many benefits. However, a number of studies have called for caution against over-optimism about the potential benefits of CBDC due to the limiting nature of CBDC design and its inability to meet multiple competing goals. Suggested areas for future research are identified such as the need to find the optimal CBDC design that meets all competing objectives, the need for empirical evidence on the effect of CBDC on the cost of credit and financial stability, and the need to find a balance between limiting the CBDC holdings of users and allowing users to hold as much CBDC as they want, and there is a need to undertake country-specific and regional case studies of CBDC design. This review paper offers new areas for further research in central bank digital currencies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-07
      DOI: 10.1108/JMLC-11-2021-0126
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Asset recovery practices in combating money laundering: evidence from FATF
           mutual evaluation report of FATF member countries of Asia pacific region

    • Free pre-print version: Loading...

      Authors: Salwa Zolkaflil , Sharifah Nazatul Faiza Syed Mustapha Nazri , Normah Omar
      Abstract: This study aims to understand the member countries’ current asset recovery mechanism based on two elements, namely, confiscation policy and asset recovery management framework. Content analysis was performed on the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) of eight countries. The result showed that only a few countries established a centralised asset recovery centre or special task force to manage recovered assets. This study is limited to information mentioned in the FATF MER. This study highlights the need to have a centralised asset recovery management centre as an initiative to improve the outcome of money laundering investigations. The study findings will benefit regulators to understand further the practical challenges of the asset recovery mechanism for future improvement. FATF recommends that each country establish a centralised asset recovery centre and work closely with the investigating officers and prosecutors in deciding on assets confiscation. However, the implementation is contingent on their local environment and resources at the member countries’ discretion. Therefore, this study aimed to understand the member countries’ current asset recovery mechanism based on two elements, namely confiscation policy and asset recovery management framework.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-05
      DOI: 10.1108/JMLC-11-2021-0127
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Explaining prosecution outcomes for cryptocurrency-based financial crimes

    • Free pre-print version: Loading...

      Authors: Arianna Trozze , Toby Davies , Bennett Kleinberg
      Abstract: Cryptocurrencies have been used to commit various offences, but enforcement efforts remain underdeveloped relative to the value of these crimes. This paper aims to examine factors associated with outcomes of US-based cryptocurrency financial crime prosecutions. The authors studied the 37 resolved cryptocurrency-based financial crime cases in the USA to date, exploring the impact of offence, defendant and evidence characteristics on the mode of disposition and penalties. The authors used bivariate analyses and logistic regression models to determine relationships among these variables. The presence of individual defendants only (rather than a corporate defendant or combination thereof) and the use of only a cryptocurrency other than Bitcoin in committing a crime each made a case less likely to be resolved by dismissal, trial or summary or default judgement. This paper is the first to examine variables contributing to financial crime prosecution outcomes and has implications for prosecutorial decision-making, resource allocation and the prevention and detection of financial offences involving cryptocurrencies.
      Citation: Journal of Money Laundering Control
      PubDate: 2022-01-04
      DOI: 10.1108/JMLC-10-2021-0119
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Editorial: Regulatory impact assessment: towards a better approach for the
           FATF

    • Free pre-print version: Loading...

      Authors: Louis De Koker
      Abstract: Editorial: Regulatory impact assessment: towards a better approach for the FATF
      Citation: Journal of Money Laundering Control
      PubDate: 2022-04-21
      DOI: 10.1108/JMLC-05-2022-149
      Issue No: Vol. 25 , No. 2 (2022)
       
  • Factors influencing anti-money laundering regulatory approaches towards
           casinos and cryptocurrencies in Bangladesh

    • Free pre-print version: Loading...

      Authors: Md. Zahurul Haq, Zainal Amin Ayub, Zuryati Mohamed Yusoff, Md Abdul Awal Khan
      Abstract: This paper aims to critically explore the factors influencing the regulation of gambling and cryptocurrencies as part of anti-money laundering (AML) initiatives in Bangladesh. As a member of the Asia/Pacific Group on money laundering, Bangladesh must adopt a risk-based approach to regulate these entities. This study applied an exploratory design and investigated the real nature of the challenge Bangladesh facing in adopting a risk-based approach to regulate gambling and cryptocurrencies. This study demonstrates that current regulatory responses towards gambling and cryptocurrencies in Bangladesh are largely influenced by passive wait-and-see policy instead of a proactive risk-based approach, a measure mandated by the Financial Action Task Force (FATF). It demonstrates that these financial entities, which are poorly regulated because of their unclear legal status in Bangladesh and the regulator’s apparent lack of understanding of the type of threats they pose, may facilitate money laundering. Effective risk-based regulation is required to control potential risks. This paper focuses on two specific areas –gambling and cryptocurrencies – which are linked to two specific FATF Recommendations: designated non-financial businesses and professions (DNFBPs) and new technologies. Further research is required to investigate the concern from the perspective of other entities. The results of this study will help inform policymakers about ways in which current regulatory approaches may need to be modified to better combat money laundering and financing of terrorism. According to the authors’ knowledge, this is the first study aiming to explore challenges Bangladesh confronts in implementing a risk-based approach for DNFBPs and new technologies. Therefore, it provides important insights into the dilemma regulators facing in implementing global AML standards within their traditional legislative and regulatory framework.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-26
      DOI: 10.1108/JMLC-04-2021-0034
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Modulating corruption and money laundering through the Bretton Woods
           Institutions: the case of less developed countries (LDCs)

    • Free pre-print version: Loading...

      Authors: Ejike Ekwueme
      Abstract: The purpose of this paper is to readily bring to the fore, the vital dimension that the Bretton Woods Institutions, exemplified by both the International Monetary Fund (IMF) and the World Bank, has brought into the global economic template to dampen the momentum of corruption and money laundering through the impact of their activities in less developed countries (LDCs). The original mandate of the two institutions was to address the balance of payments and developmental issues of countries as a result of the devastating effects of the Second World War. However, this could not be achieved in an atmosphere engulfed with corruption and money laundering. As a result, it became necessary for them to intervene albeit through direct or indirect mechanisms demonstrated by the use of soft law bodies such as Basel Committee on Banking Supervisors (BCBS) and Financial Action Task Force (FATF). This paper relies on primary legal documentations such as BCBS, FATF, articles of both IMF and World Bank to mention but a few in the analysis. The paper is doctrinal. There is undoubtedly glaring indications that through the efforts of both IMF and the Bank, tremendous inroad has been made in LDCs in modulating the tempo of the malaise. This paper is addressed to the authorities that are concerned about the scourge of the malaise and the impact to pay more attention to the mechanisms of soft laws used by the Bretton Woods Institutions to get their anti-corruption message through in LDCs. This lies on the fact that the efforts of both IMF and the Bank have awakened the importance that should be attached to some soft laws in curtailing the issues.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-25
      DOI: 10.1108/JMLC-03-2021-0026
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • “Cyber-laundering”: the change of money laundering in the
           digital age

    • Free pre-print version: Loading...

      Authors: Christoph Wronka
      Abstract: This study aims to illustrate and determine how illegally obtained funds are laundered through online platforms and companies in different economic sectors in the digital age. A qualitative analysis approach using purpose sampling methods, including 21 semi-structured interviews with prevention experts, compliance officers and convicted cybercriminals, resulted in the determination of concrete money-laundering methods involving the employment of online platforms provided by companies and institutions in different economic sectors. The current study focuses on various companies in different economic segments that mitigate cyber laundering and the anti-money laundering measures that can be adopted. Therefore, this paper provides a detailed discussion and analysis on how money launderers avoid being detected. Both preventive and criminal perspectives are taken into consideration. By identifying the gaps in the current anti-money-laundering mechanisms, it will provide compliance officers, legislators and law enforcement agencies with an in-depth insight into how cyber laundering operates in various economic sectors.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-25
      DOI: 10.1108/JMLC-04-2021-0035
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Effect of cultural tightness-looseness on money laundering: a
           cross-country study

    • Free pre-print version: Loading...

      Authors: Mariem Mejri, Hakim Ben Othman, Basiem Al-Shattarat, Kais Baatour
      Abstract: The purpose of this interdisciplinary cross-country study is to investigate the influence of cultural tightness-looseness on money laundering. The authors rely on tightness-looseness theory as the basis for their predictions. The authors use the Basel Anti Money Laundering Index to operationalize financial crimes. They use dynamic panel data regressions spanning from 2012 to 2018 across 66 countries. The authors find a positive and significant effect of national culture on money laundering financial crime. This suggests that financial crimes increase in countries with higher levels of cultural looseness orientation. Moreover, the authors show that the absence of violence, control of corruption, political stability and voice and accountability has a significant and negative influence on money laundering financial crime. Formal institutional factors are not the only factors that can help curb financial crimes, but policy regulators should also consider the degree of cultural tightness-looseness. To the best of authors’ knowledge, this is the first research ever to examine the effects of cultural tightness-looseness on the level of financial crimes.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-14
      DOI: 10.1108/JMLC-03-2021-0025
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • A qualitative study exploring challenges in money laundering
           investigations

    • Free pre-print version: Loading...

      Authors: Syed Mahmood Ali Shah
      Abstract: This study aims to investigate the behavior of investigating officers in performance of their official duties of conducting inquiries and investigations of money laundering cases and their views about real problems and issues encountered during such investigations. In total, 15 interviews were conducted with Inland Revenue Service (IRS) investigating officers and money laundering experts, whose responses were subjected to qualitative content analysis. Observation method was also used by the researcher during the whole process of investigation in multiple cases of money laundering investigations. Rationale for conducting qualitative study is to acquire original information from respondents which may not have been possible through a closed-ended questionnaire. Findings of the study reveal that change in the behavior of investigating officers may result in better performance by way of conducting money laundering investigations in an effective and efficient manner. And the behavior of investigating officers may be changed by addressing the problems and issues encountered by them while at work and conducting anti money laundering investigations, better performance of investigating officers may result in better performance of investigating agency which may portray better image of the government in combating against terrorism financing and money laundering. Findings of the study are limited to the perspectives of 15 interviewees. For this reason, it is probable that a study with a larger sample conducted in other offices of IRS Intelligence as well as other investigating agencies could have provided different or more concrete results. Evidently, the addressal of such issues may invariably enhance the effective enforcement of money laundering activities by way of improving the performance of investigating officers in performance of their duties relating to money laundering investigations. It also provides legislators and money laundering investigating agencies with valuable insight into the whole process of money laundering investigations and challenges encountered by investigating officers. By enhanced understanding the specific problems of investigations, the enabling authorities should be able to more effectively combat both money laundering and terrorism financing. This is the first study, to the best of the author’s knowledge, which tries to explain the behavior of investigating officer toward their work and their perceived understanding of the problems being faced while conducting investigations in money laundering.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-07
      DOI: 10.1108/JMLC-09-2019-0070
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Trinidad and Tobago and money laundering control: a country committed to
           strengthening the link

    • Free pre-print version: Loading...

      Authors: Sherene Alicia Murray-Bailey
      Abstract: In 2008, the author wrote on the Concept of “Money Laundering Control: The Missing Link in Trinidad and Tobago. Now, approximately two years after that seminal assessment, the author has re-assessed the domestic anti-money laundering (AML) framework, with particular reference to the controls in place to address money laundering (ML) and the confiscation of the proceeds of crime. This paper aims to assess the efficiency and effectiveness of the newly implemented regime and considers whether it meets international standards. This analysis embraces a pluralist approach. Within this assessment, a case study method is used with contextual qualitative analysis. Empirical data is analyzed and causal connections are linked to the analysis. This research highlights catalytic change and creativity in addressing deficiencies within the AML architecture in Trinidad and Tobago. Upon analysis, it is pellucid that a radically altered criminal justice landscape has emerged and a more aggressive and targeted approach to address ML and the confiscation of the proceeds of crime is apparent. The result is a shift in paradigm with tangible outcomes to suggest that the strategies have borne fruit and that the twin island Republic is indeed committed to strengthening the link. Findings are limited to Trinidad and Tobago and to the period ended April 2020. As a country with a medium to high ML risk, the possible negative socio-economic effects of ML cannot be underscored. Disruption of ML and the confiscation of the proceeds of crime are, therefore, imperative. This paper considers the progress made in addressing these pertinent issues and assists in assessing the effects of the reformation efforts undertaken by Trinidad and Tobago.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-06-03
      DOI: 10.1108/JMLC-06-2020-0062
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Appraisal of the regulatory frameworks for combatting money laundering in
           Nigeria

    • Free pre-print version: Loading...

      Authors: Adegboyega Adekunle Ige
      Abstract: A review of literature revealed that many publications on efforts at combatting money laundering focus on two frameworks, namely, legal/legislative and institutional, while overlooking the third and equally important framework – the “regulatory/ supervisory framework.” This paper aims to eradicate the dearth in literature with regards to this third and seldom acknowledged framework and it aims at filling that gap. The analysis took the form of a desk study, which distinguished the three frameworks for combatting money laundering and provided a comprehensive list of the main actors in each regime within the Nigerian legal context. The Money Laundering (Prevention and Prohibition) Act, 2016 was examined in detail. Three categories of regulators were identified and discussed in this paper: the supervisory bodies that regulate the activities of financial institutions, namely, Central Bank of Nigeria, Securities and Exchange Commission and Nigerian Insurance Commission; The Bureau for Money Laundering Control which supervises – designated non-financial institutions and businesses; the Attorney General of the Federation; and (Self-Regulatory Organizations. The Attorney General of the Federation was identified as the prime regulator within the context of the 2016 Act. Suggestions on how the regulators could make the most of their roles were made in the concluding part. This paper only considered the Nigerian legal context and only the extant law – the Money Laundering (Prevention and Prohibition) Act, 2016 was critically examined. The findings in this paper and the writing approach are original.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-05-17
      DOI: 10.1108/JMLC-02-2021-0013
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Measures to combat money laundering and terrorist financing in Palestine

    • Free pre-print version: Loading...

      Authors: Murrar Firas
      Abstract: The purpose of this paper is to analyse the evolution of anti-money laundering/combating the financing of terrorism (AML/CFT) procedures in Palestine since 2004 in accordance with the standards issued by the Financial Action Task Force (FATF). This study is qualitative in nature and involves studying the most important improvements made by Palestinian authorities in the state’s legislative and institutional frameworks to enhance the AML/CFT regime. Palestine has established the necessary legal basis to combat money laundering and terrorist financing crimes. At the institutional level, the Financial Follow-up Unit was granted all the required powers of Financial Intelligence Units. The National Committee for Combating Money Laundering and Financing Terrorism has also played a vital role in issuing policies and plans to respond to the outcomes of the National Risk Assessment process. In contrast, a number of challenges still exist mainly with respect to the political factors and their expected consequences on the process of preparing for and conducting the mutual evaluation process for Palestine. This study focusses on the AML/CFT efforts in Palestine owing to the nature and specificity of the Palestinian situation, as Palestine’s AML/CFT procedures have not been subject to any previous mutual evaluation process by the MENAFATF. Such efforts have rarely addressed the Palestinian case, making this study important to researchers and those interested in this field.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-05-10
      DOI: 10.1108/JMLC-02-2021-0010
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Nigeria’s upstream petroleum industry anti-corruption legal framework:
           the necessity for overhauling and enrichment

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Olusola Joshua Olujobi
      Abstract: This study aims to investigate why anti-corruption statutes are not efficient in Nigeria’s upstream petroleum industry. This study is a doctrinal legal research that embraces a point-by-point comparative methodology with a library research technique. This study reveals that corruption strives on feeble implementation of anti-corruption legal regime and the absence of political will in offering efficient regulatory intervention. Finally, this study finds that anti-corruption organisations in Nigeria are not efficient due to non-existence of the Federal Government’s political will to fight corruption, insufficient funds and absence of stringent implementation of the anti-corruption legal regime in the country. Investigations reveal during this study that Nigerian National Petroleum Corporation (NNPC) operations are characterised with poor record-keeping, lack of accountability as well as secrecy in the award of oil contracts, oil licence, leases and other financial transactions due to non-disclosure or confidentiality clauses contained in most of these contracts. Also, an arbitration proceeding limit access to their records and some of these agreements under contentions. This has also limited the success of this research work and generalising its findings. This study recommends, among other reforms, soft law technique and stringent execution of anti-corruption statutes. This study also recommends increment in financial appropriation to Nigeria’s anti-corruption institutions, taking into consideration the finding that a meagre budget is a drawback. This study reveals that corruption strives on feeble implementation of anti-corruption legal regime and the absence of political will in offering efficient regulatory intervention. Corruption flourishes due to poor enforcement of anti-corruption laws and the absence of political will in offering efficient regulatory intervention by the government. The study advocates the need for enhancement of anti-corruption agencies' budgets taking into consideration the finding that meagres budgets are challenge of the agencies.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-05-10
      DOI: 10.1108/JMLC-10-2020-0119
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Mechanisms of money laundering obtained from cybercrime: the legal aspect

    • Free pre-print version: Loading...

      Authors: Yuriy Yu. Nizovtsev, Oleg A. Parfylo, Olha O. Barabash, Sergij G. Kyrenko, Nataliia V. Smetanina
      Abstract: The use of computer technology to commit cyber laundering increases their social danger, creates new ways to commit cyber laundering, causes the masking of traces of cyber laundering and expands the geography of cyber laundering, while eliminating traditional state borders. That is why, the researched problems have a high level of relevance. The purpose of this research is to promote the spread of international standards in the field of combating money laundering, as well as an analysis of the mechanisms of money laundering obtained from cybercrime. The leading methods that were used in the article for the purpose of conducting research were a number of general scientific methods, such as analysis and synthesis, deduction, induction, forecasting, modeling, analogy and a number of special methods of study and cognition, which include comparative legal, historical legal, formal legal and structural functional methods. The main results prospects for further research and the applied value of the material. Large-scale cyber laundering of illegal income has long become a global problem that requires a solution from all states of the world, which means that these problems can only be overcome through active interstate cooperation. The article analyzes inter alia the international legislation in the field of money laundering mechanisms obtained from cybercrime and examines the activities of international organizations in this area.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-05-07
      DOI: 10.1108/JMLC-02-2021-0015
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Can Latin America AML effectiveness impact corruption prevention'

    • Free pre-print version: Loading...

      Authors: Sarahí Cruz Salazar , Marcio Adriano Anselmo
      Abstract: The purpose of this paper is to analyze the effectiveness of the Financial Action Task Force (FATF’s) recommendations in Latin America in the fight against Money Laundering (ML) through the Immediate Outcomes 4 (Preventive Measures) and 6 (Financial Intelligence) and the relationship between anti-money laundering (AML) effectiveness and anti-corruption measures. Through quantitative and quality methods measure the performance of the Immediate Outcomes’ levels in compliance with the established FATF’ standards; The objective is to analyze progress in the prevention and identification of ML. The authors discuss the relationship between AML effectiveness and anti-corruption measures starting with the analysis of the best-ranked country in these indicators (IO4 and IO6). Mutual evaluations require a long process, which is why the authors do not have all the updated data for all the Latin American countries; only the updated Immediate Outcomes data up to September 16, 2021, are taken. This paper is part of the Research Project “The impacts of corruption in the Western Hemisphere and regional responses.” Through a multidisciplinary analysis, the Immediate Results evaluation model is prioritized to measure the effectiveness of the methods applied in Latin America through the IO4 and IO6. The model that presents the best effectiveness is selected and the successes that this country is applying over its peers are analyzed. From this analysis, a quantitative and qualitative analysis can be appreciated.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-12-21
      DOI: 10.1108/JMLC-11-2021-0125
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Improving the detection and reporting of suspicious financial
           transactions: the Spanish case

    • Free pre-print version: Loading...

      Authors: Joel Harry Clavijo Suntura
      Abstract: The purpose of this paper is to analyze the obligation of regulated entities to detect unusual and suspicious transactions and to report them to external control bodies, as established by the Financial Action Task Force (FATF) recommendations, the European Community Directive and also the Spanish regulations for the Prevention of Money Laundering. This research paper also aims to create a model to identify and report suspicious transactions to improve financial institutions’ current procedures. According to the Spanish regulations which comply with the FATF recommendations and the European Community Directive on the Prevention of Money Laundering, regulated entities must detect unusual and suspicious transactions. Within this framework, the present research work analyzes both criteria and procedures used by the regulated entities to report suspicious operations. It also assesses the efficiency of the reports sent to an external control body. For this purpose, both analytical and interpretative methods are used in this research paper. In Spain, the current procedures followed by regulated entities to analyze unusual transactions are complex. This results in difficulties to report suspicious transactions involving money laundering. As a consequence, the cases of suspicious transactions reported to the external control body are often unclear and the related process is inefficient. The creation of a harmonized model with the aim of detecting suspicious operations and analyzing them will improve the detection and the effectiveness of the suspicious operations procedure which are reported to the external control body. However, such unified model should take into account the currently used activities proposed by each financial institution.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-12-14
      DOI: 10.1108/JMLC-09-2021-0095
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Global sanctions against corruption and asset recovery: a European
           approach

    • Free pre-print version: Loading...

      Authors: Georgios Pavlidis
      Abstract: This paper aims to critically examine whether it is timely and actionable for the European Union (EU) to adopt a global sanctions regime against corruption and how such a regime can be designed to maximise its efficiency. This paper argues that developing such a dedicated framework is necessary, feasible and supportive of the international fight against corruption and the efforts to enhance the recovery of corruption proceeds. This paper draws on reports, legislations, legal scholarships and other open-source data on global sanctions against corruption and the recovery of corruption proceeds. This paper argues in favour of a dedicated global sanctions regime against corruption, which is necessary to mitigate significant risks for the EU internal market. To the best of the authors’ knowledge, this study is one of the first to examine recent legislative developments, such as the EU Global Human Rights Sanctions Regime and the UK Global Anti-Corruption Sanctions Regulations, and the possible development of an EU-dedicated global sanctions regime against corruption with strong asset recovery components.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-12-14
      DOI: 10.1108/JMLC-10-2021-0120
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Effects of trade misinvoicing on money laundering in developing economies

    • Free pre-print version: Loading...

      Authors: Bello Umar
      Abstract: This study aims to define the concepts and determine the extent to which trade misinvoicing influences money laundering activities in developing countries. A qualitative research methodology was adopted using a descriptive synthesis of secondary data due to the heterogeneous nature of data sources (empirical evidence and content analysis). Analysis revealed that in recent times trade misinvoicing accounts for over 20% of international trade value between developing and developed countries, and trade misinvoicing has been identified as a trade-based money laundering mechanism. Unavailability of homogenous data relating to trade misinvoicing among developing countries, different methods for measuring trade misinvoicing and inadequate high-quality research papers that led to the use of reports from reputable organisations. To the best of the author’s knowledge, this study is among the few research works to assess the effects of trade misinvoicing and how it influences money laundering activities in developing countries.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-12-14
      DOI: 10.1108/JMLC-11-2021-0124
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The international fraud triangle

    • Free pre-print version: Loading...

      Authors: Anastasia Cheliatsidou , Nikolaos Sariannidis , Alexandros Garefalakis , Jamel Azibi , Paschalis Kagias
      Abstract: Fraud omnipresent in the media, the corporate world and the academic literature has attracted a great deal of research interest. Fraud and its various types and forms have been characterized as significant contributing factors to the development of severe financial crises. Recurrent financial crimes in both the private and the public sectors remind us that fraud and its negative consequences paralyze economic entities all over the world. Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper aims to examine the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud. Having identified the fraud theory developed so far, we provide a theoretical framework for international fraud triangle. Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper examines the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud. Drawing on theoretical insights and useful criticism of the fraud triangle, this paper proposes an international fraud triangle model framework to help auditors, managers, regulators and academics in understanding fraud holistically in the private and public sector in a global context. The authors finally provide an overview of fraud in the Greek Context. This paper proposes an international fraud triangle model framework.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-12-01
      DOI: 10.1108/JMLC-09-2021-0103
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Exploring infiltration behaviour by organised crime groups

    • Free pre-print version: Loading...

      Authors: Mariska Fourie , Philip Steenkamp , Jacqui-Lyn McIntyre-Louw , Clinton Oellermann
      Abstract: This paper aims to provide a holistic view of infiltration behaviour by organised crime groups (OCGs), with a specific focus on the methods used to access the legal market, including factors that drive an organised crime group to pursue infiltration. The act of infiltration is examined as a business decision; therefore, factors such as the surrounding community, the availability of criminal opportunities and broader implications, are considered. Initially, the concept of an organised crime group is explored by, where possible, identifying trends in behaviour and structure. The act of infiltration is dissected, including the infiltration behaviour of OCGs and their related decision-making processes. Infiltration actions are complex; therefore, any countervailing combatting and preventative actions will need to follow suit. OCGs pursue infiltration only when deemed feasible and to their benefit in furthering their illicit actions. Criminal opportunities are pursued across the entire economic sector. When these groups participate in a legal market, their criminality infects the healthy market and leaves it ill and contagious to the rest of the licit economy. Infiltration is organic, as it indicates growth or adjustment to changing market conditions. Criminal opportunities are widespread, and their creation is often unintentional–the legal economy casts a shadow. Combatting organised crime, entrenched in the lawful community, requires that the focus should be on the susceptibility of potential infiltration targets through the possible infiltration methods. Furthermore, a broader perspective is needed when considering the underlying motivation for infiltration–it may not only be to generate profit.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-23
      DOI: 10.1108/JMLC-10-2021-0117
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Alternate remittance systems in Ghana: a trade enabler or an organised
           fraud

    • Free pre-print version: Loading...

      Authors: Alexander Asmah , Williams Abayaawien Atuilik
      Abstract: Alternate remittance systems (ARS) are inherently not illegal; however, the nature of their activities has mostly been linked with money laundering and terrorist financing, which raises several questions as to why businesses in Ghana rely on these systems to conduct their cross-border trade. The purpose of this study is seeks to understand the nature of ARS in Ghana and analyse why business owners rely on them for their transactions. Three companies were selected for the case study analysis. This research paper used a qualitative data analysis for the study. Interviews, direct participant observation and documentary review were the main techniques for data collection. The multiple sources of evidence helped to reduce the potential bias of the single method. This paper found that some businesses using the system in Ghana can acquire unsecured loans at little or no interest cost, which provides a good source of funding to support business growth. Unlike other studies, this study proves that in some instances, ARS operators transact business with the clients they do not, particularly trust. Within the context of this study, this paper found evidence that supports money laundering, but the underlining crime is mostly tax evasion. The adoption of the system is an attempt to disguise the proceeds of the tax evasion crime and clean them through business operations. This analysis was based on the strain theory from the perspective of the clients. Future studies can focus attention on the ARS operators and understand their perspectives. Several other fraud theories could be used as a lens to understand the phenomena in Ghana and other jurisdictions. The study throws more light on a “secret” or an underground banking system that operates in Ghana. It provides insights that can guide regulatory authorities in their policy implementation. The need for stricter enforcement of the law has also been highlighted. To the best of the authors’ knowledge, this study is original, as it focuses on a sector that is highly secretive but has significant implications on the Ghanaian economy.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-18
      DOI: 10.1108/JMLC-09-2021-0099
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Combating money laundering with machine learning – applicability of
           supervised-learning algorithms at cryptocurrency exchanges

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Eric Pettersson Ruiz , Jannis Angelis
      Abstract: This study aims to explore how to deanonymize cryptocurrency money launderers with the help of machine learning (ML). Money is laundered through cryptocurrencies by distributing funds to multiple accounts and then reexchanging the crypto back. This process of exchanging currencies is done through cryptocurrency exchanges. Current preventive efforts are outdated, and ML may provide novel ways to identify illicit currency movements. Hence, this study investigates ML applicability for combatting money laundering activities using cryptocurrency. Four supervised-learning algorithms were compared using the Bitcoin Elliptic Dataset. The method covered a quantitative analysis of the algorithmic performance, capturing differences in three key evaluation metrics of F1-scores, precision and recall. Two complementary qualitative interviews were performed at cryptocurrency exchanges to identify fit and applicability of the algorithms. The study results show that the current implemented ML tools for preventing money laundering at cryptocurrency exchanges are all too slow and need to be optimized for the task. The results also show that while not one single algorithm is most suitable for detecting transactions related to money-laundering, the specific applicability of the decision tree algorithm is most suitable for adoption by cryptocurrency exchanges. Given the growth of cryptocurrency use, this study explores the newly developed field of algorithmic tools to combat illicit currency movement, in particular in the growing arena of cryptocurrencies. The study results provide new insights into the applicability of ML as a tool to combat money laundering using cryptocurrency exchanges.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-18
      DOI: 10.1108/JMLC-09-2021-0106
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does holding offshore jurisdictions to higher AML standards really assist
           in preventing money laundering'

    • Free pre-print version: Loading...

      Authors: Andrew James Perkins
      Abstract: This paper aims to contend that when tackling financial crimes such as money laundering and terrorist financing, international regulators are seeking to hold offshore jurisdictions such as the Cayman Islands to higher standards and that this detracts from the pursuit of detecting and prosecuting money launders. This paper will deal with the following perceived issues: firstly, to offshore jurisdictions as a concept; secondly, to outline the efforts made by the Cayman Islands to combat money laundering and to rate these changes against Financial Action Task Forces’ (FATAF’s) technical criteria; thirdly, to demonstrate that the Cayman Islands is among some of the world’s top jurisdictions for compliance with FATAF’s standards; and finally, to examine whether greylisting was necessary and to comment upon whether efforts by international regulators to hold offshore jurisdictions to higher standards detracts from the actual prosecution of money laundering within the jurisdiction. Greylisting the Cayman Islands in these authors’ view was something that should have never happened; the Cayman Islands is being held to standards far beyond what is expected in an onshore jurisdiction. There is a need for harmonisation in respect of international anti money laundering rules and regulations to shift the tone to prosecution and investigation of offences rather than on rating jurisdictions technical compliance with procedural rules where states have a workable anti-money laundering (AML) regime. The implications of this research are to show that offshore jurisdictions are being held by FATAF and other international regulators to higher AML standards than their onshore counterparties. The author hopes that this paper will begin the debate as to whether FATAF needs to give reasons as to why offshore jurisdictions are held to higher standards and whether it needs to begin to contemplate higher onshore standards. This is an original piece of research evaluating the effect of FATAF's reporting on offshore jurisdictions with a case study involving primary and secondary data in relation to the Cayman Islands.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-17
      DOI: 10.1108/JMLC-10-2021-0116
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • An expectation-performance gap between money laundering reporting officers
           and their directors – evidence from Germany

    • Free pre-print version: Loading...

      Authors: Lars Haffke
      Abstract: Money Laundering Reporting Officers (MLROs) carry out day-to-day anti-money laundering (AML) tasks while directors ultimately remain responsible for AML compliance. Therefore, directors’ expectations of what their MLROs do should ideally coincide with what their actual tasks to minimise liability risk. This paper aims to test for gaps between MLROs and their directors in terms of knowledge, expectations and performance of AML tasks. Likewise, it is researched whether MLROs and directors communicate well with regard to MLROs’ tasks. This paper first develops a model for analysing the dyadic relationship between MLROs and their directors, based on the audit expectation-performance gap. Second, a paired electronic survey of MLROs and directors of German companies was conducted in autumn 2020, testing for participants’ knowledge, expectations and performance of possible AML tasks (n = 136 pairs). While there is no knowledge or performance gap among MLROs and directors, expectations among them are partially unreasonable and their communication needs to be improved. Additionally, this study suggests that MLROs of German non-financial businesses are less knowledgeable, perform AML duties more poorly, and communicate less effectively with their directors. Training of MLROs and communication with their directors need to be improved. Especially in the non-financial sector, action is urgently required. This paper reports the results of the first paired survey of MLROs and their directors, offering unique insights into their relationship and the status of private AML efforts.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-16
      DOI: 10.1108/JMLC-10-2021-0111
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A nexus between corruption, money laundering (ML) and inflation: evidence
           from South Asian countries

    • Free pre-print version: Loading...

      Authors: Ijaz Hussain Shah , Kinza Aish
      Abstract: Many studies of corruption and money laundering (ML) have been conducted throughout the previous few decades. The impact of corruption and ML on economic growth, banking performance and corporate financial performance has been the focus of various research. The present study aims to investigate the relationship between ML, corruption and inflation. This study used the panel data of five South Asian countries from 2013 to 2019 (Pakistan, India, Bangladesh, Sri Lanka and Nepal). Further, fixed effect (FE) and random effect (RE) econometric regression models are used to analyze the data. Additionally, generalized methods of moment (GMM) technique is used to check the results robustness. This study discovered that corruption and ML have a significant and positive link with inflation in five South Asian nations using the corruption perception index and the anti-money laundering (AML) index. This research advises that government authorities strengthen anti-corruption and AML laws enforcement. To the best of the authors’ knowledge, this is the first paper that explains the linkage between corruption, ML and inflation in five south Asian nations.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-04
      DOI: 10.1108/JMLC-09-2021-0096
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Why money laundering is nurtured in Ethiopia'

    • Free pre-print version: Loading...

      Authors: Messay Asgedom Gobena
      Abstract: The purpose of this paper is to examine the divers and facilitators of money laundering in Ethiopia. Specifically, it looks at the risk factors that existed in the country’s economic and political system, which provide an appealing environment for money laundering to grow. This qualitative study relies on primary data generated from interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, Ethiopian Customs Commission, selected financial institutions and certain non-financial businesses and professions and law enforcement agencies, as well as secondary data from government reports, media press, statutes and other online and offline sources. This study finds that the risk factors for the growth of money laundering in Ethiopia are highly reliant on the country’s economic and political system. Accordingly, the nature of Ethiopia’s economy, which is cash-intensive, loosely regulated economic growth and the raise associated criminality, the development of underground banking activities, scarcity of foreign currency reserves and the existence of societal demand for illicit goods and services are all risk factors for the growth of money laundering. The raise of an elite cartel model type of systematic corruption, limited institutional capacity to prevent and suppress money laundering and the absence of a national identity card system are also identified as risk factors for the rife of money laundering in Ethiopia. Moreover, the geopolitical location of the country, its porous borders, limited cross-border cooperation and information sharing add further fuel to the vulnerability of the country to money laundering and associated predicate offense. To the best of the author’s knowledge, this paper provides a first-of-its-kind analytical perspective on the risk factors for the raise of money laundering in Ethiopia.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-01
      DOI: 10.1108/JMLC-09-2021-0090
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Providing a headquarters for business to a company from the same capital
           group and the status of an obligated institution

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Paulina Ledwoń
      Abstract: By implementing Directive (EU) 2015/849 of the European Parliament and of the Council of May 20, 2015, the Polish legislator decided to pass the Act of 1 March 2018 on counteracting money laundering and financing of terrorism (AML). In connection with it, many interpretative doubts have arisen. The purpose of this paper is to explain one of them, namely, to indicate whether the provision by a company of a registered office for economic activity to another company from the same capital group means that the company granting its headquarters has achieved the status of an obligated institution pursuant to Article 2 section 1 point 16 letter c) of AML. This study is based on a grammatical, systemic and functional interpretation. It is enriched with national and supranational regulations, doctrinal considerations and current jurisprudence. On the basis of the conducted analysis, the author concludes that providing a headquarters to another company from the same capital group may mean meeting the conditions of an obligated institution within the meaning of Article 2 section 1 point 16 letter c) of AML and obtaining by the company providing the registered office the status of an obliged entity. This paper contributes to the clarification of the AML interpretation problem. Adopting a similar approach when analysing other obligated institutions may positively influence the consolidation of the correct interpretation path of AML regulations.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-11-01
      DOI: 10.1108/JMLC-09-2021-0104
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Customer’s awareness, trust, discomfort and acceptance of anti-money
           laundering practices in Malaysian Banks

    • Free pre-print version: Loading...

      Authors: Zuliera Zariz Azman Aziz , Seri Ayu Masuri Md Daud
      Abstract: This study aims to examine the associations between customers’ awareness of money laundering and terrorism financing, trust in banking secrecy measures and discomforts in fulfilling the bank’s anti-money laundering (AML) procedure and their acceptance of existing practices of banks regarding AML and counter-terrorism financing. This study adapts a set of survey instruments developed and validated by prior studies to collect the required data. A convenient sample of 160 Malaysian bank customers aged 18 and above were surveyed to collect the data. This study finds a significant relationship between the respondents’ awareness of money laundering and terrorism financing, trust in banking secrecy measures and their acceptance of the bank’s AML and counter-terrorism financing practices. However, no significant relationship is documented between the level of discomforts experienced by customers in satisfying the banks’ AML requirements and their acceptance of the banks’ AML practices. These results hold even after controlling for alternative explanations of the customers’ acceptance of banking practices examined in the extant literature: age, gender, location, literacy level and occupation. This study extends the literature on customers’ acceptance of banking practices more broadly by providing empirical evidence on the role of customers’ awareness on issues underlying the banking practices and their trust in the bank’s secrecy measures. This study also provides some practical contributions by shedding some light on the factors that could help banks increase the acceptance of AML practices among their customers. Thus, the findings of this paper help banks focus their effort on these factors and hence increase acceptance rate more effectively. Drawing on the elements of the theory of reasoned actions and technology acceptance model and the extant research on trust-privacy and comfortability in a banking setting, this study proposes an integrated approach that is theoretically and empirically grounded.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-29
      DOI: 10.1108/JMLC-08-2021-0087
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Financial intelligence (monitoring) as an effective way in the field of
           combating money laundering

    • Free pre-print version: Loading...

      Authors: Oleg Reznik , Maryna Utkina , Olha Bondarenko
      Abstract: The purpose of the article is to analyze the notion of “financial intelligence (monitoring)” in the system of combating money laundering and compare foreign financial intelligence units. Money laundering poses a systemic risk to the financial and economic spheres, as well as to the national security of all countries. Financial monitoring should be pointed out while analyzing the issue of overcoming and preventing money laundering. It serves as one of the most sovereign remedies in the system of counteracting money laundering to minimize and effectively combat organized criminality and money laundering. The high level of development of the shadow economy, corruption, ineffectiveness of regulatory and legal support, as well as duplication of functions of individual authorities have become prerequisites for the financial monitoring system formation. The theoretical and legal principles of financial monitoring in the system of counteraction to money laundering using the system-structural method were analyzed. The application of this method allowed to systematize the basic provisions on financial monitoring and the principles of its implementation. The system-structural method was used combining with the method of terminological analysis and operationalization of concepts. This method was used to identify key problematic aspects of understanding the financial monitoring essence, the peculiarities of the scientific community views on the definition of “financial intelligence,” “financial intelligence unit.” The method of analysis and synthesis in their systemic combination, as well as the ascent from the abstract to the concrete, was directly used to determine the impact of money laundering on the financial and economic security of Ukraine in the context of globalization. The extrapolation method was used to determine the possibility of implementing the analyzed existing world experience in the domestic practice of financial monitoring as an effective way to combat money laundering. The method of creating a theory was used to generalize the results of the research, to find general patterns for the objects being studied. The comparative method was used for comprehensive comparative research. The development of money laundering and terrorist financing is one of the main challenges facing each state in the context of financial globalization. This is because the owners of untaxed income are trying to give them a lawful origin. The so-termed “criminal proceeds” pose a threat not only to the economy of any state but also to the national system. In turn, the low level of the financial system controlling instrument is conducive to the accelerated criminally obtained income transfer, which leads to the development of the shadow economy. The authors recognized the most appropriate interpretation of the term “money laundering.” This is the process of transforming illegally obtained income into legal, ie legal income. The purpose of such a transformation is to conceal the original source of “criminal proceeds” and eliminate their traces. However, it should also be emphasized that the term “money laundering” also applies to such financial transactions that form a certain asset as a result of “criminal acts” (in particular, corruption).
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-25
      DOI: 10.1108/JMLC-09-2021-0102
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Policies, instrumentalities, compliance and control: combatting money
           laundering in Bangladesh

    • Free pre-print version: Loading...

      Authors: Habib Zafarullah , Halima Haque
      Abstract: Money laundering (ML) has become a global threat in recent years, impacting both developed and poor countries. Developing an efficient anti-money laundering (AML) regime is a difficult and time-consuming process owing to the ever-changing spectrum of methods used, weaknesses in control mechanisms, intricacies of laws and regulations, organizational malfunction and goal displacement. In Bangladesh, surge of illegal money, rising money heists and egregious capital outflows have posed a governance problem. The purpose of this study is to investigate the dimensions of ML and examine the structure and performance of the AML regime. This study adopts a qualitative method, based on a thorough review of the conceptual and empirical literature on ML, content analysis of a range of publications, a scan of newspaper articles and digital resources and responses/comments of current and retired government employees in Bangladesh. The evaluation is informed by the recommendations of the Financial Action Task Force and supported by the mutual evaluation reports of the AGroup on Money Laundering. Bangladesh, like most of South Asia, is highly vulnerable to ML and is hard-pressed to fully comply with global standards for control. Weak institutions, bureaucratic pathology, lack of transparency and accountability, high levels of corruption, an ambiguous regulatory environment, unregulated financial operations, a disordered banking sector, conflicting interests, criminal exploitation, poor oversight and reporting, flawed risk assessment and weak government performance have affected the performance of the AML system. This paper looks at the problem of ML from a holistic perspective covering different dimensions such as black money whitening, illegal funds movements, informal money transfer systems, use of offshore refuge for hiding money and so on and the state’s responses to the syndrome. The evaluation will be of particular relevance to policymakers, anti-corruption and law enforcement agencies, the financial intelligence operators and public prosecutors dealing with criminal justice.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-25
      DOI: 10.1108/JMLC-10-2021-0109
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Review of information asymmetry in banking in the Russian Federation

    • Free pre-print version: Loading...

      Authors: Imeda A. Tsindeliani , Irina E. Mikheeva
      Abstract: The purpose of this study is to identify the prospects and main directions for improving Russian legislation on the protection of the rights of consumers of financial services taking into account the specifics of information asymmetry in banking. Using the method of economic and legal analysis, the essence of information asymmetry in banking in the Russian Federation was considered. Taking into account international experience, the analysis of the legislation of the Russian Federation in the existing regulatory and legal field is carried out. A forecast of probable changes in the field of legal regulation of information asymmetry issues in banking was also carried out. This paper deals with cases when information asymmetry can be recognized as unfair behavior. The main features of information asymmetry in banking on the part of credit institutions in terms of banks’ failure to provide information on the content of banking services on the right to refuse additional services have been studied. This study suggests that the current Russian legislation does not provide the necessary protection for consumers of financial services from information asymmetry. Based on a comprehensive analysis of legislation and judicial practice, the information asymmetry in this paper is delimited as an economic and legal concept; the prerequisites and main forms of information asymmetry in banking are determined. The main provisions and conclusions of this study can be used in legislative activities when developing provisions on the protection of the rights of financial services consumers.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-23
      DOI: 10.1108/JMLC-09-2021-0092
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Global money laundering appeal index: application of principal component
           analysis

    • Free pre-print version: Loading...

      Authors: Milind Tiwari , Adrian Gepp , Kuldeep Kumar
      Abstract: The paper aims at developing a global ranking system determining a country's appeal as a destination for money laundering. This paper uses principal component analysis (PCA), with a mix of standardised and unstandardised components relating to attractiveness, economic freedom and money laundering risk to come up with an index of money laundering appeal. Four components relating to economic feasibility, financial liberty, government spending and tax regime are critical in influencing a country's money laundering appeal. This paper attempts to use a standardised and replicable methodology to condense into a single measure the complex and multifaceted phenomenon of a country's appeal as a destination for money laundering, thus avoiding the difficulty associated with precisely calculating illicit financial flows. The ranking system could be used to determine the destinations attractive for laundering money. Such information can be used to come up with more effective preventative strategies to combat phenomena responsible for the stagnation of economic growth through tax evasion, corruption and creation of non-competitive markets. It is the first attempt to use a statistical technique to understand the underlying components of a country's money laundering appeal.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-20
      DOI: 10.1108/JMLC-10-2021-0108
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Do Islamic banks gain from corruption and money laundering (ML)'

    • Free pre-print version: Loading...

      Authors: Kinza Aish , M. Kabir Hassan , Qamar Uz Zaman , Sadaf Ehsan , Khurram Abbas , Ijaz Hussain Shah
      Abstract: This paper aims to examine the impact of corruption and money laundering (ML) on the profitability and stability of Islamic banks. This study used the data of 53 conventional and 19 Islamic banks of Pakistan and Malaysia to have comparative insights. The empirical methods include the fixed effect and random effect regression and generalized methods of moment for robust results. The results indicate that Islamic banks gain from corruption and ML. Corruption and ML affect bank profitability and stability positively in a less corrupt environment, i.e. Malaysia; however, corruption hurts Islamic banks’ performance, and ML favours Islamic banking profitability and stability in a more corrupt environment, i.e. Pakistan. The present study pioneers the debate on corruption and ML related to Islamic banking profitability and stability. This study provides important insights to regulators and Shariah advisors to build a real model of Islamic banking.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-18
      DOI: 10.1108/JMLC-09-2021-0094
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • On the potential of a graph attention network in money laundering
           detection

    • Free pre-print version: Loading...

      Authors: Guang-Yih Sheu , Chang-Yu Li
      Abstract: In a classroom, a support vector machines model with a linear kernel, a neural network and the k-nearest neighbors algorithm failed to detect simulated money laundering accounts generated from the Panama papers data set of the offshore leak database. This study aims to resolve this failure. Build a graph attention network having three modules as a new money laundering detection tool. A feature extraction module encodes these input data to create a weighted graph structure. In it, directed edges and their end vertices denote financial transactions. Each directed edge has weights for storing the frequency of money transactions and other significant features. Social network metrics are features of nodes for characterizing an account’s roles in a money laundering typology. A graph attention module implements a self-attention mechanism for highlighting target nodes. A classification module further filters out such targets using the biased rectified linear unit function. Resulted from the highlighting of nodes using a self-attention mechanism, the proposed graph attention network outperforms a Naïve Bayes classifier, the random forest method and a support vector machines model with a radial kernel in detecting money laundering accounts. The Naïve Bayes classifier produces second accurate classifications. This paper develops a new money laundering detection tool, which outperforms existing methods. This new tool produces more accurate detections of money laundering, perfects warns of money laundering accounts or links and provides sharp efficiency in processing financial transaction records without being afraid of their amount.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-04
      DOI: 10.1108/JMLC-07-2021-0076
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Could banning virtual assets be a breach of the doctrine of legitimate
           expectation'

    • Free pre-print version: Loading...

      Authors: Md. Zahurul Haq , Kazi Fahmida Farzana , Moniruzzaman Md
      Abstract: This paper aims to examine the validity of a state’s prohibition on virtual assets in the context of its global commitment to battle against money laundering. This was empirical legal research exploring how a general lack of expertise to apply a risk-based approach in anti-money laundering strategies might have implications for invoking the Financial Action Task Force (FATF) exclusion provisions in virtual asset regulation. Invoking the exclusion provisions for banning virtual assets without meeting the prerequisites may put the financial system at risk and make a jurisdiction’s legal obligations appear breached. Anti-money laundering (AML) policymakers will take precautions and avoid misuse of the liberties they enjoy under FATF exclusion clauses/provisions. The results of this study will help ensure more informed decision-making on the legal status and regulation of virtual assets. The study helps ascertain the limits of privileges accorded to states under FATF exclusion provisions in applying global standards against money laundering.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-04
      DOI: 10.1108/JMLC-07-2021-0077
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Crime scripting the criminal activities of money laundering –
           holistically

    • Free pre-print version: Loading...

      Authors: Nicholas Gilmour
      Abstract: This paper aims to demonstrate the benefit of applying crime script analysis at a macro level to expose money laundering as an interconnected series of events that contradict understanding which defines money laundering as a series of typological studies. Using previously captured data and detailed research studies alongside the professional experience of the author, this study creates a horizontal crime script for three distinct methods of money laundering – to determine characteristic nodes and identify pathways. Despite significant research into money laundering typologies, this paper demonstrates that the process of money laundering cannot be separated into typological studies. By applying crime script analysis to each method of money laundering prior to analysing the nodes, activities and behaviours, money laundering can be identified as a series of interconnected services, business formalities and management activities. This study is of value to government policymakers, regulators and financial institutions considering future preventative measures. It is also of value to financial investigators and law enforcement agencies intent on investigating money laundering. By applying the method of analysis outlined in this paper to each method of money laundering and then combining them together, it is possible to understand money laundering as a holistic process, in which webs of interconnected criminal events can be identified for investigative and preventative purposes. Interest in crime script analysis is now supporting understanding of different crime types. This study goes beyond the analysis of individual types of money laundering and applies it in a “test format” against three methods of money laundering to create, for the first time, a holistic or macro appreciation of the interconnected series of events, activities and behaviours which exist beyond the characteristics routinely captured in money laundering typology reports.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-09-29
      DOI: 10.1108/JMLC-09-2020-0109
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Analysis of the activities of law enforcement authorities in the field of
           combating crime and corruption offences

    • Free pre-print version: Loading...

      Authors: Oleh M. Omelchuk , Ihor Yo. Haiur , Olena G. Kozytska , Anna V. Prysiazhna , Natalia V. Khmelevska
      Abstract: The purpose of this study is to analyse the activities of law enforcement bodies in the field of combating crime and corruption offences. In modern conditions in Ukraine, effective cooperation between law enforcement bodies and authorities at all levels, as well as with partner organisations and agencies at the national, regional and international levels to effectively combat crimes related to organised crime and corruption is of particular importance. Improving the investigative and detective capacity of the criminal justice system, combined with efforts to intensify cooperation, contributes to a deeper understanding of the role of joint struggle in this area, thus helping to deter, detect, punish and prevent crime and corruption offences. They must be directly part of a sustainable, long-term and comprehensive strategy to reduce the scope for corruption and open the political and economic system to greater competition. The results of this study allow substantiating that the Ukrainian leadership understands the seriousness of corruption and organised crime: the state takes decisive legislative measures based on international experience. The obvious mechanisms for reducing the level of corruption and organised crime in Ukraine can be: implementation of measures to ensure business freedom; the formation of anti-corruption business strategies; introduction of special methods of anti-corruption education; approbation in Ukraine of positive normative legal acts and practices of law enforcement of preventive nature of the European Union for joint activity of law enforcement bodies and civil society in the field of combating crime and corruption offences.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-09-20
      DOI: 10.1108/JMLC-07-2021-0073
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Money laundering, food activities and mafia: evidences from the Italian
           provinces

    • Free pre-print version: Loading...

      Authors: Maria Oliva
      Abstract: According to the INTERPOL definition, money laundering is: “any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources”. Along this line, the purpose of this paper is to investigate the link amongst money laundering, mafia and food activities, in the Italian provinces. By using annual data over the period 2010 to 2018, the author estimates balanced panel data using the instrumental variables approach. The analysis includes both fixed and random effects, as well as robustness checks. The main findings of this paper reveal that, in most Italian provinces, money launderers are deterred by the probability of being identified. In particular, the deterrent action of police and investigative forces seems to be very effective. Moreover, the results of the empirical analysis show that mafia-type organisations and food activities are positively correlated with money laundering. This paper aims to provide a specific study on the link between apparently legal activities (food and beverage) and money laundering; a link that has so far been analysed mainly on a theoretical level. Moreover, it provides several insights in terms of policy implications.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-09-17
      DOI: 10.1108/JMLC-08-2021-0085
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Institutionalizing the fight against money laundering in Tanzania: the
           potential, limitations and challenges

    • Free pre-print version: Loading...

      Authors: Eugene E. Mniwasa
      Abstract: This paper aims to examine the authorities tasked to fight against money laundering in Tanzania and appraise the efficacy of the country’s anti-money institutional framework to tackle the problem. The paper draws on a qualitative research and data generated from the analysis of documentary materials. It surveys the anti-money laundering (AML) law in Tanzania to describe the legal and institutional frameworks for tackling money laundering. It explores law-related and non-law aspects to interrogate and appraise the efficacy of Tanzania’s AML law and authorities. The qualitative data were generated using the thematic content analysis technique. The law in Tanzania establishes authorities and vests them with powers to combat money laundering. The authorities, which are part of Tanzania’s AML institutional framework, have been instrumental in combating money laundering. Nevertheless, several law-related and non-law factors emasculate the efficacy of the AML law and authorities in Tanzania. Some political and economic factors wear off the effectiveness of the country’s AML institutional framework. The transnational nature and complexity of money laundering overwhelm the capacity of the AML authorities in Tanzania. The paper provides useful insights on money laundering and the legal regime to counteract the scourge in Tanzania which sets up the country’s AML institutional framework. It raises some issues for researchers, policymakers and law enforcers who can re-examine the problem and revisit the law and re-evaluate authorities and propose measures that will enable the government to reinforce the country’s AML regime. The paper makes a case for the government to implement the reforms of the country’s AML policy, legal and institutional frameworks. The paper investigates issues relating to money laundering and its control in Tanzania beyond the legal perspective to uncover limitations and challenges that emasculate the efficacy of the AML authorities in the Tanzanian context. The issues examined in this paper are not unique to Tanzania and, hence, have relevance to other jurisdictions in sub-Saharan Africa.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-09-10
      DOI: 10.1108/JMLC-07-2021-0083
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Anti-money laundering regimes: a comparison between Germany, Switzerland
           and the UK with a focus on the crypto business

    • Free pre-print version: Loading...

      Authors: Christoph Wronka
      Abstract: This paper aims to examine the framework for the regulation of crypto assets in Germany, the UK and Switzerland focusing on anti-money laundering (AML) laws. It comprehensively addresses the risks of crypto assets and the benefits along with the changes made to the existing laws to regulate cryptocurrency. Qualitative data was analyzed to collect information for the case study and to challenge/examine the existing data and statistics. The findings suggested that the AML laws are additionally modified to include the cryptocurrencies violations of the legislation, as it is the decentralized financial systems generating opportunities for crimes and terror financing. The moderate or mild laws were found in Switzerland following Germany and the UK has the most traditional and stringent laws of money laundering. The paper has focused on the comparison of the three states in their AML laws comprehensively along with their attitude toward the crypto businesses.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-29
      DOI: 10.1108/JMLC-06-2021-0060
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Cash economy, criminality and cash regulation in Ethiopia

    • Free pre-print version: Loading...

      Authors: Messay Asgedom Gobena , Daniel Gebreegziabher Kebede
      Abstract: This paper aims to examine the contribution of Ethiopia’s cash economy to financial crimes. It also investigates the regulation of cash in the context of controlling crime stemming from the cash economy. This study relies on primary data generated from 20 interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, selected commercial banks and law enforcement agencies and document review from government reports, media press and statutes, as well as secondary data from online and offline sources. The cash-intensive nature of Ethiopia’s economy has enabled a significant amount of cash to circulate outside of the formal financial system. This money is partly to blame for the prevalence of criminal activities such as cash hoarding, corruption and illicit financial flows. To address the threat of crime posed by the cash economy, the Ethiopian Government has taken measures such as restricting cash withdrawals from financial institutions, limiting the amount of cash individuals can hold and demonetizing the banknotes. The measures enable the banks to collect the cash circulating outside of the formal financial sector. However, the effect of these measures on reducing future criminality remains uncertain. Improving the financial inclusivity of the country, specifically expanding basic financial products to the rural areas, digitalizing the country’s payment system, raising general financial awareness and establishing a strong financial consumer protection framework would play a critical role in reducing future criminality and transforming the cash-intensive into a cashless economy. This paper provides a first-of-its-kind analytical perspective on the contribution of Ethiopia’s cash economy to criminal activity and the adequacy of countermeasures so far taken.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-28
      DOI: 10.1108/JMLC-06-2021-0065
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Anti-money laundering and counter-terrorism financing disclosure by money
           exchange providers in the GCC countries

    • Free pre-print version: Loading...

      Authors: Md Abubakar Siddique , Haitham Nobanee , Osama Fayez Atayah , Mohammed Khereldin Bayzid
      Abstract: The purpose of this paper is to measure anti-money laundering (AML) and counter-terrorism financing (CTF) disclosures by money exchanger providers in the Gulf Cooperation Council (GCC) countries. The authors conduct a content analysis on firms’ websites to compare their AML/CTF disclosure against the recommendations of the Financial Action Task Force (FATF). The authors use a one-sample t-test to examine the degree of these disclosures. Overall, money exchange providers in GCC countries do not demonstrate a high degree of AML/CTF disclosure (20.27%). Country-wise disclosure levels are: Qatar 31%, UAE 19%, Kuwait 17.1%, Oman 26.27%, Bahrain 23.27% and KSA 6.1%. The study contributes immensely to understanding the disclosure behavior of this sector. It also helps in assessing their compliance with FATF recommendations. The results show poor AML/CTF disclosure and compliance by money exchange providers, which should lead to increased regulations by policymakers and more disclosure by practitioners. Money laundering (ML) and terrorism financing (TF) can adversely affect societies. This study should help regulators to identify vulnerable areas in ML and TF activities, compare disclosures by companies in their countries with those of other countries and identify areas for improvement. The study is a novel attempt. No study has been undertaken before to investigate AML and CTF disclosure by money exchange providers either globally, regionally or in any country.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-25
      DOI: 10.1108/JMLC-07-2021-0081
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The existing financial intelligence tools and their limitations in early
           detection of terrorist financing activities

    • Free pre-print version: Loading...

      Authors: Hussain Syed Gowhor
      Abstract: This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities. The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities. It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities. The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools. The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities. Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities. The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-23
      DOI: 10.1108/JMLC-07-2021-0075
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The preferred type of financial intelligence for early detection of
           terrorist financing activities

    • Free pre-print version: Loading...

      Authors: Hussain Syed Gowhor
      Abstract: This paper aims to inform the readers about the preferred type of financial intelligence for early detection of terrorist financing activities. Literature review methodology was adopted to find the existing approaches of financial intelligence and logical reasoning was applied to sort out what type of financial intelligence is more preferable for early detection of terrorist financing activities. It was found that proactive financial intelligence executed through financial intelligence tools is the most preferred type of financial intelligence for early detection of terrorist financing activities. The research will pave the way for further research on how to design financial intelligence tools for the early detection of terrorist financing activities. The financial intelligence units will use the preferred type of financial intelligence for the early detection of terrorist financing activities. It will help to establish peace in the society by thwarting terrorist conspiracies because early detection of terrorist financing through financial intelligence tools will stop the flow of funds to and from terrorists. The originality of the paper lies in distinguishing proactive financial intelligence from reactive financial intelligence.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-20
      DOI: 10.1108/JMLC-07-2021-0070
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The anti-money laundering framework for precious stones and metals dealers
           in Singapore

    • Free pre-print version: Loading...

      Authors: Vincent Ooi
      Abstract: Precious stones and metals have commonly been used throughout the world as a conduit for terrorism and money laundering activities. Such illicit use of these assets has called for its much-needed attention from a regulatory perspective. This is particularly relevant in a financial haven such as Singapore. Accordingly, the purpose of this paper is to explore how several of the most common trading and investment activities involving precious stones and metals in Singapore are regulated. The research explores activities include the trading of – the storing or custodising of – and the current available savings plans involving the use of precious stones and metals. It is based mainly on information collected from various legal sources such as books, domestic legislation and international papers issued by the Financial Action Task Force and the Asia Pacific Group on Money Laundering. With the author’s findings, the analysis may prove useful for businesses seeking to navigate the regulatory landscape for precious stones and metals in Singapore, for investors seeking to understand the protection offered to them under the regulatory framework and for other jurisdictions seeking to evaluate and refine their existing framework for regulating precious stones and metals. To the author’s knowledge, this is the first substantive academic study which analyses the regulatory landscape for the use of precious stones and metals under the Singapore Law.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-20
      DOI: 10.1108/JMLC-07-2021-0074
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Financial institutions and anti-money laundering violations: who is to
           bear the burden of liability'

    • Free pre-print version: Loading...

      Authors: Muhammad Saleem Korejo , Ramalinggam Rajamanickam , Muhamad Helmi Md. Said
      Abstract: Money laundering (ML) is one of the greatest challenges, the global community faces today. Corporate entities such as financial institutions (FIs) are most susceptible to facilitate and launder money. The paper raises the following question: Who is to bear the burden of liability' Either a corporation or an individual, thus this paper examines liability issues in a corporate setting particularly financial institutions, which arise from regulatory noncompliance or failure to oversight in the context of ML. The study is legal doctrinal mainly based on case laws, legislation and research articles. Firstly, this study provides how the concept of liability in a corporate setting in UK and USA has drifted from its traditional “duty to care” standard to a new “duty to oversight” and “Responsible Corporate Officer” concepts resulting a shift in corporate to individual liability. Secondly, in the context of anti-ML violations in FIs, imposition of corporate or personal liability solely may not effectively deter ML and may create conflicts between management and shareholders. The paper can be a source to explore the issue of ML liability for regulatory noncompliance based on UK, USA and Pakistan law. This paper demonstrates that the imposition of either corporate or personal liability may create dilemma either for shareholders or management; however, a “combine or collective liability” approach carries potential to retard ML activities in FIs and balancing the harm-penalties incurred upon a corporation while addressing shareholders concerns.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-19
      DOI: 10.1108/JMLC-07-2021-0071
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A new criminal jurisdiction to combat cross-border money laundering

    • Free pre-print version: Loading...

      Authors: Hanafi Amrani , Mahrus Ali
      Abstract: The purpose of this study is to analyze the emergence of the changing face of criminal jurisdiction in dealing with cross-border money laundering that develops dynamically due to the development of globalization. This research was a doctrinal legal research using conceptual approach concerning the very strict principle of territorial jurisdiction in criminal law. This study also used case approach related to the application of extraterritorial jurisdiction and long-arm jurisdiction in some cross-border money laundering cases. The collection of legal materials was carried out through literature as well as case study and was analyzed qualitatively based on data reduction, presentation and concluding. This study revealed that territorial jurisdiction which was originally strictly enforced by state sovereignty over crimes that occurred in its territory then changed widely with multi-territorial perspective. Because of its condition, the state then expands its authority to deal with money laundering as a cross-border crime involving more than one territorial state, namely, by using extraterritorial jurisdiction and then developed into a long-arm jurisdiction trend that allows state authorities to prosecute foreigners outside its state boundaries. The research finding can be used as one of the alternatives by countries to break the territorial jurisdiction in combating the cross-border money laundering.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-18
      DOI: 10.1108/JMLC-06-2021-0059
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • International commercial arbitrator addressing money laundering

    • Free pre-print version: Loading...

      Authors: Todor Kolarov
      Abstract: The purpose of this paper is to evaluate the existing legal basis, and its practical application, of an arbitrator’s competence to raise on her own initiative money laundering issues. The research focusses on presenting the essence of the problem through evaluation of the legal basis for the arbitrators to raise money laundering concerns on their own initiative and the examples of so being done in international commercial arbitration. This paper concludes that arbitrators do not presently have a solid legal basis that authorises them to act sua sponte against money laundering. The originality and value of this paper lies in its emphasis on theoretical and practical issues related to money laundering in international commercial arbitration. It argues in favour of an explicit recommendation to be incorporated in the 2012 Recommendations of the Financial Action Task Force (FATF) that international commercial arbitrators address money laundering on their own initiative.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-17
      DOI: 10.1108/JMLC-05-2021-0052
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Demand for money laundering in developing countries and its deterrence: a
           quantitative analysis

    • Free pre-print version: Loading...

      Authors: Anam Javaid , Noman Arshed
      Abstract: Money laundering is an activity where illegal proceeds are hidden. This often leads to a reduction in government revenue and loss of government control of public funds. This study aims to identify the important sources of growing demand for money laundering in developing countries. Further, it identifies the factors that reduce the impact of sources of demand for money laundering. This study used the panel approach of feasible generalized least square to investigate the growing demand for money laundering in 62 developing countries and provides a moderation-based solution for managing the demand factors. The empirical results of this study indicate that there are two sources that increase the demand for money laundering in developing countries. This includes a high tax rate on profit linked with private firms and businesses and diversion of public funds related to government officials and politicians. The results indicate that profit tax and diversion of funds increase the demand for money laundering. The profit tax-based money laundering can be moderated by the quality of the education system and the diversion of public funds and money laundering can be moderated using bureaucracy quality. This is one of the first studies to empirically estimate the impact of two important sources (i.e. diversion of public funds by government officials and politicians and a high tax rate) that create demand for money laundering in developing countries. The findings help developing countries’ governments formulate policies and curb the growing demand for money laundering.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-16
      DOI: 10.1108/JMLC-06-2021-0063
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Fair value accounting practices in the banking industry: a possible
           opportunity to launder money through manipulated performance

    • Free pre-print version: Loading...

      Authors: K.L. Wasantha Perera , Roshan Ajward , Sisira Dharmasri Jayasekara
      Abstract: The purpose of this paper is to discuss the possible money laundering threats in fair value accounting practices giving particular attention to the list of predicate offences under recommendations of Financial Action Task Force (FATF). This paper discusses case studies related to global accounting scandals and link outcomes of those scandals with the list of predicate offences given in FATF recommendations to build propositions. The analysis reveals that legal proceedings on major accounting scandals show that legal proceedings have been restricted owing to a lack of evidence because of the technicality of frauds. Often the authorities have failed to prove cases under the list of current predicate offences which can be linked to accounting malpractices, i.e. fraud. Therefore, policymakers are required to revisit the list of predicate offences and the feasibility of considering accounting malpractices as a predicate offence to strengthen the corporate governance practices in regulated institutions. The adoption of fair value accounting practices provides opportunities to managers to adopt earnings management practices under a fair value accounting regime to maintain stable performance. The fair value practice recognizes unrealized gains which are not based on transactions giving bank managers an opportunity to repeat the outcomes of the discussed accounting scandals. Therefore, it is essential to criminalize accounting malpractices to strengthen the corporate governance practices in the banking industry and prevent possible accounting scandals. This study was designed to discuss the implications of fair value accounting practices on possible opportunities of money laundering. This paper provides only a viewpoint based on the analysis. Therefore, an empirical analysis is required to establish the authors’ views in a fair value accounting regime. This paper is an original work done by the authors which discuss the implications of fair value accounting practices on possible money laundering. The views are original ideas of the authors in this context.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-11
      DOI: 10.1108/JMLC-06-2021-0064
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Interaction effects of professional commitment, customer risk, independent
           pressure and money laundering risk judgment among bank analysts

    • Free pre-print version: Loading...

      Authors: Zuraidah Mohd-Sanusi , Yusarina Mat-Isa , Ahmad Haziq Ahmad-Bakhtiar , Yusri Huzaimi Mat-Jusoh , Tarjo Tarjo
      Abstract: This study aims to examine the direct and indirect effects of professional commitment, customer risk and independence pressure on money laundering risk judgment among bank analysts. This study uses a within-subjects experimental research design and collects primary data via a questionnaire distributed to bank analysts in banking institutions in Malaysia. Results show that professional commitment, customer risk and independence pressure significantly influence money laundering risk judgment (i.e. customer due diligence and money laundering reporting). The results also show significant interaction effects between customer risk and independence pressure in influencing money laundering risk judgment. Professional commitment and situational factors are crucial in putting pressure on bank analysts responsible for performing a thorough check and due diligence to minimize money laundering risk to the bank. As money laundering is lifeblood of crimes, understanding the factors influencing money laundering risk judgment would assist the affected institutions to manage the risk better and contribute towards the fight against crimes. This study focuses on money laundering risk judgment. It contributes to understanding the competency of the gatekeepers, such as bank analysts, in practicing professional commitment and dealing with situational factors.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-09
      DOI: 10.1108/JMLC-05-2021-0046
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Anti-money laundering obligations and dismissal of bankers: evidence from
           Malaysia

    • Free pre-print version: Loading...

      Authors: Aspalella A. Rahman , Harlida Abdul Wahab
      Abstract: This paper aims to analyse the anti-money laundering (AML) obligations imposed on bankers as the main reporting entities under the AML regime in Malaysia. Apart from discussing the relevant provisions, several court cases were also examined to identify the problems which arise in the implementation of the law and the risk of dismissal that bankers may face. This paper mainly relies on statutes and court cases as its primary sources of information. It is supported by secondary data to justify the analysis. This paper also uses an analytical descriptive approach to analyse relevant provisions from statutes and to examine current court cases regarding the implementation of the AML obligations on bankers. It is submitted that the AML legislation imposes a significant burden of reporting requirements on the bankers, failure of which may justify the dismissal or termination of their services. In other words, the law has not only altered the way bankers deal with their customers but also poses substantial legal risks to their security of tenure. Indeed, getting the right balance between the need to combat money laundering and the interests of bankers is a difficult exercise. This paper provides an analysis of the liability of bankers under Malaysian AML laws. It is hoped that the content of this paper can provide some insight into this particular area for bankers, enforcement authorities, practitioners, academics, policymakers and legal advisers, not only in Malaysia but also elsewhere. The findings of this paper also highlight the risks that bankers may face for non-compliance with the reporting obligations under the AML laws.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-07
      DOI: 10.1108/JMLC-06-2021-0062
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Administrative model of financial intelligence units: an analysis of
           effectiveness of the AML/CFT regime

    • Free pre-print version: Loading...

      Authors: Sisira Dharmasri Jayasekara
      Abstract: The purpose of this paper is to study the impact of the model of an financial intelligence unit (FIU) and the availability of resources of an FIU on the strength of the anti-money laundering and countering the financing of terrorism (AML/CFT) legal framework and the overall effectiveness of the AML/CFT regime. The authors use FIU specific characteristics to measure the impact on the developed AML/CFT Compliance Index (Jayasekara, 2020a) and AML/CFT Effectiveness Index (Jayasekara, 2020b) in measuring the overall effectiveness of an AML/CFT regime. In addition, the impact of an AML/CFT regime on the cost to exports and gross domestic product are modeled. The empirical results suggest that the model of an FIU is an important determinant of an effective AML/CFT regime. The administrative model of FIU shows a negative relationship with the overall effectiveness of the AML/CFT regime. The availability of resources which was measured in terms of human resources at FIUs shows a significant positive relationship with the effectiveness. However, the model of an FIU and the availability of resources of an FIU are not significant determinants of a sound AML/CFT legal framework. The results further reveal that effective AML/CFT regimes promote economic growth and also international trade by reducing the cost of exports. Therefore, policymakers are required to reassess the administrative model FIU of the country and have to adopt a suitable model which has been assigned more power to implement the regime. This study was initially designed to capture more FIU specific variables using a questionnaire to widen the scope of the study. However, the low response rate to the questionnaire forced us to rely on publicly available data on FIU characteristics. Therefore, appropriate FIU specific variables may be developed in future research based on this foundation. This paper is an original work done by the author that discusses the FIU specific characteristics on the overall strength and effectiveness of AML/CFT regimes and further extends the use of originally designed AML/CFT Compliance Index and AML/CFT Effectiveness Index.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-06
      DOI: 10.1108/JMLC-05-2021-0048
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Data quality issues leading to sub optimal machine learning for money
           laundering models

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Abhishek Gupta , Dwijendra Nath Dwivedi , Jigar Shah , Ashish Jain
      Abstract: Good quality input data is critical to developing a robust machine learning model for identifying possible money laundering transactions. McKinsey, during one of the conferences of ACAMS, attributed data quality as one of the reasons for struggling artificial intelligence use cases in compliance to data. There were often use concerns raised on data quality of predictors such as wrong transaction codes, industry classification, etc. However, there has not been much discussion on the most critical variable of machine learning, the definition of an event, i.e. the date on which the suspicious activity reports (SAR) is filed. The team analyzed the transaction behavior of four major banks spread across Asia and Europe. Based on the findings, the team created a synthetic database comprising 2,000 SAR customers mimicking the time of investigation and case closure. In this paper, the authors focused on one very specific area of data quality, the definition of an event, i.e. the SAR/suspicious transaction report. The analysis of few of the banks in Asia and Europe suggests that this itself can improve the effectiveness of model and reduce the prediction span, i.e. the time lag between money laundering transaction done and prediction of money laundering as an alert for investigation The analysis was done with existing experience of all situations where the time duration between alert and case closure is high (anywhere between 15 days till 10 months). Team could not quantify the impact of this finding due to lack of such actual case observed so far. The key finding from paper suggests that the money launderers typically either increase their level of activity or reduce their activity in the recent quarter. This is not true in terms of real behavior. They typically show a spike in activity through various means during money laundering. This in turn impacts the quality of insights that the model should be trained on. The authors believe that once the financial institutions start speeding up investigations on high risk cases, the scatter plot of SAR behavior will change significantly and will lead to better capture of money laundering behavior and a faster and more precise “catch” rate.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-28
      DOI: 10.1108/JMLC-05-2021-0049
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Re-examining corruption and economic growth nexus in oil dependent
           economy: Nigeria’s case

    • Free pre-print version: Loading...

      Authors: Mathew Ekundayo Rotimi , Ojo Joseph IseOlorunkanmi , Gift Grace Rotimi , Mishelle Doorasamy
      Abstract: The purpose of this study is to empirically examine how corruption impacts economic output growth in Nigeria. This is because of the recent trend in the level of corruption. Using time series data ranging from 1995 to 2019, this study used the Johansen cointegration estimating approach and vector error correction mechanism to show an equilibrium relationship between output growth and other variables (oil revenue and corruption). To conduct the integration test, this study in the preliminary, used unit root test. This study finds unidirectional and bidirectional causal relationships among variables. Contrary to a few studies, this study shows an equilibrium relationship between output growth and other variables (oil revenue and corruption). Thus, an increase in corruption at equilibrium would weaken output growth. Nonetheless, this study finds a gradual return of the deviation from the long-run stability over an arrangement of imperfect short-run adjustments. Based on the findings, to enhance economic growth, this study recommends zero tolerance for corruption. It also recommends that governments should further strengthen anti-corruption institutions and incorporate anti-corruption movements into decision-making processes. This study adds to the literature by re-examining for the first time the relationship between corruption and economic growth in Nigeria. This study also deals with some econometrics issues which are found to be appropriate estimation to determine the equilibrium and stability in this study.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-22
      DOI: 10.1108/JMLC-06-2021-0057
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Challenges of money laundering for sovereign states that uses the US
           dollar

         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Prosper Simbarashe Maguchu
      Abstract: There has been almost no scholarly work on the challenges of money laundering in sovereign states that use the US dollar as their currency of choice. This study aims to break the silence by highlighting how money laundering thrives in these situations mainly due to lack of or weak regulation of the US dollar by both the adopting states and the USA. The research depended on various secondary data sources. It is an adapted academic version of a shorter piece for a professional magazine for professionals in the Anti-Money Laundering (AML) Field. Preliminary findings show that due to the lack of regulation of the US dollar in dollarized economies, unscrupulous politicians, organized criminal gangs and multinational corporations among others can use a variation of the Black Market Peso Exchange (BMPE) to counteract money laundering controls and launder ill-gotten gains from crimes such as corruption, transnational crimes and tax evasion. Furthermore, ordinary citizens, migrant workers and small businesses avoiding stringent exchange rates are also using the black market, posing a further challenge to the law enforcement authorities. The practical implications of this paper relate to how the mutations of money laundering techniques, as they are adopted by criminals, to operate in different conditions are making it difficult not only to dictate but also to address using traditional AML techniques. BMPE has far reaching social consequences. Hence, this study is significant to instigate a search for solutions and for further detailed studies into the money laundering techniques in countries that do not have a sovereign currency. To the best of the authors’ knowledge, this is the first paper to discuss the unique challenges faced by countries that have adopted the US dollar for domestic use. The paper also shows how dollarization is a modest reminder that money laundering technique such as the BMPE can evolve to counter the legislative and regulatory environment of the various jurisdictions in which they are laundered.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-21
      DOI: 10.1108/JMLC-06-2021-0056
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Rebuilding public trust through the lens of corporate culture: an
           inevitable necessity to sustain business success in Australia

    • Free pre-print version: Loading...

      Authors: Afroza Begum
      Abstract: This paper aims to promote corporate culture (CC) of compliance to ensure responsible business by motivating self-felt and self-imposed strategies by corporations in Australia. It argues that the way “legal compliance” is pursued in Australia may develop undesirable features within corporate internal affairs ranging from adverse reactions to resentment rationalising or concealing of misconduct. This study showcases that the integration of corporation and ethical values in the compliance governance is inevitable to sustain productive CC and public trust in businesses. This research is based on existing primary and secondary legal resources and different reports, including the Royal Commission’s Report 2019 and public submissions. It attempts to establish a claim that a self-felt and self-motivated approach to legal compliance contemplated by commitment and devotion to the company, and its consumers instead of external control can achieve consistent and positive outcomes that benefit both the company and its stakeholders. While the sanction-deterrence based legal directives provide a strong and sophisticated foundation for detecting and punishing inappropriate culture and have traditionally been effective in fostering compliance, the inclusion of ethical values in the regulatory approach and self-led corporate strategies are required to stimulate sustained compliance, accountability and public trust. There has been a dearth of intellectual inquiries (to the best of the author’s knowledge) about the role of CC and self-imposed corporate strategies in ensuring legal compliance. This paper will contribute to filling this gap in the legal literature and the wider academic deliberation on the standard and effectiveness of CC. This research is the author’s original work and has not been submitted elsewhere for publication.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-15
      DOI: 10.1108/JMLC-07-2021-0067
      Issue No: Vol. 25 , No. 2 (2021)
       
  • National risk assessment – the Croatian features
         This is an Open Access Article Open Access Article

    • Free pre-print version: Loading...

      Authors: Sonja Cindori
      Abstract: The purpose of this paper is to present the risk of the non-financial sector in Croatia concerning the threats of money laundering through the prism of national and supranational risk assessment. In addition to a brief overview of the financial sector, the specifics of the non-financial sector have been highlighted. This paper aims to emphasize the peculiarities of the non-financial sector, focusing on the consequences of arbitrary application on the right to professional secrecy and independence. Specifics of the national risk assessment in Croatia have been analyzed using deductive and inductive methods. To provide an overview of the non-financial sector, the risk assessment at the supranational level has been discussed and compared with the national one. Particular attention has been paid to the areas of increased risk. The effectiveness of risk assessment depends on several factors such as the characteristic of the sector being observed, the specifics of each profession or business, changes at the level of awareness-raising and efficient and coherent supervision. Most deficiencies were observed in the area of beneficial ownership identification, conducting due diligence, awareness of the risk exposure and permanent education. By recognizing the risk profile faced by the non-financial sector, this paper seeks to point out their role as “Gatekeepers” that is far from being negligible. By analyzing the risk of money laundering in Croatia, the tendencies of harmonization with international standards are pointed out along with the occurrences indicated by the practice.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-10-13
      DOI: 10.1108/JMLC-02-2021-0016
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Anti-money laundering in the United Kingdom: new directions for a more
           effective regime

    • Free pre-print version: Loading...

      Authors: Rafael Pontes , Nick Lewis , Paul McFarlane , Patrick Craig
      Abstract: This paper aims to provide a more nuanced understanding of the effectiveness of the anti-money laundering (AML) regime in the UK and explore opportunities to improve policy and performance. Qualitative research design using semi-structured interviews and a focus group with practitioners from both public and private sectors. This paper identifies preventive measures are underfunded by the public sector; there is a disconnect between the regulatory requirement and the regulators’ supervisory approach leading to the ineffective application of the risk-based approach; and authorities have limited ability to stop low-utility reports. Increased collaboration across institutions and sectors, better utilisation of innovative technologies and a sustainable funding plan are needed to drive a collective response to money laundering. Few practitioners in the industry have the knowledge and expertise to discuss the topic at a strategic level and participants were limited (n = 8). This paper adds to the growing corpus of research showing that the AML regime in the UK is ineffective and needs reform. This paper encourages practitioners to improve the AML regime, this research contributes to the reform of the existing measures against financial crime. This paper presents new data from AML practitioners to provide a better understanding of the limitations of the AML regime in the UK.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-25
      DOI: 10.1108/JMLC-04-2021-0041
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Corruption, asset origin and the criminal case of money laundering in
           Indonesian law

    • Free pre-print version: Loading...

      Authors: Mahrus Ali , Syarif Nurhidayat , Muhammad Shidqon Prabowo , Rusli Muhammad
      Abstract: This study aims to investigate Indonesian regulation of Article 69 of the Money Laundering Criminal Act (TPPU) related to proving predicate crimes, as it leaves a debate whether it must be proven beforehand or not. This research is a normative juridical study, in addition to examining the views of criminal law experts on the formulation of Article 69 of the TPPU Law; it is also extended to the practice of prosecution and court decisions in TPPU cases. The results of this study show that there are two views related to the obligation to not prove the corruption in the ML case. The first view states that the origin of corruption must be proven, especially because ML is a follow-up crime, so it is necessary to prove corrosive crime as one of the predicate offenses. The second view states that the predicate offense of corruption does not have to be proven beforehand because TPPU is an independent offense. This research focuses on analyzing whether or not it is obligatory to prove the original crime of corruption in the money laundering case.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-17
      DOI: 10.1108/JMLC-03-2021-0022
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Money laundering or foreign contribution! The spirit of governance in NGOs
           of India

    • Free pre-print version: Loading...

      Authors: Sandeep Goel
      Abstract: The present paper aims to discuss the “money laundering” aspect and related governance practices of third sector, non-government organizations (NGOs). In NGOs globally, foreign contributions are not an old story. But in NGOs, the spotlight on the vulnerability of money laundering in the name of foreign contribution(s) requires special attention. The study highlights the dimension of money laundering in an Indian NGO and related dominance of board leadership about governance issues by way of foreign contribution. The present study uses case study method for enlightening the money laundering tussle in a non-government organization and its governance impact on the stakeholders’ interests at large. The results stress upon the need for to have strong anti-money laundering practices in non-government organizations in the form of foreign contributions which are still struggling to have a sound governance system in place. It is of significance to both policymakers and standards setters at the international level in the light of increasing global awareness about anti-money laundering practices of the third sector. There will be an improvement in the corporate management related to money-laundering of these organizations and infuse higher confidence among stakeholders and further lead to their effective regulatory framework. It is an original paper which highlights the role and significance of money laundering practices in the third sector.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-08-03
      DOI: 10.1108/JMLC-05-2021-0050
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Non-linear impact of globalization on financial crimes: a case of
           developing economies

    • Free pre-print version: Loading...

      Authors: Rabia Muhammad Amjad , Abdul Rafay , Noman Arshed , Mubbasher Munir , Maryam Muhammad Amjad
      Abstract: The Financial Action Task Force defines money laundering as “processing of these criminal proceeds to disguise their illegal origin”. This is the major portion of financial crime that has ties across borders and like all financial crimes which are well planned and camouflaged, this crime is difficult to detect and deter. Over the years, on one side, globalization has provided development opportunities, it has also become one reason for the pervasiveness of money laundering. This has led to a disturbance in the global financial system and social unrest as proceeds from money laundering are being used in terrorism. The purpose of this study is to explore the non linear effect of globalization on financial crime in the form of money laundering. An investigation based on 119 developing countries from the time period of 1985 till 2015 is conducted in this study. The panel quantile regression model was used to estimate antecedents of money laundering. The study confirmed that globalization follows an inverted U-shaped relationship with money laundering. Furthermore, indicators such as investment portfolio and socioeconomic conditions have a significant effect on money laundering. The panel quantile regression model was used to estimate antecedents of money laundering.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-29
      DOI: 10.1108/JMLC-03-2021-0023
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Trade-based money laundering (TBML) empowers criminals to run free
           post-Brexit

    • Free pre-print version: Loading...

      Authors: Mariola Jolanta Marzouk
      Abstract: This paper aims to provide unique empirical findings exploring the impact of the UK’s post-Brexit Economic Strategy to boost trade with developing countries on the UK banking sector’s ability to manage trade-based money laundering risks. Exploratory research design that used structured literature review, followed by semi-structured interviews with key subject matter experts employed by large UK banks. Both banks and law enforcement struggle to prioritise trade-based money laundering (TBML) intelligence discovery due to deficient skills, resources, technology and lack of strong regulatory stimulus. The regulated sector calls for the UK anti-money laundering (AML) reform that would better incentivise TBML deterrence, yet the Government underestimates the money laundering risks while trading with high-risk jurisdictions post-Brexit. The findings are based on a small sample of six semi-structured interviews with difficult to access population of key subject matter experts. Despite the small sample, participants provided well-articulated and informed insights. The UK’s post-Brexit Economic Strategy to boost trade with developing countries downplays the TBML risks it carries. The findings should alert UK banks, law enforcement and the Government who will collectively bear the responsibility to effectively manage TBML while enabling smooth trading. The research provides unique perceptions of UK banks’ senior subject matter experts on managing TBML threats from opportunistic criminals.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-16
      DOI: 10.1108/JMLC-04-2021-0040
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Examining the predictors of fraud in state-owned enterprises: an
           application of the fraud triangle theory

    • Free pre-print version: Loading...

      Authors: Godfred Matthew Yaw Owusu , Theodora Aba Abekah Koomson , Stanley Agbenya Alipoe , Yusuf Ahmed Kani
      Abstract: This paper aims to investigate the views of employees on the motives behind frequently reported fraudulent activities at the workplace. Using the fraud triangle theory (FTT) as the theoretical lens, the study examines the effect of pressure, opportunity and rationalization on fraudulent acts by employees at the workplace. The study follows a correlational quantitative approach using questionnaires as the main data collection tool. A total of 243 valid responses from employees working in different state-owned enterprises in Ghana were used in the empirical analysis. The hypothesized relationships of the study were tested using the partial least square-structural equation modelling technique. The results from the structural analysis showed that pressure, rationalization and opportunity are important in explaining why employees engage in fraudulent activities at the workplace. The findings do not only provide empirical support for the applicability of the FTT in the Ghanaian context but most importantly offer some useful insights into the fraud discourse from the public sector workers’ perspective.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-16
      DOI: 10.1108/JMLC-05-2021-0053
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Reducing corruption and bribery in Africa as a target of the sustainable
           development goals: applying indicators for assessing performance

    • Free pre-print version: Loading...

      Authors: Kempe Ronald Hope; Sr.
      Abstract: The purpose of this paper is to assess African performance for substantially reducing all forms of corruption and bribery on the continent by 2030, through the indicators for achieving Target 16.5 of the sustainable development goals (SDGs). Drawing on the available and accessible relevant data from credible sources, this work quantifies, outlines and analyses the relationship between corruption/bribery and sustainable development as it applies primarily to sub-Saharan Africa; assesses the trends in the region through the official indicators for achieving Target 16.5 of the SDGs; and recommends other indicators for assessing ethical behaviour in African political, administrative and business leadership and institutions for achieving sustainable development and improved ethical performance towards significant reductions in all manifestations of bribery and corruption on the continent by 2030. Corruption and bribery are found to affect all SDG-related sectors, undermining development outcomes and severely compromising efforts to achieve the SDGs in Africa. Consequently, prioritising corruption reduction including from money laundering, bribery and other illegal activities is a necessary requirement for achieving sustainable development, good governance, building effective and inclusive institutions as required by SDG 16, and funding the achievement of the SDGs. The main value of the paper is the insights it provides through the very comprehensive compilation of statistical information that quantifies, and with analysis, the corruption/bribery avenues and the resultant deleterious effects on sustainable development in Africa.
      Citation: Journal of Money Laundering Control
      PubDate: 2021-07-05
      DOI: 10.1108/JMLC-03-2021-0018
      Issue No: Vol. 25 , No. 2 (2021)
       
  • Journal of Money Laundering Control

    • Free pre-print version: Loading...

       
 
JournalTOCs
School of Mathematical and Computer Sciences
Heriot-Watt University
Edinburgh, EH14 4AS, UK
Email: journaltocs@hw.ac.uk
Tel: +00 44 (0)131 4513762
 


Your IP address: 35.172.111.71
 
Home (Search)
API
About JournalTOCs
News (blog, publications)
JournalTOCs on Twitter   JournalTOCs on Facebook

JournalTOCs © 2009-