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Article
Publication date: 11 March 2020

Ian John Stewart, Andrea Viski and Jonathan Brewer

This paper aims to examine why most governments appear to attach less importance to countering proliferation finance than they do to countering money laundering or…

Abstract

Purpose

This paper aims to examine why most governments appear to attach less importance to countering proliferation finance than they do to countering money laundering or terrorist financing.

Design/methodology/approach

The paper examines this question from a number of perspectives including a definitional perspective, a national regulatory perspective and a private sector implementation perspective.

Findings

It is shown that there are presently significant gaps in counter proliferation finance implementation at the national level, with follow-on implications for private sector compliance.

Research limitations/implications

A key finding is that most governments do not address the issue of proliferation finance as distinct from other forms of financial crime such as terrorist financing or money laundering.

Practical implications

Practical opportunities for improved financial sector implementation of counter proliferation finance controls are identified, but it is argued that it is states that must do more to meet their obligations for improvements to be realised.

Social implications

The risk of not doing so is that the financial system will continue to be misused to finance the proliferation of weapons of mass destruction.

Originality/value

The study seeks to fill a gap in existing academic literature on the question of why proliferation finance receives less attention than other forms of financial crime. The study builds on original research undertaken by the authors including the typologies of proliferation finance, which were later incorporated into an updated Financial Action Task Force report on this topic, as well as events organised by the authors to explore the topic of proliferation finance implementation with governments and the private sector.

Details

Journal of Financial Crime, vol. 27 no. 4
Type: Research Article
ISSN: 1359-0790

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Article
Publication date: 10 October 2008

Cassandra Seow‐Ling Yee, Setsuo Otsuka, Kieran James and Jenny Kwai‐Sim Leung

The purpose of this paper is to discuss the impact that Japanese culture has on the budgeting process, using insights gained from the literature and from a single company…

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Abstract

Purpose

The purpose of this paper is to discuss the impact that Japanese culture has on the budgeting process, using insights gained from the literature and from a single company small‐sample pilot study. It provides a research agenda which links specific aspects of Japanese culture to predictions about Japanese groups' budgetary, performance evaluation and variance investigation practices.

Design/methodology/approach

The approach takes the form of a detailed literature review of the relevant literature in accounting, education and sociology, which considers how Japanese culture systematically differs from Western culture, and a small‐sample pilot study.

Findings

It was found that the Singaporean subsidiary of the Japanese MNC studied uses common Japanese budgeting practices, as previously documented by Ueno and Sekaran. Line managers are rewarded based on overall actual company‐wide profit, consistent with the Japanese collectivist group‐orientation which is itself a product of Confucianism. Although variances are used to rectify operational problems on a timely basis, line managers are not rewarded for outperforming the budget – the budget is a stick, but there is no offsetting carrot. An interviewed line manager (Chinese Singaporean, Purchasing) expressed mixed feelings about the current reward system and a preference for rewards based on outperforming his own budgetary target. This observation is consistent with some research in the educational literature suggesting that the Chinese tend to be less collectivist than the Japanese.

Originality/value

As a literature review the paper provides a synthesis of a diverse variety of sources. The literature review and pilot study findings add to the accounting literature by studying in greater detail than prior studies exactly how and why Japanese culture characteristics will and should affect budgetary practice. The paper should be of special value and interest to higher‐degree and early‐career researchers.

Details

Managerial Auditing Journal, vol. 23 no. 9
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 20 January 2020

Georgios Pavlidis

Thirty years after its creation, the Financial Action Task Force (FATF) has become a prime example of a norm-building process that transcends the traditional avenues of…

Abstract

Purpose

Thirty years after its creation, the Financial Action Task Force (FATF) has become a prime example of a norm-building process that transcends the traditional avenues of public international law, while compelling a high level of compliance and assuring quick adaptation to norms and practices that better address money laundering and the financing of terrorism in their evolving form. On the occasion of FATF’s 30th anniversary, this paper aims to revisit the unique characteristics of FATF and the factors behind FATF’s success as standard-setter and as implementation-reviewer in the anti-money laundering (AML)/CFT context.

Design/methodology/approach

This paper draws on primary sources of law, legal scholarship, reports and other open source data to analyse the FATF norm-building process and the factors behind its success.

Findings

Thirty years after its creation, the FATF has established itself as the key standard-setter, implementation-reviewer and force for reform in the AML/CFT context. Though the FATF norm-building process has been very successful, owing to its flexibility, adaptability and expansiveness, significant challenges lay ahead due to the evolving nature of money laundering and financing of terrorism.

Originality/value

This is a comprehensive study examining the achievements, impact, strengths and weaknesses of the FATF norm-building process on the occasion of the organisation’s 30th anniversary.

Details

Journal of Financial Crime, vol. 28 no. 3
Type: Research Article
ISSN: 1359-0790

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Article
Publication date: 26 February 2021

Thu Thi Hoai Tran and Louis De Koker

The purpose of this paper is to analyze the Vietnamese laws and practices concerning the confiscation of proceeds of crime, especially in view of Vietnam’s obligations to…

Abstract

Purpose

The purpose of this paper is to analyze the Vietnamese laws and practices concerning the confiscation of proceeds of crime, especially in view of Vietnam’s obligations to meet the international standards on money laundering and terrorist financing, set by the Financial Action Task Force and relevant international conventions that Vietnam ratified. To limit the scope of this paper, the analysis focuses on the confiscation of proceeds of domestic crimes that do not require international legal assistance. This paper concludes with recommendations for improving the legal framework on criminal asset recovery in Vietnam.

Design/methodology/approach

This is a doctrinal study that considers the applicable legal framework. This study is supported by brief case studies of major cases involving the confiscation of proceeds of crime.

Findings

Vietnam has a functioning asset confiscation regime but gaps in the law, lack of financial investigation expertise and lack of focused investigative attention on asset preservation and confiscation are hampering its effectiveness. The key gaps can easily be closed with appropriate amendments to the law. These reforms should be combined with a dedicated skills development program to produce sufficient number of financial investigation experts and criminal asset management experts to support the regime. The training should extend to judicial officers to ensure an appropriate understanding of the asset confiscation law. Reforms such as these should follow on a comprehensive review of Vietnam’s law and practices relating to the confiscation and forfeiture of criminal assets. This review should extend to assets linked to the financing of terrorism and proliferation to ensure that Vietnam has a comprehensive regime to deal with criminal assets.

Research limitations/implications

This paper draws on publicly available information regarding the confiscation of proceeds of crime in Vietnam. Little data is available on asset confiscation and that prevents an in-depth assessment of the regime.

Originality/value

This paper highlights gaps in the current asset confiscation regime and proposes reforms and approaches that will ensure a more effective asset confiscation regime for Vietnam.

Details

Journal of Money Laundering Control, vol. 24 no. 2
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 5 January 2015

Timo Behrens

The purpose of this article is to analyse Mexico’s money laundering governance with a focus on its 2007-2013 reform process. It provides a view of money laundering…

Abstract

Purpose

The purpose of this article is to analyse Mexico’s money laundering governance with a focus on its 2007-2013 reform process. It provides a view of money laundering governance as a politically contested policy area and a reflection on the reach and purpose of the international regime promoted by the Financial Action Task Force (FATF).

Design/methodology/approach

The analysis uses an actor-centred approach on governance structures relating groups of public and private actors with competing policy preferences.

Findings

Three ideal-typical groups of actors are identified. Of these, the Financial Integrity and Criminal Enforcement Groups were central proponents of prevention- and prosecution-based policies, respectively. While criminal enforcement was initially sidelined, its role was strengthened in Mexico since 2007. Despite early signs of success, diverging policy preferences between these groups continue to complicate money laundering governance in Mexico through a complex distribution of tasks between them.

Practical implications

To address wider crime fighting concerns, more emphasis should be put on the role of prosecutorial actors in money laundering governance. Beyond the domestic level, the results raise concerns about the increasing focus of the FATF on money laundering as a threat to financial integrity.

Originality/value

The article adds to a better understanding of money laundering governance in Mexico. Further, the presented systematisation of actors can inform the analyses of money laundering governance and underlying political tensions in other country cases. By focusing on organised crime and prosecution, the case deviates from the international trend to concentrate on issues of market integrity and prevention-orientated policies.

Details

Journal of Money Laundering Control, vol. 18 no. 1
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 3 April 2020

Shirin Sultana

The purpose of this paper is to examine the effectiveness of the Financial Intelligence Unit (FIU) of Bangladesh and India in efforts of combating money laundering by…

Abstract

Purpose

The purpose of this paper is to examine the effectiveness of the Financial Intelligence Unit (FIU) of Bangladesh and India in efforts of combating money laundering by these countries through a comparative assessment of several aspects of both FIUs.

Design/methodology/approach

The two FIUs are compared by using a “multiple case design” method of assessment. The framework for assessment was developed following the earlier models developed by scholars and recommendations of international institutions working on money laundering. Publicly available information from the respective websites of FIUs and annual reports has been used to complete the study.

Findings

The study has found that FIUs of both countries have improved significantly in fulfilling their mandates. There are several commonalities and differences between the two agencies. Despite showing improvement in several respects, both countries need to address certain basic deficiencies of the existing framework to make the agencies more effective.

Originality/value

It is supposed that this study will assist both countries to transform their existing FIUs to robust agencies in anti-money laundering efforts by taking care of the weaknesses identified here. It is hoped that the present study will encourage similar studies regarding the problematic areas of FIUs of Bangladesh and India as identified and in respect of FIUs of other countries.

Details

Journal of Money Laundering Control, vol. 23 no. 4
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 8 February 2021

Howard Chitimira

Money laundering activities were allegedly rampant and poorly regulated in the South African financial markets and financial institutions prior to 1998. In other words…

Abstract

Purpose

Money laundering activities were allegedly rampant and poorly regulated in the South African financial markets and financial institutions prior to 1998. In other words, prior to the enactment of the Prevention of Organised Crime Act 121 of 1998 as amended (POCA), there was no statute that expressly and adequately provided for the regulation of money laundering in South Africa. Consequently, the POCA was enacted to curb organised criminal activities such as money laundering in South Africa. Thereafter, the Financial Intelligence Centre Act 38 of 2001 as amended (FICA) was enacted in a bid to, inter alia, enhance financial regulation and the combating of money laundering in the South African financial institutions and financial markets.

Design/methodology/approach

The paper provides an overview analysis of the current legislation regulating money laundering in South Africa. In this regard, prohibited offences and measures that are used to curb money laundering under each relevant statute are discussed. The paper further discusses the regulation and use of customer due diligence measures to combat money laundering activities in South Africa. Accordingly, the regulation of customer due diligence under the FICA and the Banks Act 94 of 1990 as amended (Banks Act) is provided.

Findings

It is hoped that policymakers and other relevant persons will use the recommendations provided in the paper to enhance the curbing of money laundering in South Africa.

Research limitations/implications

The paper does not provide empirical research.

Practical implications

The paper is useful to all policymakers, lawyers, law students, regulatory bodies, especially, in South Africa.

Social implications

The paper seeks to curb money laundering in the economy and society at large, especially in the South African financial markets.

Originality/value

The paper is original research on the South African anti-money laundering regime.

Details

Journal of Money Laundering Control, vol. 24 no. 4
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 6 May 2014

Attiya Waris and Laila Abdul Latif

The article aims to rely on the global wealth chains theory to study the effect of tax amnesty on anti-money laundering (AML) in Bangladesh. This theory is an analytical…

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Abstract

Purpose

The article aims to rely on the global wealth chains theory to study the effect of tax amnesty on anti-money laundering (AML) in Bangladesh. This theory is an analytical framework intended to identify how wealth is repackaged and disguised to move it out of spheres of state oversight, regulation and taxation. It introduces the law on AML in Bangladesh, pointing out the revised Financial Action Task Force (FATF) recommendation that has expanded the scope of money laundering predicate offences to cover both indirect and direct tax crimes and smuggling in relation to customs and excise duties and taxes.

Design/methodology/approach

Interviews in Bangladesh and desk research.

Findings

There are some gaps in the scope of the offence, the coverage of predicate offences and the types of property covered by the money laundering offence. There is also an absence of financial penalties available to effectively sanction legal persons. The current money laundering offences are derived from the ordinance issued in 2008 by the caretaker government (2006-2008). The current act contains detailed definitions of money laundering and property and a list of predicate offences and sanctions for the offence. However, there are some gaps in the physical elements of the offence, and the range of its predicate offences remains too narrow. Adding tax evasion to its list of predicate offences will, given the history of money laundering in Bangladesh, aid in combating illegal transfer of assets abroad and recovery of the same and abolish tax amnesty.

Originality/value

There is no paper that has analysed the linkages between money laundering and taxation in developing countries, especially Bangladesh.

Details

Journal of Money Laundering Control, vol. 17 no. 2
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 11 March 2020

Kennedy Otieno Pambo

Kenya has made little progress in its endeavor to categorize lawyers as designated non-financial businesses and professionals (DNFBPs), despite making spirited attempts in…

Abstract

Purpose

Kenya has made little progress in its endeavor to categorize lawyers as designated non-financial businesses and professionals (DNFBPs), despite making spirited attempts in 2007, 2018 and lately in 2019. The legal professionals are, therefore, not bound by the reporting and other stringent obligations imposed by the Financial Action Task Force (FATF) to deter possible misuse by money launderers. The purpose of this paper, therefore, is to enumerate the ongoing efforts toward designating lawyers as DNFBPs in Kenya. The paper also assesses the institutional and legislative incentives (as well as barriers) for imposing the anti-money laundering (AML) duty thereto.

Design/methodology/approach

The paper provides a qualitative review of Kenya’s AML legislative framework and the potential support/hindrance to imposing the AML duty on lawyers. Also, this paper provides a suggestion for possible solutions.

Findings

The legislative framework in Kenya has outlawed money-laundering, and lawyers can be compelled to disclose confidential information observed in the course of employment if it embodies crime or fraud. Thus, imposing the AML obligation on lawyers is nothing out of the ordinary, rather a mere creation for a formal disclosure mechanism. However, this paper also revealed divergent views that merit reconciliation for the seamless designation of lawyers.

Originality/value

To enhance the legislative framework in Kenya, the paper borrows from the FATF’s Interpretive Note to Recommendation 23 and suggests a practical solution to the apparent conflict between the legal professional privilege and the AML duty.

Details

Journal of Money Laundering Control, vol. 23 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

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Book part
Publication date: 10 February 2020

Yüksel Akay Ünvan

Financial crimes involve several offenses without violence with some people obtaining financial benefit and causing financial loss to some others. The globalization of…

Abstract

Financial crimes involve several offenses without violence with some people obtaining financial benefit and causing financial loss to some others. The globalization of financial systems, the growing volume of trading transactions, and the acceleration of information technologies have brought many conveniences to the financial world; but unfortunately, financial crime has spread and diversified. Therefore, the fight against financial crimes, which are often complex and organized in a way which is nonviolent but causes significant financial damage to people and organizations, is gaining importance. In this sense, the struggle against this type of crime, which has become a serious threat, must be resolved by applying a comprehensive policy that should include all segments of the society.

In this chapter, we aim to give a general framework of financial crimes and carry out a literature review on the subject. Moreover, we outline the different types of financial crime (such as money laundering, insider dealing, fraud, market abuse, bribery, corruption, terrorist financing, white collar crimes, tax evasion, embezzlement, forgery, counterfeiting, identity theft, etc.) and their impact. As a result, this study has the purpose of providing awareness by drawing attention to the concept of financial crime, which is an important threat nowadays that an ordinary person may suffer at any time in daily life.

Details

Contemporary Issues in Audit Management and Forensic Accounting
Type: Book
ISBN: 978-1-83867-636-0

Keywords

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