Pub Date : 2023-12-08DOI: 10.1108/jfc-04-2023-0094
O. Akinbowale, Polly Mashigo, M. Zerihun
Purpose The purpose of this study is to analyse cyberfraud in the South African banking industry using a multiple regression approach and develop a predictive model for the estimation and prediction of financial losses due to cyberfraud. Design/methodology/approach To mitigate the occurrence of cyberfraud, this study uses the multiple regression approach to correlate the relationship between financial loss and cyberfraud activities. The cyberfraud activities in South Africa are classified into three, namely, digital banking application, online and mobile banking fraud. Secondary data that captures the rate of cyberfraud occurrences within these three major categories with their resulting financial losses were used for the multiple regression analysis that was carried out in the Statistical Package for Social Science (SPSS, 2022 environment). Findings The results obtained indicate that the South African financial institutions still incur significant financial losses due to cyberfraud perpetration. The two main independent variables used to estimate the magnitude of financial loss in the South Africa’s banking industry are online (internet) banking fraud (X2) and mobile banking fraud (X3). Furthermore, a multiple regression model equation was developed for the prediction of financial loss as a function of the two independent variables (X2 and X3). Practical implications This study adds to the literature on cyberfraud mitigation. The findings may promote the combat against cyberfraud in the South Africa’s financial institutions. It may also assist South Africa’s financial institutions to predict the financial loss that financial institutions can incur over time. It is recommended that South Africa’s financial institutions pay attention to these two key variables and mitigate any associated risks as they are crucial in determining their profitability. Originality/value Existing literature indicated significant financial losses to cyberfraud perpetration without establishing any relationship between the magnitude of losses incurred and the prevalent forms of cyberfraud. Thus, the novelty of this study lies in the analysis of cyberfraud in the South African banking industry using a multiple regression approach to link financial losses to the perpetration of the prevalent forms of cyberfraud. It also develops a predictive model for the estimation and projection of financial losses.
{"title":"Analysis of cyberfraud in the South African banking industry: a multiple regression approach","authors":"O. Akinbowale, Polly Mashigo, M. Zerihun","doi":"10.1108/jfc-04-2023-0094","DOIUrl":"https://doi.org/10.1108/jfc-04-2023-0094","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to analyse cyberfraud in the South African banking industry using a multiple regression approach and develop a predictive model for the estimation and prediction of financial losses due to cyberfraud.\u0000\u0000\u0000Design/methodology/approach\u0000To mitigate the occurrence of cyberfraud, this study uses the multiple regression approach to correlate the relationship between financial loss and cyberfraud activities. The cyberfraud activities in South Africa are classified into three, namely, digital banking application, online and mobile banking fraud. Secondary data that captures the rate of cyberfraud occurrences within these three major categories with their resulting financial losses were used for the multiple regression analysis that was carried out in the Statistical Package for Social Science (SPSS, 2022 environment).\u0000\u0000\u0000Findings\u0000The results obtained indicate that the South African financial institutions still incur significant financial losses due to cyberfraud perpetration. The two main independent variables used to estimate the magnitude of financial loss in the South Africa’s banking industry are online (internet) banking fraud (X2) and mobile banking fraud (X3). Furthermore, a multiple regression model equation was developed for the prediction of financial loss as a function of the two independent variables (X2 and X3).\u0000\u0000\u0000Practical implications\u0000This study adds to the literature on cyberfraud mitigation. The findings may promote the combat against cyberfraud in the South Africa’s financial institutions. It may also assist South Africa’s financial institutions to predict the financial loss that financial institutions can incur over time. It is recommended that South Africa’s financial institutions pay attention to these two key variables and mitigate any associated risks as they are crucial in determining their profitability.\u0000\u0000\u0000Originality/value\u0000Existing literature indicated significant financial losses to cyberfraud perpetration without establishing any relationship between the magnitude of losses incurred and the prevalent forms of cyberfraud. Thus, the novelty of this study lies in the analysis of cyberfraud in the South African banking industry using a multiple regression approach to link financial losses to the perpetration of the prevalent forms of cyberfraud. It also develops a predictive model for the estimation and projection of financial losses.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"32 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138588798","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-06DOI: 10.1108/jfc-10-2023-0251
Caroline de Oliveira Orth, Fernanda Momo, Mariana Manfroi da Silva Bonotto, Giovana Schiavi
Purpose This study aims to develop and validate the scale of the Behavioral Regulation for the behavior of the Financial Statement Fraudster, from the perspective of the Organismic Integration Theory (OIT). Design/methodology/approach To achieve the objective of this article, an exploratory and quantitative study was developed. The instrument developed followed all the steps recommended by Koufteros (1999) and MacKenzie et al. (2011), from the elaboration of the constructs based on the theory to the factorial validation of reliability. Findings The tests applied reveal that the instrument has statistical validity and can be applied to models that seek to explain the individual motivations for committing accounting fraud. Research limitations/implications We did not develop a mathematical model. As a suggestion for future studies, it is recommended to focus on developing a mathematical model relating the motivations to commit accounting fraud with variables capable of measuring the quality of governance or related to performance. In addition, study factors that may moderate these relationships. Practical implications The validated instrument can be used by auditors and gatekeepers to detect the risk of fraudulent behavior. Social implications The instrument validated here may be useful to researchers who wish to test the motivations for committing fraud in structural models. Originality/value There is little research on accounting fraud on how to define theoretical constructs (as far as the literature review has reached, to the best of the authors’ knowledge, none has been identified). In addition, few studies have been identified that suggest the OIT as an adequate theoretical lens to illuminate the phenomenon of accounting fraud.
{"title":"Motivational processes involved in the behavior of the financial statement fraudster","authors":"Caroline de Oliveira Orth, Fernanda Momo, Mariana Manfroi da Silva Bonotto, Giovana Schiavi","doi":"10.1108/jfc-10-2023-0251","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0251","url":null,"abstract":"\u0000Purpose\u0000This study aims to develop and validate the scale of the Behavioral Regulation for the behavior of the Financial Statement Fraudster, from the perspective of the Organismic Integration Theory (OIT).\u0000\u0000\u0000Design/methodology/approach\u0000To achieve the objective of this article, an exploratory and quantitative study was developed. The instrument developed followed all the steps recommended by Koufteros (1999) and MacKenzie et al. (2011), from the elaboration of the constructs based on the theory to the factorial validation of reliability.\u0000\u0000\u0000Findings\u0000The tests applied reveal that the instrument has statistical validity and can be applied to models that seek to explain the individual motivations for committing accounting fraud.\u0000\u0000\u0000Research limitations/implications\u0000We did not develop a mathematical model. As a suggestion for future studies, it is recommended to focus on developing a mathematical model relating the motivations to commit accounting fraud with variables capable of measuring the quality of governance or related to performance. In addition, study factors that may moderate these relationships.\u0000\u0000\u0000Practical implications\u0000The validated instrument can be used by auditors and gatekeepers to detect the risk of fraudulent behavior.\u0000\u0000\u0000Social implications\u0000The instrument validated here may be useful to researchers who wish to test the motivations for committing fraud in structural models.\u0000\u0000\u0000Originality/value\u0000There is little research on accounting fraud on how to define theoretical constructs (as far as the literature review has reached, to the best of the authors’ knowledge, none has been identified). In addition, few studies have been identified that suggest the OIT as an adequate theoretical lens to illuminate the phenomenon of accounting fraud.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"16 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138596770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study evaluates the effect of transparency measures on public procurement efficiency, focusing on Thailand’s Infrastructure Transparency Initiative (CoST). This study aims to understand its impact on the country’s public infrastructure procurement practices. Design/methodology/approach This paper analyses Thailand’s government construction procurement data, focusing on budgetary savings and CoST process participation. Budgetary savings are this study dependent variable, while the main intervention variable is the adoption of the CoST data disclosure standard. This study uses multiple linear regression, fixed-effects model and propensity score matching with the logit model for a comprehensive analysis. Findings This study shows that using the CoST data disclosure leads to notable budget savings in Thai public construction procurement. With CoST’s introduction, the savings rose by Baht 9.6m, and even with added controls, the savings remained significant at around Baht 3.3m. The savings consistently stay near 5% across different models. The propensity score matching method confirms these results, consistent with factors such as open bidding and agency categorisation. Research limitations/implications This study might not capture all benefits, especially non-financial ones. Thailand’s unique context and potential biases in data sources also need consideration. Practical implications CoST evidence backs Thailand’s procurement transparency. This study recommends broadening CoST, streamlining online platforms and promoting digital public engagement. Training stakeholders and partnering with state-owned enterprises and local agencies is vital to align with CoST and mitigate risks. Originality/value This study shows a clear link between transparency from information disclosure and budget efficiency in public procurement, using data from Thailand. It highlights the potential of transparency measures in developing countries.
{"title":"Transparency and budget savings in public procurement: evidence from Thailand’s Infrastructure Transparency Initiative (CoST)","authors":"Tippatrai Saelawong, Torplus Yomnak, Thanee Chaiwat, Siwat Poopunpanich, Charoen Sutuktis","doi":"10.1108/jfc-10-2023-0282","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0282","url":null,"abstract":"\u0000Purpose\u0000This study evaluates the effect of transparency measures on public procurement efficiency, focusing on Thailand’s Infrastructure Transparency Initiative (CoST). This study aims to understand its impact on the country’s public infrastructure procurement practices.\u0000\u0000\u0000Design/methodology/approach\u0000This paper analyses Thailand’s government construction procurement data, focusing on budgetary savings and CoST process participation. Budgetary savings are this study dependent variable, while the main intervention variable is the adoption of the CoST data disclosure standard. This study uses multiple linear regression, fixed-effects model and propensity score matching with the logit model for a comprehensive analysis.\u0000\u0000\u0000Findings\u0000This study shows that using the CoST data disclosure leads to notable budget savings in Thai public construction procurement. With CoST’s introduction, the savings rose by Baht 9.6m, and even with added controls, the savings remained significant at around Baht 3.3m. The savings consistently stay near 5% across different models. The propensity score matching method confirms these results, consistent with factors such as open bidding and agency categorisation.\u0000\u0000\u0000Research limitations/implications\u0000This study might not capture all benefits, especially non-financial ones. Thailand’s unique context and potential biases in data sources also need consideration.\u0000\u0000\u0000Practical implications\u0000CoST evidence backs Thailand’s procurement transparency. This study recommends broadening CoST, streamlining online platforms and promoting digital public engagement. Training stakeholders and partnering with state-owned enterprises and local agencies is vital to align with CoST and mitigate risks.\u0000\u0000\u0000Originality/value\u0000This study shows a clear link between transparency from information disclosure and budget efficiency in public procurement, using data from Thailand. It highlights the potential of transparency measures in developing countries.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"65 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138598310","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-01DOI: 10.1108/jfc-09-2023-0221
Claire Nolasco Braaten, L. Tsai
Purpose This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial choices. Design/methodology/approach The study analyzed 467 cases from 1992 to 2019, using data from the Corporate Prosecution Registry of the University of Virginia School of Law and Duke University School of Law. It examined corporations facing mail and wire fraud charges and other fraud crimes. Multiple regression linked predictor variables to the dependent variable, total payment. Findings The study found that corporate penalties tend to be lower for financial institutions or corporations in countries with US free trade agreements. Conversely, penalties are higher when the company is a U.S. public company or filed in districts with more pending criminal cases. Originality/value This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.
{"title":"Bounded rationality of prosecutorial decision-making in corporate fraud violations","authors":"Claire Nolasco Braaten, L. Tsai","doi":"10.1108/jfc-09-2023-0221","DOIUrl":"https://doi.org/10.1108/jfc-09-2023-0221","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial choices.\u0000\u0000\u0000Design/methodology/approach\u0000The study analyzed 467 cases from 1992 to 2019, using data from the Corporate Prosecution Registry of the University of Virginia School of Law and Duke University School of Law. It examined corporations facing mail and wire fraud charges and other fraud crimes. Multiple regression linked predictor variables to the dependent variable, total payment.\u0000\u0000\u0000Findings\u0000The study found that corporate penalties tend to be lower for financial institutions or corporations in countries with US free trade agreements. Conversely, penalties are higher when the company is a U.S. public company or filed in districts with more pending criminal cases.\u0000\u0000\u0000Originality/value\u0000This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"104 7","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138623036","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-30DOI: 10.1108/jfc-09-2023-0234
Constant Van Graan, Vera Roos, Matthews Katjene
Purpose A significant increase in financial crime globally emphasises the importance of forensic interviewing to obtain useful and reliable information as part of a commercial forensic investigation. Previous research has identified two interviewing strategies that are aligned with the legal framework in South Africa: the PEACE model (P = preparation and planning; E = engage and explain; A = account, clarify and challenge; C = closure; E = evaluation) and the person-centred approach (PCA). The purpose of this paper is to explore the theoretical underpinnings and application of the PEACE model and the PCA as commercial investigative strategies aligned with the legal context in South Africa. Design/methodology/approach A scoping review was undertaken to identify literature relevant to the theoretical assumptions and application of the PEACE model and the PCA. Findings Literature for the most part reports on the PEACE model but offers very little information about the PCA. A critical analysis revealed that the PEACE model incorporates a clear guiding structure for eliciting information but lacks content needed to create an optimal interpersonal context. To promote this, the PCA proposes that interviewers demonstrate three relational variables: empathy, congruence and unconditional positive regard. The PCA suggests a basic structure for interviewing (beginning, middle and end), while providing very little guidance on how to structure the forensic interview and what information is to be elicited in each phase. Originality/value Combining the PEACE model and PCA presents an integrated interviewing technique best suited for obtaining useful and reliable information admissible in a South African court of law. The PEACE model has a clear structure, and the PCA assists in creating an optimal interpersonal context to obtain information in an interview.
{"title":"A critical analysis of commercial forensic interviewing techniques applicable in a South African context","authors":"Constant Van Graan, Vera Roos, Matthews Katjene","doi":"10.1108/jfc-09-2023-0234","DOIUrl":"https://doi.org/10.1108/jfc-09-2023-0234","url":null,"abstract":"Purpose A significant increase in financial crime globally emphasises the importance of forensic interviewing to obtain useful and reliable information as part of a commercial forensic investigation. Previous research has identified two interviewing strategies that are aligned with the legal framework in South Africa: the PEACE model (P = preparation and planning; E = engage and explain; A = account, clarify and challenge; C = closure; E = evaluation) and the person-centred approach (PCA). The purpose of this paper is to explore the theoretical underpinnings and application of the PEACE model and the PCA as commercial investigative strategies aligned with the legal context in South Africa. Design/methodology/approach A scoping review was undertaken to identify literature relevant to the theoretical assumptions and application of the PEACE model and the PCA. Findings Literature for the most part reports on the PEACE model but offers very little information about the PCA. A critical analysis revealed that the PEACE model incorporates a clear guiding structure for eliciting information but lacks content needed to create an optimal interpersonal context. To promote this, the PCA proposes that interviewers demonstrate three relational variables: empathy, congruence and unconditional positive regard. The PCA suggests a basic structure for interviewing (beginning, middle and end), while providing very little guidance on how to structure the forensic interview and what information is to be elicited in each phase. Originality/value Combining the PEACE model and PCA presents an integrated interviewing technique best suited for obtaining useful and reliable information admissible in a South African court of law. The PEACE model has a clear structure, and the PCA assists in creating an optimal interpersonal context to obtain information in an interview.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139201072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Editorial: Beyond all boundaries the meteoric rise of environmental crime","authors":"Bonnie Rippingille","doi":"10.1108/jfc-10-2023-311","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-311","url":null,"abstract":"","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"127 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139197201","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-30DOI: 10.1108/jfc-09-2023-0235
Mohamed E. Elmaghrabi, Ahmed Diab
Purpose This study aims to examine the association between anti-corruption corporate disclosure and earnings management practices by bringing evidence from a developed market. Design/methodology/approach The study uses data from non-financial FTSE 100 Shares in 2016 and 2017. This study develops a disclosure index to capture the anti-corruption disclosures and run pooled, fixed effects and generalized methods of moments regression models to explore the anti-corruption disclosure–earnings management association. This study also disentangles discretionary accruals into positive and negative, use adjusted discretionary accrual computation and take a more conservative view on discretionary accruals computation as an additional analysis. Findings The results show a negative and significant association between anti-corruption disclosure and earnings management practices. When disentangling discretionary accruals (overvalued/positive and undervalued/negative), the authors found that higher anti-corruption disclosures were negatively associated with positive discretionary accruals, but not associated with negative discretionary accruals. The additional analysis confirmed the previous results, showing that anti-corruption disclosures are perceived as a substantive practice, rather than a mere disclosure practice for legitimacy reasons. Originality/value This study contributes to debate on the symbolic versus the substantive uses of anti-corruption disclosures in the UK context.
{"title":"Anti-corruption corporate disclosures and earnings management: evidence from a developed market","authors":"Mohamed E. Elmaghrabi, Ahmed Diab","doi":"10.1108/jfc-09-2023-0235","DOIUrl":"https://doi.org/10.1108/jfc-09-2023-0235","url":null,"abstract":"Purpose This study aims to examine the association between anti-corruption corporate disclosure and earnings management practices by bringing evidence from a developed market. Design/methodology/approach The study uses data from non-financial FTSE 100 Shares in 2016 and 2017. This study develops a disclosure index to capture the anti-corruption disclosures and run pooled, fixed effects and generalized methods of moments regression models to explore the anti-corruption disclosure–earnings management association. This study also disentangles discretionary accruals into positive and negative, use adjusted discretionary accrual computation and take a more conservative view on discretionary accruals computation as an additional analysis. Findings The results show a negative and significant association between anti-corruption disclosure and earnings management practices. When disentangling discretionary accruals (overvalued/positive and undervalued/negative), the authors found that higher anti-corruption disclosures were negatively associated with positive discretionary accruals, but not associated with negative discretionary accruals. The additional analysis confirmed the previous results, showing that anti-corruption disclosures are perceived as a substantive practice, rather than a mere disclosure practice for legitimacy reasons. Originality/value This study contributes to debate on the symbolic versus the substantive uses of anti-corruption disclosures in the UK context.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"107 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139200205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-29DOI: 10.1108/jfc-10-2023-0254
Hussain Syed Gowhor
Purpose This study aims to evaluate the suspicious transaction reporting (STR) as a financial intelligence tool to identify the potential strengths and limitations of STR and to come up with the criteria, which will make this tool an effective one in early detection of terrorist financing activities. Design/methodology/approach Considering the research aim, this research uses the funnelling method for identifying effectiveness criteria. Funnelling is a method of literature review that helps find pertinent literature by refining the search through filtering the available research (Ridley, 2008). Using this method, the researcher first applied the criteria of actionable intelligence to filter the financial intelligence tools to select the most promising and important tool (suspicious transaction reporting) for early detection of terrorist financing activities. The funnelling method was also applied to derive the effectiveness criteria from the operational features, and corresponding limitations, of the suspicious transaction reporting system. The funnelling method was also used to identify those operational features and limitations of suspicious transaction reporting that have the most direct relevance to the early detection problem of suspicious transaction reporting. Findings There are some operational features of STR that give rise to certain limitations that undermine its effectiveness in terms of early detection of terrorist financing activities. The limitations of STR necessitate a search for criteria that will make STR effective in early detection of terrorist financing activities. Based on the operational features and their corresponding limitations, effectiveness criteria for STR have been derived in this study. It is shown how these effectiveness criteria can remove the limitations of STR. Research limitations/implications The list of operational features and the corresponding limitations based on which the effectiveness criteria have been derived may not be exhaustive. There may have other operational features, and corresponding limitations that also make STR largely ineffective in the early detection of terrorist financing activities, and for which more effectiveness criteria should also be derived. Practical implications The limitations and the effectiveness criteria will pave the way for redesigning STR in such a way that will make it highly useful for detecting financing activities relating to imminent terrorist attacks. Social implications The society will experience fewer terrorist attacks that will make the society peaceful, happy and vibrant. Originality/value In this study, the effectiveness criteria of STR for early detection of terrorist financing activities have been derived in an innovative way by deducing them from the operational features of STR and the corresponding limitations.
{"title":"Effectiveness criteria of suspicious transaction reporting for early detection of terrorist financing activities","authors":"Hussain Syed Gowhor","doi":"10.1108/jfc-10-2023-0254","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0254","url":null,"abstract":"Purpose This study aims to evaluate the suspicious transaction reporting (STR) as a financial intelligence tool to identify the potential strengths and limitations of STR and to come up with the criteria, which will make this tool an effective one in early detection of terrorist financing activities. Design/methodology/approach Considering the research aim, this research uses the funnelling method for identifying effectiveness criteria. Funnelling is a method of literature review that helps find pertinent literature by refining the search through filtering the available research (Ridley, 2008). Using this method, the researcher first applied the criteria of actionable intelligence to filter the financial intelligence tools to select the most promising and important tool (suspicious transaction reporting) for early detection of terrorist financing activities. The funnelling method was also applied to derive the effectiveness criteria from the operational features, and corresponding limitations, of the suspicious transaction reporting system. The funnelling method was also used to identify those operational features and limitations of suspicious transaction reporting that have the most direct relevance to the early detection problem of suspicious transaction reporting. Findings There are some operational features of STR that give rise to certain limitations that undermine its effectiveness in terms of early detection of terrorist financing activities. The limitations of STR necessitate a search for criteria that will make STR effective in early detection of terrorist financing activities. Based on the operational features and their corresponding limitations, effectiveness criteria for STR have been derived in this study. It is shown how these effectiveness criteria can remove the limitations of STR. Research limitations/implications The list of operational features and the corresponding limitations based on which the effectiveness criteria have been derived may not be exhaustive. There may have other operational features, and corresponding limitations that also make STR largely ineffective in the early detection of terrorist financing activities, and for which more effectiveness criteria should also be derived. Practical implications The limitations and the effectiveness criteria will pave the way for redesigning STR in such a way that will make it highly useful for detecting financing activities relating to imminent terrorist attacks. Social implications The society will experience fewer terrorist attacks that will make the society peaceful, happy and vibrant. Originality/value In this study, the effectiveness criteria of STR for early detection of terrorist financing activities have been derived in an innovative way by deducing them from the operational features of STR and the corresponding limitations.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"189 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139210126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-27DOI: 10.1108/jfc-10-2023-0252
Dilara Bural, Anthony Lloyd, Georgios A. Antonopoulos, J. Kotzé
Purpose This paper aims to explore the issue of product counterfeiting in Türkiye and assess Türkiye’s role in the global supply chain of counterfeit goods. It sheds light on the supply-side dynamics of counterfeiting in the Turkish context. Design/methodology/approach Interviews were conducted with 46 key experts, including police officers, customs officers and trademark attorneys. The study also incorporated data from a documentary analysis of counterfeit products seized by the Bulgarian Customs. Findings The findings of this study highlight the significant role of Türkiye in international supply chains, serving as both a manufacturing hub for a wide array of counterfeit products and a crucial transit point for goods bound for European markets. This study suggests that counterfeiting serves as a source of livelihood for many individuals in Türkiye, with counterfeiters often justifying their activities by claiming they contribute to the country’s economy through job creation and the influx of foreign currency. Research limitations/implications While qualitative research is essential for exploring nuanced aspects and gaining in-depth insights, it may not provide the statistical robustness and generalizability associated with larger quantitative studies. Originality/value This paper is an original contribution to the understanding of product counterfeiting in Türkiye, a major counterfeit-producing country, with potential implications for the future of consumer protection and market integrity.
{"title":"“Fake it to make it”: exploring product counterfeiting in Türkiye","authors":"Dilara Bural, Anthony Lloyd, Georgios A. Antonopoulos, J. Kotzé","doi":"10.1108/jfc-10-2023-0252","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0252","url":null,"abstract":"Purpose This paper aims to explore the issue of product counterfeiting in Türkiye and assess Türkiye’s role in the global supply chain of counterfeit goods. It sheds light on the supply-side dynamics of counterfeiting in the Turkish context. Design/methodology/approach Interviews were conducted with 46 key experts, including police officers, customs officers and trademark attorneys. The study also incorporated data from a documentary analysis of counterfeit products seized by the Bulgarian Customs. Findings The findings of this study highlight the significant role of Türkiye in international supply chains, serving as both a manufacturing hub for a wide array of counterfeit products and a crucial transit point for goods bound for European markets. This study suggests that counterfeiting serves as a source of livelihood for many individuals in Türkiye, with counterfeiters often justifying their activities by claiming they contribute to the country’s economy through job creation and the influx of foreign currency. Research limitations/implications While qualitative research is essential for exploring nuanced aspects and gaining in-depth insights, it may not provide the statistical robustness and generalizability associated with larger quantitative studies. Originality/value This paper is an original contribution to the understanding of product counterfeiting in Türkiye, a major counterfeit-producing country, with potential implications for the future of consumer protection and market integrity.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"13 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139233356","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-27DOI: 10.1108/jfc-10-2023-0255
Anne‐Marie Gosselin, Sylvie Berthelot
Purpose Just like human beings, some companies engage in recurrent bad behaviour that negatively impacts their stakeholders and their prospects for long-term survival. For example, some firms become caught up in a vortex of corruption. SNC-Lavalin, a large Canadian consulting engineering company, is an example of one organisation that embarked on this path. Since then, the company has taken numerous steps to overcome its persistent problems with corruption. The object of this study is to determine whether these steps can be compared to the 12-step program of Alcoholics Anonymous (AA), which is recognised for helping individuals overcome addiction to alcohol and drugs. Design/methodology/approach To examine events at SNC-Lavalin between 2000 and 2022, the authors carry out an in-depth examination of internal and external documentation. Three sources of data are used: archival documents, news articles and corporate documentation. Findings The results of the analysis show that the AA 12-step program seems to correspond to the steps SNC-Lavalin has taken over time. The “organisational” version of this program that the authors have developed could be useful to advisers of companies that are struggling with other types of bad behaviour and wish to stamp it out. These bad behaviours include the exploitation of vulnerable manpower, the exploitation of consumers through planned obsolescence or aggressive sales practices and pollution in all its forms. Research limitations/implications The study has certain limitations. It should be noted that the analyses were limited to public information. In addition, given the quantity of public information available for the period from 2009 to 2022, a methodical approach to selecting the sources of information elements was applied, which inevitably entailed ignoring other sources of information (e.g. television, radio and internet). Originality/value This study adds to previous work by providing an original and global perspective of the steps taken by a large international consulting engineering firm to overcome its recurring corruption problems. The parallel drawn with AA’s 12-step programs seems to correspond surprisingly well to the steps taken by the company. This parallel can potentially serve as a roadmap for advisers who have to counsel companies on recurring misconduct that has harmful repercussions for their stakeholders.
{"title":"On the road to halting corruption: SNC-Lavalin","authors":"Anne‐Marie Gosselin, Sylvie Berthelot","doi":"10.1108/jfc-10-2023-0255","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0255","url":null,"abstract":"Purpose Just like human beings, some companies engage in recurrent bad behaviour that negatively impacts their stakeholders and their prospects for long-term survival. For example, some firms become caught up in a vortex of corruption. SNC-Lavalin, a large Canadian consulting engineering company, is an example of one organisation that embarked on this path. Since then, the company has taken numerous steps to overcome its persistent problems with corruption. The object of this study is to determine whether these steps can be compared to the 12-step program of Alcoholics Anonymous (AA), which is recognised for helping individuals overcome addiction to alcohol and drugs. Design/methodology/approach To examine events at SNC-Lavalin between 2000 and 2022, the authors carry out an in-depth examination of internal and external documentation. Three sources of data are used: archival documents, news articles and corporate documentation. Findings The results of the analysis show that the AA 12-step program seems to correspond to the steps SNC-Lavalin has taken over time. The “organisational” version of this program that the authors have developed could be useful to advisers of companies that are struggling with other types of bad behaviour and wish to stamp it out. These bad behaviours include the exploitation of vulnerable manpower, the exploitation of consumers through planned obsolescence or aggressive sales practices and pollution in all its forms. Research limitations/implications The study has certain limitations. It should be noted that the analyses were limited to public information. In addition, given the quantity of public information available for the period from 2009 to 2022, a methodical approach to selecting the sources of information elements was applied, which inevitably entailed ignoring other sources of information (e.g. television, radio and internet). Originality/value This study adds to previous work by providing an original and global perspective of the steps taken by a large international consulting engineering firm to overcome its recurring corruption problems. The parallel drawn with AA’s 12-step programs seems to correspond surprisingly well to the steps taken by the company. This parallel can potentially serve as a roadmap for advisers who have to counsel companies on recurring misconduct that has harmful repercussions for their stakeholders.","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"230 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139227951","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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