Journal of Money Laundering Control最新文献

Purpose

This paper aims to examine the specific findings on the level of technical compliance and operational effectiveness of the national financial intelligence units (FIUs) in 55 members of the Asian Development Bank (ADB) under the mutual evaluations carried out by the Financial Action Task Force (FATF) and its regional bodies (also referred to as FATF-style regional bodies) in connection with the current international standard for combating money laundering and terrorism financing (i.e. the FATF recommendations). It also provides three observations for enhancing the use of financial information and intelligence.

Design/methodology/approach

Review of published reports on country mutual evaluations from the FATF and its regional bodies.

Findings

A majority of the FIUs from these 55 members of the ADB were rated around the “mid-range” under the FATF methodology used for the mutual evaluations (i.e. “compliant and substantially effective”, “largely compliant and substantially effective”, “compliant and moderately effective” and “largely compliant and moderately effective”). Observations were also provided on cross-cutting areas for enhancing the use of financial information and intelligence.

Originality/value

FIU operations are key to combating money laundering and terrorism financing, and this examination of the level of technical compliance with the international standard and related operational effectiveness provides an useful account of current developments in this space and suggestions for further actions by relevant national authorities and provision of country technical assistance and support by donor partners.

Purpose

This paper aims to demonstrate to lawmakers that the addition of art dealers to the designated non-financial businesses and professions (DNFBPs) definition would provide Australia with more comprehensive protection against money laundering within the art market.

Design/methodology/approach

The paper opted for an exploratory study using doctrinal and jurisdictional comparative analysis that focused on arguments for and against the inclusion of art dealers in respective DNFBPs definitions. Evaluation of these arguments concludes that art dealers should be included in Australia’s DNFBPs definition and subject to anti-money laundering (AML) regulation.

Findings

The current omission of art dealers from Australia’s DNFBPs definition perpetuates AML vulnerabilities within the Australian art market.

Originality/value

This paper fulfils an identified need to study high-value dealers not included in Australia’s DNFBPs definition and provide arguments for and against the inclusion of Australian art dealers in the listed DNFBP.

Purpose

This paper aims to investigate how best to classify money laundering through online video games (i.e. virtual laundering). Currently, there is no taxonomy available for scholars and practitioners to refer to when discussing money laundering through online video games. Without a well-defined taxonomy it becomes difficult to reason through, formulate and implement effective regulatory measures, policies and security controls. As such, efforts to prevent and reduce virtual laundering incidence rates are hampered.

Design/methodology/approach

This paper proposes three mutually exclusive virtual laundering categorizations. However, instead of fixating on the processes undergirding individual instances of virtual laundering, it is argued that focusing on the initial locale of the illicit proceeds provides the appropriate framing within which to classify instances of virtual laundering. Thus, the act of classification becomes an ontological endeavour, rather than an attempt at elucidating an inherently varied process (as is common of the placement, layering and integration model).

Findings

A taxonomy is proposed that details three core virtual laundering processes. It is demonstrated how different virtual laundering categories have varied levels of associated risk, and thus, demand unique interventions.

Originality/value

To the best of the authors’ knowledge, this is the first taxonomy available in the knowledge base that systematically classifies instances of virtual laundering. The taxonomy is available for scholars and practitioners to use and apply when discussing how to regulate and formulate legislation, policies and appropriate security controls.

Purpose

The purpose of this paper is to explore and evaluate the current legal position on the admissibility and exclusion of illegally obtained evidence in money laundering cases.

Design/methodology/approach

A thorough exploratory analytical analysis signifies that such illegally obtained evidence from money laundering offences is admissible, provided it does not undermine the administration of justice or the right to a fair trial.

Findings

By virtue of the lack of written or codified rules governing the admissibility and exclusion of illegally obtained evidence in cases involving money laundering, the rule of admissibility remains the primary foundational principle for the governance of the admissibility and exclusion of illegally obtained evidence in money laundering cases.

Originality/value

The Malaysian Criminal Justice System has historically relied on the long-standing admissibility principles to admit and exclude illegally obtained evidence. For decades, courts have used their discretion to admit illegally obtained evidence based on the relevancy test, and they have further demonstrated to use the same discretion to exclude gravely prejudicial evidence. Evidence obtained illegally but if relevant to the matter in issue is deemed admissible. Evidence derived from an act associated with unlawful activities or a predicate offence in money laundering may be obtained illegally, which may influence the prosecution case and conversely, defend the accused’s rights to a fair trial.

Purpose

The purpose of this paper is to discuss the legal barriers to termination of an insurance arrangement where there is suspicion of money laundering when paying insurance premiums.

Design/methodology/approach

Trials in court between insurance firm and outlaw biker gangs regarding insurance of their clubhouses.

Findings

Protection of insured seems more important than prevention of money laundering.

Research limitations/implications

This is a case study that cannot be generalized.

Practical implications

Anti money laundering is difficult when competing with other considerations.

Social implications

Accusations of money laundering is not sufficient to terminate an insurance contract. Rather, solid evidence is needed.

Originality/value

This is a real case of failing anti-money laundering efforts.

Purpose

The purpose of this paper is to explore the legislative framework that governs whistleblowing in the UAE.

Design/methodology/approach

The paper examines social perceptions and practical challenges related to the act of whistleblowing. It focuses on the effectiveness, limitations and implications of the current legal status of whistleblowing in the UAE.

Findings

The UAE does not have a unified legal framework that governs whistleblowing and whistleblower protections like in the case of the USA. Therefore, there is an urgent need for comprehensive federal regulations that will apply to all sectors across the entire UAE. Each emirate and economic zone can then model their whistleblowing regulations against the federal law to ensure consistency and uniformity in application. The UAE will also benefit from public awareness and education programs to address the conservative culture that discourages whistleblowing. Most importantly, corporate governance and culture are central to the success of existing laws considering the overreliance on organizations and employees.

Originality/value

The paper provides a robust and analytical discussion of the whistleblowing laws and regulations in the UAE to dissect current practices and implications for future practice.

Purpose

Despite the huge financial resources associated with oil, Nigeria has consistently recorded poor growth performance. Therefore, this study aims to examine how corruption and oil rent influence Nigeria’s economic performance during the 1996–2021 period.

Design/methodology/approach

Various estimation techniques were used. These include the bootstrap autoregressive distributed lag (ARDL) bounds-testing, dynamic ordinary least squares (DOLS), the fully modified OLS (FMOLS) and the canonical cointegration regression (CCR) estimators and the Toda–Yamamoto causality.

Findings

The bounds testing results provide evidence of a cointegrating relationship between the variables. In addition, the results of the ARDL, DOLS, CCR and FMOLS estimators demonstrate that oil rent and corruption have a significant positive impact on growth. Further, the results indicate that human capital and financial development enhance economic growth, whereas domestic investment and unemployment rates slow down long-term growth. Additionally, the causality test results illustrate the presence of a one-way causality from oil rent to economic growth and a bi-directional causal relationship between corruption and economic growth.

Originality/value

Existing studies focused on the effects of either oil rent or corruption on growth in Nigeria. Little attention has been paid to the exploration of how the rent from oil and the pervasiveness of corruption contribute to the performance of the Nigerian economy. Based on the outcome of this study, strategies and policies geared towards reducing oil dependence and the pervasiveness of corruption, enhancing human capital and financial development and reducing unemployment are recommended.

Purpose

This study aims to provide an empirical investigation into rising capital flight and the role of institutional quality to mitigate its effect on the real sector in sub-Saharan Africa (SSA).

Design/methodology/approach

The study uses the system generalized method of moments and uses data spanning from 1989 to 2020 from 26 SSA countries.

Findings

The findings show that capital flight has no direct impact on the real sector while institutional quality adversely impacted the agricultural and industrial sectors. The study also found that institutional quality is unable to mitigate the effect of capital flight on the industrial sector.

Originality/value

This study investigates if institutional quality mitigates the impact of capital flight on the real sector proxied by industrial value-added and agriculture value-added.

Purpose

This paper aims to discuss the adequacy of restrictive measures. Providing a synopsis of a global movement toward the imposition of target restrictive measures. Questioning the success of targeted restrictive measures in obtaining behavioural change. Identifying a reversion to the implementation of wide ranging sectoral restrictive measures in an attempt to encourage immediate behavioural change. Accessing the success of using restrictive measures to encourage democratic regimes in Africa.

Design/methodology/approach

This study is a desktop research that examines European Parliament and Council issued Regulations for the jurisdictions of Iran, Russia and Belarus. Academic research is also used in identifying a pendulum swing by global legislatures with respect to the imposition of targeted measures to requiring the imposition of additional wide ranging sectoral measures.

Findings

Targeted measures can be circumvented using non-hostile third countries. Academic research identifies that wide reaching sectoral sanctions encourage regime change. Therefore, where targeted measures fail to give rise to their desired persuasive objectives. The legislator moves to introduce additional measures, also comprising of sectoral sanctions. Sectoral sanctions have been applied by the European Union in Iran, Russia and Belarus. The USA has taken measures to limit Russia ability to use Turkey as a transshipment hub. The African continent case study identifies the importance of creating an architecture founded on upholding positive governance and human rights standards. Failure to do so leads to a revolving system of authoritarian regimes, sanctioned by restrictive measures.

Originality/value

This paper is a desktop review composed by the author.

Purpose

This paper aims to determine whether tax evasion savings qualify as unlawful proceeds for money laundering purposes. Litigators, regulators and academics have debated the question for decades. A common argument is that tax evasion allows a bad actor to save money that the perpetrator already has on hand. It does not produce a new inflow of wealth that could properly be classified as proceeds. This paper addresses the validity of this argument by using a substance-based approach.

Design/methodology/approach

This paper applies the substance-over-form principle and two specialized judicial doctrines to the matter: the economic-substance and step-transaction doctrines.

Findings

This paper finds that in substance, tax evasion savings qualify as unlawful proceeds. The opposing argument may be valid on the surface, but it does not withstand the scrutiny of the substance-based principle and insights from the doctrines.

Practical implications

The finding of this paper implies that any courts which value substance can embrace tax evasion savings as unlawful proceeds. Government prosecutors can adopt the position with confidence that substance backs them up. National regulators can push the point. The United Nations’ Financial Action Task Force can consider the option to more explicitly recommend treating tax evasion savings as unlawful proceeds for money laundering.

Originality/value

Using a unique substance-based approach, this paper demonstrates that a dollar of tax evasion savings is substantively equivalent to a dollar of unlawful tax refund proceeds for money laundering purposes. Focusing on an unlawful tax refund overcomes many of the common concerns raised against the treatment of tax evasion savings as unlawful proceeds.