Journal of Financial CrimeTable of Contents for Journal of Financial Crime. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1359-0790/vol/31/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestJournal of Financial CrimeEmerald Publishing LimitedJournal of Financial CrimeJournal of Financial Crimehttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/eb2d6aafe0db461fb2cf415cdf87d623/urn:emeraldgroup.com:asset:id:binary:jfc.cover.jpghttps://www.emerald.com/insight/publication/issn/1359-0790/vol/31/iss/2?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestEditorial: Integrity – where art thou?https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-314/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestEditorial: Integrity – where art thou?Editorial: Integrity – where art thou?
G. Philip Rutledge
Journal of Financial Crime, Vol. 31, No. 2, pp.233-235]]>
Editorial: Integrity – where art thou?10.1108/JFC-01-2024-314Journal of Financial Crime2024-03-12© 2024 Emerald Publishing LimitedG. Philip RutledgeJournal of Financial Crime3122024-03-1210.1108/JFC-01-2024-314https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-314/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
The implications of national blockchain infrastructure for financial crimehttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to explain the implications of the impending establishment of national blockchain infrastructure by governments around the world, and how these structures can be integrated with existing legislation and assist in the prevention of financial crime. The methodology used is a literature review and analysis of progress being made to establish national blockchain infrastructure. It provides a discussion of the connection between blockchain and financial crime, and how this infrastructure will interact with existing regulatory frameworks, and particularly, financial crime legislation. This paper documents financial crime risks posed by digital currencies and smart contracts and the role that national blockchain infrastructure can potentially play in mitigating these risks. It highlights the need for governments to devote resources to developing this infrastructure and associated regulatory frameworks. There are few, if any, academic papers in the financial crime, or wider literature, that have examined the potential for national blockchain infrastructures prevent financial crime, including the implications for existing regulation in the field.The implications of national blockchain infrastructure for financial crime
Marcus Smith, Milind Tiwari
Journal of Financial Crime, Vol. 31, No. 2, pp.236-248

This paper aims to explain the implications of the impending establishment of national blockchain infrastructure by governments around the world, and how these structures can be integrated with existing legislation and assist in the prevention of financial crime.

The methodology used is a literature review and analysis of progress being made to establish national blockchain infrastructure. It provides a discussion of the connection between blockchain and financial crime, and how this infrastructure will interact with existing regulatory frameworks, and particularly, financial crime legislation.

This paper documents financial crime risks posed by digital currencies and smart contracts and the role that national blockchain infrastructure can potentially play in mitigating these risks. It highlights the need for governments to devote resources to developing this infrastructure and associated regulatory frameworks.

There are few, if any, academic papers in the financial crime, or wider literature, that have examined the potential for national blockchain infrastructures prevent financial crime, including the implications for existing regulation in the field.

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The implications of national blockchain infrastructure for financial crime10.1108/JFC-01-2023-0006Journal of Financial Crime2023-06-16© 2023 Emerald Publishing LimitedMarcus SmithMilind TiwariJournal of Financial Crime3122023-06-1610.1108/JFC-01-2023-0006https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A comparative analysis of the role of gender in the commission of white-collar crimes: a review in Norway, America, Portugal, India and Iranhttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this research is to analyze the role of gender in the commission of white collar crimes and investigate it in five countries: Norway, Portugal, America, India and Iran. Descriptive analytical method is used in this article. A total of five observations were examined about the rank and percentage of women's participation in white-collar crimes, namely, from Norway (rank 3, 7%), USA (rank 26, 5%), Portugal (29th rank, 13%), India (rank 135, 11%) and Iran (rank 143, 5%). As is visually obvious, there seems to be no relationship between the level of gender equality and the percentage of women involved in white-collar crimes. However, according to Hobbs, in most research, the issue of gender and its effect on the occurrence of white-collar crimes have not been addressed, but by using the limited statistics and limited information available, it can be concluded that a small number of women have committed this crime. According to global crime reports, only 15 out of 200 prosecutions for white-collar crimes involve women. To the best of the authors’ knowledge, this article is original and has been submitted only to this journal and has not been submitted to another journal at the same time.A comparative analysis of the role of gender in the commission of white-collar crimes: a review in Norway, America, Portugal, India and Iran
Maryam Kamaei, Salameh Abolhasani, Naghmeh Farhood
Journal of Financial Crime, Vol. 31, No. 2, pp.249-258

The purpose of this research is to analyze the role of gender in the commission of white collar crimes and investigate it in five countries: Norway, Portugal, America, India and Iran.

Descriptive analytical method is used in this article.

A total of five observations were examined about the rank and percentage of women's participation in white-collar crimes, namely, from Norway (rank 3, 7%), USA (rank 26, 5%), Portugal (29th rank, 13%), India (rank 135, 11%) and Iran (rank 143, 5%). As is visually obvious, there seems to be no relationship between the level of gender equality and the percentage of women involved in white-collar crimes. However, according to Hobbs, in most research, the issue of gender and its effect on the occurrence of white-collar crimes have not been addressed, but by using the limited statistics and limited information available, it can be concluded that a small number of women have committed this crime. According to global crime reports, only 15 out of 200 prosecutions for white-collar crimes involve women.

To the best of the authors’ knowledge, this article is original and has been submitted only to this journal and has not been submitted to another journal at the same time.

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A comparative analysis of the role of gender in the commission of white-collar crimes: a review in Norway, America, Portugal, India and Iran10.1108/JFC-04-2023-0077Journal of Financial Crime2023-07-12© 2023 Emerald Publishing LimitedMaryam KamaeiSalameh AbolhasaniNaghmeh FarhoodJournal of Financial Crime3122023-07-1210.1108/JFC-04-2023-0077https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Artificial intelligence and deep learning: considerations for financial institutions for compliance with the regulatory burden in the United Kingdomhttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0011/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestArtificial intelligence (AI), machine learning (ML) and deep learning (DL) are having a major impact on banking (FinTech), health (HealthTech), law (RegTech) and other sectors such as charitable fundraising (CharityTech). The pace of technological innovation and the ability of AI systems to think like human beings (simulate human intelligence), perform tasks independently, develop intelligence based on its own experiences and process layers of information to learn ever-complex representations of data (ML/DL) means that improvements in the rates at which this technology can undertake complex, technical and time-consuming tasks, identify people, objects, voices, patterns, etc., screen for ‘problems’ earlier, and provide solutions, provide astounding benefit in economic, political and social terms. The purpose of this paper is to explore advents in AI, ML and DL in the context of the regulatory compliance challenge faced by financial institutions in the United Kingdom (UK). The subject is explored through the analysis of data and domestic and international published literature. The first part of the paper summarises the context of current regulatory issues, the advents in deep learning, how financial institutions are currently using AI, and how AI could provide further technological solutions to regulatory compliance as of February 2023. It is suggested that UK financial institutions can further utilise AI, ML and DL as part of an armoury of solutions that ease the regulatory burden and achieve high levels of compliance success. To the best of the author’s knowledge, this is the first study to specifically explore how AI, ML and DL can continue to assist UK financial institutions in meeting the regulatory compliance challenge and the opportunities provided for financial institutions by the metaverse.Artificial intelligence and deep learning: considerations for financial institutions for compliance with the regulatory burden in the United Kingdom
Charanjit Singh
Journal of Financial Crime, Vol. 31, No. 2, pp.259-266

Artificial intelligence (AI), machine learning (ML) and deep learning (DL) are having a major impact on banking (FinTech), health (HealthTech), law (RegTech) and other sectors such as charitable fundraising (CharityTech). The pace of technological innovation and the ability of AI systems to think like human beings (simulate human intelligence), perform tasks independently, develop intelligence based on its own experiences and process layers of information to learn ever-complex representations of data (ML/DL) means that improvements in the rates at which this technology can undertake complex, technical and time-consuming tasks, identify people, objects, voices, patterns, etc., screen for ‘problems’ earlier, and provide solutions, provide astounding benefit in economic, political and social terms. The purpose of this paper is to explore advents in AI, ML and DL in the context of the regulatory compliance challenge faced by financial institutions in the United Kingdom (UK).

The subject is explored through the analysis of data and domestic and international published literature. The first part of the paper summarises the context of current regulatory issues, the advents in deep learning, how financial institutions are currently using AI, and how AI could provide further technological solutions to regulatory compliance as of February 2023.

It is suggested that UK financial institutions can further utilise AI, ML and DL as part of an armoury of solutions that ease the regulatory burden and achieve high levels of compliance success.

To the best of the author’s knowledge, this is the first study to specifically explore how AI, ML and DL can continue to assist UK financial institutions in meeting the regulatory compliance challenge and the opportunities provided for financial institutions by the metaverse.

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Artificial intelligence and deep learning: considerations for financial institutions for compliance with the regulatory burden in the United Kingdom10.1108/JFC-01-2023-0011Journal of Financial Crime2023-04-14© 2023 Emerald Publishing LimitedCharanjit SinghJournal of Financial Crime3122023-04-1410.1108/JFC-01-2023-0011https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0011/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The effect of economic complexities and green economy on financial statements fraudhttps://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to address the relationship between economic complexities (EC) and the green economy (GE) with fraud in the listed companies on the Tehran stock exchange. The authors study whether EC and GE increase the detection of financial statement fraud. The authors used a multiple regression model based on the panel data method and fixed effect model to test hypotheses. The sample includes 1,351 companies listed on the Iranian stock exchange from 2014 to 2021. The results show a negative and significant relationship between EC and GE with financial statement fraud. Since this research is the first to address the mentioned topic in emerging markets, it provides helpful insights for financial statement users, analysts and legal entities. The study fills the literature gap and promotes knowledge regarding its relevant literature.The effect of economic complexities and green economy on financial statements fraud
Zainab Ahmadi, Mahdi Salehi, Mahmoud Rahmani
Journal of Financial Crime, Vol. 31, No. 2, pp.267-286

This study aims to address the relationship between economic complexities (EC) and the green economy (GE) with fraud in the listed companies on the Tehran stock exchange. The authors study whether EC and GE increase the detection of financial statement fraud.

The authors used a multiple regression model based on the panel data method and fixed effect model to test hypotheses. The sample includes 1,351 companies listed on the Iranian stock exchange from 2014 to 2021.

The results show a negative and significant relationship between EC and GE with financial statement fraud.

Since this research is the first to address the mentioned topic in emerging markets, it provides helpful insights for financial statement users, analysts and legal entities. The study fills the literature gap and promotes knowledge regarding its relevant literature.

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The effect of economic complexities and green economy on financial statements fraud10.1108/JFC-02-2023-0036Journal of Financial Crime2023-09-05© 2023 Emerald Publishing LimitedZainab AhmadiMahdi SalehiMahmoud RahmaniJournal of Financial Crime3122023-09-0510.1108/JFC-02-2023-0036https://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The assessment of the impact of cyberfraud in the South African banking industryhttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0260/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to assess the impact of cyberfraud in the South African banks with the aim to provide recommendations to effectively mitigate it. The study uses a qualitative approach involving the use of structured questionnaires. The questionnaires were made available to the staff of 17 licensed banks in South Africa who deal with management, operation, administration and banking services. Two hypotheses were formulated and non-parametric statistical analyses involving the use of Chi-square test, Fischer’s Exact test and Spearman’s correlation were carried out. The two hypotheses formulated were tested to draw a conclusion. The results obtained indicate that the impact of cyberfraud in the South African banking industry is highly significant and has affected the reputation of some of the banks. This calls for the need to review the diverse ways of curbing cyberfraud to lessen their impact and that of associated fraud risks on the banking operation. This study provides an analysis on the relationship cyberfraud occurrences and the reputation of South African banks. The implementation of the recommendations may reinforce the existing security measures in the fight against cyberfraud. The novelty of this study lies in the fact that the assessment of the impact of cyberfraud on the banking industry in South Africa has not been sufficiently highlighted by the existing literature.The assessment of the impact of cyberfraud in the South African banking industry
Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer, Mulatu Fekadu Zerihun
Journal of Financial Crime, Vol. 31, No. 2, pp.287-301

The purpose of this study is to assess the impact of cyberfraud in the South African banks with the aim to provide recommendations to effectively mitigate it.

The study uses a qualitative approach involving the use of structured questionnaires. The questionnaires were made available to the staff of 17 licensed banks in South Africa who deal with management, operation, administration and banking services. Two hypotheses were formulated and non-parametric statistical analyses involving the use of Chi-square test, Fischer’s Exact test and Spearman’s correlation were carried out. The two hypotheses formulated were tested to draw a conclusion.

The results obtained indicate that the impact of cyberfraud in the South African banking industry is highly significant and has affected the reputation of some of the banks. This calls for the need to review the diverse ways of curbing cyberfraud to lessen their impact and that of associated fraud risks on the banking operation.

This study provides an analysis on the relationship cyberfraud occurrences and the reputation of South African banks. The implementation of the recommendations may reinforce the existing security measures in the fight against cyberfraud.

The novelty of this study lies in the fact that the assessment of the impact of cyberfraud on the banking industry in South Africa has not been sufficiently highlighted by the existing literature.

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The assessment of the impact of cyberfraud in the South African banking industry10.1108/JFC-10-2022-0260Journal of Financial Crime2023-02-01© 2023 Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer and Mulatu Fekadu ZerihunOluwatoyin Esther AkinbowaleHeinz Eckart KlingelhöferMulatu Fekadu ZerihunJournal of Financial Crime3122023-02-0110.1108/JFC-10-2022-0260https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0260/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Oluwatoyin Esther Akinbowale, Heinz Eckart Klingelhöfer and Mulatu Fekadu Zerihunhttp://creativecommons.org/licences/by/4.0/legalcode
It is best to say nothing at all – suspicious activity reporting in the financial services sectorhttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0090/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to show how financial services firms determine whether customer transactions or behaviours meet the threshold for suspicious activity reporting mandated by the Terrorism Act 2000 and the Proceeds of Crime Act 2002, and how suspicious activity reporting is executed in practice. Semi-structured interviews have been carried out among compliance professionals in UK financial services. Two issues related to suspicious activity reporting have been identified. Firstly, a widespread misunderstanding about the tipping-off offence under s. 333 Proceeds of Crime Act 2002 has been identified, which appears to be a root cause for poor quality as well as over-reporting of suspicious activity. Secondly, issues related to the notice and moratorium periods used by the UK’s National Crime Agency appear to deter reporting of suspicious activity related to live transactions. The paper makes suggestions for changes financial services firms and the UK’s National Crime Agency can make to improve the effectiveness of suspicious activity reporting. The paper provides valuable insights which can be used to limit the flow of criminal funds, improve the quality of suspicious activity reporting and enhance the effectiveness of law enforcement agencies.It is best to say nothing at all – suspicious activity reporting in the financial services sector
Mario Menz
Journal of Financial Crime, Vol. 31, No. 2, pp.302-310

This paper aims to show how financial services firms determine whether customer transactions or behaviours meet the threshold for suspicious activity reporting mandated by the Terrorism Act 2000 and the Proceeds of Crime Act 2002, and how suspicious activity reporting is executed in practice.

Semi-structured interviews have been carried out among compliance professionals in UK financial services.

Two issues related to suspicious activity reporting have been identified. Firstly, a widespread misunderstanding about the tipping-off offence under s. 333 Proceeds of Crime Act 2002 has been identified, which appears to be a root cause for poor quality as well as over-reporting of suspicious activity. Secondly, issues related to the notice and moratorium periods used by the UK’s National Crime Agency appear to deter reporting of suspicious activity related to live transactions.

The paper makes suggestions for changes financial services firms and the UK’s National Crime Agency can make to improve the effectiveness of suspicious activity reporting.

The paper provides valuable insights which can be used to limit the flow of criminal funds, improve the quality of suspicious activity reporting and enhance the effectiveness of law enforcement agencies.

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It is best to say nothing at all – suspicious activity reporting in the financial services sector10.1108/JFC-04-2023-0090Journal of Financial Crime2023-06-23© 2023 Emerald Publishing LimitedMario MenzJournal of Financial Crime3122023-06-2310.1108/JFC-04-2023-0090https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0090/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The red flags of financial statement fraud: a case studyhttps://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAccording to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The researcher previously investigated the characteristics of financial statement fraud and determined the presence of 16 fraud indicators. The purpose of this study is to establish whether investors and other stakeholders can detect and identify financial statement fraud using these characteristics in an analysis of a company’s annual report. This study analyses a financial statement fraud case, using the same techniques that were previously applied, including horizontal, vertical and ratio analysis. These are preferred because stakeholders have relatively easy access to them. The findings show several fraud characteristics, with a few additional ones not previously found prevalent. Financial statement fraud thus tends to differ between cases. It is also easier to detect and identify fraud indicators ex post facto. This study is a practical case showing that financial statement fraud can be detected and identified in the financial statements of companies that commit fraud.The red flags of financial statement fraud: a case study
Elda du Toit
Journal of Financial Crime, Vol. 31, No. 2, pp.311-321

According to the Association of Certified Fraud Examiners, financial statement fraud represents the smallest amount of fraud cases but results in the greatest monetary loss. The researcher previously investigated the characteristics of financial statement fraud and determined the presence of 16 fraud indicators. The purpose of this study is to establish whether investors and other stakeholders can detect and identify financial statement fraud using these characteristics in an analysis of a company’s annual report.

This study analyses a financial statement fraud case, using the same techniques that were previously applied, including horizontal, vertical and ratio analysis. These are preferred because stakeholders have relatively easy access to them.

The findings show several fraud characteristics, with a few additional ones not previously found prevalent. Financial statement fraud thus tends to differ between cases. It is also easier to detect and identify fraud indicators ex post facto.

This study is a practical case showing that financial statement fraud can be detected and identified in the financial statements of companies that commit fraud.

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The red flags of financial statement fraud: a case study10.1108/JFC-02-2023-0028Journal of Financial Crime2023-07-07© 2023 Elda du Toit.Elda du ToitJournal of Financial Crime3122023-07-0710.1108/JFC-02-2023-0028https://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Elda du Toit.
The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervisionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0059/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to critically examine the European Union’s legislative initiative to establish an Anti-Money Laundering Authority (AMLA), which will introduce union-level supervision and provide support to national supervisors in the field of anti-money laundering and countering the financing of terrorism (AML/CFT), as well as to financial intelligence units (FIUs) in European Union (EU) member states. The paper discusses why this initiative was deemed necessary, which are the key objectives, rules and principles of AMLA and which challenges and opportunities will emerge as AMLA becomes operational. This paper draws on reports, legislation, legal scholarship and other open-source data on the EU legislative initiative to establish a new AMLA. AMLA will provide a comprehensive framework for EU-level AML/CFT supervision and for cooperation among FIUs. If all organisational challenges are properly addressed, the new authority will significantly enhance the EU’s ability to tackle money laundering and terrorism financing. To the best of the author’s knowledge, this study is one of the first to examine the mission, governance and supervision mechanisms of the EU’s AMLA, as well as the challenges and opportunities associated with its functioning.The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervision
Georgios Pavlidis
Journal of Financial Crime, Vol. 31, No. 2, pp.322-330

This paper aims to critically examine the European Union’s legislative initiative to establish an Anti-Money Laundering Authority (AMLA), which will introduce union-level supervision and provide support to national supervisors in the field of anti-money laundering and countering the financing of terrorism (AML/CFT), as well as to financial intelligence units (FIUs) in European Union (EU) member states. The paper discusses why this initiative was deemed necessary, which are the key objectives, rules and principles of AMLA and which challenges and opportunities will emerge as AMLA becomes operational.

This paper draws on reports, legislation, legal scholarship and other open-source data on the EU legislative initiative to establish a new AMLA.

AMLA will provide a comprehensive framework for EU-level AML/CFT supervision and for cooperation among FIUs. If all organisational challenges are properly addressed, the new authority will significantly enhance the EU’s ability to tackle money laundering and terrorism financing.

To the best of the author’s knowledge, this study is one of the first to examine the mission, governance and supervision mechanisms of the EU’s AMLA, as well as the challenges and opportunities associated with its functioning.

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The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervision10.1108/JFC-03-2023-0059Journal of Financial Crime2023-05-19© 2023 Georgios Pavlidis.Georgios PavlidisJournal of Financial Crime3122023-05-1910.1108/JFC-03-2023-0059https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0059/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Georgios Pavlidis.http://creativecommons.org/licences/by/4.0/legalcode
The corruption and sustainable development nexus in Africa: a contemporary review and analysishttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0257/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to re-examine the corruption and sustainable development nexus in Africa and offer a contemporary analytical review and analysis of that relationship in the region. Drawing on the available and accessible relevant data from credible sources, this work quantifies, outlines and analyses the nexus between corruption and sustainable development, as it applies primarily to sub-Saharan Africa. It uses the relevant disaggregated data and also complements that with the results of reliable empirical studies to further cross-reference and demonstrate the corruption and sustainable development nexus. It is shown that corruption in Africa continues to be negatively associated with sustainable development objectives and that, in turn, will continue to affect the continent’s progress in achieving sustainable development. Undoubtedly, corruption is very damaging to economies across all nations and regions. However, in Africa, this impact on sustainable development has been particularly severe and ongoing. Consequently, the views expressed several decades ago of corruption being able to grease the wheels and potentially contribute to economic development is not valid and, in fact, has been severally discredited over the years. The main value of the paper is the insights it provides, and with cross-reference to the empirical literature and time series data, on the corruption and sustainable development nexus in Africa.The corruption and sustainable development nexus in Africa: a contemporary review and analysis
Kempe Ronald Hope, Sr.
Journal of Financial Crime, Vol. 31, No. 2, pp.331-346

This study aims to re-examine the corruption and sustainable development nexus in Africa and offer a contemporary analytical review and analysis of that relationship in the region.

Drawing on the available and accessible relevant data from credible sources, this work quantifies, outlines and analyses the nexus between corruption and sustainable development, as it applies primarily to sub-Saharan Africa. It uses the relevant disaggregated data and also complements that with the results of reliable empirical studies to further cross-reference and demonstrate the corruption and sustainable development nexus.

It is shown that corruption in Africa continues to be negatively associated with sustainable development objectives and that, in turn, will continue to affect the continent’s progress in achieving sustainable development. Undoubtedly, corruption is very damaging to economies across all nations and regions. However, in Africa, this impact on sustainable development has been particularly severe and ongoing. Consequently, the views expressed several decades ago of corruption being able to grease the wheels and potentially contribute to economic development is not valid and, in fact, has been severally discredited over the years.

The main value of the paper is the insights it provides, and with cross-reference to the empirical literature and time series data, on the corruption and sustainable development nexus in Africa.

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The corruption and sustainable development nexus in Africa: a contemporary review and analysis10.1108/JFC-10-2022-0257Journal of Financial Crime2022-12-21© 2022 Emerald Publishing LimitedKempe Ronald Hope, Sr.Journal of Financial Crime3122022-12-2110.1108/JFC-10-2022-0257https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0257/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
A systematic literature review of money mule: its roles, recruitment and awarenesshttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0243/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to provide a systematic literature review (SLR) on contemporary cardinal money mule issues. This paper reviews the most common money mule themes in perpetrating financial crime activities, especially its roles, recruitment and awareness. A systematic review protocol called preferred reporting items for systematic review and meta-analysis protocols is adopted for this study. Money mules are used by organized criminal groups (OCG) or fraudster to launder illicit funds from outrageous criminal activities. They allow their accounts to be used for money laundering by OCG. The attacker, OCG or fraudsters would layer the stolen funds using money mule accounts. These money mules are recruited using various approaches, oftentimes deceived by opulent lifestyles to captivate the interest of potential money mules. This paper presents money mule awareness needed by accountant, bank employees and the society. It is an unprecedented SLR on money mule. This paper will be beneficial for future money mule researchers, enforcement agencies and practitioners in banking industry.A systematic literature review of money mule: its roles, recruitment and awareness
Mohd Irwan Abdul Rani, Sharifah Nazatul Faiza Syed Mustapha Nazri, Salwa Zolkaflil
Journal of Financial Crime, Vol. 31, No. 2, pp.347-361

This paper aims to provide a systematic literature review (SLR) on contemporary cardinal money mule issues.

This paper reviews the most common money mule themes in perpetrating financial crime activities, especially its roles, recruitment and awareness. A systematic review protocol called preferred reporting items for systematic review and meta-analysis protocols is adopted for this study.

Money mules are used by organized criminal groups (OCG) or fraudster to launder illicit funds from outrageous criminal activities. They allow their accounts to be used for money laundering by OCG. The attacker, OCG or fraudsters would layer the stolen funds using money mule accounts. These money mules are recruited using various approaches, oftentimes deceived by opulent lifestyles to captivate the interest of potential money mules.

This paper presents money mule awareness needed by accountant, bank employees and the society. It is an unprecedented SLR on money mule. This paper will be beneficial for future money mule researchers, enforcement agencies and practitioners in banking industry.

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A systematic literature review of money mule: its roles, recruitment and awareness10.1108/JFC-10-2022-0243Journal of Financial Crime2023-01-05© 2022 Emerald Publishing LimitedMohd Irwan Abdul RaniSharifah Nazatul Faiza Syed Mustapha NazriSalwa ZolkaflilJournal of Financial Crime3122023-01-0510.1108/JFC-10-2022-0243https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0243/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Insider trading laws to counter financial crime: a comparative study of Mauritius, UK and US lawshttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0273/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe rise in business activities coupled with free trade liberalisation across countries has entailed an increase in securities transaction as well as insider trading (IT). In fact, IT is characterised by the influence and usage of some prior knowledge concerning sensitive information of a corporate body which results in a financial benefit to the insider trader. The practice of IT is not only unethical but also illegal and this statement is witnessed by the mushrooming of laws across the globe categorising IT as an offence. However, the type of punishment varies in different countries depending on various factors. Consequently, the purpose of this paper is to assess the adequacy and efficiency of IT laws in the context of a developing country being Mauritius. To achieve the research objective, the Mauritian laws on IT were compared with the corresponding laws of some developed countries like the USA and the UK. As such, a qualitative research method was adopted. In particular, the black letter approach was used to examine the relevant laws of Mauritius, UK and USA on IT. A comparative analysis was conducted concerning IT laws for each country with the view of suggesting recommendations for Mauritian stakeholders to adopt to enhance the existing legal and regulatory framework on IT. It was found that Mauritian IT laws are largely inspired from both the US and UK corresponding legislation. However, Mauritian laws need to be strengthened by imposing some more severe penalties in terms of fines and terms of imprisonment like the USA has established. The Mauritian Financial Services Commission as the regulator also needs to play a more active role in disseminating particularities of IT laws, offences and penalties to the civil society at large. At present, this study will be among the first academic writings on the efficiency of IT laws in Mauritius and also, because existing literature is quite scarce on assessing the adequacy of IT legislation in developing countries, this research aims at filling in the gap in literature. 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.Insider trading laws to counter financial crime: a comparative study of Mauritius, UK and US laws
Ambareen Beebeejaun
Journal of Financial Crime, Vol. 31, No. 2, pp.362-375

The rise in business activities coupled with free trade liberalisation across countries has entailed an increase in securities transaction as well as insider trading (IT). In fact, IT is characterised by the influence and usage of some prior knowledge concerning sensitive information of a corporate body which results in a financial benefit to the insider trader. The practice of IT is not only unethical but also illegal and this statement is witnessed by the mushrooming of laws across the globe categorising IT as an offence. However, the type of punishment varies in different countries depending on various factors. Consequently, the purpose of this paper is to assess the adequacy and efficiency of IT laws in the context of a developing country being Mauritius.

To achieve the research objective, the Mauritian laws on IT were compared with the corresponding laws of some developed countries like the USA and the UK. As such, a qualitative research method was adopted. In particular, the black letter approach was used to examine the relevant laws of Mauritius, UK and USA on IT. A comparative analysis was conducted concerning IT laws for each country with the view of suggesting recommendations for Mauritian stakeholders to adopt to enhance the existing legal and regulatory framework on IT.

It was found that Mauritian IT laws are largely inspired from both the US and UK corresponding legislation. However, Mauritian laws need to be strengthened by imposing some more severe penalties in terms of fines and terms of imprisonment like the USA has established. The Mauritian Financial Services Commission as the regulator also needs to play a more active role in disseminating particularities of IT laws, offences and penalties to the civil society at large.

At present, this study will be among the first academic writings on the efficiency of IT laws in Mauritius and also, because existing literature is quite scarce on assessing the adequacy of IT legislation in developing countries, this research aims at filling in the gap in literature. 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.

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Insider trading laws to counter financial crime: a comparative study of Mauritius, UK and US laws10.1108/JFC-11-2022-0273Journal of Financial Crime2023-01-24© 2023 Emerald Publishing LimitedAmbareen BeebeejaunJournal of Financial Crime3122023-01-2410.1108/JFC-11-2022-0273https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0273/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
When internal organizational factors improve detecting corruption in state-owned companieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0292/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance (GRC) implementation, the quality of internal audits and management's commitment to improving the ability to detect corruption and its impact on the company's financial performance. This paper used primary and secondary data. Financial statement data and survey results from participants in 69 state-owned companies were analyzed using the Partial Least Square method. There was a positive and significant effect of the integrated GRC implementation, quality of internal audit and management's commitment to increasing the organization's internal capability in detecting corruption. However, the failure to detect corruption mediates the effect of management commitment on financial performance. Besides, the organization's three internal factors could be better because their functions could be more optimal and require further improvement. State-owned companies are continuing to be restructured, so these results can be helpful for now. However, they must update continuously with developments related to the composition and classification of state-owned companies. Organizations can improve their ability to detect corruption in the workplace by using an early warning system such as the integrated GRC, internal audit quality and a high commitment from management. To the author's limited knowledge, empirical research on integrated GRC implementation, internal audit quality and management commitment are still rare if they improve the detection of corruption ability. It uses the factors that cause corruption in the fraud hexagon to analyze the financial performance.When internal organizational factors improve detecting corruption in state-owned companies
Magda Siahaan, Harry Suharman, Tettet Fitrijanti, Haryono Umar
Journal of Financial Crime, Vol. 31, No. 2, pp.376-407

The phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance (GRC) implementation, the quality of internal audits and management's commitment to improving the ability to detect corruption and its impact on the company's financial performance.

This paper used primary and secondary data. Financial statement data and survey results from participants in 69 state-owned companies were analyzed using the Partial Least Square method.

There was a positive and significant effect of the integrated GRC implementation, quality of internal audit and management's commitment to increasing the organization's internal capability in detecting corruption. However, the failure to detect corruption mediates the effect of management commitment on financial performance. Besides, the organization's three internal factors could be better because their functions could be more optimal and require further improvement.

State-owned companies are continuing to be restructured, so these results can be helpful for now. However, they must update continuously with developments related to the composition and classification of state-owned companies.

Organizations can improve their ability to detect corruption in the workplace by using an early warning system such as the integrated GRC, internal audit quality and a high commitment from management.

To the author's limited knowledge, empirical research on integrated GRC implementation, internal audit quality and management commitment are still rare if they improve the detection of corruption ability. It uses the factors that cause corruption in the fraud hexagon to analyze the financial performance.

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When internal organizational factors improve detecting corruption in state-owned companies10.1108/JFC-11-2022-0292Journal of Financial Crime2023-02-28© 2023 Emerald Publishing LimitedMagda SiahaanHarry SuharmanTettet FitrijantiHaryono UmarJournal of Financial Crime3122023-02-2810.1108/JFC-11-2022-0292https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0292/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Psychology and white collar crime - compliance recommendations based on the social and psychological reality dictating perceptionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0158/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTo construct effective compliance programmes, the phenomenon of non-compliance and variations in its abidance must be elucidated. The purpose of this paper is to discuss the social reality of ethical decision making, which examines the internalisation of moral norms and realities of social behaviour and, therefore, the general non-compliance with everyday laws (Tyler, 2006). This paper makes use of several social theories, including social proof theory, traditional social theory and social control theory. Humans are social beings, and decision-making in ethics is strongly influenced by herding behaviour (Roy, 2021). The behaviour of others and normative ethical standards inform the compliance of behaviour to an undiminishable degree. Although there is a host of factors to consider, the success of compliance can largely be attributed to people’s perception and reception of authority. The perception of authority and legitimacy plays a vital role in appreciating the complexity of rule following. Legitimacy, and its embodiment by persons in public roles, is a cornerstone of the subsequent discussion. This paper uncovers the underlying motivations of non-compliance as well as the social psychology involved in the ethics of compliance. Cross-disciplinary connections are made between the private and public sector and practical compliance recommendations. The significant impact of integrity culture and value-based compliance emerges from the dissection of the social reality.Psychology and white collar crime - compliance recommendations based on the social and psychological reality dictating perception
Fabian Maximilian Johannes Teichmann, Chiara Wittmann
Journal of Financial Crime, Vol. 31, No. 2, pp.408-415

To construct effective compliance programmes, the phenomenon of non-compliance and variations in its abidance must be elucidated. The purpose of this paper is to discuss the social reality of ethical decision making, which examines the internalisation of moral norms and realities of social behaviour and, therefore, the general non-compliance with everyday laws (Tyler, 2006).

This paper makes use of several social theories, including social proof theory, traditional social theory and social control theory. Humans are social beings, and decision-making in ethics is strongly influenced by herding behaviour (Roy, 2021). The behaviour of others and normative ethical standards inform the compliance of behaviour to an undiminishable degree.

Although there is a host of factors to consider, the success of compliance can largely be attributed to people’s perception and reception of authority. The perception of authority and legitimacy plays a vital role in appreciating the complexity of rule following. Legitimacy, and its embodiment by persons in public roles, is a cornerstone of the subsequent discussion.

This paper uncovers the underlying motivations of non-compliance as well as the social psychology involved in the ethics of compliance. Cross-disciplinary connections are made between the private and public sector and practical compliance recommendations. The significant impact of integrity culture and value-based compliance emerges from the dissection of the social reality.

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Psychology and white collar crime - compliance recommendations based on the social and psychological reality dictating perception10.1108/JFC-07-2022-0158Journal of Financial Crime2022-09-27© 2022 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannChiara WittmannJournal of Financial Crime3122022-09-2710.1108/JFC-07-2022-0158https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0158/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
The Satoshi laundromat: a review on the money laundering open door of Bitcoin mixershttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0269/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the currently known techniques to tackle money laundering in Bitcoin mixers, and examine what gaps exist that would allow a criminal to get away with laundering Bitcoin obtained through illicit activities. This paper first establishes the relevant properties of Bitcoin, how transactions occur over the Bitcoin network and then introduces the Bitcoin transaction graph as an important data structure for any analysis of Bitcoin transactions. Next, the paper outlines how Bitcoin mixing works, along with the relevant properties of mixers that would be relevant for money laundering. The paper then assesses the known methods for identifying mixed transactions within the Bitcoin network, followed by an assessment on identifying money laundering activities on known mixed transactions. This paper argues that there remains a gap for criminals to launder money through Bitcoin mixing services as known methods would unlikely be able to trace a tainted transaction that goes through a decentralized mixer that uses off-chain communication techniques to coordinate the mixing and charges randomized mixing fees. The study of known methods is restricted to literature published in the public domain. There are private organizations that are tackling similar problems, but their methods are not published and therefore cannot be included in this paper. To best of the author’s knowledge, this is the first paper that performs a contemporaneous review on anti-money laundering in the context of Bitcoin mixing. This paper could assist regulators and policymakers in their understanding of Bitcoin mixers and provide guidance on where they should focus their resources to address the money laundering problem of Bitcoin mixing.The Satoshi laundromat: a review on the money laundering open door of Bitcoin mixers
Kenneth See
Journal of Financial Crime, Vol. 31, No. 2, pp.416-426

The purpose of this paper is to examine the currently known techniques to tackle money laundering in Bitcoin mixers, and examine what gaps exist that would allow a criminal to get away with laundering Bitcoin obtained through illicit activities.

This paper first establishes the relevant properties of Bitcoin, how transactions occur over the Bitcoin network and then introduces the Bitcoin transaction graph as an important data structure for any analysis of Bitcoin transactions. Next, the paper outlines how Bitcoin mixing works, along with the relevant properties of mixers that would be relevant for money laundering. The paper then assesses the known methods for identifying mixed transactions within the Bitcoin network, followed by an assessment on identifying money laundering activities on known mixed transactions.

This paper argues that there remains a gap for criminals to launder money through Bitcoin mixing services as known methods would unlikely be able to trace a tainted transaction that goes through a decentralized mixer that uses off-chain communication techniques to coordinate the mixing and charges randomized mixing fees.

The study of known methods is restricted to literature published in the public domain. There are private organizations that are tackling similar problems, but their methods are not published and therefore cannot be included in this paper.

To best of the author’s knowledge, this is the first paper that performs a contemporaneous review on anti-money laundering in the context of Bitcoin mixing. This paper could assist regulators and policymakers in their understanding of Bitcoin mixers and provide guidance on where they should focus their resources to address the money laundering problem of Bitcoin mixing.

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The Satoshi laundromat: a review on the money laundering open door of Bitcoin mixers10.1108/JFC-11-2022-0269Journal of Financial Crime2023-01-12© 2022 Emerald Publishing LimitedKenneth SeeJournal of Financial Crime3122023-01-1210.1108/JFC-11-2022-0269https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0269/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Sentencing for the offence of misappropriation of public funds: the flawed and problematic approach of Cameroon’s Special Criminal Courthttps://www.emerald.com/insight/content/doi/10.1108/JFC-12-2022-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestOver a decade since the Special Criminal Court (SCC) was established in Cameroon, hundreds of individuals have been indicted, tried and convicted. Sentences have been imposed, most of which include a term of imprisonment (principal punishment/penalty) and confiscation as accessory penalty or punishment. Research focus has not been directed at the sentences which, as argued in this paper, are inconsistent, incommensurate with the amounts of money stolen and a significant departure from the Penal Code. This paper aims to explore the aspect of sentencing by the SCC. To identify, highlight and discuss the issue of sentencing, the paper looks at a blend of primary and secondary materials: primary materials here include but not limited to the judgements of the SCC and other courts in Cameroon and the Penal Code. Secondary materials shall include the works of scholars in the fields of criminal law, criminal justice and penal reform. A few findings were made: first, the judges are inconsistent in the manner in which they determine the appropriate sentence. Second, in making that determination, the judges would have been oblivious to the prescripts in the Penal Code, which provides the term of imprisonment, and in the event of a mitigating circumstance, the prescribed minimum to be applied. Yet, the default imposition of an aggravating circumstance (being a civil servant) was not explored by the SCC. Finally, whether the sentences imposed are commensurate with the amounts of monies stolen. This research unravels key insights into the functioning of the SCC. It advances the knowledge thereon and adds to the literature on corruption in Cameroon. The prosecution and judges at the SCC should deepen their knowledge of Cameroonian criminal law, especially on the nature of liberty given to judges to determine within the prescribed range of the sentence to be imposed but also consider the existence of an aggravating factor – civil servant. They must also consider whether the sentences imposed befit the crime for which they are convicted. The paper is an original contribution with new insights on the manner in which sentencing should be approached by the SCC.Sentencing for the offence of misappropriation of public funds: the flawed and problematic approach of Cameroon’s Special Criminal Court
Avitus Agbor Agbor
Journal of Financial Crime, Vol. 31, No. 2, pp.427-445

Over a decade since the Special Criminal Court (SCC) was established in Cameroon, hundreds of individuals have been indicted, tried and convicted. Sentences have been imposed, most of which include a term of imprisonment (principal punishment/penalty) and confiscation as accessory penalty or punishment. Research focus has not been directed at the sentences which, as argued in this paper, are inconsistent, incommensurate with the amounts of money stolen and a significant departure from the Penal Code. This paper aims to explore the aspect of sentencing by the SCC.

To identify, highlight and discuss the issue of sentencing, the paper looks at a blend of primary and secondary materials: primary materials here include but not limited to the judgements of the SCC and other courts in Cameroon and the Penal Code. Secondary materials shall include the works of scholars in the fields of criminal law, criminal justice and penal reform.

A few findings were made: first, the judges are inconsistent in the manner in which they determine the appropriate sentence. Second, in making that determination, the judges would have been oblivious to the prescripts in the Penal Code, which provides the term of imprisonment, and in the event of a mitigating circumstance, the prescribed minimum to be applied. Yet, the default imposition of an aggravating circumstance (being a civil servant) was not explored by the SCC. Finally, whether the sentences imposed are commensurate with the amounts of monies stolen.

This research unravels key insights into the functioning of the SCC. It advances the knowledge thereon and adds to the literature on corruption in Cameroon.

The prosecution and judges at the SCC should deepen their knowledge of Cameroonian criminal law, especially on the nature of liberty given to judges to determine within the prescribed range of the sentence to be imposed but also consider the existence of an aggravating factor – civil servant. They must also consider whether the sentences imposed befit the crime for which they are convicted.

The paper is an original contribution with new insights on the manner in which sentencing should be approached by the SCC.

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Sentencing for the offence of misappropriation of public funds: the flawed and problematic approach of Cameroon’s Special Criminal Court10.1108/JFC-12-2022-0307Journal of Financial Crime2023-03-28© 2023 Avitus Agbor Agbor.Avitus Agbor AgborJournal of Financial Crime3122023-03-2810.1108/JFC-12-2022-0307https://www.emerald.com/insight/content/doi/10.1108/JFC-12-2022-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Avitus Agbor Agbor.http://creativecommons.org/licences/by/4.0/legalcode
Understanding business offending: survey research in Iranhttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0246/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to explore the extent to which white-collar crime makes sense. Understanding business offending reflects the degree of sensemaking among respondents in the current survey research. Making sense implies a number of factors that influence understandability. An understandable act is not necessarily acceptable or justifiable. At a university in Iran, criminal law and criminology students answered a questionnaire regarding their extent of understanding of business offenders. The research method is the use of experimental data using a questionnaire in one of the units of the Islamic Azad University in Iran, where 300 students were invited to respond to an online survey. The respondents found it on average understandable that top executives and other privileged individuals abuse their positions to commit financial crime when they have problems with their personal finances, when the business struggles financially and faces the threat of bankruptcy, and when they offer bribes in corrupt countries to obtain business contracts. The extent of understandability varies with a number of propositions in the convenience theory. This article has not been submitted elsewhere and is original.Understanding business offending: survey research in Iran
Petter Gottschalk, Maryam Kamaei
Journal of Financial Crime, Vol. 31, No. 2, pp.446-454

The purpose of this study is to explore the extent to which white-collar crime makes sense. Understanding business offending reflects the degree of sensemaking among respondents in the current survey research. Making sense implies a number of factors that influence understandability. An understandable act is not necessarily acceptable or justifiable. At a university in Iran, criminal law and criminology students answered a questionnaire regarding their extent of understanding of business offenders.

The research method is the use of experimental data using a questionnaire in one of the units of the Islamic Azad University in Iran, where 300 students were invited to respond to an online survey.

The respondents found it on average understandable that top executives and other privileged individuals abuse their positions to commit financial crime when they have problems with their personal finances, when the business struggles financially and faces the threat of bankruptcy, and when they offer bribes in corrupt countries to obtain business contracts. The extent of understandability varies with a number of propositions in the convenience theory.

This article has not been submitted elsewhere and is original.

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Understanding business offending: survey research in Iran10.1108/JFC-10-2022-0246Journal of Financial Crime2023-01-10© 2022 Emerald Publishing LimitedPetter GottschalkMaryam KamaeiJournal of Financial Crime3122023-01-1010.1108/JFC-10-2022-0246https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0246/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Creating good village governance: an effort to prevent village corruption in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0266/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate how the village government implements internal control, accountability, transparency and participation in the good governance practice for corruption prevention and detection in Indonesia. This study is qualitative research by conducting a semi-structured interview with village staff, village consultative council members and auditors. The findings highlight three major issues contributing to poor governance and the failure to prevent and detect corruption. The regulator should urgently provide accounting standards, audit standards and internal control regulations for the village to create good governance for eradicating corruption. This paper is a ground-breaking study that investigates the governance practice in the village as an anchor to solve the chronic corruption problem and offers a new direction of research in the village government.Creating good village governance: an effort to prevent village corruption in Indonesia
Caesar Marga Putri, Josep Maria Argilés-Bosch, Diego Ravenda
Journal of Financial Crime, Vol. 31, No. 2, pp.455-468

This study aims to investigate how the village government implements internal control, accountability, transparency and participation in the good governance practice for corruption prevention and detection in Indonesia.

This study is qualitative research by conducting a semi-structured interview with village staff, village consultative council members and auditors.

The findings highlight three major issues contributing to poor governance and the failure to prevent and detect corruption.

The regulator should urgently provide accounting standards, audit standards and internal control regulations for the village to create good governance for eradicating corruption.

This paper is a ground-breaking study that investigates the governance practice in the village as an anchor to solve the chronic corruption problem and offers a new direction of research in the village government.

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Creating good village governance: an effort to prevent village corruption in Indonesia10.1108/JFC-11-2022-0266Journal of Financial Crime2023-01-27© 2023 Emerald Publishing LimitedCaesar Marga PutriJosep Maria Argilés-BoschDiego RavendaJournal of Financial Crime3122023-01-2710.1108/JFC-11-2022-0266https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0266/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Retraction notice: Reframing whistleblowing intention: an analysis of individual and situational factorshttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-0014/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestRetraction notice: Reframing whistleblowing intention: an analysis of individual and situational factorsRetraction notice: Reframing whistleblowing intention: an analysis of individual and situational factors
Journal of Financial Crime, Vol. 31, No. 2, pp.469-469]]>
Retraction notice: Reframing whistleblowing intention: an analysis of individual and situational factors10.1108/JFC-01-2024-0014Journal of Financial Crime2024-02-06© 2024 Emerald Publishing LimitedJournal of Financial Crime3122024-02-0610.1108/JFC-01-2024-0014https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-0014/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Islamic crowdfunding and Shariah compliance regulation: problems and oversighthttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to identify the problems in shariah compliance and the weak oversight of implementing Islamic crowdfunding (ICF). Shariah compliance regulation is an essential subsystem in Islamic social finance ecosystems. This type of research is legal research. The research approaches are the statute, comparative and conceptual approaches. The study in this research examines Indonesia, the UK and Malaysia. ICF is one of the fastest-growing sectors of Islamic financial technology (fintech). The Islamic fintech sector is showing maturity signals with a market size of $79bn in 2021, projected at $179bn in 2026. Malaysia, Saudi Arabia and Indonesia lead the Index by Global Islamic Fintech (GIFT) Index scores. However, low shariah compliance is still an issue in implementing ICF. This problem is caused by regulatory support that is still lacking and oversight of shariah compliance is not optimal. On the one hand, shariah compliance is the ICF core principle for Shariah Governance. This study examines the regulation and oversight of ICF in Indonesia, Malaysia and the UK. Indonesia and Malaysia, a country with the highest GIFT index score in the world, and the UK, a country with an Islamic finance sector experiencing rapid growth. The research results on shariah compliance regulation in ICF are helpful as a comprehensive approach for developing sustainable Islamic social finance ecosystems. Shariah compliance is the core principle of ICF governance. Its implementation can increase public trust. Crowdfunding platform and issuers in ICF must implement shariah compliance. Therefore, it is essential to consider the presence of shariah compliance requirements and a Shariah Supervisory Board (DPS).Islamic crowdfunding and Shariah compliance regulation: problems and oversight
Al Sentot Sudarwanto, Dona Budi Kharisma, Diana Tantri Cahyaningsih
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to identify the problems in shariah compliance and the weak oversight of implementing Islamic crowdfunding (ICF). Shariah compliance regulation is an essential subsystem in Islamic social finance ecosystems.

This type of research is legal research. The research approaches are the statute, comparative and conceptual approaches. The study in this research examines Indonesia, the UK and Malaysia.

ICF is one of the fastest-growing sectors of Islamic financial technology (fintech). The Islamic fintech sector is showing maturity signals with a market size of $79bn in 2021, projected at $179bn in 2026. Malaysia, Saudi Arabia and Indonesia lead the Index by Global Islamic Fintech (GIFT) Index scores. However, low shariah compliance is still an issue in implementing ICF. This problem is caused by regulatory support that is still lacking and oversight of shariah compliance is not optimal. On the one hand, shariah compliance is the ICF core principle for Shariah Governance.

This study examines the regulation and oversight of ICF in Indonesia, Malaysia and the UK. Indonesia and Malaysia, a country with the highest GIFT index score in the world, and the UK, a country with an Islamic finance sector experiencing rapid growth.

The research results on shariah compliance regulation in ICF are helpful as a comprehensive approach for developing sustainable Islamic social finance ecosystems.

Shariah compliance is the core principle of ICF governance. Its implementation can increase public trust.

Crowdfunding platform and issuers in ICF must implement shariah compliance. Therefore, it is essential to consider the presence of shariah compliance requirements and a Shariah Supervisory Board (DPS).

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Islamic crowdfunding and Shariah compliance regulation: problems and oversight10.1108/JFC-01-2023-0003Journal of Financial Crime2023-10-24© 2023 Emerald Publishing LimitedAl Sentot SudarwantoDona Budi KharismaDiana Tantri CahyaningsihJournal of Financial Crimeahead-of-printahead-of-print2023-10-2410.1108/JFC-01-2023-0003https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Operational resilience in light of the war in Ukraine: the disruptive effect of implementing economic sanctions on financial service providershttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe operational resilience of financial service providers is strained to an unprecedented extent following the Russian aggression in the Ukraine and the subsequent implementation of targeted economic sanctions. This paper aims to consider how operational resilience supports financial service providers in implementing sanctions. The demand made of financial service providers by economic sanction is considered through the lens of operational resilience. Practical problems for the providers are aligned with economic sanctions policies. A well-established system of operational resilience enables financial service providers to meet compliance requirements of economic sanctions with greater ease. The literature does not credit operational resilience as a systemic capacity of corporations and rather presents it as a specialised feature. In addition, the role of the regulatory bodies is often dismissed despite directly inciting the practical problems faced.Operational resilience in light of the war in Ukraine: the disruptive effect of implementing economic sanctions on financial service providers
Fabian Maximilian Johannes Teichmann, Chiara Wittmann, Bruno S. Sergi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The operational resilience of financial service providers is strained to an unprecedented extent following the Russian aggression in the Ukraine and the subsequent implementation of targeted economic sanctions. This paper aims to consider how operational resilience supports financial service providers in implementing sanctions.

The demand made of financial service providers by economic sanction is considered through the lens of operational resilience. Practical problems for the providers are aligned with economic sanctions policies.

A well-established system of operational resilience enables financial service providers to meet compliance requirements of economic sanctions with greater ease.

The literature does not credit operational resilience as a systemic capacity of corporations and rather presents it as a specialised feature. In addition, the role of the regulatory bodies is often dismissed despite directly inciting the practical problems faced.

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Operational resilience in light of the war in Ukraine: the disruptive effect of implementing economic sanctions on financial service providers10.1108/JFC-01-2023-0005Journal of Financial Crime2023-09-28© 2023 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannChiara WittmannBruno S. SergiJournal of Financial Crimeahead-of-printahead-of-print2023-09-2810.1108/JFC-01-2023-0005https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0005/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The impact of Islamic of corporate social responsibility on social welfare with financial fraud as moderating: study in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0008/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud. The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village. The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study. The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government. The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR. The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.The impact of Islamic of corporate social responsibility on social welfare with financial fraud as moderating: study in Indonesia
Tarjo Tarjo, Alexander Anggono, Zakik Zakik, Shahrina Md Nordin, Unggul Priyadi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to empirically examine the influence of Islamic corporate social responsibility (ICSR) on social welfare moderated by financial fraud.

The method used was the mix method. The number of respondents was 410. They combined the moderate regression analysis with PROCESS Andrew F Hayes to test the research hypothesis. After conducting the survey, it was continued by conducting interviews with the village community and the head of the village.

The first finding of this study is that ICSR has a significant positive effect on social welfare. The second finding is that financial fraud weakens the influence of ICSR on social welfare. The results of the interviews also confirmed the two findings of this study.

The high level of bias in answering the questions is due to the low public knowledge of ICSR. In addition, the interviews still needed to involve the oil and gas companies and government.

The main implication is improving social welfare, especially for those affected by offshore oil drilling. Furthermore, stakeholders are more sensitive to the adverse effects of financial fraud. Finally, to make drilling companies more transparent and on target in implementing ICSR.

The main novelty in this research is using of the mixed method. In addition, applying financial fraud as a moderating variable is rarely studied empirically.

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The impact of Islamic of corporate social responsibility on social welfare with financial fraud as moderating: study in Indonesia10.1108/JFC-01-2023-0008Journal of Financial Crime2024-03-28© 2024 Emerald Publishing LimitedTarjo TarjoAlexander AnggonoZakik ZakikShahrina Md NordinUnggul PriyadiJournal of Financial Crimeahead-of-printahead-of-print2024-03-2810.1108/JFC-01-2023-0008https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2023-0008/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Legal guidelines for identifying online illegal fund-raising crimes in Chinahttps://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to elucidate the responsiveness of China’s judicial system in addressing the challenges of identifying online illegal fund-raising crimes that have emerged in recent years. This study systematically evaluates the efficacy and potential pitfalls of legal guidelines contained in judicial interpretations, such as holistic determination, sampling verification and presumption of the nature of funds. In addition, the research endeavors to propose pertinent recommendations for refining the existing judicial rules. This research mainly uses a doctrinal methodology, focusing on the principal judicial interpretations formulated by the Supreme People’s Court and other central judicial entities in China. The scope encompasses the realm of online illegal fund-raising crimes as well as other cybercrimes. The analytical framework involves a comprehensive examination of these authoritative judicial documents, coupled with a theoretical and critical analysis of relevant academic materials. This research underscores that while judicial interpretations serve as an effective legal strategy to confront the challenges posed by online illegal fund-raising crimes, their implementation introduces a nuanced landscape. These legal guidelines, often emanating from diverse judicial departments and tackling specific issues, carry the inherent risk of giving rise to new complexities and fostering inconsistency. Judicial authorities shall exercise prudence in both the formulation and application of these guidelines, ensuring their harmonization with existing legal norms and fundamental legal principles. This research constitutes a critical and comprehensive examination of judicial interpretations in China pertaining to online illegal fund-raising crimes. It offers valuable insights into the country’s judicial interpretation system and its legal responses to financial crimes. The paper serves as a valuable resource for academics, law enforcement professionals, policymakers, legislators and researchers.Legal guidelines for identifying online illegal fund-raising crimes in China
Jingkun Liu
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to elucidate the responsiveness of China’s judicial system in addressing the challenges of identifying online illegal fund-raising crimes that have emerged in recent years. This study systematically evaluates the efficacy and potential pitfalls of legal guidelines contained in judicial interpretations, such as holistic determination, sampling verification and presumption of the nature of funds. In addition, the research endeavors to propose pertinent recommendations for refining the existing judicial rules.

This research mainly uses a doctrinal methodology, focusing on the principal judicial interpretations formulated by the Supreme People’s Court and other central judicial entities in China. The scope encompasses the realm of online illegal fund-raising crimes as well as other cybercrimes. The analytical framework involves a comprehensive examination of these authoritative judicial documents, coupled with a theoretical and critical analysis of relevant academic materials.

This research underscores that while judicial interpretations serve as an effective legal strategy to confront the challenges posed by online illegal fund-raising crimes, their implementation introduces a nuanced landscape. These legal guidelines, often emanating from diverse judicial departments and tackling specific issues, carry the inherent risk of giving rise to new complexities and fostering inconsistency. Judicial authorities shall exercise prudence in both the formulation and application of these guidelines, ensuring their harmonization with existing legal norms and fundamental legal principles.

This research constitutes a critical and comprehensive examination of judicial interpretations in China pertaining to online illegal fund-raising crimes. It offers valuable insights into the country’s judicial interpretation system and its legal responses to financial crimes. The paper serves as a valuable resource for academics, law enforcement professionals, policymakers, legislators and researchers.

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Legal guidelines for identifying online illegal fund-raising crimes in China10.1108/JFC-01-2024-0006Journal of Financial Crime2024-02-19© 2024 Emerald Publishing LimitedJingkun LiuJournal of Financial Crimeahead-of-printahead-of-print2024-02-1910.1108/JFC-01-2024-0006https://www.emerald.com/insight/content/doi/10.1108/JFC-01-2024-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Role of gender in white-collar crime: an examination of the emancipation and focal concerns hypotheseshttps://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0033/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to understand the involvement of women in white-collar crime (WCC) also referred to as pink-collar crimes. WCC is present around the globe and has created a word for itself. The paper is designed by studying the WCC in the area of Iran, Portugal, Norway, India and the USA. The paper attempts to move beyond the traditional perspectives of emancipation versus focal concern, which argue that less inequality will increase women involvement in WCC versus women socializing into accepting responsibilities for social concerns by caring for others. As the data is restricted, this study is based on the limited data available on the internet. This paper is an original work of the authors.Role of gender in white-collar crime: an examination of the emancipation and focal concerns hypotheses
Chander Mohan Gupta, Petter Gottschalk, Maryam Kamaei
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to understand the involvement of women in white-collar crime (WCC) also referred to as pink-collar crimes. WCC is present around the globe and has created a word for itself.

The paper is designed by studying the WCC in the area of Iran, Portugal, Norway, India and the USA.

The paper attempts to move beyond the traditional perspectives of emancipation versus focal concern, which argue that less inequality will increase women involvement in WCC versus women socializing into accepting responsibilities for social concerns by caring for others.

As the data is restricted, this study is based on the limited data available on the internet.

This paper is an original work of the authors.

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Role of gender in white-collar crime: an examination of the emancipation and focal concerns hypotheses10.1108/JFC-02-2023-0033Journal of Financial Crime2023-11-21© 2023 Emerald Publishing LimitedChander Mohan GuptaPetter GottschalkMaryam KamaeiJournal of Financial Crimeahead-of-printahead-of-print2023-11-2110.1108/JFC-02-2023-0033https://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0033/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Accounting fraud and corporate sustainability: Chinese listed companieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0035/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to determine the relationship between accounting fraud and corporate sustainability. Companies listed on the Shenzhen Stock Exchange in 2019 are used to estimate a pooled ordinary least square regression model using panel data. Accounting fraud is represented by accounting disclosure, which is measured by its quality and timeliness, while corporate sustainability is measured by earnings management and corporate social responsibility. Empirical findings support the hypothesis that the quality and timeliness of accounting disclosure have a statistically favorable impact on the management of company earnings and corporate social responsibility, respectively. Accounting fraud also has an impact on the sustainable development of the company. Although the inferences of this study are limited to Chinese listed companies, this study may interest other scholars to explore similar topics.Accounting fraud and corporate sustainability: Chinese listed companies
Md Jahidur Rahman, Jiadan Xuan, Hongtao Zhu, Md Moazzem Hossain
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to determine the relationship between accounting fraud and corporate sustainability.

Companies listed on the Shenzhen Stock Exchange in 2019 are used to estimate a pooled ordinary least square regression model using panel data. Accounting fraud is represented by accounting disclosure, which is measured by its quality and timeliness, while corporate sustainability is measured by earnings management and corporate social responsibility.

Empirical findings support the hypothesis that the quality and timeliness of accounting disclosure have a statistically favorable impact on the management of company earnings and corporate social responsibility, respectively. Accounting fraud also has an impact on the sustainable development of the company.

Although the inferences of this study are limited to Chinese listed companies, this study may interest other scholars to explore similar topics.

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Accounting fraud and corporate sustainability: Chinese listed companies10.1108/JFC-02-2023-0035Journal of Financial Crime2023-05-11© 2023 Emerald Publishing LimitedMd Jahidur RahmanJiadan XuanHongtao ZhuMd Moazzem HossainJournal of Financial Crimeahead-of-printahead-of-print2023-05-1110.1108/JFC-02-2023-0035https://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0035/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The potential of corruption based on Hofstede cultural dimensions and institutional quality: an international evidencehttps://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0039/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the risk of corruption in several countries based on the cultural dimensions of Hofstede and institutional quality (IQ). Data was collected from the Corruption Perception Index, Hofstede index and Worldwide Governance Indicators in 92 countries. Structural equation modeling based on partial least squares was used to test the proposed model. The findings support the fraud triangle theory, which states that high transparency of individualist cultural attitudes and institutional control mechanisms reduces the opportunities for fraud to occur. From this research, it is also concluded that culture is a factor that tends to be constant and difficult to change. Research limitations include: First, it is limited to the number of samples, where the number of samples depends on the availability of data. However, only 92 countries intersect and have complete information. Second, this study only uses individualism from the Hofstede cultural dimension to see the risk of corruption. The result of this study implicates the policymakers in government agencies to increase IQ to reduce the risk of corruption. This is a preliminary study that discusses national culture (NC) and corruption, as well as the effect of the mediating variable, namely, the IQ. By including IQ, the authors hope that the impact of the effects of NC on corruption risk can be clarified.The potential of corruption based on Hofstede cultural dimensions and institutional quality: an international evidence
I Putu Mega Juli Semara Putra, Ranto Partomuan Sihombing
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the risk of corruption in several countries based on the cultural dimensions of Hofstede and institutional quality (IQ).

Data was collected from the Corruption Perception Index, Hofstede index and Worldwide Governance Indicators in 92 countries. Structural equation modeling based on partial least squares was used to test the proposed model.

The findings support the fraud triangle theory, which states that high transparency of individualist cultural attitudes and institutional control mechanisms reduces the opportunities for fraud to occur. From this research, it is also concluded that culture is a factor that tends to be constant and difficult to change.

Research limitations include: First, it is limited to the number of samples, where the number of samples depends on the availability of data. However, only 92 countries intersect and have complete information. Second, this study only uses individualism from the Hofstede cultural dimension to see the risk of corruption.

The result of this study implicates the policymakers in government agencies to increase IQ to reduce the risk of corruption.

This is a preliminary study that discusses national culture (NC) and corruption, as well as the effect of the mediating variable, namely, the IQ. By including IQ, the authors hope that the impact of the effects of NC on corruption risk can be clarified.

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The potential of corruption based on Hofstede cultural dimensions and institutional quality: an international evidence10.1108/JFC-02-2023-0039Journal of Financial Crime2023-10-11© 2023 Emerald Publishing LimitedI Putu Mega Juli Semara PutraRanto Partomuan SihombingJournal of Financial Crimeahead-of-printahead-of-print2023-10-1110.1108/JFC-02-2023-0039https://www.emerald.com/insight/content/doi/10.1108/JFC-02-2023-0039/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does blacklisting cause a boomerang effect in combating illicit financial flows? Evidence from developing countrieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0042/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTax evasion and money laundering have become important sources of illicit financial flows in developing countries. Foreign capital flows used by shell corporates are generally with no real economic activities but motivated by harmful tax practices, thereby inducing loss of revenue for developing countries. Despite the coercive actions, such as backlisting of noncooperative jurisdictions to anti-money laundering and countering terrorism financing standards, illicit financial activities are still eroding the tax base in developing countries. The purpose of the paper is to assess the blacklisting effectiveness as a coercive policy against illicit financial activities. This paper applies a propensity score matching strategy to a sample of 118 developing jurisdictions from 2009 to 2017 to evaluate changes in illicit financial activities following the blacklisting. The results show that rather than altering illicit inflows in blacklisted countries, financial restrictions have produced the inverse, causing a boomerang effect on financial crime activities. The illicit share of capital inflows increases on average by 6 percentage points and 0.7% of GDP following the blacklisting. These results are robust to alternative matching methods and to the hidden bias problem. Most of the previous research analyzed the link between blacklisting and fiscal revenues. However, here, the study analyzes whether blacklisting makes countries more cooperative in terms of fighting illicit financial flows.Does blacklisting cause a boomerang effect in combating illicit financial flows? Evidence from developing countries
Nibontenin Yeo, Dorcas Amon Ahizi, Salifou Kigbajah Coulibaly
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Tax evasion and money laundering have become important sources of illicit financial flows in developing countries. Foreign capital flows used by shell corporates are generally with no real economic activities but motivated by harmful tax practices, thereby inducing loss of revenue for developing countries. Despite the coercive actions, such as backlisting of noncooperative jurisdictions to anti-money laundering and countering terrorism financing standards, illicit financial activities are still eroding the tax base in developing countries. The purpose of the paper is to assess the blacklisting effectiveness as a coercive policy against illicit financial activities.

This paper applies a propensity score matching strategy to a sample of 118 developing jurisdictions from 2009 to 2017 to evaluate changes in illicit financial activities following the blacklisting.

The results show that rather than altering illicit inflows in blacklisted countries, financial restrictions have produced the inverse, causing a boomerang effect on financial crime activities. The illicit share of capital inflows increases on average by 6 percentage points and 0.7% of GDP following the blacklisting. These results are robust to alternative matching methods and to the hidden bias problem.

Most of the previous research analyzed the link between blacklisting and fiscal revenues. However, here, the study analyzes whether blacklisting makes countries more cooperative in terms of fighting illicit financial flows.

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Does blacklisting cause a boomerang effect in combating illicit financial flows? Evidence from developing countries10.1108/JFC-03-2023-0042Journal of Financial Crime2023-06-02© 2023 Emerald Publishing LimitedNibontenin YeoDorcas Amon AhiziSalifou Kigbajah CoulibalyJournal of Financial Crimeahead-of-printahead-of-print2023-06-0210.1108/JFC-03-2023-0042https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0042/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Cross-jurisdictional financial crime risks: what can we learn from the UK regulatory data?https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0044/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFinancial crime presents a serious threat to the stability and integrity of the global financial system. To combat illicit financial activities, regulatory bodies worldwide have implemented various measures, including the requirement for financial institutions to assess the financial crime risks they are exposed to in the jurisdictions they operate in. These risks include inadequate anti-money laundering and countering the financing of terrorism frameworks and other financial crime risks that have significant strategic implications for firms’ geographical footprints and customer risk classifications. This paper aims to make a contribution to the literature by undertaking a cross-country analysis of 158 countries to shed light on what drives perceived jurisdiction risk of the UK financial services firms. Capturing firms’ perceptions of financial crime risk requires significant data collection efforts, including surveys and interviews with key personnel. This can be highly resource-intensive and may require access to sensitive information that firms may be reluctant to share. Furthermore, the dynamic nature of financial crime risks means that perceptions can change rapidly in response to changes in the regulatory and geopolitical landscape. As a result, capturing and monitoring firms’ perceptions of financial crime risks requires ongoing monitoring and analysis. Capturing firms’ perceptions of financial crime risks at a cross-jurisdictional level is a particularly complex and challenging task that requires careful consideration of a range of factors. As a result of data limitations, empirical investigation of the factors underlying the firms’ perceptions of jurisdiction risk is in its infancy. This paper uses regulatory financial crime data from the UK in a multivariate regression analysis, following a general-to-specific approach where any redundant variables were removed from the general model sequentially. Results suggest that perceived jurisdiction risk is significantly and positively associated with evasion of tax and regulations, while it is significantly and negatively associated with political stability and regulatory stringency. These have important implications for home and host supervisors with respect to the factors that drive perceived jurisdiction risks and the evaluation of the nature of inherent financial crime risks within regulated firms. The findings confirm the critical role of the shadow economy, political stability and regulatory rigor in shaping jurisdiction risk perceptions. From a policy standpoint, the findings support the case for taking prompt policy action to identify, prioritize and implement specific and targeted measures with respect to the shadow economy, political stability and rigor of regulations to improve international firms’ perceptions of jurisdiction risk. While there exists different measures of financial crime risk, it is notoriously challenging to capture firms’ perceptions of it, particularly at a cross-jurisdiction level. This is because financial crime risks can vary significantly across different jurisdictions due to differences in legal and regulatory frameworks, cultural norms and levels of economic development. This makes it difficult for firms to compare and evaluate the financial crime risks they face in different jurisdictions. Besides, firms’ perceptions of financial crime risks can be influenced by a range of subjective factors, including personal experiences, media coverage and hearsay. These perceptions may not always align with objective risk assessments, which are based on more systematic and empirical methods of risk measurement. This paper contributes to the existing literature by undertaking a cross-country analysis drawing on a unique set of UK regulatory financial crime data, which is based on a total of 1,900 annual financial crime data regulatory return (REP-CRIM) submissions to the UK’s Financial Conduct Authority.Cross-jurisdictional financial crime risks: what can we learn from the UK regulatory data?
Mete Feridun
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Financial crime presents a serious threat to the stability and integrity of the global financial system. To combat illicit financial activities, regulatory bodies worldwide have implemented various measures, including the requirement for financial institutions to assess the financial crime risks they are exposed to in the jurisdictions they operate in. These risks include inadequate anti-money laundering and countering the financing of terrorism frameworks and other financial crime risks that have significant strategic implications for firms’ geographical footprints and customer risk classifications. This paper aims to make a contribution to the literature by undertaking a cross-country analysis of 158 countries to shed light on what drives perceived jurisdiction risk of the UK financial services firms.

Capturing firms’ perceptions of financial crime risk requires significant data collection efforts, including surveys and interviews with key personnel. This can be highly resource-intensive and may require access to sensitive information that firms may be reluctant to share. Furthermore, the dynamic nature of financial crime risks means that perceptions can change rapidly in response to changes in the regulatory and geopolitical landscape. As a result, capturing and monitoring firms’ perceptions of financial crime risks requires ongoing monitoring and analysis. Capturing firms’ perceptions of financial crime risks at a cross-jurisdictional level is a particularly complex and challenging task that requires careful consideration of a range of factors. As a result of data limitations, empirical investigation of the factors underlying the firms’ perceptions of jurisdiction risk is in its infancy. This paper uses regulatory financial crime data from the UK in a multivariate regression analysis, following a general-to-specific approach where any redundant variables were removed from the general model sequentially.

Results suggest that perceived jurisdiction risk is significantly and positively associated with evasion of tax and regulations, while it is significantly and negatively associated with political stability and regulatory stringency. These have important implications for home and host supervisors with respect to the factors that drive perceived jurisdiction risks and the evaluation of the nature of inherent financial crime risks within regulated firms. The findings confirm the critical role of the shadow economy, political stability and regulatory rigor in shaping jurisdiction risk perceptions. From a policy standpoint, the findings support the case for taking prompt policy action to identify, prioritize and implement specific and targeted measures with respect to the shadow economy, political stability and rigor of regulations to improve international firms’ perceptions of jurisdiction risk.

While there exists different measures of financial crime risk, it is notoriously challenging to capture firms’ perceptions of it, particularly at a cross-jurisdiction level. This is because financial crime risks can vary significantly across different jurisdictions due to differences in legal and regulatory frameworks, cultural norms and levels of economic development. This makes it difficult for firms to compare and evaluate the financial crime risks they face in different jurisdictions. Besides, firms’ perceptions of financial crime risks can be influenced by a range of subjective factors, including personal experiences, media coverage and hearsay. These perceptions may not always align with objective risk assessments, which are based on more systematic and empirical methods of risk measurement. This paper contributes to the existing literature by undertaking a cross-country analysis drawing on a unique set of UK regulatory financial crime data, which is based on a total of 1,900 annual financial crime data regulatory return (REP-CRIM) submissions to the UK’s Financial Conduct Authority.

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Cross-jurisdictional financial crime risks: what can we learn from the UK regulatory data?10.1108/JFC-03-2023-0044Journal of Financial Crime2023-06-29© 2023 Emerald Publishing LimitedMete FeridunJournal of Financial Crimeahead-of-printahead-of-print2023-06-2910.1108/JFC-03-2023-0044https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0044/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Individual residence and identity theft: how residential characteristics shape exposure and risk of offline and online identity theft victimizationhttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0045/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the effect of micro-level place on identity theft victimization. This study uses the 2016 Identity Theft Supplement (ITS) to investigate whether aspects of an individual’s residence affect their likelihood of becoming identity theft victims. The authors conduct logistic regressions of whether a respondent was an identity theft victim in the past year using the following variables as key predictors: number of housing units in a residence, whether the respondent operates a business out of their residence and if residence access is restricted. The results suggest that location influences the likelihood of identity theft to a modest degree though some aspects of location (possibly those related to rewards perceptions) may be more relevant than others. Meanwhile, though location may influence initial target selection, whether someone is victimized may be more dependent on factors such as personal behavior. To the best of the authors’ knowledge, this manuscript represents one of the first investigations into the relationship between microlevel place and the incidence of identity theft. Furthermore, it provides evidence that one does exist which bears further inquiry.Individual residence and identity theft: how residential characteristics shape exposure and risk of offline and online identity theft victimization
Alexander Joseph Vanhee, Rachel McNealey
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to examine the effect of micro-level place on identity theft victimization. This study uses the 2016 Identity Theft Supplement (ITS) to investigate whether aspects of an individual’s residence affect their likelihood of becoming identity theft victims.

The authors conduct logistic regressions of whether a respondent was an identity theft victim in the past year using the following variables as key predictors: number of housing units in a residence, whether the respondent operates a business out of their residence and if residence access is restricted.

The results suggest that location influences the likelihood of identity theft to a modest degree though some aspects of location (possibly those related to rewards perceptions) may be more relevant than others. Meanwhile, though location may influence initial target selection, whether someone is victimized may be more dependent on factors such as personal behavior.

To the best of the authors’ knowledge, this manuscript represents one of the first investigations into the relationship between microlevel place and the incidence of identity theft. Furthermore, it provides evidence that one does exist which bears further inquiry.

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Individual residence and identity theft: how residential characteristics shape exposure and risk of offline and online identity theft victimization10.1108/JFC-03-2023-0045Journal of Financial Crime2023-05-11© 2023 Emerald Publishing LimitedAlexander Joseph VanheeRachel McNealeyJournal of Financial Crimeahead-of-printahead-of-print2023-05-1110.1108/JFC-03-2023-0045https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0045/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Tackling corruption in the distribution of Covid-19 palliatives and public health facilities in Nigeria: legal insights and strategic blueprint for future emergencieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0055/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the corruption prevalent in the distribution of COVID-19 palliatives during the lockdown and movement restrictions in the country. This study seeks to analyse the current state of corruption in the distribution of COVID-19 palliatives and public health facilities in Nigeria while also providing a legal insight and strategic blueprint to combat corruption. To this end, this study will address the current legal framework for combating corruption and build upon this to formulate a working strategy for tackling corruption in the future. Using a doctrinal legal research methodology, this study draws upon existing literature, tertiary data sources and information from the Nigeria Centre for Disease Control. The collected data is analysed and compared with current literature to identify key findings. Rent-seeking and utilitarian theories of the law were examined to guide this study. This study offers useful insights into combating corruption. The use of this method is justified, as it enhances the credibility of the findings on the importance of strategies for future emergencies. This legal research approach is consistent with the law and can be easily verified. The empirical aspect of this study involved a survey of multidimensional health-care and economic data set of 36 states in Nigeria plus the Federal Capital Territory on COVID-19 in Nigeria. A survey linearised regression model was estimated to determine the influence of government revenue and public health-care facilities in the control of the virus spread in Nigeria. This study reveals the need for emphasis on the imperative of combating corruption in the distribution of COVID-19 palliatives and establishing economic resilience through transparent and accountable practices, supported by legal frameworks. Rent-seeking and utilitarian theories of law are evaluated because of their impacts on combating corruption. The limitation of this study is the intricacy of gathering data on COVID-19 palliatives corruption in Nigeria because of secrecy and the absence of reliable data on the subject. Estimating the exact number of stolen palliatives and their fiscal impact on Nigeria's economy proves to be a formidable task because of the covert nature of corruption. This study equips policymakers in Nigeria with a better understanding of the legal challenges posed by corruption in the health care sector and provides an effective strategy to combat it. The lack of reliable data on the extent of palliative theft hinders the ability of lawmakers to enact effective legislation and strategies for combating corruption in the distribution of COVID-19 palliatives and addressing future emergencies in Nigeria. The policy implications of this study can assist policymakers in Nigeria and other countries in formulating measures to combat corruption in the distribution of COVID-19 palliatives and other future emergencies. Furthermore, it recommends the overhaul of anti-corruption laws and mechanisms in Nigeria to ensure effective measures against corruption. In conclusion, this study contributes to knowledge by proposing a legal model centred on people's participation to enhance transparency and accountability in future palliative distribution processes. This study recommends legal strategies that can effectively address corruption in future emergencies or shocks. This study proposes a strategic blueprint to tackle corruption in the future. This blueprint includes an analysis of existing laws and regulations, as well as potential policy changes and legislative reform. This study also includes recommendations for improved enforcement and oversight mechanisms and for improved public awareness and education. As part of this, this study considers the potential for public–private partnerships to increase transparency and accountability in public health and health-care services.Tackling corruption in the distribution of Covid-19 palliatives and public health facilities in Nigeria: legal insights and strategic blueprint for future emergencies
Olusola Joshua Olujobi, Tunde Ebenezer Yebisi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to examine the corruption prevalent in the distribution of COVID-19 palliatives during the lockdown and movement restrictions in the country. This study seeks to analyse the current state of corruption in the distribution of COVID-19 palliatives and public health facilities in Nigeria while also providing a legal insight and strategic blueprint to combat corruption. To this end, this study will address the current legal framework for combating corruption and build upon this to formulate a working strategy for tackling corruption in the future.

Using a doctrinal legal research methodology, this study draws upon existing literature, tertiary data sources and information from the Nigeria Centre for Disease Control. The collected data is analysed and compared with current literature to identify key findings. Rent-seeking and utilitarian theories of the law were examined to guide this study. This study offers useful insights into combating corruption. The use of this method is justified, as it enhances the credibility of the findings on the importance of strategies for future emergencies. This legal research approach is consistent with the law and can be easily verified. The empirical aspect of this study involved a survey of multidimensional health-care and economic data set of 36 states in Nigeria plus the Federal Capital Territory on COVID-19 in Nigeria. A survey linearised regression model was estimated to determine the influence of government revenue and public health-care facilities in the control of the virus spread in Nigeria.

This study reveals the need for emphasis on the imperative of combating corruption in the distribution of COVID-19 palliatives and establishing economic resilience through transparent and accountable practices, supported by legal frameworks.

Rent-seeking and utilitarian theories of law are evaluated because of their impacts on combating corruption. The limitation of this study is the intricacy of gathering data on COVID-19 palliatives corruption in Nigeria because of secrecy and the absence of reliable data on the subject.

Estimating the exact number of stolen palliatives and their fiscal impact on Nigeria's economy proves to be a formidable task because of the covert nature of corruption. This study equips policymakers in Nigeria with a better understanding of the legal challenges posed by corruption in the health care sector and provides an effective strategy to combat it.

The lack of reliable data on the extent of palliative theft hinders the ability of lawmakers to enact effective legislation and strategies for combating corruption in the distribution of COVID-19 palliatives and addressing future emergencies in Nigeria. The policy implications of this study can assist policymakers in Nigeria and other countries in formulating measures to combat corruption in the distribution of COVID-19 palliatives and other future emergencies. Furthermore, it recommends the overhaul of anti-corruption laws and mechanisms in Nigeria to ensure effective measures against corruption.

In conclusion, this study contributes to knowledge by proposing a legal model centred on people's participation to enhance transparency and accountability in future palliative distribution processes. This study recommends legal strategies that can effectively address corruption in future emergencies or shocks. This study proposes a strategic blueprint to tackle corruption in the future. This blueprint includes an analysis of existing laws and regulations, as well as potential policy changes and legislative reform. This study also includes recommendations for improved enforcement and oversight mechanisms and for improved public awareness and education. As part of this, this study considers the potential for public–private partnerships to increase transparency and accountability in public health and health-care services.

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Tackling corruption in the distribution of Covid-19 palliatives and public health facilities in Nigeria: legal insights and strategic blueprint for future emergencies10.1108/JFC-03-2023-0055Journal of Financial Crime2023-08-14© 2023 Emerald Publishing LimitedOlusola Joshua OlujobiTunde Ebenezer YebisiJournal of Financial Crimeahead-of-printahead-of-print2023-08-1410.1108/JFC-03-2023-0055https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0055/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Tax evasion and money laundering through crowdfunding: a comparative study of the laws of Mauritius, UK and UShttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0063/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe phenomenal proliferation of crowdfunding platforms raises concerns on the heightened occurrence of financial crimes since billions of funds are exchanged through these online systems frequently. Accordingly, some countries have implemented legislative responses to address these risks, although each countries’ laws have varying degrees of severity. Hence, the purpose of this study is to assess the efficiency and robustness of Mauritian laws to combat financial crimes that may arise from a crowdfunding transaction with a particular emphasis on money laundering and tax evasion. To achieve this research objective, the black letter approach was used to analyse Mauritian rules and regulations on the researched topic and a comparative analysis was carried out against the corresponding laws on crowdfunding in some other jurisdictions, notably the UK and the USA with the view of suggesting the policy recommendations to Mauritian authorities. It was found that there is still scope for improving the existing legal and regulatory framework on crowdfunding in Mauritius to prevent instances of money laundering and tax evasion. The paper suggests that a crowdfunding operator must be categorised as a reporting person and must carry out regular due diligence checks. There must also be more collaboration in terms of information exchanges and training sessions among the tax authority of Mauritius, crowdfunding operators, fund seekers and investors to shed light on the tax treatment of income and deductions to avoid issues of tax evasion. At present, to the best of the authors’ knowledge, this study is amongst the first academic writings on the efficiency of Mauritian laws in dealing with the risk of financial crimes through crowdfunding, and also, because existing literature is quite scarce on assessing the adequacy of crowdfunding rules in developing countries, this research aims at filling in the gap in literature. 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.Tax evasion and money laundering through crowdfunding: a comparative study of the laws of Mauritius, UK and US
Ambareen Beebeejaun
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The phenomenal proliferation of crowdfunding platforms raises concerns on the heightened occurrence of financial crimes since billions of funds are exchanged through these online systems frequently. Accordingly, some countries have implemented legislative responses to address these risks, although each countries’ laws have varying degrees of severity. Hence, the purpose of this study is to assess the efficiency and robustness of Mauritian laws to combat financial crimes that may arise from a crowdfunding transaction with a particular emphasis on money laundering and tax evasion.

To achieve this research objective, the black letter approach was used to analyse Mauritian rules and regulations on the researched topic and a comparative analysis was carried out against the corresponding laws on crowdfunding in some other jurisdictions, notably the UK and the USA with the view of suggesting the policy recommendations to Mauritian authorities.

It was found that there is still scope for improving the existing legal and regulatory framework on crowdfunding in Mauritius to prevent instances of money laundering and tax evasion. The paper suggests that a crowdfunding operator must be categorised as a reporting person and must carry out regular due diligence checks. There must also be more collaboration in terms of information exchanges and training sessions among the tax authority of Mauritius, crowdfunding operators, fund seekers and investors to shed light on the tax treatment of income and deductions to avoid issues of tax evasion.

At present, to the best of the authors’ knowledge, this study is amongst the first academic writings on the efficiency of Mauritian laws in dealing with the risk of financial crimes through crowdfunding, and also, because existing literature is quite scarce on assessing the adequacy of crowdfunding rules in developing countries, this research aims at filling in the gap in literature. 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.

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Tax evasion and money laundering through crowdfunding: a comparative study of the laws of Mauritius, UK and US10.1108/JFC-03-2023-0063Journal of Financial Crime2023-05-19© 2023 Emerald Publishing LimitedAmbareen BeebeejaunJournal of Financial Crimeahead-of-printahead-of-print2023-05-1910.1108/JFC-03-2023-0063https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0063/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Personal responsibility and knowledge about money laundering: a study with Brazilian accountantshttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0068/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the relationship between the personal responsibility, the intrinsic knowledge of the norms and the knowledge of signs of money laundering of accountants. The research was developed with responses from 381 Brazilian accounting professionals through a survey, statistically analyzed using structural equations. The results indicate that personal responsibility directly affects the levels of intrinsic knowledge and knowledge about signs of money laundering; however, the different dimensions of knowledge were not related to each other. From these results, organizations can clarify the individual about their responsibility, optimizing the use of training and mitigating costs, with greater sustainability and security for the organization, employees and business partners. The results contribute to the construction and modeling of latent constructs on money laundering knowledge, with validity, reliability and statistical significance. This research discusses and empirically explores the knowledge about money laundering of the accountants’, one of the main explanatory factors of whistleblowing in business.Personal responsibility and knowledge about money laundering: a study with Brazilian accountants
Jonatas Dutra Sallaberry, Lauren Dal Bem Venturini, Isabel Martínez-Conesa, Leonardo Flach
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze the relationship between the personal responsibility, the intrinsic knowledge of the norms and the knowledge of signs of money laundering of accountants.

The research was developed with responses from 381 Brazilian accounting professionals through a survey, statistically analyzed using structural equations.

The results indicate that personal responsibility directly affects the levels of intrinsic knowledge and knowledge about signs of money laundering; however, the different dimensions of knowledge were not related to each other.

From these results, organizations can clarify the individual about their responsibility, optimizing the use of training and mitigating costs, with greater sustainability and security for the organization, employees and business partners.

The results contribute to the construction and modeling of latent constructs on money laundering knowledge, with validity, reliability and statistical significance.

This research discusses and empirically explores the knowledge about money laundering of the accountants’, one of the main explanatory factors of whistleblowing in business.

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Personal responsibility and knowledge about money laundering: a study with Brazilian accountants10.1108/JFC-03-2023-0068Journal of Financial Crime2023-07-24© 2023 Emerald Publishing LimitedJonatas Dutra SallaberryLauren Dal Bem VenturiniIsabel Martínez-ConesaLeonardo FlachJournal of Financial Crimeahead-of-printahead-of-print2023-07-2410.1108/JFC-03-2023-0068https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0068/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Content analysis of American consumers’ credit card fraud complaints filed with the Consumer Financial Protection Bureauhttps://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0070/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestEvery year, millions of consumers around the world become victims of credit card fraud. These individuals have to appeal to their credit card companies to reverse unauthorized charges. This study aims to profile the American consumers’ experience when complaints to their credit card companies about unauthorized charges fail to produce a resolution. Using a large database of consumer complaint filings with the Consumer Financial Protection Bureau (CFPB), the characteristics of these consumer complaints are identified, and the drivers of consumer financial hardship resulting from credit card fraud are determined. A random sample of consumer complaints about their credit card companies’ perceived mishandling of cases, filed with the CFPB, is used to conduct content analysis. The resulting content analysis categories are used in a predictive model to determine the drivers of consumer hardship. In nearly one-quarter of all complaint filings, the credit card company had blamed the complainant as the party responsible for the fraudulent charges or refused to open a fraud investigation altogether. Nearly 60% of complaint reports contain expressions of emotional distress and many mention financial hardship. Nearly half of all complainants consider the fraud department operations of their credit card company as lacking in service quality, many reporting inability to reach the department or to receive a returned call. Even after CFPB intermediation, only 15% of complainants receive some form of financial relief from their credit card company. The majority of the complainants report a lack of willingness by the credit card company to reverse unauathorized charges, leaving the complainant financially responsible for them. This study focused on data collected from consumers. Future research can expand the scope of inquiry by surveying the staff and executives in the fraud investigation departments of credit card companies to determine the norms of fraud investigation used within the industry. This study sheds light on the financial hardship and emotional pains that consumers victimized by credit card fraud experience in dealing with their credit card companies. To the best of the authors’ knowledge, this is the first study to empirically examine American consumers’ complaints about the fraud investigation operations of their credit card companies. Using data captured through the complaint filing system of a federal bureau (CFPB), the findings have implications for policymakers, regulators and credit card companies.Content analysis of American consumers’ credit card fraud complaints filed with the Consumer Financial Protection Bureau
Hooman Estelami, Kevin Liu
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Every year, millions of consumers around the world become victims of credit card fraud. These individuals have to appeal to their credit card companies to reverse unauthorized charges. This study aims to profile the American consumers’ experience when complaints to their credit card companies about unauthorized charges fail to produce a resolution. Using a large database of consumer complaint filings with the Consumer Financial Protection Bureau (CFPB), the characteristics of these consumer complaints are identified, and the drivers of consumer financial hardship resulting from credit card fraud are determined.

A random sample of consumer complaints about their credit card companies’ perceived mishandling of cases, filed with the CFPB, is used to conduct content analysis. The resulting content analysis categories are used in a predictive model to determine the drivers of consumer hardship.

In nearly one-quarter of all complaint filings, the credit card company had blamed the complainant as the party responsible for the fraudulent charges or refused to open a fraud investigation altogether. Nearly 60% of complaint reports contain expressions of emotional distress and many mention financial hardship. Nearly half of all complainants consider the fraud department operations of their credit card company as lacking in service quality, many reporting inability to reach the department or to receive a returned call. Even after CFPB intermediation, only 15% of complainants receive some form of financial relief from their credit card company. The majority of the complainants report a lack of willingness by the credit card company to reverse unauathorized charges, leaving the complainant financially responsible for them.

This study focused on data collected from consumers. Future research can expand the scope of inquiry by surveying the staff and executives in the fraud investigation departments of credit card companies to determine the norms of fraud investigation used within the industry.

This study sheds light on the financial hardship and emotional pains that consumers victimized by credit card fraud experience in dealing with their credit card companies.

To the best of the authors’ knowledge, this is the first study to empirically examine American consumers’ complaints about the fraud investigation operations of their credit card companies. Using data captured through the complaint filing system of a federal bureau (CFPB), the findings have implications for policymakers, regulators and credit card companies.

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Content analysis of American consumers’ credit card fraud complaints filed with the Consumer Financial Protection Bureau10.1108/JFC-03-2023-0070Journal of Financial Crime2023-05-30© 2023 Emerald Publishing LimitedHooman EstelamiKevin LiuJournal of Financial Crimeahead-of-printahead-of-print2023-05-3010.1108/JFC-03-2023-0070https://www.emerald.com/insight/content/doi/10.1108/JFC-03-2023-0070/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An analysis of stockbroking frauds and regulatory action in Indiahttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0076/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestStockbrokers’ frauds in India frequently occur, causing investors significant financial loss. This study aims to unfold the various dubious practices adopted by stock brokers in the recent past to defraud investors and the necessary corrective regulations passed by the market regulator to prevent and detect fraud. The authors conduct exploratory research using a collective model of literature review, case studies and regulatory changes. The authors find tightening the system’s loopholes and strengthening the regulatory system using technology helps in the early detection and prevention of fraud. Media activism and investors’ awareness play a role in reducing incidences of fraud. This study unfolds the practices followed by stock brokers to defraud investors, indicative of regulatory gaps and enforcement lapses. Regulators are evolving a robust system to curb these practices and make them on par with international standards. But, it has a long way to go. Robust fraud detection and prevention mechanism is desirable to restore investors’ confidence in the stock market. Regulators should focus on investors’ protection and education and whistleblowers’ protection. Compared to the market regulators worldwide, the Securities and Exchange Board of India has less power to identify, detect and punish fraudulent brokers and needs to be empowered. Besides the regulatory changes, strict enforcement and investor campaigns are required to increase public awareness and restore trust in the stock market to combat the recurrence of fraud. This paper can be helpful to regulators, investors and financial intermediaries like stock brokers and aid in strengthening the reliability of capital markets and restoring investors’ confidence.An analysis of stockbroking frauds and regulatory action in India
Rajyalakshmi Kandukuri
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Stockbrokers’ frauds in India frequently occur, causing investors significant financial loss. This study aims to unfold the various dubious practices adopted by stock brokers in the recent past to defraud investors and the necessary corrective regulations passed by the market regulator to prevent and detect fraud.

The authors conduct exploratory research using a collective model of literature review, case studies and regulatory changes.

The authors find tightening the system’s loopholes and strengthening the regulatory system using technology helps in the early detection and prevention of fraud. Media activism and investors’ awareness play a role in reducing incidences of fraud.

This study unfolds the practices followed by stock brokers to defraud investors, indicative of regulatory gaps and enforcement lapses. Regulators are evolving a robust system to curb these practices and make them on par with international standards. But, it has a long way to go.

Robust fraud detection and prevention mechanism is desirable to restore investors’ confidence in the stock market. Regulators should focus on investors’ protection and education and whistleblowers’ protection. Compared to the market regulators worldwide, the Securities and Exchange Board of India has less power to identify, detect and punish fraudulent brokers and needs to be empowered.

Besides the regulatory changes, strict enforcement and investor campaigns are required to increase public awareness and restore trust in the stock market to combat the recurrence of fraud.

This paper can be helpful to regulators, investors and financial intermediaries like stock brokers and aid in strengthening the reliability of capital markets and restoring investors’ confidence.

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An analysis of stockbroking frauds and regulatory action in India10.1108/JFC-04-2023-0076Journal of Financial Crime2023-06-08© 2023 Emerald Publishing LimitedRajyalakshmi KandukuriJournal of Financial Crimeahead-of-printahead-of-print2023-06-0810.1108/JFC-04-2023-0076https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0076/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
What factors are associated with public corruption perception? Evidence from Canadahttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0078/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestCorruption perception is essential to study because it can shape people’s attitudes toward the government. Thus, the purpose of this paper is to address this key question: what factors are associated with a non-expert’s judgment of whether Canada is corrupt? This study uses the World Value Survey conducted in Canada in October 2020. This survey is based on a nationally representative sample of a cross-section of adult Canadian residents, including Canadian citizens and permanent residents and those who are neither Canadian citizens nor permanent residents. Based on this study, some conclusions can be made. First, people accessing corruption news from the traditional news media are less likely than those receiving information from the new media to perceive the state (in this case, Canada) as corrupt. Second, people who have less confidence in public institutions are more likely to perceive a country as corrupt. Third, people who participate in electoral and non-electoral forms of political participation are more likely to perceive the state and its public officials as corrupt. Fourth, regardless of which political party is in power, individuals who lean right politically are more likely than those on the left to perceive the state as corrupt. Finally, immigrants are less likely than those born in Canada to perceive the state as corrupt. This work enriches the literature on the substantive understanding of the factors associated with corruption perception. Studies investigating factors associated with public perception of corruption tend to focus on developing countries. The current study contributes to filling this gap in knowledge by examining correlates of corruption perception in Canada. As a result, this study contributes to the literature on factors associated with corruption perception, especially in the developed country context.What factors are associated with public corruption perception? Evidence from Canada
Joseph Yaw Asomah, Eugene Emeka Dim, Yiyan Li, Hongming Cheng
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Corruption perception is essential to study because it can shape people’s attitudes toward the government. Thus, the purpose of this paper is to address this key question: what factors are associated with a non-expert’s judgment of whether Canada is corrupt?

This study uses the World Value Survey conducted in Canada in October 2020. This survey is based on a nationally representative sample of a cross-section of adult Canadian residents, including Canadian citizens and permanent residents and those who are neither Canadian citizens nor permanent residents.

Based on this study, some conclusions can be made. First, people accessing corruption news from the traditional news media are less likely than those receiving information from the new media to perceive the state (in this case, Canada) as corrupt. Second, people who have less confidence in public institutions are more likely to perceive a country as corrupt. Third, people who participate in electoral and non-electoral forms of political participation are more likely to perceive the state and its public officials as corrupt. Fourth, regardless of which political party is in power, individuals who lean right politically are more likely than those on the left to perceive the state as corrupt. Finally, immigrants are less likely than those born in Canada to perceive the state as corrupt. This work enriches the literature on the substantive understanding of the factors associated with corruption perception.

Studies investigating factors associated with public perception of corruption tend to focus on developing countries. The current study contributes to filling this gap in knowledge by examining correlates of corruption perception in Canada. As a result, this study contributes to the literature on factors associated with corruption perception, especially in the developed country context.

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What factors are associated with public corruption perception? Evidence from Canada10.1108/JFC-04-2023-0078Journal of Financial Crime2023-07-28© 2023 Emerald Publishing LimitedJoseph Yaw AsomahEugene Emeka DimYiyan LiHongming ChengJournal of Financial Crimeahead-of-printahead-of-print2023-07-2810.1108/JFC-04-2023-0078https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0078/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retireeshttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0080/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees. Using a questionnaire survey, data was distributed to 200 retirees. A total of 53 responses were obtained. The data was subsequently analysed using PLS-SEM version 3 software. Findings indicated that while financial literacy has a significant influence on awareness, there is no conclusive evidence to support the relationship between financial behaviour and financial stress on awareness. These results highlighted the critical need to strengthen financial literacy among retirees as a prevention mechanism for them to avoid from being scammed. The finding from this study is relevant to regulators and law enforcement agencies to aid potential and actual retirees by educating them on the danger of investment scams. As there are relatively few studies conducted on investment scams specifically among retirees, this study extends the investment scam literature by examining the underlying factors that affect their awareness towards the fraudulent activities.The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees
Eley Suzana Kasim, Noor Rohin Awalludin, Nurazilah Zainal, Allezawati Ismail, Nurul Huda Ahmad Shukri
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the effects of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees.

Using a questionnaire survey, data was distributed to 200 retirees. A total of 53 responses were obtained. The data was subsequently analysed using PLS-SEM version 3 software.

Findings indicated that while financial literacy has a significant influence on awareness, there is no conclusive evidence to support the relationship between financial behaviour and financial stress on awareness. These results highlighted the critical need to strengthen financial literacy among retirees as a prevention mechanism for them to avoid from being scammed.

The finding from this study is relevant to regulators and law enforcement agencies to aid potential and actual retirees by educating them on the danger of investment scams.

As there are relatively few studies conducted on investment scams specifically among retirees, this study extends the investment scam literature by examining the underlying factors that affect their awareness towards the fraudulent activities.

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The effect of financial literacy, financial behaviour and financial stress on awareness of investment scams among retirees10.1108/JFC-04-2023-0080Journal of Financial Crime2023-07-28© 2023 Emerald Publishing LimitedEley Suzana KasimNoor Rohin AwalludinNurazilah ZainalAllezawati IsmailNurul Huda Ahmad ShukriJournal of Financial Crimeahead-of-printahead-of-print2023-07-2810.1108/JFC-04-2023-0080https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0080/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A comparative analysis on the nexus between corruption and firm performance for a selection of Western Balkan countrieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0082/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to focus on analyzing the level of corruption of small- and medium-sized enterprises and their economic performance impact in Western Balkan countries. This study uses survey data from Enterprise Surveys (ES) from 2019, a shared project of the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank Group. The selected countries are Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro and Serbia. The questions included in the data set contribute to understanding what firms experience in the private sector. Collected data are based on firms’ experiences and enterprises’ perceptions of the environment in which they operate. This paper measures enterprise performance in terms of sales, employees and fixed assets growth. The vector of independent variables comprises enterprise characteristics such as enterprise age, size, ownership structure, legal status, access to formal banking services, gender ownership and other composed variables. Moreover, to capture the level of perceived corruption by firms, we will focus on the following ES questions: “Is it common to have to pay some irregular additional payment or gifts to get things done with regard to customs, taxes, licenses, regulations, services,” and the “corruption payment” is defined in the form of a dummy equal to one if the enterprise replies “frequently,” “usually” or “always.” Preliminary empirical research results shed light on the level and effects of corruption on enterprises’ performance. However, the magnitude and statistical significance are different among the countries included in the sample. Instead of firm-level characteristics, research on corruption frequently focuses on effects dependent on national and institutional characteristics. To better identify the kinds of businesses that are most at risk of corruption, we have selected to focus on differences among firm characteristics in this research. Understanding factors at the firm level is preferred from a policy perspective because these findings assist policymakers to make recommendations.A comparative analysis on the nexus between corruption and firm performance for a selection of Western Balkan countries
Ermira Kalaj, Ela Golemi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to focus on analyzing the level of corruption of small- and medium-sized enterprises and their economic performance impact in Western Balkan countries. This study uses survey data from Enterprise Surveys (ES) from 2019, a shared project of the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank Group. The selected countries are Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro and Serbia. The questions included in the data set contribute to understanding what firms experience in the private sector. Collected data are based on firms’ experiences and enterprises’ perceptions of the environment in which they operate.

This paper measures enterprise performance in terms of sales, employees and fixed assets growth. The vector of independent variables comprises enterprise characteristics such as enterprise age, size, ownership structure, legal status, access to formal banking services, gender ownership and other composed variables. Moreover, to capture the level of perceived corruption by firms, we will focus on the following ES questions: “Is it common to have to pay some irregular additional payment or gifts to get things done with regard to customs, taxes, licenses, regulations, services,” and the “corruption payment” is defined in the form of a dummy equal to one if the enterprise replies “frequently,” “usually” or “always.”

Preliminary empirical research results shed light on the level and effects of corruption on enterprises’ performance. However, the magnitude and statistical significance are different among the countries included in the sample.

Instead of firm-level characteristics, research on corruption frequently focuses on effects dependent on national and institutional characteristics. To better identify the kinds of businesses that are most at risk of corruption, we have selected to focus on differences among firm characteristics in this research. Understanding factors at the firm level is preferred from a policy perspective because these findings assist policymakers to make recommendations.

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A comparative analysis on the nexus between corruption and firm performance for a selection of Western Balkan countries10.1108/JFC-04-2023-0082Journal of Financial Crime2023-06-16© 2023 Emerald Publishing LimitedErmira KalajEla GolemiJournal of Financial Crimeahead-of-printahead-of-print2023-06-1610.1108/JFC-04-2023-0082https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0082/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Economic freedom, corruption and bank stability: evidence from sub-Saharan Africahttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0087/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the impact of economic freedom and corruption on bank stability in sub-Saharan Africa (SSA). This study uses 38 countries in SSA from 2008 to 2019 using system GMM technique. The authors found that greater economic freedom increases economic efficiency through improving bank stability. Besides this, the authors also find that banks in environments with greater business freedom, financial freedom, trade freedom and investment freedom are less prone to solvency. The results also show that corruption improves bank stability, suggesting evidence of the “grease the wheels” hypothesis. The results suggest to policymakers that a high economic freedom may be an appropriate policy toward enhancing bank stability. Besides this, the results also suggest to policymakers to prioritize addressing the core issues that encourage corruption to extort bribes. This study provides insightful discussion on whether economic freedom and its subcomponents and corruption have an effect on bank stability in SSA.Economic freedom, corruption and bank stability: evidence from sub-Saharan Africa
Baba Mohammed Adam, Emmanuel Sarpong-Kumankoma, Vera Fiador
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the impact of economic freedom and corruption on bank stability in sub-Saharan Africa (SSA).

This study uses 38 countries in SSA from 2008 to 2019 using system GMM technique.

The authors found that greater economic freedom increases economic efficiency through improving bank stability. Besides this, the authors also find that banks in environments with greater business freedom, financial freedom, trade freedom and investment freedom are less prone to solvency. The results also show that corruption improves bank stability, suggesting evidence of the “grease the wheels” hypothesis.

The results suggest to policymakers that a high economic freedom may be an appropriate policy toward enhancing bank stability. Besides this, the results also suggest to policymakers to prioritize addressing the core issues that encourage corruption to extort bribes.

This study provides insightful discussion on whether economic freedom and its subcomponents and corruption have an effect on bank stability in SSA.

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Economic freedom, corruption and bank stability: evidence from sub-Saharan Africa10.1108/JFC-04-2023-0087Journal of Financial Crime2023-06-20© 2023 Emerald Publishing LimitedBaba Mohammed AdamEmmanuel Sarpong-KumankomaVera FiadorJournal of Financial Crimeahead-of-printahead-of-print2023-06-2010.1108/JFC-04-2023-0087https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0087/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Analysis of cyberfraud in the South African banking industry: a multiple regression approachhttps://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0094/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe 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. 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). 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). 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. 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.Analysis of cyberfraud in the South African banking industry: a multiple regression approach
Oluwatoyin Esther Akinbowale, Polly Mashigo, Mulatu Fekadu Zerihun
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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).

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).

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.

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.

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Analysis of cyberfraud in the South African banking industry: a multiple regression approach10.1108/JFC-04-2023-0094Journal of Financial Crime2023-12-08© 2023 Emerald Publishing LimitedOluwatoyin Esther AkinbowalePolly MashigoMulatu Fekadu ZerihunJournal of Financial Crimeahead-of-printahead-of-print2023-12-0810.1108/JFC-04-2023-0094https://www.emerald.com/insight/content/doi/10.1108/JFC-04-2023-0094/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Compliance risks for crowdfunding. A neglected aspect of money laundering, terrorist financing and fraudhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2022-0116/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to highlight the risks and threats posed by crowdfunding. It also looks at the new European Union regulation on crowdfunding, which is intended to give participants confidence that there will be specific minimum regulatory standards to protect parties against mis-selling issues affecting some platforms. This paper is based upon a thorough literature review. Crowdfunding is an essential alternative for financing commercial and non-commercial projects. Although it is a fast-growing digital financial tool, it can also be considered extremely risky. It can be an ideal platform for money laundering and can facilitate the financing of terrorism and fraud. Crowdfunding is still in its infancy, so the literature has not yet sufficiently addressed the compliance risks of crowdfunding. As a result, there is a significant research gap. Thus, this study aims to analyse and propose suggestions to mitigate the risks that all crowdfunding stakeholders may face when deciding to participate in a crowdfunding activity or when they want to set one up.Compliance risks for crowdfunding. A neglected aspect of money laundering, terrorist financing and fraud
Fabian Teichmann, Sonia Ruxandra Boticiu, Bruno S. Sergi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to highlight the risks and threats posed by crowdfunding. It also looks at the new European Union regulation on crowdfunding, which is intended to give participants confidence that there will be specific minimum regulatory standards to protect parties against mis-selling issues affecting some platforms.

This paper is based upon a thorough literature review.

Crowdfunding is an essential alternative for financing commercial and non-commercial projects. Although it is a fast-growing digital financial tool, it can also be considered extremely risky. It can be an ideal platform for money laundering and can facilitate the financing of terrorism and fraud.

Crowdfunding is still in its infancy, so the literature has not yet sufficiently addressed the compliance risks of crowdfunding. As a result, there is a significant research gap. Thus, this study aims to analyse and propose suggestions to mitigate the risks that all crowdfunding stakeholders may face when deciding to participate in a crowdfunding activity or when they want to set one up.

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Compliance risks for crowdfunding. A neglected aspect of money laundering, terrorist financing and fraud10.1108/JFC-05-2022-0116Journal of Financial Crime2022-07-25© 2022 Emerald Publishing LimitedFabian TeichmannSonia Ruxandra BoticiuBruno S. SergiJournal of Financial Crimeahead-of-printahead-of-print2022-07-2510.1108/JFC-05-2022-0116https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2022-0116/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Consensus on the role of culture in restraining financial crime: a systematic literature reviewhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0103/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestNo country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture. This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database. Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint. This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.Consensus on the role of culture in restraining financial crime: a systematic literature review
Dewi Nur Maulidiyah
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

No country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture.

This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database.

Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint.

This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.

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Consensus on the role of culture in restraining financial crime: a systematic literature review10.1108/JFC-05-2023-0103Journal of Financial Crime2023-07-31© 2023 Emerald Publishing LimitedDewi Nur MaulidiyahJournal of Financial Crimeahead-of-printahead-of-print2023-07-3110.1108/JFC-05-2023-0103https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0103/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Unmasking company liability for corruption by associated personshttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0104/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe Malaysian Anti-Corruption Commission Act 2009 (MACC Act) has introduced Section 17 A, which holds companies and their management accountable for bribery committed by their Associated Persons in the interest of the company. This study aims to explore the evolving concept of Associated Persons and corporate liability within this legal framework. It delves into three primary legal models of Associated Persons, particularly focusing on corrupt cases falling under Sections 17 A (1), 17 A (6) and 17 A (7) of the MACC Act. The study also investigates the extent of Associated Persons’ involvement in these cases that eventually led to company liability. The study deployed thematic and comparative analyses to assess the legal framework and highlight the significance of Section 17 A of the MACC Act. The study disclosed that, despite having corruption policies, there is still a possibility for Associated Persons to engage in corrupt activities. To ensure long-term business sustainability, it is crucial to implement effective mechanisms and a strong compliance culture. This study suggests implementing a due diligence checklist and conducting risk assessments for companies as measures against corruption caused by Associated Persons. Corporate entities and legal professionals may benefit from the reported findings to better comprehend the corruption offences outlined in Section 17 A of the MACC Act.Unmasking company liability for corruption by associated persons
Nurazlina Abdul Raof, Norazlina Abdul Aziz, Nadia Omar, Wan Liza Md Amin @ Fahmy
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The Malaysian Anti-Corruption Commission Act 2009 (MACC Act) has introduced Section 17 A, which holds companies and their management accountable for bribery committed by their Associated Persons in the interest of the company. This study aims to explore the evolving concept of Associated Persons and corporate liability within this legal framework. It delves into three primary legal models of Associated Persons, particularly focusing on corrupt cases falling under Sections 17 A (1), 17 A (6) and 17 A (7) of the MACC Act. The study also investigates the extent of Associated Persons’ involvement in these cases that eventually led to company liability.

The study deployed thematic and comparative analyses to assess the legal framework and highlight the significance of Section 17 A of the MACC Act.

The study disclosed that, despite having corruption policies, there is still a possibility for Associated Persons to engage in corrupt activities. To ensure long-term business sustainability, it is crucial to implement effective mechanisms and a strong compliance culture.

This study suggests implementing a due diligence checklist and conducting risk assessments for companies as measures against corruption caused by Associated Persons. Corporate entities and legal professionals may benefit from the reported findings to better comprehend the corruption offences outlined in Section 17 A of the MACC Act.

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Unmasking company liability for corruption by associated persons10.1108/JFC-05-2023-0104Journal of Financial Crime2024-02-26© 2024 Emerald Publishing LimitedNurazlina Abdul RaofNorazlina Abdul AzizNadia OmarWan Liza Md Amin @ FahmyJournal of Financial Crimeahead-of-printahead-of-print2024-02-2610.1108/JFC-05-2023-0104https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0104/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Impediments during the compilation of a search and seizure warrant for digital information by forensic investigators in South Africahttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0106/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to identify and discuss impediments in the compilation of an application for a search and seizure warrant for digital evidence and the structure of such a warrant in South African criminal cases. This paper provides a brief overview of international and local impediments, followed by a detailed discussion of the implications of these impediments and how it is approached in various jurisdictions. The methodology of this paper consists of a literature review. Addressing the impediments in the compilation of the application and the warrant will be beneficial for forensic investigators, the South African Police Service (SAPS) and the administration of justice in South Africa. Search and seizures for digital evidence form part of civil, regulatory and criminal search and seizures. This study focuses on the search and seizure of digital evidence in criminal matters pursuant to mainly the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020. The originality of this paper lies in the approach to the drafting of applications for search and seizure warrants for digital information in South Africa. The contribution of the study is that, by using this approach, the SAPS can address the impediments during the application and compilation of the warrants, which would enhance the quality of investigations and contribute to the successful investigation and prosecution of crime in South Africa.Impediments during the compilation of a search and seizure warrant for digital information by forensic investigators in South Africa
Jacobus Gerhardus J. Nortje, Daniel Christoffel Myburgh
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to identify and discuss impediments in the compilation of an application for a search and seizure warrant for digital evidence and the structure of such a warrant in South African criminal cases.

This paper provides a brief overview of international and local impediments, followed by a detailed discussion of the implications of these impediments and how it is approached in various jurisdictions. The methodology of this paper consists of a literature review.

Addressing the impediments in the compilation of the application and the warrant will be beneficial for forensic investigators, the South African Police Service (SAPS) and the administration of justice in South Africa.

Search and seizures for digital evidence form part of civil, regulatory and criminal search and seizures. This study focuses on the search and seizure of digital evidence in criminal matters pursuant to mainly the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020.

The originality of this paper lies in the approach to the drafting of applications for search and seizure warrants for digital information in South Africa. The contribution of the study is that, by using this approach, the SAPS can address the impediments during the application and compilation of the warrants, which would enhance the quality of investigations and contribute to the successful investigation and prosecution of crime in South Africa.

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Impediments during the compilation of a search and seizure warrant for digital information by forensic investigators in South Africa10.1108/JFC-05-2023-0106Journal of Financial Crime2023-07-06© 2023 Jacobus Gerhardus J. Nortje and Daniel Christoffel Myburgh.Jacobus Gerhardus J. NortjeDaniel Christoffel MyburghJournal of Financial Crimeahead-of-printahead-of-print2023-07-0610.1108/JFC-05-2023-0106https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0106/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Jacobus Gerhardus J. Nortje and Daniel Christoffel Myburgh.http://creativecommons.org/licences/by/4.0/legalcode
A red flag checklist for cryptocurrency Ponzi schemeshttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0118/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube® (in the form of a live video presentation) exhibits any of the red flags from the checklist. The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes. A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist. The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags. The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. The study provides a red flag checklist for cryptocurrency Ponzi schemes.A red flag checklist for cryptocurrency Ponzi schemes
Christiaan Ernst (Riaan) Heyman
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube® (in the form of a live video presentation) exhibits any of the red flags from the checklist.

The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes.

A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist.

The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags.

The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.

The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.

The study provides a red flag checklist for cryptocurrency Ponzi schemes.

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A red flag checklist for cryptocurrency Ponzi schemes10.1108/JFC-05-2023-0118Journal of Financial Crime2023-07-31© 2023 Christiaan Ernst (Riaan) Heyman.Christiaan Ernst (Riaan) HeymanJournal of Financial Crimeahead-of-printahead-of-print2023-07-3110.1108/JFC-05-2023-0118https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0118/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Christiaan Ernst (Riaan) Heyman.http://creativecommons.org/licences/by/4.0/legalcode
The corruption-foreign direct investment nexus in sub-Saharan Africa. Fresh evidence from a panel threshold regression approachhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0119/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestMost emerging economies have made conscious efforts through policy initiatives to attract foreign direct investment (FDI). However, a significant obstacle to FDI inflow has been the prevalence of corruption in the host country. This study, therefore, aims to examine whether there is an optimum corruption value that results in threshold effects of corruption on FDI. To achieve this objective, this study used Hansen’s (1999) panel threshold regression (PTR) model by using a panel data of 30 sub-Saharan African (SSA) countries from 2000 to 2021. This study finds that the nexus between corruption and FDI has a single threshold effect, with a 5.37% optimum corruption threshold value. At this threshold value, corruption affects FDI negatively. Any corruption value that is below the threshold value also elicits a negative corruption–FDI relationship. Despite having a negative relationship when the corruption value is above the optimum corruption threshold, it is not statistically significant. The implication of the results is that it is deleterious to use corrupt practices to draw FDI to SSA nations. To the best of the authors’ knowledge, this study is one of the first in the corruption–FDI nexus literature to use Hansen’s PTR model to estimate an optimal corruption threshold. The authors recommend that policymakers in the selected SSA countries reconsider the use of corruption to attract FDI because there is an optimal corruption threshold that could impact FDI in the host country.The corruption-foreign direct investment nexus in sub-Saharan Africa. Fresh evidence from a panel threshold regression approach
John Kwaku Amoh, Abdallah Abdul-Mumuni, Randolph Nsor-Ambala, Elvis Aaron Amenyitor
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Most emerging economies have made conscious efforts through policy initiatives to attract foreign direct investment (FDI). However, a significant obstacle to FDI inflow has been the prevalence of corruption in the host country. This study, therefore, aims to examine whether there is an optimum corruption value that results in threshold effects of corruption on FDI.

To achieve this objective, this study used Hansen’s (1999) panel threshold regression (PTR) model by using a panel data of 30 sub-Saharan African (SSA) countries from 2000 to 2021.

This study finds that the nexus between corruption and FDI has a single threshold effect, with a 5.37% optimum corruption threshold value. At this threshold value, corruption affects FDI negatively. Any corruption value that is below the threshold value also elicits a negative corruption–FDI relationship. Despite having a negative relationship when the corruption value is above the optimum corruption threshold, it is not statistically significant.

The implication of the results is that it is deleterious to use corrupt practices to draw FDI to SSA nations.

To the best of the authors’ knowledge, this study is one of the first in the corruption–FDI nexus literature to use Hansen’s PTR model to estimate an optimal corruption threshold. The authors recommend that policymakers in the selected SSA countries reconsider the use of corruption to attract FDI because there is an optimal corruption threshold that could impact FDI in the host country.

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The corruption-foreign direct investment nexus in sub-Saharan Africa. Fresh evidence from a panel threshold regression approach10.1108/JFC-05-2023-0119Journal of Financial Crime2023-07-07© 2023 Emerald Publishing LimitedJohn Kwaku AmohAbdallah Abdul-MumuniRandolph Nsor-AmbalaElvis Aaron AmenyitorJournal of Financial Crimeahead-of-printahead-of-print2023-07-0710.1108/JFC-05-2023-0119https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0119/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A scientometric analysis of the structure and trends in corporate fraud research: a 66-year reviewhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0121/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to review corporate fraud, as a concept, and the emerging research trends in corporate fraud research from 1957 to 2022 using bibliometric analysis techniques. A total of 7,750 publications from the Scopus database were first assessed using performance analysis to explore the descriptive nature of the bibliographic data, and subsequently, citation, co-citation, co-occurrence and bibliographic coupling analyses were conducted using the VOSviewer software. The results indicate there has been increasing growth in fraud research over the years, especially since the global corporate scandals of 2008. Although fraud is a global issue, the results suggest that most extant studies originate from developed economies, with a high level of collaboration amongst scholars in these countries. In addition, the co-occurrence analysis indicates that research into corporate fraud has largely focused on its determinants and corruption. The determinants identified are further clustered in the paper as individual, organizational and national-level factors. The findings should inform practitioners and policymakers of the state of knowledge on corporate fraud which could be useful in developing strategies and policies to mitigate its occurrence. The study points to the need for research collaborations among scholars in developing economies to increase investigations into the occurrences of fraud. To the best of the authors’ knowledge, this is the first study to holistically assess the intellectual structure of corporate fraud studies from its inception and the trends over time.A scientometric analysis of the structure and trends in corporate fraud research: a 66-year review
Godfred Matthew Yaw Owusu, Theodora Aba Abekah Koomson, George Nana Agyekum Donkor
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to review corporate fraud, as a concept, and the emerging research trends in corporate fraud research from 1957 to 2022 using bibliometric analysis techniques.

A total of 7,750 publications from the Scopus database were first assessed using performance analysis to explore the descriptive nature of the bibliographic data, and subsequently, citation, co-citation, co-occurrence and bibliographic coupling analyses were conducted using the VOSviewer software.

The results indicate there has been increasing growth in fraud research over the years, especially since the global corporate scandals of 2008. Although fraud is a global issue, the results suggest that most extant studies originate from developed economies, with a high level of collaboration amongst scholars in these countries. In addition, the co-occurrence analysis indicates that research into corporate fraud has largely focused on its determinants and corruption. The determinants identified are further clustered in the paper as individual, organizational and national-level factors.

The findings should inform practitioners and policymakers of the state of knowledge on corporate fraud which could be useful in developing strategies and policies to mitigate its occurrence.

The study points to the need for research collaborations among scholars in developing economies to increase investigations into the occurrences of fraud.

To the best of the authors’ knowledge, this is the first study to holistically assess the intellectual structure of corporate fraud studies from its inception and the trends over time.

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A scientometric analysis of the structure and trends in corporate fraud research: a 66-year review10.1108/JFC-05-2023-0121Journal of Financial Crime2023-07-20© 2023 Emerald Publishing LimitedGodfred Matthew Yaw OwusuTheodora Aba Abekah KoomsonGeorge Nana Agyekum DonkorJournal of Financial Crimeahead-of-printahead-of-print2023-07-2010.1108/JFC-05-2023-0121https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0121/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Corruption and economic growth in Nigeria: dynamic causality and asymmetric relationshipshttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0122/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to intend to investigate the dynamic causality and asymmetric relationships between corruption and economic growth of Nigeria. Toda–Yamamoto (TY) Dynamic Causality Test and Non-linear Autoregressive Distributed Lag Model (NARDL) were used for the estimations, for the period 1984–2018. The result reveals the existence of bidirectional causality between control of corruption and economic growth, Similarly, in both the short run and long run, corruption can affect economic growth and economic growth can as well affects corruption. Findings of the research are limited to Nigeria whose data were used, based on TY causality test and NARDL as the econometrics techniques applied, for a period 1984–2018. For a meaningful progress to be recorded in Nigeria in terms of economic growth, the country must device some means for strengthen the control of corruption. The study was able to prove empirically, the existence of not only causality between corruption and economic growth but also asymmetric effect of corruption on economic growth and that of economic growth on corruption in both the long run and short run, as against the previous studies that are lopsided on the effect of corruption on economic growth only.Corruption and economic growth in Nigeria: dynamic causality and asymmetric relationships
Ibrahim Abdulhamid Danlami
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to intend to investigate the dynamic causality and asymmetric relationships between corruption and economic growth of Nigeria.

Toda–Yamamoto (TY) Dynamic Causality Test and Non-linear Autoregressive Distributed Lag Model (NARDL) were used for the estimations, for the period 1984–2018.

The result reveals the existence of bidirectional causality between control of corruption and economic growth, Similarly, in both the short run and long run, corruption can affect economic growth and economic growth can as well affects corruption.

Findings of the research are limited to Nigeria whose data were used, based on TY causality test and NARDL as the econometrics techniques applied, for a period 1984–2018.

For a meaningful progress to be recorded in Nigeria in terms of economic growth, the country must device some means for strengthen the control of corruption.

The study was able to prove empirically, the existence of not only causality between corruption and economic growth but also asymmetric effect of corruption on economic growth and that of economic growth on corruption in both the long run and short run, as against the previous studies that are lopsided on the effect of corruption on economic growth only.

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Corruption and economic growth in Nigeria: dynamic causality and asymmetric relationships10.1108/JFC-05-2023-0122Journal of Financial Crime2023-07-26© 2023 Emerald Publishing LimitedIbrahim Abdulhamid DanlamiJournal of Financial Crimeahead-of-printahead-of-print2023-07-2610.1108/JFC-05-2023-0122https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0122/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
“Everyone freaks out when the leaks are made”: data leaks, investigative journalism and intelligence practicehttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0123/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the history of data leaks and investigative journalism, the techniques and technology that enable them and their influence in Australia and abroad. It explores the ethical and professional considerations of investigative journalists, how they approach privacy and information-sharing and how this differs from intelligence practice in government and industry. The paper assesses the strengths and limitations of Collaborative Investigative Reporting based on Information Leaks (CIRIL) as a kind of public-facing intelligence practice. This study draws on academic literature, source material from investigations by the International Consortium of Investigative Journalists and the Organised Crime and Corruption Reporting Project, and a survey of financial crime compliance professionals conducted in 2022. The paper identifies three key causal factors that have enabled the rise of CIRIL even as traditional journalism has declined: the digital storage of information; increasing public interest in offshore finance and tax evasion; and “virtual newsrooms” enabled by internet communications. It concludes that the primary strength of CIRIL is its creation of complex global narratives to inform the public about corruption and tax evasion, while its key weakness is that the scale and breadth of the data released makes it difficult to focus on likely criminal activity. Results of a survey of industry and government professionals indicate that CIRIL is generally more effective as public information than as an investigative resource, owing to the volume, age and quality of information released. However, the trends enabling CIRIL are likely to continue, and this means that governments and financial institutions need to become more effective at using leaked information. Over the past decade, large-scale, data-driven investigative journalism projects such as the Pandora Papers and the Russian Laundromat have had a significant public impact by exposing money laundering, financial crime and corruption. These projects share certain hallmarks: the use of human intelligence, often sourced from anonymous leaks; inventive fusion of this intelligence with data from open sources; and collaboration among a global collective of investigative journalists to build a narrative. These projects prioritise informing the public. They are also an important information source for government and private sector organisations working to investigate and disrupt financial crime.“Everyone freaks out when the leaks are made”: data leaks, investigative journalism and intelligence practice
Benjamin Scott
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the history of data leaks and investigative journalism, the techniques and technology that enable them and their influence in Australia and abroad. It explores the ethical and professional considerations of investigative journalists, how they approach privacy and information-sharing and how this differs from intelligence practice in government and industry. The paper assesses the strengths and limitations of Collaborative Investigative Reporting based on Information Leaks (CIRIL) as a kind of public-facing intelligence practice.

This study draws on academic literature, source material from investigations by the International Consortium of Investigative Journalists and the Organised Crime and Corruption Reporting Project, and a survey of financial crime compliance professionals conducted in 2022.

The paper identifies three key causal factors that have enabled the rise of CIRIL even as traditional journalism has declined: the digital storage of information; increasing public interest in offshore finance and tax evasion; and “virtual newsrooms” enabled by internet communications. It concludes that the primary strength of CIRIL is its creation of complex global narratives to inform the public about corruption and tax evasion, while its key weakness is that the scale and breadth of the data released makes it difficult to focus on likely criminal activity. Results of a survey of industry and government professionals indicate that CIRIL is generally more effective as public information than as an investigative resource, owing to the volume, age and quality of information released. However, the trends enabling CIRIL are likely to continue, and this means that governments and financial institutions need to become more effective at using leaked information.

Over the past decade, large-scale, data-driven investigative journalism projects such as the Pandora Papers and the Russian Laundromat have had a significant public impact by exposing money laundering, financial crime and corruption. These projects share certain hallmarks: the use of human intelligence, often sourced from anonymous leaks; inventive fusion of this intelligence with data from open sources; and collaboration among a global collective of investigative journalists to build a narrative. These projects prioritise informing the public. They are also an important information source for government and private sector organisations working to investigate and disrupt financial crime.

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“Everyone freaks out when the leaks are made”: data leaks, investigative journalism and intelligence practice10.1108/JFC-05-2023-0123Journal of Financial Crime2023-07-04© 2023 Emerald Publishing LimitedBenjamin ScottJournal of Financial Crimeahead-of-printahead-of-print2023-07-0410.1108/JFC-05-2023-0123https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0123/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behaviorhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0124/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to critically examine a prevalent online scam mechanism, with the aim of understanding its exploitation of behavioral finance principles and group dynamics and propose effective countermeasures. This study uses a blend of case study and thematic analysis, drawing from behavioral finance, social psychology and criminology, using primary source testimonies of victims to provide a detailed exploration of the scam’s operations. This research uncovers the strategic use of four key principles: loss aversion, overconfidence, scarcity bias and social proof, within the scam operation. These tendencies are manipulated to induce victims to progressively invest into the fraudulent scheme, even amid growing suspicions. While the research elucidates on the workings of one specific online scam, it is necessary to explore if and how these principles are used in various other online fraudulent schemes, to develop comprehensive countermeasures. The findings underscore the urgent need for enhanced public awareness, stronger corporate responsibility and robust regulatory oversight. There is a call for concerted efforts encompassing public education campaigns, fortified security protocols and strong legal frameworks for preventing such scams. The research emphasizes the need for collective action in ensuring a safe online space. This involves the individual user’s prudence, businesses’ proactive education initiatives and stringent legal actions against fraudulent activities. This research offers novel insights into the nuanced manipulation of behavioral finance principles within online scams, based on empirical data from victim testimonials. These findings contribute to the understanding of the psychological mechanisms at play in online scams and are instrumental in formulating effective preventive strategies.Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behavior
Wahyu Fahrul Ridho
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to critically examine a prevalent online scam mechanism, with the aim of understanding its exploitation of behavioral finance principles and group dynamics and propose effective countermeasures.

This study uses a blend of case study and thematic analysis, drawing from behavioral finance, social psychology and criminology, using primary source testimonies of victims to provide a detailed exploration of the scam’s operations.

This research uncovers the strategic use of four key principles: loss aversion, overconfidence, scarcity bias and social proof, within the scam operation. These tendencies are manipulated to induce victims to progressively invest into the fraudulent scheme, even amid growing suspicions.

While the research elucidates on the workings of one specific online scam, it is necessary to explore if and how these principles are used in various other online fraudulent schemes, to develop comprehensive countermeasures.

The findings underscore the urgent need for enhanced public awareness, stronger corporate responsibility and robust regulatory oversight. There is a call for concerted efforts encompassing public education campaigns, fortified security protocols and strong legal frameworks for preventing such scams.

The research emphasizes the need for collective action in ensuring a safe online space. This involves the individual user’s prudence, businesses’ proactive education initiatives and stringent legal actions against fraudulent activities.

This research offers novel insights into the nuanced manipulation of behavioral finance principles within online scams, based on empirical data from victim testimonials. These findings contribute to the understanding of the psychological mechanisms at play in online scams and are instrumental in formulating effective preventive strategies.

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Unmasking online fake job group financial scams: a thematic examination of victim exploitation from perspective of financial behavior10.1108/JFC-05-2023-0124Journal of Financial Crime2023-08-08© 2023 Emerald Publishing LimitedWahyu Fahrul RidhoJournal of Financial Crimeahead-of-printahead-of-print2023-08-0810.1108/JFC-05-2023-0124https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0124/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Impediments during the execution of a search and seizure warrant for digital information by forensic investigators in South Africahttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0125/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to identify impediments, discuss impediments and make recommendations for the impediments during the execution of a search and seizure warrant for digital evidence in South African criminal cases. The discussion of this article, the second article of two, focuses on a literature review of international and local impediments identified in case law and published research literature and how it is approached in various jurisdictions. This study found that impediments identified and addressed internationally during the execution of a search and seizure warrant for digital evidence are relevant to South African criminal cases and still need to be addressed during the execution of a search and seizure warrant for digital evidence in South African criminal cases. Although searches and seizures for digital evidence are relevant to civil, regulatory and criminal investigations, this study focuses on the search and seizure for digital evidence in criminal matters with an emphasis on the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020. The originality of this paper lies in the procedures followed during the physical search and seizure of digital information during the execution of search and seizure warrants for digital information in South Africa. If the South African Police Service follows the recommended procedures, it will contribute to the success of the South African Police Service, which would result in the improved quality of investigations and successful prosecution of crime in South Africa.Impediments during the execution of a search and seizure warrant for digital information by forensic investigators in South Africa
Jacobus Gerhardus J. Nortje, Daniel Christoffel Myburgh
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to identify impediments, discuss impediments and make recommendations for the impediments during the execution of a search and seizure warrant for digital evidence in South African criminal cases.

The discussion of this article, the second article of two, focuses on a literature review of international and local impediments identified in case law and published research literature and how it is approached in various jurisdictions.

This study found that impediments identified and addressed internationally during the execution of a search and seizure warrant for digital evidence are relevant to South African criminal cases and still need to be addressed during the execution of a search and seizure warrant for digital evidence in South African criminal cases.

Although searches and seizures for digital evidence are relevant to civil, regulatory and criminal investigations, this study focuses on the search and seizure for digital evidence in criminal matters with an emphasis on the provisions of the Criminal Procedure Act 51 of 1977 and the Cybercrimes Act 19 of 2020.

The originality of this paper lies in the procedures followed during the physical search and seizure of digital information during the execution of search and seizure warrants for digital information in South Africa. If the South African Police Service follows the recommended procedures, it will contribute to the success of the South African Police Service, which would result in the improved quality of investigations and successful prosecution of crime in South Africa.

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Impediments during the execution of a search and seizure warrant for digital information by forensic investigators in South Africa10.1108/JFC-05-2023-0125Journal of Financial Crime2023-08-11© 2023 Jacobus Gerhardus J. Nortje and Daniel Christoffel Myburgh.Jacobus Gerhardus J. NortjeDaniel Christoffel MyburghJournal of Financial Crimeahead-of-printahead-of-print2023-08-1110.1108/JFC-05-2023-0125https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0125/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Jacobus Gerhardus J. Nortje and Daniel Christoffel Myburgh.http://creativecommons.org/licences/by/4.0/legalcode
Financial disclosure manipulation: a virtue ethics perspectivehttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0126/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFinancial disclosure manipulation is unethical and unlawful because it leads to less transparent reporting and harmful economic decisions based on misleading information. The purpose of this paper is to provide a summary and synthesis of research covering financial disclosure misrepresentation via impression management (IM). Ultimately, this report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Suggestions for future research are presented. This is an academic literature review covering financial disclosure manipulation. The findings are viewed through the lens of Christian virtue ethics (CVE). IM studies commonly focus on specific methods used to mislead disclosure readers. Antecedent and mitigation strategies are less commonly noted in the research. This paper presents and analyzes IM tools and antecedents. Mitigation approaches are considered through the lens of CVE. This report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. This present study focuses on the antecedents of IM in financial disclosures and introduces a novel perspective to financial disclosure mitigation – CVE. Financial disclosure authors and readers, researchers, financial regulators and accounting standards setters may be interested in the findings presented in this study.Financial disclosure manipulation: a virtue ethics perspective
Christopher J. Demaline
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Financial disclosure manipulation is unethical and unlawful because it leads to less transparent reporting and harmful economic decisions based on misleading information. The purpose of this paper is to provide a summary and synthesis of research covering financial disclosure misrepresentation via impression management (IM). Ultimately, this report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency. Suggestions for future research are presented.

This is an academic literature review covering financial disclosure manipulation. The findings are viewed through the lens of Christian virtue ethics (CVE).

IM studies commonly focus on specific methods used to mislead disclosure readers. Antecedent and mitigation strategies are less commonly noted in the research. This paper presents and analyzes IM tools and antecedents. Mitigation approaches are considered through the lens of CVE. This report proposes that virtuous managers may be well-suited to provide transparent, objective disclosure. By extension, virtuous managers may oversee profitable firms and improve capital market efficiency.

This present study focuses on the antecedents of IM in financial disclosures and introduces a novel perspective to financial disclosure mitigation – CVE. Financial disclosure authors and readers, researchers, financial regulators and accounting standards setters may be interested in the findings presented in this study.

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Financial disclosure manipulation: a virtue ethics perspective10.1108/JFC-05-2023-0126Journal of Financial Crime2023-08-10© 2023 Emerald Publishing LimitedChristopher J. DemalineJournal of Financial Crimeahead-of-printahead-of-print2023-08-1010.1108/JFC-05-2023-0126https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0126/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Securities regulation and capital market development in Nigeria: recurring challenges and prospect for solutionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0129/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper, therefore, is to amplify the imperativeness for a re-oriented regulatory approach that prioritizes constructive engagement with the regulated communities, harnessing the existing pool of savings and retention of market participation. The paper adopts a doctrinal legal research design with data drawn from primary and secondary sources of law. The primary sources include case laws and statutes, and the secondary sources include book chapters, journal articles and other internet-sourced materials. The paper finds that the status quo in Nigeria if left to continue would spell severe economic disaster for Nigeria’s securities administration, but a well-structured realignment of the regulations would boost the country’s securities market effectiveness. The research’s conclusions and suggestions might only be applicable to Nigeria’s particular situation with regard to capital market development and securities regulation. Other nations or locations with distinct regulatory systems, market structures and economic situations may not be able to immediately adapt it. When extending the research results outside of the Nigerian environment, caution should be exercised. For regulatory agencies and policymakers, the research offers insightful suggestions. The analysis may pinpoint certain areas where policy changes are required to address reoccurring problems and improve the chances for a healthy capital market. For Nigeria’s regulatory frameworks controlling securities to be strengthened, this paper would be crucial. To make sure they are in line with global best practices, this entails examining and revising current laws, rules and standards. A stronger regulatory environment may also result from the implementation of harsher enforcement procedures and consequences for noncompliance. It is also required for creating market infrastructure, fostering market integration and cooperation, facilitating access to capital, monitoring and evaluation. It would also benefit investor education and protection. Addressing these persistent issues and potential remedies in Nigeria’s capital market development and securities regulation would have various advantageous social effects. These include improved market infrastructure, more financial inclusion, improved investment protection for investors and improved market openness and integrity. Such results will help Nigerian society as a whole by fostering economic expansion, job creation, wealth distribution and general social progress. This paper is the original work of the authors and has not been published anywhere nor submitted to another journal for publication.Securities regulation and capital market development in Nigeria: recurring challenges and prospect for solution
Samuel Ihuoma Nwatu, Edwin Chukwuemeka Arum, Ikechukwu P. Chime
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper, therefore, is to amplify the imperativeness for a re-oriented regulatory approach that prioritizes constructive engagement with the regulated communities, harnessing the existing pool of savings and retention of market participation.

The paper adopts a doctrinal legal research design with data drawn from primary and secondary sources of law. The primary sources include case laws and statutes, and the secondary sources include book chapters, journal articles and other internet-sourced materials.

The paper finds that the status quo in Nigeria if left to continue would spell severe economic disaster for Nigeria’s securities administration, but a well-structured realignment of the regulations would boost the country’s securities market effectiveness.

The research’s conclusions and suggestions might only be applicable to Nigeria’s particular situation with regard to capital market development and securities regulation. Other nations or locations with distinct regulatory systems, market structures and economic situations may not be able to immediately adapt it. When extending the research results outside of the Nigerian environment, caution should be exercised. For regulatory agencies and policymakers, the research offers insightful suggestions. The analysis may pinpoint certain areas where policy changes are required to address reoccurring problems and improve the chances for a healthy capital market.

For Nigeria’s regulatory frameworks controlling securities to be strengthened, this paper would be crucial. To make sure they are in line with global best practices, this entails examining and revising current laws, rules and standards. A stronger regulatory environment may also result from the implementation of harsher enforcement procedures and consequences for noncompliance. It is also required for creating market infrastructure, fostering market integration and cooperation, facilitating access to capital, monitoring and evaluation. It would also benefit investor education and protection.

Addressing these persistent issues and potential remedies in Nigeria’s capital market development and securities regulation would have various advantageous social effects. These include improved market infrastructure, more financial inclusion, improved investment protection for investors and improved market openness and integrity. Such results will help Nigerian society as a whole by fostering economic expansion, job creation, wealth distribution and general social progress.

This paper is the original work of the authors and has not been published anywhere nor submitted to another journal for publication.

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Securities regulation and capital market development in Nigeria: recurring challenges and prospect for solution10.1108/JFC-05-2023-0129Journal of Financial Crime2023-09-15© 2023 Emerald Publishing LimitedSamuel Ihuoma NwatuEdwin Chukwuemeka ArumIkechukwu P. ChimeJournal of Financial Crimeahead-of-printahead-of-print2023-09-1510.1108/JFC-05-2023-0129https://www.emerald.com/insight/content/doi/10.1108/JFC-05-2023-0129/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Corruption fight in the Czech Republic: sustainability reports evidencehttps://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0143/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by Czech companies in 2021 and registered by the Association of Social Sustainability of the Czech Republic. Based on three hypotheses, the relationships between the level of disclosed anti-corruption information and selected variables related to the corporate environment are tested using content analysis and the Mann–Whitney test. This paper reveals that Czech firms provide more information if they operate in a higher-risk environment (energy, materials and financial services) or are state-owned (or with a state ownership stake). It also reveals that companies participating in corporate social responsibility (CSR) initiatives (UN Global Compact and Global Reporting Initiative) increase their credibility and social responsibility with more disclosed information. A limitation of this paper is the smaller number of selected companies matching the chosen criteria. In addition, a certain degree of subjectivity is likely to have manifested in the process of coding the reports and in the use of the content analysis method. The paper contributes to research that addresses the fight against corruption and CSR issues with a specific study in a small, Central European country and provides new empirical data on the anti-corruption fight problem.Corruption fight in the Czech Republic: sustainability reports evidence
Tomas Kristek
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by Czech companies in 2021 and registered by the Association of Social Sustainability of the Czech Republic.

Based on three hypotheses, the relationships between the level of disclosed anti-corruption information and selected variables related to the corporate environment are tested using content analysis and the Mann–Whitney test.

This paper reveals that Czech firms provide more information if they operate in a higher-risk environment (energy, materials and financial services) or are state-owned (or with a state ownership stake). It also reveals that companies participating in corporate social responsibility (CSR) initiatives (UN Global Compact and Global Reporting Initiative) increase their credibility and social responsibility with more disclosed information.

A limitation of this paper is the smaller number of selected companies matching the chosen criteria. In addition, a certain degree of subjectivity is likely to have manifested in the process of coding the reports and in the use of the content analysis method.

The paper contributes to research that addresses the fight against corruption and CSR issues with a specific study in a small, Central European country and provides new empirical data on the anti-corruption fight problem.

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Corruption fight in the Czech Republic: sustainability reports evidence10.1108/JFC-06-2023-0143Journal of Financial Crime2023-08-17© 2023 Tomas Kristek.Tomas KristekJournal of Financial Crimeahead-of-printahead-of-print2023-08-1710.1108/JFC-06-2023-0143https://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0143/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Tomas Kristek.
A holistic qualitative exploration on the perception of scams, scam techniques and effectiveness of anti-scam campaigns in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0151/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestScams are indeed malicious attempts to influence people and can take many forms, including online scams. With the increasing availability of technology, scammers have more tools at their disposal to create convincing and sophisticated communications that appear to come from legitimate sources, such as emails, text messages or social media posts. These scams can be designed to trick individuals into clicking on malicious links, downloading malware or ransomware or providing sensitive information such as login information, financial information or personal details. Scammers often use social engineering techniques to persuade their targets to take specific actions, such as creating a sense of urgency, offering a reward or prize or posing as a trusted authority. These tactics can be highly effective, particularly if the target is unaware of the warning signs of a scam or is unfamiliar with how to protect themselves from online fraud. This paper aims to explore the extent and nature of this problem and evokes the concern that the general public is vulnerable and susceptible to scams if they are not resilient and aware. This paper also explores why victims fall for online scams and uncovers preventive measures to enable a direction in tacitly strategizing ways to create more impactful and effective awareness campaigns. This study explores these aspects through a holistic qualitative approach. Using in-depth interview techniques with six victims, six non-victims, four law enforcement officers, four scammers and seven stakeholders from various agencies such as banks, telecommunication agencies and the Malaysian Communications and Multimedia Commission involved in combating the issue of scams. The findings generally revealed that participants who were victims of scams felt Malaysians were susceptible to scams, easily fooled and had a nonchalant attitude. Most participants also highlighted that public safety is important for ensuring a high quality of life for citizens that should work closely between the government and non-government agencies, including effective law enforcement and crime prevention strategies. The uniqueness of this study is the feedback from scammers themselves and their input towards authority and victims. Overall, the respondents provide their views drawing strength from the ever-changing technological background as well as the susceptibility of security features and vulnerability of human engagement.A holistic qualitative exploration on the perception of scams, scam techniques and effectiveness of anti-scam campaigns in Malaysia
Sharon Wilson, Nor Azlili Hassan, Kheng Kia Khor, Santhidran Sinnappan, Afi Roshezry Abu Bakar, Soon Aun Tan
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Scams are indeed malicious attempts to influence people and can take many forms, including online scams. With the increasing availability of technology, scammers have more tools at their disposal to create convincing and sophisticated communications that appear to come from legitimate sources, such as emails, text messages or social media posts. These scams can be designed to trick individuals into clicking on malicious links, downloading malware or ransomware or providing sensitive information such as login information, financial information or personal details. Scammers often use social engineering techniques to persuade their targets to take specific actions, such as creating a sense of urgency, offering a reward or prize or posing as a trusted authority. These tactics can be highly effective, particularly if the target is unaware of the warning signs of a scam or is unfamiliar with how to protect themselves from online fraud. This paper aims to explore the extent and nature of this problem and evokes the concern that the general public is vulnerable and susceptible to scams if they are not resilient and aware. This paper also explores why victims fall for online scams and uncovers preventive measures to enable a direction in tacitly strategizing ways to create more impactful and effective awareness campaigns.

This study explores these aspects through a holistic qualitative approach. Using in-depth interview techniques with six victims, six non-victims, four law enforcement officers, four scammers and seven stakeholders from various agencies such as banks, telecommunication agencies and the Malaysian Communications and Multimedia Commission involved in combating the issue of scams.

The findings generally revealed that participants who were victims of scams felt Malaysians were susceptible to scams, easily fooled and had a nonchalant attitude. Most participants also highlighted that public safety is important for ensuring a high quality of life for citizens that should work closely between the government and non-government agencies, including effective law enforcement and crime prevention strategies.

The uniqueness of this study is the feedback from scammers themselves and their input towards authority and victims. Overall, the respondents provide their views drawing strength from the ever-changing technological background as well as the susceptibility of security features and vulnerability of human engagement.

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A holistic qualitative exploration on the perception of scams, scam techniques and effectiveness of anti-scam campaigns in Malaysia10.1108/JFC-06-2023-0151Journal of Financial Crime2023-09-27© 2023 Emerald Publishing LimitedSharon WilsonNor Azlili HassanKheng Kia KhorSanthidran SinnappanAfi Roshezry Abu BakarSoon Aun TanJournal of Financial Crimeahead-of-printahead-of-print2023-09-2710.1108/JFC-06-2023-0151https://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0151/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Fathoming fraud: unveiling theories, investigating pathways and combating fraudhttps://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0153/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAlthough corporations exert considerable efforts to uphold ethical standards in their business operations, fraud instances persist as an enduring and formidable challenge within organisations, defying their utmost efforts. The presence of fraud poses a substantial and recurring threat to corporations, leading to significant financial losses on an annual basis. This emphasises the crucial need for a comprehensive understanding of the factors contributing to fraudulent activities and the intricate nature of fraud risk factors inherent in business operations. Therefore, this paper aims to enhance the efficacy of fraud detection and prevention measures through critical analysis and refinement of established fraud theories, drawing upon the existing literature on this subject matter. This paper offers a comprehensive qualitative analysis of the existing literature, thoroughly reviewing prominent models that aim to elucidate the underlying motivations behind fraudulent behaviour. Moreover, drawing upon the existing theoretical foundation, this study conceptualises a model that enhances the understanding of the crucial factors contributing to fraudulent behaviour. The study presents new theoretical insights concerning the role of personal integrity in fraudulent decision-making, presenting refined interventions that enhance comprehension of the underlying drivers of fraud occurrences and strategies for prevention. Furthermore, the study reveals a comprehensive three-part approach to improving organisational health through strengthening compliance mechanisms and cultivating an ethical-values-based culture. The study introduces a novel conceptual framework, the personal ethic-based fraud motivation model, which offers a deeper understanding of the factors and conditions influencing individuals’ propensity to engage in fraudulent activities. Furthermore, this study presents a three Cs strategy that effectively delineates the influential forces that drive individuals to surmount fraud risks.Fathoming fraud: unveiling theories, investigating pathways and combating fraud
Abinash Mandal, Amilan S.
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Although corporations exert considerable efforts to uphold ethical standards in their business operations, fraud instances persist as an enduring and formidable challenge within organisations, defying their utmost efforts. The presence of fraud poses a substantial and recurring threat to corporations, leading to significant financial losses on an annual basis. This emphasises the crucial need for a comprehensive understanding of the factors contributing to fraudulent activities and the intricate nature of fraud risk factors inherent in business operations. Therefore, this paper aims to enhance the efficacy of fraud detection and prevention measures through critical analysis and refinement of established fraud theories, drawing upon the existing literature on this subject matter.

This paper offers a comprehensive qualitative analysis of the existing literature, thoroughly reviewing prominent models that aim to elucidate the underlying motivations behind fraudulent behaviour. Moreover, drawing upon the existing theoretical foundation, this study conceptualises a model that enhances the understanding of the crucial factors contributing to fraudulent behaviour.

The study presents new theoretical insights concerning the role of personal integrity in fraudulent decision-making, presenting refined interventions that enhance comprehension of the underlying drivers of fraud occurrences and strategies for prevention. Furthermore, the study reveals a comprehensive three-part approach to improving organisational health through strengthening compliance mechanisms and cultivating an ethical-values-based culture.

The study introduces a novel conceptual framework, the personal ethic-based fraud motivation model, which offers a deeper understanding of the factors and conditions influencing individuals’ propensity to engage in fraudulent activities. Furthermore, this study presents a three Cs strategy that effectively delineates the influential forces that drive individuals to surmount fraud risks.

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Fathoming fraud: unveiling theories, investigating pathways and combating fraud10.1108/JFC-06-2023-0153Journal of Financial Crime2023-09-14© 2023 Emerald Publishing LimitedAbinash MandalAmilan S.Journal of Financial Crimeahead-of-printahead-of-print2023-09-1410.1108/JFC-06-2023-0153https://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0153/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Mapping romance fraud research – a systematic reviewhttps://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0160/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to systematically review over two decades of academic articles on romance fraud to provide a holistic insight into this crime and identify literature gaps. More than two decades of peer-reviewed academic journal articles from 2000 to 2023 were systematically reviewed using multiple search engines and databases for relevant papers, identified through searches of paper titles, keywords, abstracts and primary texts. The findings reveal 10 themes: i) the definitions and terminology of romance fraud; ii) romance fraud’s impact on victims; iii) the profile of romance fraud criminals and victims; iv) romance fraud methods and techniques; v) why victims become susceptible to romance fraud; vi) the psychology of romance fraud criminals; vii) the links between romance fraud and other crimes; viii) the challenges of investigating romance fraud; ix) preventing romance fraud and protecting victims; and x) how romance fraud victims can be supported. The paper reveals implications regarding the future direction of policy and strategy to address the pervasive low reporting rates and narratives of shame bound with victims of this crime. Romance fraud is a serious crime against individuals with impacts beyond financial losses. Still, this fraud type is under-researched, and the literature lacks a holistic view of this crime. To the best of the authors’ knowledge, this is the first systematic literature review providing a holistic view of romance fraud. It combines evidence across the academic landscape to reveal the breadth and depth of the current work concerning romance fraud and identify gaps in the understanding of this fraud crime.Mapping romance fraud research – a systematic review
Rasha Kassem, Elisabeth Carter
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to systematically review over two decades of academic articles on romance fraud to provide a holistic insight into this crime and identify literature gaps.

More than two decades of peer-reviewed academic journal articles from 2000 to 2023 were systematically reviewed using multiple search engines and databases for relevant papers, identified through searches of paper titles, keywords, abstracts and primary texts.

The findings reveal 10 themes: i) the definitions and terminology of romance fraud; ii) romance fraud’s impact on victims; iii) the profile of romance fraud criminals and victims; iv) romance fraud methods and techniques; v) why victims become susceptible to romance fraud; vi) the psychology of romance fraud criminals; vii) the links between romance fraud and other crimes; viii) the challenges of investigating romance fraud; ix) preventing romance fraud and protecting victims; and x) how romance fraud victims can be supported.

The paper reveals implications regarding the future direction of policy and strategy to address the pervasive low reporting rates and narratives of shame bound with victims of this crime.

Romance fraud is a serious crime against individuals with impacts beyond financial losses. Still, this fraud type is under-researched, and the literature lacks a holistic view of this crime. To the best of the authors’ knowledge, this is the first systematic literature review providing a holistic view of romance fraud. It combines evidence across the academic landscape to reveal the breadth and depth of the current work concerning romance fraud and identify gaps in the understanding of this fraud crime.

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Mapping romance fraud research – a systematic review10.1108/JFC-06-2023-0160Journal of Financial Crime2023-10-19© 2023 Emerald Publishing LimitedRasha KassemElisabeth CarterJournal of Financial Crimeahead-of-printahead-of-print2023-10-1910.1108/JFC-06-2023-0160https://www.emerald.com/insight/content/doi/10.1108/JFC-06-2023-0160/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
How compatible is the principle of neutrality with the implementation of economic sanctions? An examination into Switzerland’s use of sanctionshttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe current political situation in Europe has amplified economic sanctions as a retaliatory measure for states not directly involved in the conflict but wanting to influence the political situation. The purpose of this paper is to further understand the interplay of the neutrality principle and employment of economic sanctions. Through an extensive literature review, heavily based on the publications of the Swiss Confederacy, neutrality as a foreign policy serving to promote Swiss interests is explored. The room for interpretation and freedom of action in the neutrality principle is highlighted above all. Economic sanctions are compatible with the neutrality principle, but do not necessarily further the same purpose. Political pressure to participate in sanctions does not take into consideration the ways in which the credibility of neutrality can be implicated, as well as the value of protecting Switzerland’s role as an international mediator. The consistency with which the neutrality principle is translated into the modern geopolitical context is crucial for its longevity. The novelty of the current political sanctions, still unfolding, demands a careful examination into the history of neutrality and the use of sanctions. No better insight can be offered than by the development of neutrality in the history of the titan of neutrality, Switzerland.How compatible is the principle of neutrality with the implementation of economic sanctions? An examination into Switzerland’s use of sanctions
Fabian Maximilian Johannes Teichmann, Chiara Wittmann
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The current political situation in Europe has amplified economic sanctions as a retaliatory measure for states not directly involved in the conflict but wanting to influence the political situation. The purpose of this paper is to further understand the interplay of the neutrality principle and employment of economic sanctions.

Through an extensive literature review, heavily based on the publications of the Swiss Confederacy, neutrality as a foreign policy serving to promote Swiss interests is explored. The room for interpretation and freedom of action in the neutrality principle is highlighted above all.

Economic sanctions are compatible with the neutrality principle, but do not necessarily further the same purpose. Political pressure to participate in sanctions does not take into consideration the ways in which the credibility of neutrality can be implicated, as well as the value of protecting Switzerland’s role as an international mediator.

The consistency with which the neutrality principle is translated into the modern geopolitical context is crucial for its longevity. The novelty of the current political sanctions, still unfolding, demands a careful examination into the history of neutrality and the use of sanctions. No better insight can be offered than by the development of neutrality in the history of the titan of neutrality, Switzerland.

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How compatible is the principle of neutrality with the implementation of economic sanctions? An examination into Switzerland’s use of sanctions10.1108/JFC-07-2022-0171Journal of Financial Crime2022-09-27© 2022 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannChiara WittmannJournal of Financial Crimeahead-of-printahead-of-print2022-09-2710.1108/JFC-07-2022-0171https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
How can sustainability be effectively regulated?https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0174/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the fundamental conditions which are necessary for the construction of a regulation which will affect a genuine advancement in the context of environmental protection. The component parts of an adequately built regulation are broken down to concretise the notion of efficacy – and its proposed universality – in a regulatory context. This paper takes a comparative approach of regulations and extends to include a consideration of the monitoring and enforcement of regulation as a necessary tenant of an effective regulation. Sustainability regulations have seen a significant development in the 20th century. Notable remain the national discrepancies to so universal problem, as well as an inconsistent acknowledgement of the purpose of sustainability regulations beyond a tick-box compliance commitment. The importance of sustainability has been amplified without a due consideration of what its translation into regulation must look like. This paper argues that no meaningful change can be lobbied without understanding how its practical implementation is performed.How can sustainability be effectively regulated?
Fabian Maximilian Johannes Teichmann, Chiara Wittmann
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the fundamental conditions which are necessary for the construction of a regulation which will affect a genuine advancement in the context of environmental protection.

The component parts of an adequately built regulation are broken down to concretise the notion of efficacy – and its proposed universality – in a regulatory context. This paper takes a comparative approach of regulations and extends to include a consideration of the monitoring and enforcement of regulation as a necessary tenant of an effective regulation.

Sustainability regulations have seen a significant development in the 20th century. Notable remain the national discrepancies to so universal problem, as well as an inconsistent acknowledgement of the purpose of sustainability regulations beyond a tick-box compliance commitment.

The importance of sustainability has been amplified without a due consideration of what its translation into regulation must look like. This paper argues that no meaningful change can be lobbied without understanding how its practical implementation is performed.

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How can sustainability be effectively regulated?10.1108/JFC-07-2022-0174Journal of Financial Crime2022-10-11© 2022 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannChiara WittmannJournal of Financial Crimeahead-of-printahead-of-print2022-10-1110.1108/JFC-07-2022-0174https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2022-0174/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Cyberattacks in the context of international law enforcementhttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0164/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to manage the dilemma of cyberspace operations, as the incidence of cybercrimes has increased tremendously in the past few decades, turning cyberspace into a field of war in which all nations must fight. For many countries, cyberattacks and conflicts, and even the basic operation of cyberspace in general, are new territories. Furthermore, international law today does not address many aspects of cyber warfare, as it typically has dealt with only traditional warfare. This study examined this crime whether it is a domestic or an international crime and whether cyber wars are under international law or domestic law to address these issues. Although many attempts to criminalize these actions occurred, the findings suggest that the world has failed to frame the legal instruments against cyberattacks. The findings also suggest recommendations to solve this issue. To the best of the author’s knowledge, this study analyzed the comparison between the same crime in the perspective of domestic and international law, highlighting an unsolved dilemma in the world, suggesting some unprecedented solutions to solve.Cyberattacks in the context of international law enforcement
Deymah Alweqyan
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to manage the dilemma of cyberspace operations, as the incidence of cybercrimes has increased tremendously in the past few decades, turning cyberspace into a field of war in which all nations must fight. For many countries, cyberattacks and conflicts, and even the basic operation of cyberspace in general, are new territories. Furthermore, international law today does not address many aspects of cyber warfare, as it typically has dealt with only traditional warfare.

This study examined this crime whether it is a domestic or an international crime and whether cyber wars are under international law or domestic law to address these issues.

Although many attempts to criminalize these actions occurred, the findings suggest that the world has failed to frame the legal instruments against cyberattacks. The findings also suggest recommendations to solve this issue.

To the best of the author’s knowledge, this study analyzed the comparison between the same crime in the perspective of domestic and international law, highlighting an unsolved dilemma in the world, suggesting some unprecedented solutions to solve.

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Cyberattacks in the context of international law enforcement10.1108/JFC-07-2023-0164Journal of Financial Crime2023-08-22© 2023 Emerald Publishing LimitedDeymah AlweqyanJournal of Financial Crimeahead-of-printahead-of-print2023-08-2210.1108/JFC-07-2023-0164https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0164/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Bullying prevention and intervention strategies under UAE lawhttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the nature of cyberbullying and corresponding strategies being used under the New United Arab Emirates (UAE) Cybercrimes Law. The analysis begins with a review of the nature of cyberbullying, focusing primarily on key concepts, underlying risk factors, forms of cyberbullying and adverse effects. Background information about the nature of cyberbullying will then lay the foundation for the subsequent sections of the analysis, which will focus on preventive strategies and legislative measures. The second section of the analysis will entail a review of the legislative framework for cyberbullying in the UAE. The goal here is to examine how the UAE is responding to the emerging threat of cyberbullying in its jurisdiction. The next section will then shift gears to interventions and strategies being implemented at the global level. A global perspective is central to comparing practices in the UAE to international standards and regulations. Findings from the analysis have shown that the UAE has the most robust and comprehensive cyberbullying laws internationally. Nonetheless, the New Cybercrimes Law is ambiguous, and it is not expressively specific to cyberbullying. The law does not have a clear definition of cyberbullying, as well as the scope of its application to specific cases involving students. A comparative analysis across jurisdictions has revealed that most countries neither have specific cyberbullying laws nor explicitly define the phenomenon in existing laws. Thus, cyberbullying is a gray area in the UAE national law, requiring a clear definition and scope of application. The courts will establish case law that will finally address the current definitional challenges and extend of applying the New Cybercrimes Law. The analysis concludes with the application of international best standards and practices to the UAE context, focusing specifically on how to strengthen laws and procedures in the UAE.Bullying prevention and intervention strategies under UAE law
Tareq Na’el Al-Tawil, Salam Abdallah
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine the nature of cyberbullying and corresponding strategies being used under the New United Arab Emirates (UAE) Cybercrimes Law.

The analysis begins with a review of the nature of cyberbullying, focusing primarily on key concepts, underlying risk factors, forms of cyberbullying and adverse effects. Background information about the nature of cyberbullying will then lay the foundation for the subsequent sections of the analysis, which will focus on preventive strategies and legislative measures. The second section of the analysis will entail a review of the legislative framework for cyberbullying in the UAE. The goal here is to examine how the UAE is responding to the emerging threat of cyberbullying in its jurisdiction. The next section will then shift gears to interventions and strategies being implemented at the global level. A global perspective is central to comparing practices in the UAE to international standards and regulations.

Findings from the analysis have shown that the UAE has the most robust and comprehensive cyberbullying laws internationally. Nonetheless, the New Cybercrimes Law is ambiguous, and it is not expressively specific to cyberbullying. The law does not have a clear definition of cyberbullying, as well as the scope of its application to specific cases involving students. A comparative analysis across jurisdictions has revealed that most countries neither have specific cyberbullying laws nor explicitly define the phenomenon in existing laws. Thus, cyberbullying is a gray area in the UAE national law, requiring a clear definition and scope of application. The courts will establish case law that will finally address the current definitional challenges and extend of applying the New Cybercrimes Law.

The analysis concludes with the application of international best standards and practices to the UAE context, focusing specifically on how to strengthen laws and procedures in the UAE.

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Bullying prevention and intervention strategies under UAE law10.1108/JFC-07-2023-0171Journal of Financial Crime2023-11-13© 2023 Emerald Publishing LimitedTareq Na’el Al-TawilSalam AbdallahJournal of Financial Crimeahead-of-printahead-of-print2023-11-1310.1108/JFC-07-2023-0171https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0171/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAEhttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE). The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements. Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements. There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAE
Tareq Na′el Al-Tawil
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine the extent to which the corporate social responsibility (CSR) law will help combat money laundering in the United Arab Emirates (UAE).

The paper will first focus on examining whether money laundering and CSR are compatible. Such an analysis will then inform decisions on whether to include anti-money laundering in CSR disclosure requirements.

Key findings from the analysis have shown that the UAE CSR law does not explicitly mention money laundering as part of CSR disclosure requirements. Anti-money laundering (AML) and CSR are compatible and convergence, but money laundering is not yet an integral element of CSR disclosure requirements.

There are no clear mechanisms or provisions under the UAE CSR law on how money laundering can be included in CSR disclosure requirements, whether voluntary or mandatory. A pressing challenge now is whether the UAE should regulate AML/combatting the financing of terrorism disclosures under the CSR law. The main concern is that such a move could make mandatory disclosure another technical and regulatory requirement that UAE business must comply, which will be inimical to fostering a strong CSR culture.

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Money laundering: effectiveness of the corporate social responsibility (CSR) law in the UAE10.1108/JFC-07-2023-0172Journal of Financial Crime2023-09-11© 2023 Emerald Publishing LimitedTareq Na′el Al-TawilJournal of Financial Crimeahead-of-printahead-of-print2023-09-1110.1108/JFC-07-2023-0172https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The risk of fraudulent letter of credit transactions in Bangladesh: a growing threat to Bangladesh’s economyhttps://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0179/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to focus on managing the risk of fraud in commercial letters of credit (LC) in Bangladesh involving three parties: the seller, the buyer and the bank. It addresses the severity of LC fraud, the banks’ actions when detected and the preventive measures the relevant parties can adopt. This research uses doctrinal and qualitative methods to propose strategic actions that benefit buyers, sellers, banks, legal professionals and judges. The study aims to explore the modus operandi used by fraudsters through thematic analysis. The study’s findings reveal that LC fraud has escalated to a concerning level, posing a significant threat to the economic stability of Bangladesh. Measures must be taken to mitigate this risk and safeguard the country’s financial integrity. To effectively combat the risk of LC fraud, the updated version of UCP must include specific and detailed guidelines on LC fraud. This study recommends preventative measures that all parties involved must take to reduce the likelihood of fraud significantly. Due to a lack of LC experts, the participant sample for the study in Bangladesh was limited. Nevertheless, most banking participants were highly distinguished and held the Head of Trade Finance Department position in commercial banks. A few academics and legal practitioners with LC expertise also participated in the study. It provides cutting-edge solutions to effectively handle LC fraud risk and provides proactive measures to prevent it.The risk of fraudulent letter of credit transactions in Bangladesh: a growing threat to Bangladesh’s economy
Rushmila Bintay Rafique, Tamara Joan Duraisingam
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to focus on managing the risk of fraud in commercial letters of credit (LC) in Bangladesh involving three parties: the seller, the buyer and the bank. It addresses the severity of LC fraud, the banks’ actions when detected and the preventive measures the relevant parties can adopt.

This research uses doctrinal and qualitative methods to propose strategic actions that benefit buyers, sellers, banks, legal professionals and judges. The study aims to explore the modus operandi used by fraudsters through thematic analysis.

The study’s findings reveal that LC fraud has escalated to a concerning level, posing a significant threat to the economic stability of Bangladesh. Measures must be taken to mitigate this risk and safeguard the country’s financial integrity. To effectively combat the risk of LC fraud, the updated version of UCP must include specific and detailed guidelines on LC fraud. This study recommends preventative measures that all parties involved must take to reduce the likelihood of fraud significantly.

Due to a lack of LC experts, the participant sample for the study in Bangladesh was limited. Nevertheless, most banking participants were highly distinguished and held the Head of Trade Finance Department position in commercial banks. A few academics and legal practitioners with LC expertise also participated in the study.

It provides cutting-edge solutions to effectively handle LC fraud risk and provides proactive measures to prevent it.

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The risk of fraudulent letter of credit transactions in Bangladesh: a growing threat to Bangladesh’s economy10.1108/JFC-07-2023-0179Journal of Financial Crime2023-11-03© 2023 Emerald Publishing LimitedRushmila Bintay RafiqueTamara Joan DuraisingamJournal of Financial Crimeahead-of-printahead-of-print2023-11-0310.1108/JFC-07-2023-0179https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0179/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Is the counterfeit currency mechanism strictly enforced by banks and regulatory authorities?https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0183/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestCounterfeit currency ranges from a low-quality colour scanner/printer notes to high-quality counterfeits produced by hostile powers. Detecting counterfeit money notes is a national priority due to its huge negative economic impact. However, no automatic mechanism exists for identifying the source of counterfeit notes, which is a more sophisticated and critical problem. This paper aims to evaluate the procedure or mechanism which are followed by banks for fake not reporting and the effectiveness of this mechanism. For doing this research, primary data has been collected from bank staff (particularly front desk staff like cashier/teller). A very simple and short questionnaire has been prepared where the researcher just wants to explore that up to what extent bank staff is aware about the clauses of the counterfeit currency note (CCN). The result shows that in approximately 38% of cases, bank staff return the fake notes to the customer without reporting, and approximately 57%–58% are unaware of the fake currency notes reporting to the nodal bank office and police. Banks themselves have to take stringent actions to ensure that none of the CCNs circulate again in the economy if caught by bank officials. All the flaws in a system should be effectively monitored along with covering the loopholes in the system like lack of training, time-to-time sensitisation of front desk employees, providing protection to employees in case of any kind of threat from customer and reducing the burden of retaining the customer if a customer is at guilty. This is the original work done by the researchers; in fact, the researchers were able to find only a couple of studies related to this kind of in-depth analysis in the literature. This study is done to provide feedback to the authorities on how the system is manipulated for organisational and self-interest.Is the counterfeit currency mechanism strictly enforced by banks and regulatory authorities?
Suman Garg, Renu Aggarwal
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Counterfeit currency ranges from a low-quality colour scanner/printer notes to high-quality counterfeits produced by hostile powers. Detecting counterfeit money notes is a national priority due to its huge negative economic impact. However, no automatic mechanism exists for identifying the source of counterfeit notes, which is a more sophisticated and critical problem. This paper aims to evaluate the procedure or mechanism which are followed by banks for fake not reporting and the effectiveness of this mechanism.

For doing this research, primary data has been collected from bank staff (particularly front desk staff like cashier/teller). A very simple and short questionnaire has been prepared where the researcher just wants to explore that up to what extent bank staff is aware about the clauses of the counterfeit currency note (CCN).

The result shows that in approximately 38% of cases, bank staff return the fake notes to the customer without reporting, and approximately 57%–58% are unaware of the fake currency notes reporting to the nodal bank office and police.

Banks themselves have to take stringent actions to ensure that none of the CCNs circulate again in the economy if caught by bank officials. All the flaws in a system should be effectively monitored along with covering the loopholes in the system like lack of training, time-to-time sensitisation of front desk employees, providing protection to employees in case of any kind of threat from customer and reducing the burden of retaining the customer if a customer is at guilty.

This is the original work done by the researchers; in fact, the researchers were able to find only a couple of studies related to this kind of in-depth analysis in the literature. This study is done to provide feedback to the authorities on how the system is manipulated for organisational and self-interest.

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Is the counterfeit currency mechanism strictly enforced by banks and regulatory authorities?10.1108/JFC-07-2023-0183Journal of Financial Crime2023-10-24© 2023 Emerald Publishing LimitedSuman GargRenu AggarwalJournal of Financial Crimeahead-of-printahead-of-print2023-10-2410.1108/JFC-07-2023-0183https://www.emerald.com/insight/content/doi/10.1108/JFC-07-2023-0183/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
What makes an economic sanction effective?https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2022-0199/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to elucidate the practical and theoretical mechanisms which contribute to the perception of an economic sanction’s effectiveness as a foreign policy tool. This paper is divided into three sections, the first two of which are heavily based on the current academic literature and media presentation of sanctions. The third section is rooted in the empirical approach presented in the first author’s exploratory work, Methods of Money Laundering (2021). Economic sanctions cannot be perceived as effective when the standard for efficacy remains undefined and sanction circumvention remains feasible. The public perception of sanctions is characterized by a series of assumptions as well as conflict foreign policy objectives, which cultivate an economic theory that is benefited by a practical exploration of the routes of circumvention. The efficacy of economic sanctions is not a stable equation, but rather the application of an economic tool which is dependent on its context. Paths of sanction circumvention remain open due to weaknesses in compliance regulation. These paths continue to undermine the credibility of sanctions and, ultimately, their efficacy.What makes an economic sanction effective?
Fabian Maximilian Johannes Teichmann, Chiara Wittmann
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to elucidate the practical and theoretical mechanisms which contribute to the perception of an economic sanction’s effectiveness as a foreign policy tool.

This paper is divided into three sections, the first two of which are heavily based on the current academic literature and media presentation of sanctions. The third section is rooted in the empirical approach presented in the first author’s exploratory work, Methods of Money Laundering (2021).

Economic sanctions cannot be perceived as effective when the standard for efficacy remains undefined and sanction circumvention remains feasible. The public perception of sanctions is characterized by a series of assumptions as well as conflict foreign policy objectives, which cultivate an economic theory that is benefited by a practical exploration of the routes of circumvention.

The efficacy of economic sanctions is not a stable equation, but rather the application of an economic tool which is dependent on its context. Paths of sanction circumvention remain open due to weaknesses in compliance regulation. These paths continue to undermine the credibility of sanctions and, ultimately, their efficacy.

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What makes an economic sanction effective?10.1108/JFC-08-2022-0199Journal of Financial Crime2022-11-23© 2022 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannChiara WittmannJournal of Financial Crimeahead-of-printahead-of-print2022-11-2310.1108/JFC-08-2022-0199https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2022-0199/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2022 Emerald Publishing Limited
Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysishttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0198/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption. Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results. The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan. The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future. This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysis
Misbah Javid, Khurram Ejaz Chandia, Qamar Uz Zaman Malik
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption.

Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results.

The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan.

The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future.

This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.

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Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysis10.1108/JFC-08-2023-0198Journal of Financial Crime2023-12-11© 2023 Emerald Publishing LimitedMisbah JavidKhurram Ejaz ChandiaQamar Uz Zaman MalikJournal of Financial Crimeahead-of-printahead-of-print2023-12-1110.1108/JFC-08-2023-0198https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0198/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
From later to sooner: exploring compliance with the global regime of anti-money laundering and counter-terrorist financing in the legal professionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0201/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe legal profession is vulnerable to abuse for the purposes of money laundering and terrorist financing. According to the Financial Action Task Force (FATF), that vulnerability justified updated global recommendations that urge countries to require lawyers, notaries and other independent legal professionals – including sole practitioners, partners and employed professionals within law firms – to identify, assess and manage the money laundering and terrorist financing risks associated with their services and to ensure that they have appropriate mechanisms in place to provide risk assessment information to competent authorities. Those recommendations proved contentious, with concerns raised by both legal academics and legal professional bodies about the implications of certain aspects of the requirements for the principle of lawyer–client confidentiality. Despite those concerns, many countries have introduced or amended regulatory regimes to extend their application to the legal sector to comply with the FATF’s standards. The purpose of this paper is to contribute to the debate surrounding the extension of AML/CTF obligations to the legal profession. This paper considers three jurisdictions – the UK, Israel and Australia – at different stages in their journey towards compliance with the FATF’s anti-money laundering (AML) and counter-terrorist financing (CTF) standards for the legal profession. While the UK has a long-established and well-embedded AML regulatory framework for legal professionals, Australia remains non-compliant with the FATF standards. Israel occupies a position between these two ends of the spectrum: following criticism of the omission of lawyers from its AML/CTF regime, Israel implemented due diligence rules for the profession. In 2018, Israel was found to be partially compliant with the relevant FATF recommendations. It argues that although there are challenges involved, there are also important benefits. Therefore, Australia should act to implement its proposed changes sooner rather than later. Its persistent failure to appropriately address globally recognised areas of vulnerability leaves Australia open to integrity abuse. In addition, if the government delays addressing this issue until pressure from the FATF (such as deadlines for compliance and, if necessary, a finding of non-compliance) forces it to comply, this may tarnish Australia’s reputation, threaten its access to international financial markets and adversely affect the legitimacy and effectiveness of its AML/CTF regime. Originality in this context refers to the distinctiveness and uniqueness of a paper’s content and approach. In this case, the originality lies in the fact that there is no other existing paper that addresses the topic of three common-law jurisdictions at various stages of their progression towards aligning with the FATF AML/CTF standards, specifically within the context of the legal profession. Furthermore, the timeliness of this paper is underscored by the fact that multiple jurisdictions are currently deliberating their positions on the focus of this paper. This adds to its originality and relevance, as it addresses a gap in the literature while also contributing to the ongoing discourse surrounding compliance with FATF’s standards.From later to sooner: exploring compliance with the global regime of anti-money laundering and counter-terrorist financing in the legal profession
Doron Goldbarsht, Katie Benson
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The legal profession is vulnerable to abuse for the purposes of money laundering and terrorist financing. According to the Financial Action Task Force (FATF), that vulnerability justified updated global recommendations that urge countries to require lawyers, notaries and other independent legal professionals – including sole practitioners, partners and employed professionals within law firms – to identify, assess and manage the money laundering and terrorist financing risks associated with their services and to ensure that they have appropriate mechanisms in place to provide risk assessment information to competent authorities. Those recommendations proved contentious, with concerns raised by both legal academics and legal professional bodies about the implications of certain aspects of the requirements for the principle of lawyer–client confidentiality. Despite those concerns, many countries have introduced or amended regulatory regimes to extend their application to the legal sector to comply with the FATF’s standards. The purpose of this paper is to contribute to the debate surrounding the extension of AML/CTF obligations to the legal profession.

This paper considers three jurisdictions – the UK, Israel and Australia – at different stages in their journey towards compliance with the FATF’s anti-money laundering (AML) and counter-terrorist financing (CTF) standards for the legal profession. While the UK has a long-established and well-embedded AML regulatory framework for legal professionals, Australia remains non-compliant with the FATF standards. Israel occupies a position between these two ends of the spectrum: following criticism of the omission of lawyers from its AML/CTF regime, Israel implemented due diligence rules for the profession. In 2018, Israel was found to be partially compliant with the relevant FATF recommendations.

It argues that although there are challenges involved, there are also important benefits. Therefore, Australia should act to implement its proposed changes sooner rather than later. Its persistent failure to appropriately address globally recognised areas of vulnerability leaves Australia open to integrity abuse. In addition, if the government delays addressing this issue until pressure from the FATF (such as deadlines for compliance and, if necessary, a finding of non-compliance) forces it to comply, this may tarnish Australia’s reputation, threaten its access to international financial markets and adversely affect the legitimacy and effectiveness of its AML/CTF regime.

Originality in this context refers to the distinctiveness and uniqueness of a paper’s content and approach. In this case, the originality lies in the fact that there is no other existing paper that addresses the topic of three common-law jurisdictions at various stages of their progression towards aligning with the FATF AML/CTF standards, specifically within the context of the legal profession. Furthermore, the timeliness of this paper is underscored by the fact that multiple jurisdictions are currently deliberating their positions on the focus of this paper. This adds to its originality and relevance, as it addresses a gap in the literature while also contributing to the ongoing discourse surrounding compliance with FATF’s standards.

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From later to sooner: exploring compliance with the global regime of anti-money laundering and counter-terrorist financing in the legal profession10.1108/JFC-08-2023-0201Journal of Financial Crime2023-10-12© 2023 Emerald Publishing LimitedDoron GoldbarshtKatie BensonJournal of Financial Crimeahead-of-printahead-of-print2023-10-1210.1108/JFC-08-2023-0201https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0201/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
“Pay back the money” – a paper on criminal and civil asset forfeiture within South Africa and suggestions for reformhttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0203/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to bring to light the present civil and criminal asset forfeiture procedures within the South African context and to make suggestions for reform thereof. While there exists and is a need for constant change and reform of the law to ensure that it remains transparent, up-to-date and applicable to all means through which economic crime can be committed, South Africa lacks the necessary resources and attitudes to accomplish this essential goal. The approach used in this paper is purely qualitative using journal articles, textbooks, reports, periodicals, speeches and legislation as its basis. It is through a consolidation of this literature that this paper was formed. While South Africa’s present system of asset forfeiture is producing some impressive results, the process still has vast room for improvement. There are key areas which this paper outlines for reform. However, the probability of improvement is relatively low owing to the levels of corruption, illicit activities and attitudes of mistrust within the South African society at large. The concept of asset forfeiture is not new to any international jurisdiction, let alone South Africa itself. However, this paper aims to give insight into the specific South African experience of this procedure and how it can possibly be improved within the specific context.“Pay back the money” – a paper on criminal and civil asset forfeiture within South Africa and suggestions for reform
Llewelyn Gray Curlewis
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to bring to light the present civil and criminal asset forfeiture procedures within the South African context and to make suggestions for reform thereof. While there exists and is a need for constant change and reform of the law to ensure that it remains transparent, up-to-date and applicable to all means through which economic crime can be committed, South Africa lacks the necessary resources and attitudes to accomplish this essential goal.

The approach used in this paper is purely qualitative using journal articles, textbooks, reports, periodicals, speeches and legislation as its basis. It is through a consolidation of this literature that this paper was formed.

While South Africa’s present system of asset forfeiture is producing some impressive results, the process still has vast room for improvement. There are key areas which this paper outlines for reform. However, the probability of improvement is relatively low owing to the levels of corruption, illicit activities and attitudes of mistrust within the South African society at large.

The concept of asset forfeiture is not new to any international jurisdiction, let alone South Africa itself. However, this paper aims to give insight into the specific South African experience of this procedure and how it can possibly be improved within the specific context.

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“Pay back the money” – a paper on criminal and civil asset forfeiture within South Africa and suggestions for reform10.1108/JFC-08-2023-0203Journal of Financial Crime2023-10-06© 2023 Emerald Publishing LimitedLlewelyn Gray CurlewisJournal of Financial Crimeahead-of-printahead-of-print2023-10-0610.1108/JFC-08-2023-0203https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0203/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Is aggressive tax planning a failure of tax adviser integrity?https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0207/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning. The paper reviews the current state of tax planning with case studies that reveal fundamental statutory structural opportunities. While some, possibly many, tax advisers lack integrity and recommend tax structures to their clients that are inconsistent with reasonable interpretations of the tax law, most advisers, even very aggressive and creative advisers, probably do not. The paper suggests that it may be futile to seek to deter tax professionals from designing and marketing tax plans unless legislation makes tax advisers jointly responsible with their clients for their clients’ tax underpayments. Short of such a radical approach, governments must commit first to altering the basic structure of their tax laws to make aggressive tax planning uninviting. The paper offers original insights into the inseparability of the legislative process from the creation of unnecessary tax planning opportunities.Is aggressive tax planning a failure of tax adviser integrity?
Henry Ordower
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to address the fundamentals of tax planning and seeks to focus on the opportunities and root causes for tax planning.

The paper reviews the current state of tax planning with case studies that reveal fundamental statutory structural opportunities.

While some, possibly many, tax advisers lack integrity and recommend tax structures to their clients that are inconsistent with reasonable interpretations of the tax law, most advisers, even very aggressive and creative advisers, probably do not. The paper suggests that it may be futile to seek to deter tax professionals from designing and marketing tax plans unless legislation makes tax advisers jointly responsible with their clients for their clients’ tax underpayments.

Short of such a radical approach, governments must commit first to altering the basic structure of their tax laws to make aggressive tax planning uninviting.

The paper offers original insights into the inseparability of the legislative process from the creation of unnecessary tax planning opportunities.

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Is aggressive tax planning a failure of tax adviser integrity?10.1108/JFC-08-2023-0207Journal of Financial Crime2023-10-13© 2023 Emerald Publishing LimitedHenry OrdowerJournal of Financial Crimeahead-of-printahead-of-print2023-10-1310.1108/JFC-08-2023-0207https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0207/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A critical analysis of the cross-border financial crime risks inherent in the African continental free trade areahttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0208/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to provide authorities managing free trade zones, business enterprises, financial institutions and dedicated free zone customs, police and immigration command assigned to deal with aspects of movement of goods and persons in and out of the free zones with a clear understanding of the cross-border financial crime risks associated with the African Continental Free Trade Area and the risk control measures that combines human intelligence with advanced technology to combat cross-border financial crimes in the African Continental Free Trade Area. A range of research activities would be used in this study. In addition to a sweeping literature review of academic, official studies and media writings, the main focus is on critically evaluating and analysing primary data by searching and collecting statutes, court cases, administrative rules and regulations and policy documents. This paper identified bribery and corruption; modern slavery; and trade-based money laundering as the financial crime risks that are of priority concern to African Continental Free Trade Areas and demonstrated how countries can assess and mitigate these risks through adequate policies, procedures and controls including appropriate compliance management arrangement and adequate screening procedures to ensure high standards when hiring employees; corporate transparency; training on managing incidents of modern slavery, forced labour and third-party exploitation; and appropriate monitoring framework for trade-based money laundering activities. While many authors have written research papers on intra-African trade, none of those research papers explained how countries can assess and mitigate financial crime risks in free trade zones. This research paper describes the ways in which cross-border financial crime risks can be assessed and adequately addressed by the authorities managing free trade zones. This research paper analyses the risk assessment topic in line with the African Continental Free Trade Area with a focus on free trade zones in Nigeria. This research paper would help authorities managing free trade zones, commercial organisations and business enterprises to identify, prevent and mitigate cross-border financial crime risks. Zone managements and business enterprises that implement the risk-based approach, in line with the guidance given in this research paper, will be well-placed to avoid the consequences of inappropriate de-risking behaviour.A critical analysis of the cross-border financial crime risks inherent in the African continental free trade area
Ehi Eric Esoimeme
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to provide authorities managing free trade zones, business enterprises, financial institutions and dedicated free zone customs, police and immigration command assigned to deal with aspects of movement of goods and persons in and out of the free zones with a clear understanding of the cross-border financial crime risks associated with the African Continental Free Trade Area and the risk control measures that combines human intelligence with advanced technology to combat cross-border financial crimes in the African Continental Free Trade Area.

A range of research activities would be used in this study. In addition to a sweeping literature review of academic, official studies and media writings, the main focus is on critically evaluating and analysing primary data by searching and collecting statutes, court cases, administrative rules and regulations and policy documents.

This paper identified bribery and corruption; modern slavery; and trade-based money laundering as the financial crime risks that are of priority concern to African Continental Free Trade Areas and demonstrated how countries can assess and mitigate these risks through adequate policies, procedures and controls including appropriate compliance management arrangement and adequate screening procedures to ensure high standards when hiring employees; corporate transparency; training on managing incidents of modern slavery, forced labour and third-party exploitation; and appropriate monitoring framework for trade-based money laundering activities.

While many authors have written research papers on intra-African trade, none of those research papers explained how countries can assess and mitigate financial crime risks in free trade zones. This research paper describes the ways in which cross-border financial crime risks can be assessed and adequately addressed by the authorities managing free trade zones. This research paper analyses the risk assessment topic in line with the African Continental Free Trade Area with a focus on free trade zones in Nigeria. This research paper would help authorities managing free trade zones, commercial organisations and business enterprises to identify, prevent and mitigate cross-border financial crime risks. Zone managements and business enterprises that implement the risk-based approach, in line with the guidance given in this research paper, will be well-placed to avoid the consequences of inappropriate de-risking behaviour.

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A critical analysis of the cross-border financial crime risks inherent in the African continental free trade area10.1108/JFC-08-2023-0208Journal of Financial Crime2023-12-06© 2023 Emerald Publishing LimitedEhi Eric EsoimemeJournal of Financial Crimeahead-of-printahead-of-print2023-12-0610.1108/JFC-08-2023-0208https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0208/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
How fraud impacts individuals’ wellbeing – academic insights and gapshttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0215/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to discuss the impact of fraud on individuals’ wellbeing by drawing on insights from the academic literature. It also highlights literature gaps and suggests new avenues for future research. This paper is based on a comprehensive literature review to gain insights into the impact of fraud on individuals’ wellbeing and identify literature gaps. The review is not limited to a particular date or a specific discipline. The results reveal a general consensus in the literature that fraud severely and negatively impacts individuals’ wellbeing. Fraud’s impact on victims goes beyond financial hardship. It could result in stress, anger, upset, worries, fear of future victimisation, shame, loss of self-esteem, health deterioration, loss of confidence in financial matters, suicide ideation, unemployment, homelessness, less happiness and life satisfaction and broken relationships. However, research on how fraud impacts individuals’ wellbeing is scarce and has yet to receive substantial attention. To the best of the author’s knowledge, this is the first comprehensive literature review compiling evidence on the impact of fraud on individuals’ wellbeing.How fraud impacts individuals’ wellbeing – academic insights and gaps
Rasha Kassem
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to discuss the impact of fraud on individuals’ wellbeing by drawing on insights from the academic literature. It also highlights literature gaps and suggests new avenues for future research.

This paper is based on a comprehensive literature review to gain insights into the impact of fraud on individuals’ wellbeing and identify literature gaps. The review is not limited to a particular date or a specific discipline.

The results reveal a general consensus in the literature that fraud severely and negatively impacts individuals’ wellbeing. Fraud’s impact on victims goes beyond financial hardship. It could result in stress, anger, upset, worries, fear of future victimisation, shame, loss of self-esteem, health deterioration, loss of confidence in financial matters, suicide ideation, unemployment, homelessness, less happiness and life satisfaction and broken relationships. However, research on how fraud impacts individuals’ wellbeing is scarce and has yet to receive substantial attention.

To the best of the author’s knowledge, this is the first comprehensive literature review compiling evidence on the impact of fraud on individuals’ wellbeing.

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How fraud impacts individuals’ wellbeing – academic insights and gaps10.1108/JFC-08-2023-0215Journal of Financial Crime2023-11-14© 2023 Emerald Publishing LimitedRasha KassemJournal of Financial Crimeahead-of-printahead-of-print2023-11-1410.1108/JFC-08-2023-0215https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0215/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Pseudocide: dying to get away with ithttps://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0216/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestWhen an individual leaves evidence to suggest that they are dead to mislead others, they are committing “pseudocide.” This study aims to examine pseudocides performed for the purpose of committing or concealing a financial crime. This manuscript summarizes information from both academic and nonacademic publications. To provide evidence related to the conclusions made by prior authors and identify the risk factors that are often indicative of pseudocide, this manuscript examines the characteristics of pseudocides that received media coverage. Pseudocides that receive media coverage often involve a prominent figure or a compelling story. These stories are not representative of the average pseudocide, which receives no publicity because it occurs in a less developed nation and is committed by a nonpublic figure. Common characteristics include the absence of a corpse and paperwork procured through bribery. One of the only academic papers focused on pseudocide, this manuscript provides readers with information related to the scope of the issue, common methodologies and factors indicative of pseudocide. This should be of interest to several parties including forensic accountants, insurers, regulators and academics.Pseudocide: dying to get away with it
Jonathan Nash, Richard G. Brody, Frank S. Perri
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

When an individual leaves evidence to suggest that they are dead to mislead others, they are committing “pseudocide.” This study aims to examine pseudocides performed for the purpose of committing or concealing a financial crime.

This manuscript summarizes information from both academic and nonacademic publications. To provide evidence related to the conclusions made by prior authors and identify the risk factors that are often indicative of pseudocide, this manuscript examines the characteristics of pseudocides that received media coverage.

Pseudocides that receive media coverage often involve a prominent figure or a compelling story. These stories are not representative of the average pseudocide, which receives no publicity because it occurs in a less developed nation and is committed by a nonpublic figure. Common characteristics include the absence of a corpse and paperwork procured through bribery.

One of the only academic papers focused on pseudocide, this manuscript provides readers with information related to the scope of the issue, common methodologies and factors indicative of pseudocide. This should be of interest to several parties including forensic accountants, insurers, regulators and academics.

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Pseudocide: dying to get away with it10.1108/JFC-08-2023-0216Journal of Financial Crime2023-11-01© 2023 Emerald Publishing LimitedJonathan NashRichard G. BrodyFrank S. PerriJournal of Financial Crimeahead-of-printahead-of-print2023-11-0110.1108/JFC-08-2023-0216https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2023-0216/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Bounded rationality of prosecutorial decision-making in corporate fraud violationshttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0221/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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. 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. 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. This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.Bounded rationality of prosecutorial decision-making in corporate fraud violations
Claire Nolasco Braaten, Lily Chi-Fang Tsai
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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.

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.

This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.

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Bounded rationality of prosecutorial decision-making in corporate fraud violations10.1108/JFC-09-2023-0221Journal of Financial Crime2023-12-01© 2023 Emerald Publishing LimitedClaire Nolasco BraatenLily Chi-Fang TsaiJournal of Financial Crimeahead-of-printahead-of-print2023-12-0110.1108/JFC-09-2023-0221https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0221/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Gift or bribe? The characteristics and the role of gift policies in the prevention of corruptionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0222/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to explore the current trends in corruption and investigate the characteristics of corporate gift policies and their role in preventing bribery. This is a descriptive study based on primary data from a recent sample of Canadian companies’ codes of conduct and secondary data from recent corruption surveys published by non-governmental organisations. This study shows that 25% of all private and public corruption cases generate financial damages of more than US$1m per case and that 50% of all investigated fraud cases are corruption cases (ACFE, 2022). Furthermore, the Western Europe and EU region is perceived as least corrupt, whereas Sub-Saharan Africa is perceived as the most corrupt region (Transparency International, 2022). However, bribery is fairly common in nine EU countries where 10% or more of public service users bribed public officials to influence their decisions (Transparency International, 2021). Results from primary data show that 9.3% of firms put a total ban on gifts given to governmental officials, whereas 35.2% require a superior’s approval and only 5.5% state a dollar limit for the gift. Results also show that not a single firm prohibits the giving of gifts to non-governmental stakeholders or the receiving of gifts from any type of stakeholder. This paper argues that gifts can bias the recipient’s judgement and improperly influence future business decisions based on the gift’s subjective value, nature and context. This paper extends previous research by examining the characteristics of corporate gift policies. It also helps organisations improve their gift policies in an effort to reduce corruption. It is the first paper to investigate the characteristics of corporate gift policies and their role in preventing corruption.Gift or bribe? The characteristics and the role of gift policies in the prevention of corruption
Dominic Peltier-Rivest
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to explore the current trends in corruption and investigate the characteristics of corporate gift policies and their role in preventing bribery.

This is a descriptive study based on primary data from a recent sample of Canadian companies’ codes of conduct and secondary data from recent corruption surveys published by non-governmental organisations.

This study shows that 25% of all private and public corruption cases generate financial damages of more than US$1m per case and that 50% of all investigated fraud cases are corruption cases (ACFE, 2022). Furthermore, the Western Europe and EU region is perceived as least corrupt, whereas Sub-Saharan Africa is perceived as the most corrupt region (Transparency International, 2022). However, bribery is fairly common in nine EU countries where 10% or more of public service users bribed public officials to influence their decisions (Transparency International, 2021). Results from primary data show that 9.3% of firms put a total ban on gifts given to governmental officials, whereas 35.2% require a superior’s approval and only 5.5% state a dollar limit for the gift. Results also show that not a single firm prohibits the giving of gifts to non-governmental stakeholders or the receiving of gifts from any type of stakeholder. This paper argues that gifts can bias the recipient’s judgement and improperly influence future business decisions based on the gift’s subjective value, nature and context.

This paper extends previous research by examining the characteristics of corporate gift policies. It also helps organisations improve their gift policies in an effort to reduce corruption.

It is the first paper to investigate the characteristics of corporate gift policies and their role in preventing corruption.

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Gift or bribe? The characteristics and the role of gift policies in the prevention of corruption10.1108/JFC-09-2023-0222Journal of Financial Crime2023-11-08© 2023 Emerald Publishing LimitedDominic Peltier-RivestJournal of Financial Crimeahead-of-printahead-of-print2023-11-0810.1108/JFC-09-2023-0222https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0222/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The risk of political instability and the performance of Islamic banks: does corruption matter?https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0229/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the relationship between political instability and the performance of Islamic banks in emerging countries. For a data sample of 93 Islamic banks in 20 emerging countries during the period from 2011 to 2016, the authors identify indicators that matter most for the activities of Islamic banks. The study finds that a stable government and law and order are positively correlated with the health of Islamic financial institutions. On the other hand, corruption and military involvement in politics can create an unstable environment for businesses, leading to uncertainty and risk. The study also reveals that Islamic banks operating in regions or communities with lower risk of socio-economic conditions tend to exhibit higher levels of profitability. Overall, the study provides valuable insights into the impact of political instability on Islamic banks in emerging countries.The risk of political instability and the performance of Islamic banks: does corruption matter?
Zuhairan Yunmi Yunan, Majed Alharthi, Saeed Sazzad Jeris
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the relationship between political instability and the performance of Islamic banks in emerging countries.

For a data sample of 93 Islamic banks in 20 emerging countries during the period from 2011 to 2016, the authors identify indicators that matter most for the activities of Islamic banks.

The study finds that a stable government and law and order are positively correlated with the health of Islamic financial institutions. On the other hand, corruption and military involvement in politics can create an unstable environment for businesses, leading to uncertainty and risk. The study also reveals that Islamic banks operating in regions or communities with lower risk of socio-economic conditions tend to exhibit higher levels of profitability.

Overall, the study provides valuable insights into the impact of political instability on Islamic banks in emerging countries.

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The risk of political instability and the performance of Islamic banks: does corruption matter?10.1108/JFC-09-2023-0229Journal of Financial Crime2023-11-20© 2023 Emerald Publishing LimitedZuhairan Yunmi YunanMajed AlharthiSaeed Sazzad JerisJournal of Financial Crimeahead-of-printahead-of-print2023-11-2010.1108/JFC-09-2023-0229https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0229/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A critical analysis of commercial forensic interviewing techniques applicable in a South African contexthttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0234/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestA 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. A scoping review was undertaken to identify literature relevant to the theoretical assumptions and application of the PEACE model and the PCA. 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. 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.A critical analysis of commercial forensic interviewing techniques applicable in a South African context
Constant Van Graan, Vera Roos, Matthews Katjene
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

A scoping review was undertaken to identify literature relevant to the theoretical assumptions and application of the PEACE model and the PCA.

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.

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.

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A critical analysis of commercial forensic interviewing techniques applicable in a South African context10.1108/JFC-09-2023-0234Journal of Financial Crime2023-11-30© 2023 Constant Van Graan, Vera Roos and Matthews Katjene.Constant Van GraanVera RoosMatthews KatjeneJournal of Financial Crimeahead-of-printahead-of-print2023-11-3010.1108/JFC-09-2023-0234https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0234/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Constant Van Graan, Vera Roos and Matthews Katjene.http://creativecommons.org/licences/by/4.0/legalcode
Anti-corruption corporate disclosures and earnings management: evidence from a developed markethttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the association between anti-corruption corporate disclosure and earnings management practices by bringing evidence from a developed market. 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. 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. This study contributes to debate on the symbolic versus the substantive uses of anti-corruption disclosures in the UK context.Anti-corruption corporate disclosures and earnings management: evidence from a developed market
Mohamed Esmail Elmaghrabi, Ahmed Diab
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the association between anti-corruption corporate disclosure and earnings management practices by bringing evidence from a developed market.

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.

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.

This study contributes to debate on the symbolic versus the substantive uses of anti-corruption disclosures in the UK context.

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Anti-corruption corporate disclosures and earnings management: evidence from a developed market10.1108/JFC-09-2023-0235Journal of Financial Crime2023-11-30© 2023 Emerald Publishing LimitedMohamed Esmail ElmaghrabiAhmed DiabJournal of Financial Crimeahead-of-printahead-of-print2023-11-3010.1108/JFC-09-2023-0235https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Deciphering the shadows: an empirical exploration of corruption’s impact on SMEs credit costs in OECD countrieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0237/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the intricate relationship between corruption and the credit costs faced by small and medium-sized enterprises (SMEs) in OECD countries, a critical yet underexplored area in financial crime research. The primary aim is to dissect and understand how corruption impacts SMEs’ access to credit, highlighting a significant yet overlooked aspect of financial crime. This research seeks to fill a gap in the literature by providing empirical insights into the economic consequences of corruption, specifically on SMEs financing. This study used secondary panel data from the World Bank and OECD databases. The data covered the period 2007–2020 for 25 OECD countries. This study used interest rate for SMEs loans as a dependent variable and GDP per capita, inflation and corruption index as independent variables. This study used the panel autoregressive distributed lag (ARDL) model to examine the relationship between variables. The empirical findings derived from Panel ARDL postulate an intriguing dichotomy in the effects of GDP per capita, inflation rate and corruption on interest rates in both the short and long run. It was discerned that an increase in GDP per capita and inflation rate correlates with a decrement in interest rates in the long run, suggesting a potential compromise by central banks between controlling inflation and fostering economic growth. This paper makes a novel contribution to the field of financial crime by illuminating the often-overlooked economic dimensions of corruption in the context of SMEs financing. It provides a unique perspective on the ripple effects of corrupt practices in credit markets, enriching the academic discourse and informing practical approaches to combating financial crime.Deciphering the shadows: an empirical exploration of corruption’s impact on SMEs credit costs in OECD countries
Anas Al Qudah, Usama Al-Qalawi, Ahmad Alwaked
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the intricate relationship between corruption and the credit costs faced by small and medium-sized enterprises (SMEs) in OECD countries, a critical yet underexplored area in financial crime research. The primary aim is to dissect and understand how corruption impacts SMEs’ access to credit, highlighting a significant yet overlooked aspect of financial crime. This research seeks to fill a gap in the literature by providing empirical insights into the economic consequences of corruption, specifically on SMEs financing.

This study used secondary panel data from the World Bank and OECD databases. The data covered the period 2007–2020 for 25 OECD countries. This study used interest rate for SMEs loans as a dependent variable and GDP per capita, inflation and corruption index as independent variables. This study used the panel autoregressive distributed lag (ARDL) model to examine the relationship between variables.

The empirical findings derived from Panel ARDL postulate an intriguing dichotomy in the effects of GDP per capita, inflation rate and corruption on interest rates in both the short and long run. It was discerned that an increase in GDP per capita and inflation rate correlates with a decrement in interest rates in the long run, suggesting a potential compromise by central banks between controlling inflation and fostering economic growth.

This paper makes a novel contribution to the field of financial crime by illuminating the often-overlooked economic dimensions of corruption in the context of SMEs financing. It provides a unique perspective on the ripple effects of corrupt practices in credit markets, enriching the academic discourse and informing practical approaches to combating financial crime.

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Deciphering the shadows: an empirical exploration of corruption’s impact on SMEs credit costs in OECD countries10.1108/JFC-09-2023-0237Journal of Financial Crime2024-03-21© 2024 Emerald Publishing LimitedAnas Al QudahUsama Al-QalawiAhmad AlwakedJournal of Financial Crimeahead-of-printahead-of-print2024-03-2110.1108/JFC-09-2023-0237https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0237/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Legitimacy of power exercised by FATF under international lawhttps://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0239/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to focus on the legal status of the Financial Action Task Force (FATF) regulatory spread in spite of its limited membership in international law. This is conducted by examining the regime of the FATF with the normative regime of public international law and trying to identify common grounds and conflicts between the two. This study adopted an exploratory approach involving a thorough examination and analysis of accredited text, command papers and reports, archival materials, national obligations, websites as well as other documentary evidence. This research gives an empirical determinant of compliance behaviour in response to FATF regulatory standards and the interplay of international law. The findings here are not exhaustive and could be approached from other perspectives. Researchers are therefore encouraged to engage by testing the findings further, as this is only a blueprint for further research. This study provides implications for the need to open up the current membership of the FATF, as it appears discriminatory in nature and could inhibit effective compliance with its regulatory standards. FATF regulatory standards do not just revolve around its members and rule-takers but also affect unintended and vulnerable people who were never in contemplation when these regulations were debated without a global consensus. The main aim of this study is to advocate for a rethink of FATF’s regulatory strategy by ensuring that its operations are more inclusive, where jurisdictions can participate as members, creating a sense of belonging and commitment in the fight against money laundering.Legitimacy of power exercised by FATF under international law
Lovina E. Otudor, Mahmood Bagheri
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to focus on the legal status of the Financial Action Task Force (FATF) regulatory spread in spite of its limited membership in international law. This is conducted by examining the regime of the FATF with the normative regime of public international law and trying to identify common grounds and conflicts between the two.

This study adopted an exploratory approach involving a thorough examination and analysis of accredited text, command papers and reports, archival materials, national obligations, websites as well as other documentary evidence.

This research gives an empirical determinant of compliance behaviour in response to FATF regulatory standards and the interplay of international law.

The findings here are not exhaustive and could be approached from other perspectives. Researchers are therefore encouraged to engage by testing the findings further, as this is only a blueprint for further research.

This study provides implications for the need to open up the current membership of the FATF, as it appears discriminatory in nature and could inhibit effective compliance with its regulatory standards.

FATF regulatory standards do not just revolve around its members and rule-takers but also affect unintended and vulnerable people who were never in contemplation when these regulations were debated without a global consensus.

The main aim of this study is to advocate for a rethink of FATF’s regulatory strategy by ensuring that its operations are more inclusive, where jurisdictions can participate as members, creating a sense of belonging and commitment in the fight against money laundering.

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Legitimacy of power exercised by FATF under international law10.1108/JFC-09-2023-0239Journal of Financial Crime2023-11-23© 2023 Emerald Publishing LimitedLovina E. OtudorMahmood BagheriJournal of Financial Crimeahead-of-printahead-of-print2023-11-2310.1108/JFC-09-2023-0239https://www.emerald.com/insight/content/doi/10.1108/JFC-09-2023-0239/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Compliance issues in arbitration proceedings – bribery, money laundering and other abuseshttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0241/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to provide a firsthand perspective on the challenges and risks that can arise in arbitration proceedings. To investigate the concrete methods money launderers use, a qualitative study was conducted with 10 alleged money launderers and 18 prevention experts. The results were then tested quantitatively, and it was concluded that among money launderers, the highly regulated financial sector is less popular than other sectors. Money launderers relocate to unregulated sectors or offshore banks to avoid being questioned by compliance officers. Therefore, it is necessary for arbitrators involved in commercial or investor–state arbitration to have the expertise to readily identify the issues raised by these criminal law concepts and provide answers. This paper examines the intersection between the areas of international commercial arbitration and money laundering, bribery, as well as embezzlement. At the same time, it draws attention to the need to analyze compliance issues in arbitration proceedings.Compliance issues in arbitration proceedings – bribery, money laundering and other abuses
Fabian Teichmann, Sonia Ruxandra Boticiu, Bruno S. Sergi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to provide a firsthand perspective on the challenges and risks that can arise in arbitration proceedings.

To investigate the concrete methods money launderers use, a qualitative study was conducted with 10 alleged money launderers and 18 prevention experts. The results were then tested quantitatively, and it was concluded that among money launderers, the highly regulated financial sector is less popular than other sectors.

Money launderers relocate to unregulated sectors or offshore banks to avoid being questioned by compliance officers. Therefore, it is necessary for arbitrators involved in commercial or investor–state arbitration to have the expertise to readily identify the issues raised by these criminal law concepts and provide answers.

This paper examines the intersection between the areas of international commercial arbitration and money laundering, bribery, as well as embezzlement. At the same time, it draws attention to the need to analyze compliance issues in arbitration proceedings.

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Compliance issues in arbitration proceedings – bribery, money laundering and other abuses10.1108/JFC-10-2022-0241Journal of Financial Crime2023-01-31© 2023 Emerald Publishing LimitedFabian TeichmannSonia Ruxandra BoticiuBruno S. SergiJournal of Financial Crimeahead-of-printahead-of-print2023-01-3110.1108/JFC-10-2022-0241https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2022-0241/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Motivational processes involved in the behavior of the financial statement fraudsterhttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0251/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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). 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. 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. 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. The validated instrument can be used by auditors and gatekeepers to detect the risk of fraudulent behavior. The instrument validated here may be useful to researchers who wish to test the motivations for committing fraud in structural models. 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.Motivational processes involved in the behavior of the financial statement fraudster
Caroline de Oliveira Orth, Fernanda Momo, Mariana Manfroi da Silva Bonotto, Giovana Schiavi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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).

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.

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.

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.

The validated instrument can be used by auditors and gatekeepers to detect the risk of fraudulent behavior.

The instrument validated here may be useful to researchers who wish to test the motivations for committing fraud in structural models.

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.

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Motivational processes involved in the behavior of the financial statement fraudster10.1108/JFC-10-2023-0251Journal of Financial Crime2023-12-06© 2023 Emerald Publishing LimitedCaroline de Oliveira OrthFernanda MomoMariana Manfroi da Silva BonottoGiovana SchiaviJournal of Financial Crimeahead-of-printahead-of-print2023-12-0610.1108/JFC-10-2023-0251https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0251/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
“Fake it to make it”: exploring product counterfeiting in Türkiyehttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0252/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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. 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. 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. 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. 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.“Fake it to make it”: exploring product counterfeiting in Türkiye
Dilara Bural, Anthony Lloyd, Georgios A. Antonopoulos, Justin Kotzé
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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.

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.

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.

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.

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“Fake it to make it”: exploring product counterfeiting in Türkiye10.1108/JFC-10-2023-0252Journal of Financial Crime2023-11-27© 2023 Emerald Publishing LimitedDilara BuralAnthony LloydGeorgios A. AntonopoulosJustin KotzéJournal of Financial Crimeahead-of-printahead-of-print2023-11-2710.1108/JFC-10-2023-0252https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0252/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Effectiveness criteria of suspicious transaction reporting for early detection of terrorist financing activitieshttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0254/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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. 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. 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. 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. 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. The society will experience fewer terrorist attacks that will make the society peaceful, happy and vibrant. 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.Effectiveness criteria of suspicious transaction reporting for early detection of terrorist financing activities
Hussain Syed Gowhor
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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.

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.

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.

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.

The society will experience fewer terrorist attacks that will make the society peaceful, happy and vibrant.

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.

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Effectiveness criteria of suspicious transaction reporting for early detection of terrorist financing activities10.1108/JFC-10-2023-0254Journal of Financial Crime2023-11-29© 2023 Emerald Publishing LimitedHussain Syed GowhorJournal of Financial Crimeahead-of-printahead-of-print2023-11-2910.1108/JFC-10-2023-0254https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0254/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
On the road to halting corruption: SNC-Lavalinhttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0255/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestJust 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. 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. 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. 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). 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.On the road to halting corruption: SNC-Lavalin
Anne Marie Gosselin, Sylvie Berthelot
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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.

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.

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).

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.

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On the road to halting corruption: SNC-Lavalin10.1108/JFC-10-2023-0255Journal of Financial Crime2023-11-27© 2023 Emerald Publishing LimitedAnne Marie GosselinSylvie BerthelotJournal of Financial Crimeahead-of-printahead-of-print2023-11-2710.1108/JFC-10-2023-0255https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0255/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Ponzi schemes in Brazil: what leads people to still invest in this fraud?https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0262/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestMost scientific research has focused on understanding Ponzi schemes from the point of view of the schemes and their operators, based on qualitative analysis. This paper aims to analyze Ponzi schemes from the perspective of their investors, emphasizing behavioral aspects, which have been little explored in the scientific literature, especially in quantitative research. In this way, the authors sought to understand the effects of heuristics and cognitive biases in understanding investor behavior. A logistic regression was carried out with Brazilian investors, some of them participants in Ponzi schemes, who answered a structured questionnaire by means of a survey. The authors found that social pressures, overconfidence and deliberate ignorance lead to credulity, generating little risk analysis and the desire to make a lot of money quickly. Helping investors improve their levels of information through financial education and self-knowledge about their behavior. Contribute to the competent authorities in the search for improvements in the information displayed to investors. Understanding the mechanisms used when making a financial decision from the point of view of investors in general, but especially those exposed to Ponzi schemes, has the mission of enlightening them about the importance of financial education and the weight of psychological factors so that they can reduce the effects of heuristics and analysis biases when faced with a financial decision. The basis of this work will be the inclusion of psychological variables and financial education, adapting existing models in an attempt to demonstrate the effects they may or may not have on mental accounting in the specific case of investorsPonzi schemes in Brazil: what leads people to still invest in this fraud?
Thiago Da Silva Telles Constantino, Antônio Carlos Magalhães Da Silva, Maria Aline Moreira De Oliveira Constantino
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

Most scientific research has focused on understanding Ponzi schemes from the point of view of the schemes and their operators, based on qualitative analysis. This paper aims to analyze Ponzi schemes from the perspective of their investors, emphasizing behavioral aspects, which have been little explored in the scientific literature, especially in quantitative research. In this way, the authors sought to understand the effects of heuristics and cognitive biases in understanding investor behavior.

A logistic regression was carried out with Brazilian investors, some of them participants in Ponzi schemes, who answered a structured questionnaire by means of a survey.

The authors found that social pressures, overconfidence and deliberate ignorance lead to credulity, generating little risk analysis and the desire to make a lot of money quickly.

Helping investors improve their levels of information through financial education and self-knowledge about their behavior. Contribute to the competent authorities in the search for improvements in the information displayed to investors.

Understanding the mechanisms used when making a financial decision from the point of view of investors in general, but especially those exposed to Ponzi schemes, has the mission of enlightening them about the importance of financial education and the weight of psychological factors so that they can reduce the effects of heuristics and analysis biases when faced with a financial decision.

The basis of this work will be the inclusion of psychological variables and financial education, adapting existing models in an attempt to demonstrate the effects they may or may not have on mental accounting in the specific case of investors

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Ponzi schemes in Brazil: what leads people to still invest in this fraud?10.1108/JFC-10-2023-0262Journal of Financial Crime2024-01-02© 2023 Emerald Publishing LimitedThiago Da Silva Telles ConstantinoAntônio Carlos Magalhães Da SilvaMaria Aline Moreira De Oliveira ConstantinoJournal of Financial Crimeahead-of-printahead-of-print2024-01-0210.1108/JFC-10-2023-0262https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0262/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Where is the life we have lost in living (beyond means)? An exploratory inquiry into the deceptive world of corruption and consumerismhttps://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0273/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues associated with consumerism. This paper examines the relationship between excessive consumption activities and corrupt acts, drawing upon existing literature on corruption, consumerism and consumption, as well as multiple reports and cases of corruption and money laundering in Indonesia. With regard to corruption networks, this paper analyses the associated behavioral patterns and social dynamics by using the Fraud Triangle and the Fraud Elements Triangle frameworks to examine the phenomenon of living beyond one’s means. This paper also addresses the notion of sacredness in the context of consumer activities and how such sacredness plays a role in causing otherwise honest individuals to engage in corrupt acts. The author established that corruption represents a complex societal issue that extends across several dimensions of society, encompassing both horizontal and vertical aspects. Consequently, addressing this problem poses significant challenges. Excessive consumption has been identified as one of the various behavioral concerns that are implicated in the widespread occurrence of corruption in many nations. Individuals who partake in excessive consumption play a role in shaping ethical norms that serve to legitimize and rationalize immoral behavior, therefore fostering a society marked by corruption. The act of engaging in excessive consumption is also associated with cases of money laundering offenses that are connected to corruption and several other illicit activities. The lifestyle of corrupt individuals is one of the primary behavioral concerns associated with corruption, as “living beyond means” is the most common behavioral red flag among occupational fraud offenders worldwide. The phenomenon of consumerism may also shape the minds of individuals as if it were an “implicit religion” due to the fact that it may generate human experiences that elicit highly positive emotions and satisfy certain sacredness-associated characteristics. The pursuit of transcendental experiences through the acquisition and consumption of sacred consumption objects may heighten the incentive to commit fraudulent acts such as corruption. This self-funded exploratory study uses document analysis to examine the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former offenders and investigators of corruption. This exploratory study contributes to advancing corruption prevention strategies. It does this by introducing a novel analytical framework that allows for the examination of several behavioral issues associated with consumerism, which have the potential to foster the proliferation of corruption. This exploratory study highlights the importance of comprehending the intricacies of consumerism, namely, its adverse effects on the proliferation of corruption.Where is the life we have lost in living (beyond means)? An exploratory inquiry into the deceptive world of corruption and consumerism
Hendi Yogi Prabowo
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues associated with consumerism.

This paper examines the relationship between excessive consumption activities and corrupt acts, drawing upon existing literature on corruption, consumerism and consumption, as well as multiple reports and cases of corruption and money laundering in Indonesia. With regard to corruption networks, this paper analyses the associated behavioral patterns and social dynamics by using the Fraud Triangle and the Fraud Elements Triangle frameworks to examine the phenomenon of living beyond one’s means. This paper also addresses the notion of sacredness in the context of consumer activities and how such sacredness plays a role in causing otherwise honest individuals to engage in corrupt acts.

The author established that corruption represents a complex societal issue that extends across several dimensions of society, encompassing both horizontal and vertical aspects. Consequently, addressing this problem poses significant challenges. Excessive consumption has been identified as one of the various behavioral concerns that are implicated in the widespread occurrence of corruption in many nations. Individuals who partake in excessive consumption play a role in shaping ethical norms that serve to legitimize and rationalize immoral behavior, therefore fostering a society marked by corruption. The act of engaging in excessive consumption is also associated with cases of money laundering offenses that are connected to corruption and several other illicit activities. The lifestyle of corrupt individuals is one of the primary behavioral concerns associated with corruption, as “living beyond means” is the most common behavioral red flag among occupational fraud offenders worldwide. The phenomenon of consumerism may also shape the minds of individuals as if it were an “implicit religion” due to the fact that it may generate human experiences that elicit highly positive emotions and satisfy certain sacredness-associated characteristics. The pursuit of transcendental experiences through the acquisition and consumption of sacred consumption objects may heighten the incentive to commit fraudulent acts such as corruption.

This self-funded exploratory study uses document analysis to examine the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former offenders and investigators of corruption.

This exploratory study contributes to advancing corruption prevention strategies. It does this by introducing a novel analytical framework that allows for the examination of several behavioral issues associated with consumerism, which have the potential to foster the proliferation of corruption.

This exploratory study highlights the importance of comprehending the intricacies of consumerism, namely, its adverse effects on the proliferation of corruption.

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Where is the life we have lost in living (beyond means)? An exploratory inquiry into the deceptive world of corruption and consumerism10.1108/JFC-10-2023-0273Journal of Financial Crime2023-12-18© 2023 Emerald Publishing LimitedHendi Yogi PrabowoJournal of Financial Crimeahead-of-printahead-of-print2023-12-1810.1108/JFC-10-2023-0273https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0273/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Transparency and budget savings in public procurement: evidence from Thailand’s Infrastructure Transparency Initiative (CoST)https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0282/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis 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. 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. 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. This study might not capture all benefits, especially non-financial ones. Thailand’s unique context and potential biases in data sources also need consideration. 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. 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.Transparency and budget savings in public procurement: evidence from Thailand’s Infrastructure Transparency Initiative (CoST)
Tippatrai Saelawong, Torplus Yomnak, Thanee Chaiwat, Siwat Poopunpanich, Charoen Sutuktis
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

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.

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.

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.

This study might not capture all benefits, especially non-financial ones. Thailand’s unique context and potential biases in data sources also need consideration.

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.

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.

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Transparency and budget savings in public procurement: evidence from Thailand’s Infrastructure Transparency Initiative (CoST)10.1108/JFC-10-2023-0282Journal of Financial Crime2023-12-05© 2023 Emerald Publishing LimitedTippatrai SaelawongTorplus YomnakThanee ChaiwatSiwat PoopunpanichCharoen SutuktisJournal of Financial Crimeahead-of-printahead-of-print2023-12-0510.1108/JFC-10-2023-0282https://www.emerald.com/insight/content/doi/10.1108/JFC-10-2023-0282/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Compliance concerns in sustainable finance: an analysis of peer-to-peer (P2P) lending platforms and sustainabilityhttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0281/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the relationship between financial sustainability and peer-to-peer (P2P) lending platforms. To do so, an extensive literature review on sustainability, FinTech, P2P lending and their associated risks was conducted using a fundamentally theoretical and descriptive methodology. In addition, this study shows that finance can accelerate the transition to a low-carbon circular economy by allocating investments in sustainable projects and businesses. Moreover, FinTech P2P lending platforms can help to vitalize green digital finance by using the internet and information technology in the lending market. Nevertheless, anonymous lending and borrowing ventures can produce potential risks such as money laundering, terrorist financing, fraud risk and information asymmetry. Sustainable finance remains an emerging and relevant area; however, the literature has not sufficiently addressed compliance concerns. To address this gap, this study aims to contribute to the literature by analyzing the link between sustainable finance and P2P platforms and drawing attention to the compliance risks listed above.Compliance concerns in sustainable finance: an analysis of peer-to-peer (P2P) lending platforms and sustainability
Fabian Maximilian Johannes Teichmann, Sonia Ruxandra Boticiu, Bruno S. Sergi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze the relationship between financial sustainability and peer-to-peer (P2P) lending platforms.

To do so, an extensive literature review on sustainability, FinTech, P2P lending and their associated risks was conducted using a fundamentally theoretical and descriptive methodology.

In addition, this study shows that finance can accelerate the transition to a low-carbon circular economy by allocating investments in sustainable projects and businesses. Moreover, FinTech P2P lending platforms can help to vitalize green digital finance by using the internet and information technology in the lending market. Nevertheless, anonymous lending and borrowing ventures can produce potential risks such as money laundering, terrorist financing, fraud risk and information asymmetry.

Sustainable finance remains an emerging and relevant area; however, the literature has not sufficiently addressed compliance concerns. To address this gap, this study aims to contribute to the literature by analyzing the link between sustainable finance and P2P platforms and drawing attention to the compliance risks listed above.

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Compliance concerns in sustainable finance: an analysis of peer-to-peer (P2P) lending platforms and sustainability10.1108/JFC-11-2022-0281Journal of Financial Crime2023-03-03© 2023 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannSonia Ruxandra BoticiuBruno S. SergiJournal of Financial Crimeahead-of-printahead-of-print2023-03-0310.1108/JFC-11-2022-0281https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2022-0281/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Belt and Road Initiative: legal mechanisms to recover stolen assetshttps://www.emerald.com/insight/content/doi/10.1108/JFC-11-2023-0294/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to determine the types of legal mechanisms that authorities can use to recover stolen assets for and from China. Newspaper articles and books are examined as are relevant reports by various regulatory authorities and academic institutions. The effectiveness of legal mechanisms in the recovery of stolen assets may be affected by issues such as the difficulties in tracing illicit funds, the ambiguous nature of “value” as well as the rise in technology. There are limited data available in relation to the prevalence of corrupt officials along the Belt and Road Initiative and the statistical success in the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs of the Belt and Road Initiative. Those who are interested in examining how authorities could recover stolen assets from and for China will have an interest in this topic. The value of the paper is to demonstrate the difficulties in recovering stolen assets for and from China.Belt and Road Initiative: legal mechanisms to recover stolen assets
Veltrice Tan
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to determine the types of legal mechanisms that authorities can use to recover stolen assets for and from China.

Newspaper articles and books are examined as are relevant reports by various regulatory authorities and academic institutions.

The effectiveness of legal mechanisms in the recovery of stolen assets may be affected by issues such as the difficulties in tracing illicit funds, the ambiguous nature of “value” as well as the rise in technology.

There are limited data available in relation to the prevalence of corrupt officials along the Belt and Road Initiative and the statistical success in the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs of the Belt and Road Initiative.

Those who are interested in examining how authorities could recover stolen assets from and for China will have an interest in this topic.

The value of the paper is to demonstrate the difficulties in recovering stolen assets for and from China.

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Belt and Road Initiative: legal mechanisms to recover stolen assets10.1108/JFC-11-2023-0294Journal of Financial Crime2024-01-02© 2023 Emerald Publishing LimitedVeltrice TanJournal of Financial Crimeahead-of-printahead-of-print2024-01-0210.1108/JFC-11-2023-0294https://www.emerald.com/insight/content/doi/10.1108/JFC-11-2023-0294/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Wirecard scandal. A commentary on the biggest accounting fraud in Germany’s post-war historyhttps://www.emerald.com/insight/content/doi/10.1108/JFC-12-2022-0301/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to illustrate how the Wirecard scandal has highlighted the need for further reforms in Germany and Europe, exposing institutional and market oversight weaknesses, particularly in terms of market integrity and investor protection. To provide a comprehensive picture of the situation, this paper is based only on relevant studies, which focus on the topic of interest, namely, the context of the Wirecard collapse in June 2020. It also examines how internal and external governance and monitoring mechanisms failed to uncover major fraud within the German payments group earlier. This study shows that this is by no means an isolated or unpredictable incident, and the allegations of accounting fraud had been known for several years, thanks to warnings from the Financial Times. In addition, the paper reviews the serious shortcomings revealed in the Wambach report. The report provided private details of the Wirecard audit and documents on the relationship between Wirecard management and the auditor. All of this can serve as a reference point for institutional and market oversight architecture in Germany and Europe and pave the way for future research. The paper contributes to the literature by highlighting the implications of the Wirecard scandal and the lessons that can be learned from what was one of Germany’s biggest corporate scandals especially at a time when many are already affected by the impact of COVID-19 on the entire financial services industry.Wirecard scandal. A commentary on the biggest accounting fraud in Germany’s post-war history
Fabian Maximilian Johannes Teichmann, Sonia Ruxandra Boticiu, Bruno S. Sergi
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to illustrate how the Wirecard scandal has highlighted the need for further reforms in Germany and Europe, exposing institutional and market oversight weaknesses, particularly in terms of market integrity and investor protection.

To provide a comprehensive picture of the situation, this paper is based only on relevant studies, which focus on the topic of interest, namely, the context of the Wirecard collapse in June 2020. It also examines how internal and external governance and monitoring mechanisms failed to uncover major fraud within the German payments group earlier.

This study shows that this is by no means an isolated or unpredictable incident, and the allegations of accounting fraud had been known for several years, thanks to warnings from the Financial Times. In addition, the paper reviews the serious shortcomings revealed in the Wambach report. The report provided private details of the Wirecard audit and documents on the relationship between Wirecard management and the auditor. All of this can serve as a reference point for institutional and market oversight architecture in Germany and Europe and pave the way for future research.

The paper contributes to the literature by highlighting the implications of the Wirecard scandal and the lessons that can be learned from what was one of Germany’s biggest corporate scandals especially at a time when many are already affected by the impact of COVID-19 on the entire financial services industry.

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Wirecard scandal. A commentary on the biggest accounting fraud in Germany’s post-war history10.1108/JFC-12-2022-0301Journal of Financial Crime2023-03-07© 2023 Emerald Publishing LimitedFabian Maximilian Johannes TeichmannSonia Ruxandra BoticiuBruno S. SergiJournal of Financial Crimeahead-of-printahead-of-print2023-03-0710.1108/JFC-12-2022-0301https://www.emerald.com/insight/content/doi/10.1108/JFC-12-2022-0301/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The cryptocurrency conundrum: the emerging role of digital currencies in geopolitical conflictshttps://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0306/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate technological innovations within the crypto space that have engendered novel financial crime risks and their potential utilization amidst geopolitical conflicts. The theoretical paper uses an analysis of recent geopolitical events, with a key focus on using cryptocurrencies to undertake illicit activities. The study found that cryptocurrencies and the innovations made within the crypto domain are used for both legitimate and illicit purposes, including money laundering, terrorism financing and sanction evasion. This research contributes to understanding the critical role cryptocurrencies play amidst geopolitical conflicts and emphasizes the need for regulatory considerations to prevent their misuse. To the best of the authors’ knowledge, this paper is the first scholarly contribution that considers the evolving mechanisms afforded by cryptocurrencies amidst geopolitical conflicts in undertaking illicit activities.The cryptocurrency conundrum: the emerging role of digital currencies in geopolitical conflicts
Milind Tiwari, Cayle Lupton, Ausma Bernot, Khaled Halteh
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate technological innovations within the crypto space that have engendered novel financial crime risks and their potential utilization amidst geopolitical conflicts.

The theoretical paper uses an analysis of recent geopolitical events, with a key focus on using cryptocurrencies to undertake illicit activities.

The study found that cryptocurrencies and the innovations made within the crypto domain are used for both legitimate and illicit purposes, including money laundering, terrorism financing and sanction evasion.

This research contributes to understanding the critical role cryptocurrencies play amidst geopolitical conflicts and emphasizes the need for regulatory considerations to prevent their misuse. To the best of the authors’ knowledge, this paper is the first scholarly contribution that considers the evolving mechanisms afforded by cryptocurrencies amidst geopolitical conflicts in undertaking illicit activities.

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The cryptocurrency conundrum: the emerging role of digital currencies in geopolitical conflicts10.1108/JFC-12-2023-0306Journal of Financial Crime2024-03-21© 2024 Emerald Publishing LimitedMilind TiwariCayle LuptonAusma BernotKhaled HaltehJournal of Financial Crimeahead-of-printahead-of-print2024-03-2110.1108/JFC-12-2023-0306https://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0306/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
The Belt and Road Initiative: conflict of laws and dispute resolutionhttps://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0310/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China. Academic articles, case law and books are examined as are relevant reports by various regulatory authorities and organizations. Historically, Chinese courts have strictly adhered to “de facto reciprocity”, which made it difficult for foreign judgements to be recognized and enforced in China. Fortunately, Chinese courts have since abandoned their rigid adherence to de facto reciprocity, and have instead, used flexible tests of reciprocity such as de jure reciprocity, reciprocal commitment and reciprocal understand/consensus. Accordingly, this would facilitate the recovery of stolen assets, as there is a lower threshold for the recognition and enforcement of a foreign judgement. There are limited data available in relation to the recognition and enforcement of foreign judgements pertaining to the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs within the Belt and Road Initiative. Those who are interested in examining the viability in recognizing and enforcing foreign judgements relating to stolen assets will have an interest in this topic. The value of the paper is to demonstrate the difficulties in recognizing and enforcing foreign judgements in China in relation to stolen assets.The Belt and Road Initiative: conflict of laws and dispute resolution
Veltrice Tan
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China.

Academic articles, case law and books are examined as are relevant reports by various regulatory authorities and organizations.

Historically, Chinese courts have strictly adhered to “de facto reciprocity”, which made it difficult for foreign judgements to be recognized and enforced in China. Fortunately, Chinese courts have since abandoned their rigid adherence to de facto reciprocity, and have instead, used flexible tests of reciprocity such as de jure reciprocity, reciprocal commitment and reciprocal understand/consensus. Accordingly, this would facilitate the recovery of stolen assets, as there is a lower threshold for the recognition and enforcement of a foreign judgement.

There are limited data available in relation to the recognition and enforcement of foreign judgements pertaining to the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs within the Belt and Road Initiative.

Those who are interested in examining the viability in recognizing and enforcing foreign judgements relating to stolen assets will have an interest in this topic.

The value of the paper is to demonstrate the difficulties in recognizing and enforcing foreign judgements in China in relation to stolen assets.

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The Belt and Road Initiative: conflict of laws and dispute resolution10.1108/JFC-12-2023-0310Journal of Financial Crime2024-01-22© 2024 Emerald Publishing LimitedVeltrice TanJournal of Financial Crimeahead-of-printahead-of-print2024-01-2210.1108/JFC-12-2023-0310https://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0310/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Foreign corrupt practices act violations and enforcementhttps://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0318/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the determinants of Foreign Corrupt Practices Act (FCPA) violations and consequences of FCPA enforcements. This paper uses publicly available data from Compustat, I/B/E/S and Thomson Reuters databases, combined with Securities and Exchange Commission (SEC) and Department of Justice (DOJ) cases, to extract insights on FCPA violations and enforcements using econometric approaches. The main determinants of FCPA violations appear to be firm size, multinational structure, country corruption and Sarbanes-Oxley Act control weaknesses. Traditional misreporting risks (F-score and M-score) do not predict FCPA violations. This study discovers significant differences between FCPA violations by motivation, as in, sale generation, rent extraction or cost evasion. Bribes motivated by sale generation or rent extraction are partially driven by the extent of the firm’s global operations, whereas bribes motivated by cost evasion relate to internal influences. This study also finds that enforcement is more salient for criminal violations (DOJ enforcement), compared to civil violations (SEC enforcement). This research provides new insights into the determinants of FCPA violations while underscoring the need for effective measures to combat bribery and promote ethical business practices. This research contributes to the ongoing efforts to curtail bribery, offering valuable insights into the characteristics of firms more likely to engage in bribery and contexts in which these activities occur. It provides critical implications for regulatory bodies, highlighting the differential responses of firms to varying types of enforcement, namely, criminal versus civil, as the authors observe greater decreases in internal control weaknesses following DOJ enforcement compared to SEC enforcement. For enforcement agencies, the findings underscore the importance of rigorous criminal enforcement against FCPA violations, highlighting the improved control environments prompted by DOJ actions. Managers will find this research relevant, as it demonstrates that a firm’s entry into international markets substantially elevates the risk of its representatives engaging in bribery with foreign officials. In addition, the results are of interest to regulators, revealing that the underlying motivations driving a firm’s activities can significantly alter the factors to consider that might lead to an FCPA violation. This paper is the original work of the authors and explores the determinants and consequences of FCPA violations and enforcement actions since 2002. To the best of the authors’ knowledge, it is the first to explore bribe determinants by their motive and documents industry-wide benefits arising from criminal enforcement.Foreign corrupt practices act violations and enforcement
Adam W. Du Pon, Andrea M. Scheetz, Zhenyu “Mark” Zhang
Journal of Financial Crime, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the determinants of Foreign Corrupt Practices Act (FCPA) violations and consequences of FCPA enforcements.

This paper uses publicly available data from Compustat, I/B/E/S and Thomson Reuters databases, combined with Securities and Exchange Commission (SEC) and Department of Justice (DOJ) cases, to extract insights on FCPA violations and enforcements using econometric approaches.

The main determinants of FCPA violations appear to be firm size, multinational structure, country corruption and Sarbanes-Oxley Act control weaknesses. Traditional misreporting risks (F-score and M-score) do not predict FCPA violations. This study discovers significant differences between FCPA violations by motivation, as in, sale generation, rent extraction or cost evasion. Bribes motivated by sale generation or rent extraction are partially driven by the extent of the firm’s global operations, whereas bribes motivated by cost evasion relate to internal influences. This study also finds that enforcement is more salient for criminal violations (DOJ enforcement), compared to civil violations (SEC enforcement).

This research provides new insights into the determinants of FCPA violations while underscoring the need for effective measures to combat bribery and promote ethical business practices. This research contributes to the ongoing efforts to curtail bribery, offering valuable insights into the characteristics of firms more likely to engage in bribery and contexts in which these activities occur. It provides critical implications for regulatory bodies, highlighting the differential responses of firms to varying types of enforcement, namely, criminal versus civil, as the authors observe greater decreases in internal control weaknesses following DOJ enforcement compared to SEC enforcement.

For enforcement agencies, the findings underscore the importance of rigorous criminal enforcement against FCPA violations, highlighting the improved control environments prompted by DOJ actions. Managers will find this research relevant, as it demonstrates that a firm’s entry into international markets substantially elevates the risk of its representatives engaging in bribery with foreign officials. In addition, the results are of interest to regulators, revealing that the underlying motivations driving a firm’s activities can significantly alter the factors to consider that might lead to an FCPA violation.

This paper is the original work of the authors and explores the determinants and consequences of FCPA violations and enforcement actions since 2002. To the best of the authors’ knowledge, it is the first to explore bribe determinants by their motive and documents industry-wide benefits arising from criminal enforcement.

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Foreign corrupt practices act violations and enforcement10.1108/JFC-12-2023-0318Journal of Financial Crime2024-02-19© 2024 Emerald Publishing LimitedAdam W. Du PonAndrea M. ScheetzZhenyu “Mark” ZhangJournal of Financial Crimeahead-of-printahead-of-print2024-02-1910.1108/JFC-12-2023-0318https://www.emerald.com/insight/content/doi/10.1108/JFC-12-2023-0318/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited