Role of money mules in money laundering and financial crimes a discussion through case studies

2020 ◽  
Vol 27 (3) ◽  
pp. 911-931
Author(s):  
Muhammad Subtain Raza ◽  
Qi Zhan ◽  
Sana Rubab
Keyword(s):  
Case Studies ◽  
Money Laundering ◽  
Design Methodology ◽  
Internet Usage ◽  
Financial Crime ◽  
Content Type ◽  
Financial Condition ◽  
Financial Crimes ◽  
The World

Purpose This paper aims to explain the role of money mules in money laundering and financial crimes through the discussion of case studies. The authors also explain the red flags of money mules and provide advice. Design/methodology/approach The authors use a case analysis approach. The paper mainly discusses ten cases about the use of money mules in financial crimes. Findings It has been found that money mules help criminal syndicates to remain anonymous while moving funds around the world. The unemployment, internet usage involvement of teenagers and youth in money laundering-related crime around the world are on a rising trend, and criminals are constantly looking for their victims by exploiting their mental and financial condition. Originality/value This paper provides case studies to understand the role of money mules in money laundering and financial crime.

RegTech solutions and AML compliance: what future for financial crime?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Esman Kurum
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Design Methodology ◽  
Financial Crime ◽  
Strong Positive Correlation ◽  
Content Type ◽  
Compliance Programs ◽  
Time Required ◽  
International Experts

Purpose This study aims to discuss the growing use of RegTech solutions by financial institutions to comply more efficiently with regulation in terms of anti-money laundering compliance and more specifically its influence on the evolution of financial crime in the next ten years. Design/methodology/approach Based on two online Delphi surveys sent to a panel of international experts composed of eight specially recruited professionals and specialists of anti-financial crime compliance and RegTech, five main predictions have been developed. Findings It was found that artificial intelligence would become the most impactful technology for financial institutions to fight financial crime, and that there will be a strong positive correlation between ever-more elaborated compliance programs and the level of sophistication of methods used for money laundering. Furthermore, the panel designated regulators’ recommendations as likely to be less influential than RegTech solutions, and the time required to integrate RegTech solutions for AML compliance as the main future challenge. Originality/value These predictions are meant to provide financial institutions and regulators with useful outlooks. While the reviewed literature focused on the role of regulations on the evolution of money laundering, this study puts stress on RegTech solutions and their impact on both compliance and financial crime.

Financial crime, corruption and tax evasion: a cross-country investigation

2018 ◽  
Vol 21 (4) ◽  
pp. 545-554 ◽  
Author(s):  
Ines Amara ◽  
Hichem Khlif
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Design Methodology ◽  
Positive Relationship ◽  
Policy Implications ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
Cross Country ◽  
The Relationship

Purpose This paper aims to examine the relationship between the financial crime and tax evasion and tests whether corruption moderates such a relationship. Design/methodology/approach Tax evasion measure is based on Schneider et al. (2010). Financial crime is collected from Basel anti-money laundering (AML) report. Findings Using a sample of 120 countries, the authors find that the level of financial crime is positively associated with tax evasion. When testing for the moderating effect of corruption, they document that the positive relationship between financial crime and tax evasion is more pronounced for high corrupt environments. Originality/value The findings have policy implications for governments aiming to combat tax evasion and financial crimes.

Unearthing money laundering at Brazilian oil giant Petrobras

2019 ◽  
Vol 22 (2) ◽  
pp. 400-406
Author(s):  
Lucas Maragno ◽  
José Alonso Borba
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial Crime ◽  
Content Type ◽  
Key Points ◽  
Financial Crimes ◽  
State Agents ◽  
Brazilian History ◽  
Practical Implications ◽  
Allowed State

Purpose This paper aims to provide an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil. Design/methodology/approach The paper is based on an analysis of the scandal and on legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation. Findings Fraud perpetrators continue to find new ways to move laundered money into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages. Research limitations/implications This study comprehends the first stage of the Federal Police’s operation, comprising 14 allegations of financial crimes. Practical implications A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings being investigated. Originality/value The Petrobras fraud, individual experiences of organized financial crime and a widespread lack of understanding of how to detect and prevent fraud on this scale.

Moving in the right direction to fight financial crime: prevention and detection

2018 ◽  
Vol 25 (2) ◽  
pp. 362-368
Author(s):  
Fitriya Fauzi ◽  
Kenneth Szulczyk ◽  
Abdul Basyith
Keyword(s):  
Literature Review ◽  
Money Laundering ◽  
Financial Institutions ◽  
Design Methodology ◽  
Asia Pacific ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
The Right ◽  
Financial Intelligence

Purpose The purpose of this paper is to identify current measures taken for financial crime’s prevention and detection in the context of Indonesia. Design/methodology/approach This study is based on data from articles in Indonesian newspapers relating to the current financial crimes, current measures of preventing financial crimes in Indonesia and based on the literature review. Findings There are some attempts to combat financial crimes in Indonesia, both internally and externally. The attempts that have been made for the internal scope are the enactment of anti-money laundering law, the new monitoring system of financial institutions and the formation of a superintendent institution. The attempts that have been made for the external scope are the agreement between Indonesia’ financial intelligence unit Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), and other countries’s financial intelligence unit, the affiliation member of the Asia/Pacific Group on Money Laundering (APG) to combat financial crimes through strengthening its anti-money laundering and terror financing capabilities. Originality/value This paper presents an overview of current prevention and detection measures in the context of Indonesia, and it is hoped that this paper will contribute to the current discussion of eliminating financial crimes.

Creative accounting a tool for financial crime: a review of the techniques and its effects

2020 ◽  
Vol 27 (2) ◽  
pp. 397-411
Author(s):  
Chander Mohan Gupta ◽  
Devesh Kumar
Keyword(s):  
Empirical Study ◽  
Design Methodology ◽  
Financial Statements ◽  
Financial Crime ◽  
Content Type ◽  
Creative Accounting ◽  
The People ◽  
Financial Crimes ◽  
The World ◽  
Practical Implications

Purpose The purpose of this paper is to study the concept and procedure of creative accounting as how is it worked around and how it can lead to financial crimes. The procedure which are followed and which are the people who are involved and who are the victims of such crimes. The methods which are used to perform the action and how is it done. What are the findings of different researchers who have studied the same concept and how can it be curbed is the main purpose of the paper. Design/methodology/approach This paper is designed to find out the working of accounting policies and how the loopholes in the same can actually be taken into account, resulting in a certain number games which can be played around it, and to get the desired outcome in the preparation of financial statements. Findings Creative accounting, though legal and acceptable around the world, gives in the way to loopholes provided by the acts and rules governing the preparation of financial statements and eventually leading to financial crimes and hampering the economy as a whole. Research limitations/implications The limitations of this study remain to the fact that it is an empirical study, as a lot of papers and articles were studied before giving it a shape and reaching a conclusion. Practical implications Creative accounting though not illegal but the excess use of the same has given daunting effects on the financial statements and as a result have resulted into financial frauds and looting of peoples money throughout the world. Social implications Hard-earned money of the investors is looted and no action can be taken against as the mechanism and the legal bodies are still struggling to curb the problem, and thus it is very important to learn about creative accounting. Originality/value This study leads to the understanding of the growth of creative accounting and how it has resulted in accounting frauds leading to financial crimes in an economy.

Reverse money laundering in Russia: clean cash for dirty ends

2015 ◽  
Vol 18 (2) ◽  
pp. 202-219 ◽  
Author(s):  
Yuliya G. Zabyelina
Keyword(s):  
Qualitative Analysis ◽  
Case Studies ◽  
Money Laundering ◽  
Informal Sector ◽  
Large Volume ◽  
Design Methodology ◽  
Content Type ◽  
Academic Literature ◽  
Methods And Techniques

Purpose – The purpose of this paper is to provide an overview of and comment on various aspects of reverse money laundering, whereby, instead of “washing” criminal proceeds to make them legal, legitimate funds are withdrawn from formal circulation and pumped into the informal sector to evade taxes, hand in bribes, pay “under-the-table” salaries and sidestep paperwork. Design/methodology/approach – The paper is divided into two parts. The theoretical part reviews the relevant academic literature and discusses the role of cash as a dominant medium of exchange in the underground economy. The empirical part is grounded on a qualitative analysis of several case studies of fraudulent encashment schemes all of which illustrate how reverse money laundering works. Findings – The findings suggest that fraudulent encashment, a type of reverse money laundering, is performed via bank and non-bank institutions. Importantly, methods and techniques used in conventional forms of money laundering are also used in reverse money laundering schemes. Originality/value – Despite a large volume of literature on money laundering, reverse money laundering remains an understudied area. This paper discusses the peculiarities of illegal transfers of non-cash assets into cash, which have been the pronounced problem in Russia and other post-Soviet countries since the 1990s.

scholarly journals Assessing the impact of libraries – the role of ISO 16439

2018 ◽  
Vol 119 (1/2) ◽  
pp. 87-93 ◽  
Author(s):  
Claire Creaser
Keyword(s):  
Design Methodology ◽  
International Standards ◽  
Content Type ◽  
International Standard ◽  
The World ◽  
The Difference ◽  
Library Impact ◽  
The Impact

Purpose Library impact and how to evaluate it has been debated for a number of years. While the activity – the busy-ness – of the library is now routinely measured and described, the difference the library makes is less tangible and harder to measure. Libraries in all sectors and worldwide are grappling with this issue, and the purpose of this paper is to summarise international standards available to support them. Design/methodology/approach The first international standard concerning library impact, ISO 16439 Information and documentation – methods and procedures for assessing the impact of libraries, was published in 2014 after several years in development. Findings The standard describes a range of methods for assessing library impact which have been used across the world in a variety of libraries in all sectors. Originality/value This paper summarises the key methods described in the standard, and gives references for further reading.

Study shows significant influence of HRD to shape and inspire CSR and sustainability initiatives

2021 ◽  
Vol 29 (2) ◽  
pp. 37-39
Keyword(s):  
Performance Management ◽  
Design Methodology ◽  
Life Balance ◽  
Content Type ◽  
The World ◽  
Sustainability Initiatives ◽  
Campbell Soup ◽  
Equity And Inclusion

Purpose The authors wrote their study in response to the pressures businesses face today to behave responsibly. More than 90% of the largest 250 MNCs in the world, they said, disclose information about various aspects of their CSR and sustainability. Meanwhile, HRD practices play a significant role in the design and effectiveness of these initiatives. Design/methodology/approach The authors conducted an analysis of the contents of CR reports to detect themes. They used a list of the top 100 CSR companies in the 2016 Global CSR Rep Trak 100. Overall, 55 reports were included from 23 large MNCs in 17 industries and 10 countries across Europe, Asia and North America. Household names included BMW, Campbell Soup, Dell, FedEx, Nike, Visa, Sony, Honda, Samsung, LEGO, Air Canada, Hilton Worldwide, and Fujifilm. Findings Initial analysis showed that seven areas of HRD work were the most important in supporting CSR and sustainability agendas. They were (1) Diversity, equity and inclusion. (2) Community engagement. (3) Work-life balance. (4) Employee long-term growth and development. (5) Performance management. (6) Business ethics and ethical culture and (7) Raising CSR awareness. Originality/value The study addressed two fundamental questions: First, what is the role of HRD in CSR and sustainability as portrayed in CR reports? Second, what areas of HRD work are highlighted in CR reports as important in the context of CSR and sustainability?

Criminal minds: profiling architects of financial crimes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shazeeda Ali
Keyword(s):  
Design Methodology ◽  
Comprehensive Analysis ◽  
Psychological Disorder ◽  
Financial Crime ◽  
Health Issues ◽  
Content Type ◽  
Psychological Attributes ◽  
Financial Crimes ◽  
Reduction Strategies ◽  
Risk Reduction Strategies

Purpose The purpose of this paper is to construct a profile of a financial criminal, with special emphasis on their psychological attributes. The objective is to determine if such a profile can provide a valuable tool for detecting perpetrators of financial crime and for implementing risk-reduction strategies. Design/methodology/approach The approach involved a review of various personality disorders and other mental health issues, as well as an analysis of a number of cases involving serious financial crime, to ascertain whether the behaviour of the perpetrators was consistent with certain psychological challenges. In addition, the study examined various motivators for the commission of the financial crime. Findings The research revealed some key commonalities among the perpetrators of financial crime and that their behaviour was often consistent with that of a person afflicted with a personality or other psychological disorder. Originality/value The study provides a comprehensive analysis of various personality and other psychological challenges afflicting a number of offenders involved in financial crime. It also provides some critical findings that could be valuable for those charged with establishing measures to prevent and detect financial crime.

Lawyers’ predicaments in complying with the anti-money laundering law in Malaysia

2019 ◽  
Vol 26 (2) ◽  
pp. 583-596 ◽  
Author(s):  
Saslina Kamaruddin ◽  
Zaiton Hamin
Keyword(s):  
Qualitative Research ◽  
Central Bank ◽  
Empirical Evidence ◽  
Case Studies ◽  
Money Laundering ◽  
Design Methodology ◽  
Primary Data ◽  
Content Type ◽  
Klang Valley ◽  
Source Of Information

Purpose The purpose of this paper is to provide some empirical findings on the predicaments of lawyers’ anti-money laundering (AML) compliance in Malaysia and the rationales for such predicaments. Design/methodology/approach This paper adopts a qualitative research in which the primary data are obtained from seven case studies involving legal firms within the Klang Valley, Selangor, Malaysia, which is triangulated with the data from the Central Bank and the Malaysian Bar Council. Findings The authors contend that despite the vulnerability of their profession to money laundering, the level of awareness of the AML obligations amongst Malaysian legal practitioners is rather minimal. Also, the imposition of obligations upon them in policing their clients and regulating money laundering is not only onerous but also contrary to the ethics of their profession. Originality/value This paper fills the gap in providing the empirical evidence on lawyers’ compliance to their statutory AML obligations in Malaysia. Also, this paper could be a useful source of information for practitioners, academicians and students. It could also be a beneficial guide for policymakers for any possible future amendments to the law.

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