scholarly journals INTERDEPENDENCE OF FINTECH INNOVATIONS, FINANCIAL, CYBERNETIC CRIMES AND LEGALIZATION OF CRIMINAL INCOME MEDIATED BY FINANCE INSTITUTIONS

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
O. Kuzmenko ◽  
T. Dotsenko ◽  
S. Mynenko ◽  
E. Shramko
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Service Providers ◽  
Criminal Activity ◽  
Third Party ◽  
Security Measures ◽  
Current Trends ◽  
Financial Infrastructure ◽  
Financial Transactions ◽  
The Impact

Current trends in Ukrainian society, the decline of economic development and, on the other hand, digitalization, development of financial services and innovation lead to a review and rethinking of the causes and consequences of criminal activity in the financial and economic sphere. FinTech innovations provide the latest tools to protect financial transactions, and, as the range of services expands, provide more targets for cybercriminals. The goals of cybercriminals, in turn, are often financial in nature, as the goals of criminals, for example, are not only to obtain confidential information, but also to use it for their own benefit or to meet the needs of a third party. Funds obtained illegally should be legalized for their quiet further use. All these processes to some extent depend on the available financial infrastructure - the existing financial organizations-service providers. The purpose of this study is to determine the relationship between FinTech innovation, financial crime, cybercrime and money laundering by building an economic and mathematical model, taking into account the functioning of financial institutions as major intermediaries in the financial services market. The method of structural modeling of interrelations between processes was chosen as the basic for research. Missed values ​​were predicted using a simple mean, the results were generated by analysis, synthesis, comparison and logical generalization. STATISTICA statistical software was used for simulation. The study found that the development of FinTech will lead to a reduction in financial offenses. If the number of cybercrimes and the number of crimes for money laundering increase, so will the number of financial crimes, but the impact of money laundering is stronger. The growth of fintech innovation will lead to an increase in cybercrime. With formalized linkages between these processes, law enforcement and government regulators will be able to better plan and manage the development of fintech innovation, risk-based digitalisation of the economy, and additional security measures.

PERDAGANGAN ETHEREUM DI INDODAX EXCHANGE DALAM PERSFEKTIF SYARIAH

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Muhamad Khoirul Umam
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Islamic Law ◽  
Indonesian Government ◽  
Advantages And Disadvantages ◽  
Digital Asset ◽  
Research Questions ◽  
Financial Transactions

In view of Islamic law Ethereum as a digital asset that is traded in cyberspace.The value of cryptocurrency surges and fluctuates, it is influenced by buying and selling demand. Indodax exchange is an official digital asset site in Indonesia that trades more than 40 digital currencies.The purpose of this study is to analyze whether cryptocurrency is worthy of value as money having a certain value, and also seen from the Indonesian government through Bank Indonesia has issued regulation No. 16/8/PBI/2014, which explicitly prohibits the use of bitcoin, Ethereum and altcoin for use in financial transactions in cash. So that raises research questions how the cryptocurrency law in the form of coin ethereum in Islamic law. The results of this study explain ethereum has advantages and disadvantages. Among its advantages is that users can use exchanges or transactions without a third service (bank), and can be traded at merchandise stores.However, ethereum losses are more frequent, such as fluctuating values each time, not listed as commodities, not watched by the Financial Services Authority (OJK), they present elements of gharar (uncertainty) and maysir (gambling) or (betting), which are used for money laundering and purchase of illegal drugs.Keywords: Cryptocurrency, Ethereum, Digital asset

scholarly journals DCSS Protocol for Data Caching and Sharing Security in a 5G Network

Network ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 75-94
Author(s):  
Ed Kamya Kiyemba Edris ◽  
Mahdi Aiash ◽  
Jonathan Loo
Keyword(s):  
Mobile Networks ◽  
Service Providers ◽  
Security Analysis ◽  
Mobile Network ◽  
End Users ◽  
Third Party ◽  
Control Mechanisms ◽  
Security Measures ◽  
Data Caching ◽  
Pi Calculus

Fifth Generation mobile networks (5G) promise to make network services provided by various Service Providers (SP) such as Mobile Network Operators (MNOs) and third-party SPs accessible from anywhere by the end-users through their User Equipment (UE). These services will be pushed closer to the edge for quick, seamless, and secure access. After being granted access to a service, the end-user will be able to cache and share data with other users. However, security measures should be in place for SP not only to secure the provisioning and access of those services but also, should be able to restrict what the end-users can do with the accessed data in or out of coverage. This can be facilitated by federated service authorization and access control mechanisms that restrict the caching and sharing of data accessed by the UE in different security domains. In this paper, we propose a Data Caching and Sharing Security (DCSS) protocol that leverages federated authorization to provide secure caching and sharing of data from multiple SPs in multiple security domains. We formally verify the proposed DCSS protocol using ProVerif and applied pi-calculus. Furthermore, a comprehensive security analysis of the security properties of the proposed DCSS protocol is conducted.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

Anti-money laundering – the need for intelligence

2017 ◽  
Vol 24 (3) ◽  
pp. 472-479 ◽  
Author(s):  
Richard John Lowe
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Financial Services ◽  
National Level ◽  
Financial Sector ◽  
International Standards ◽  
Policy Makers ◽  
Content Type ◽  
The Military ◽  
The Impact

Purpose The purpose of this paper is to highlight the need for predictive intelligence to support anti-money laundering programs in the financial sector. Design/methodology/approach The methodology adopted herein consists of a literature review on the use of intelligence in anti-money laundering, the sources of intelligence and information used in the financial sector, supported by experience gained from investigating and prosecuting money laundering cases, and the assistance provided to financial services companies. Findings Banks and other regulated services are required to meet international standards to deny services to criminals and terrorists, identify suspicious activity and report to the authorities. Regulated businesses have large operations which check customers against sources that confirm their identity or against lists of proscribed or suspected offenders at an individual or national level. Their controls tend to look backwards when other organisations that rely on intelligence, such as the military, value predictive, forward-looking intelligence. The penalties that banks and others face for failure in their controls are increasingly severe, as looking backwards and not forwards reduces the extent to which the controls meet their purpose of reducing the impact of organized crime and terrorism. Originality/value This paper serves as a useful guide to alert and educate anti-money laundering professionals, law enforcement and policy makers of the importance of predictive intelligence in countering organized crime and terrorism. It also considers whether lessons in intelligence handling from other areas can inform a debate on how intelligence can be developed to counter money laundering.

scholarly journals THE IMPACT OF THE AGREEMENT ON THE AUTOMATIC EXCHANGE OF FINANCIAL INFORMATION ONTO THE RUSSIAN SYSTEM OF COMBATING MONEY LOUNDERING

2017 ◽  
pp. 83-88
Author(s):  
Stanislav Aleksandrovich Grinyakin
Keyword(s):  
Money Laundering ◽  
Information Exchange ◽  
National Level ◽  
Recent Decade ◽  
Financial Information ◽  
Automatic Information ◽  
Financial Investments ◽  
Financial Transactions ◽  
The Impact ◽  
Working Out

Today, in the context of crisis, many managers of large corporations seek to protect their financial investments by their legalization and further withdrawal into the offshore zone. In the recent decade in many countries the problems of combating economic crimes related to money laundering are solved at the national level. The article highlights the need to improve legislation and strengthen activities in this direction.The authors consider different possible schemes of money laundering, participating of credit and financial institutions in such schemes being a unifying factor. Lack of governmental controls over legality of financial transactions, absence of precise criteria resulted in working out the Multilateral agreement of Organization for Economic Co-operation and Development (OECD) on cooperation between the competent authorities on the problems of automatic information exchange, which is the part of OECD Standard about automatic exchange of financial information. Adoption of OESD Standard by Russia leads to increased complexity and insecurity of operations of certain credit and financial organizations, but will make the procedure of provision of account information more transparent eliminating possibility to dodge taxes by money laundering for businesses.

scholarly journals Money laundering, cybercrime and criminal responsibility of legal persons

2019 ◽  
Vol 3 (5) ◽  
pp. 231-279
Author(s):  
Miguel Abel Souto
Keyword(s):  
Money Laundering ◽  
Police Officers ◽  
New Technologies ◽  
Service Providers ◽  
Criminal Responsibility ◽  
Criminal Liability ◽  
Criminal Activity ◽  
Legal Framework ◽  
Monitoring And Control ◽  
Technical Improvement

Directives 2015/849, and 2018/843 on Money Laundering require continuous adaptations of the legal framework to respond to threats of the use of new technologies in money laundering. Directive 2018/843 extends the scope of Directive 2015/849 to providers engaged in exchange services between virtual currencies and fiat currencies as well as custodian wallet providers. Undoubtedly, the new payment systems facilitate money launderers’ criminal activity. These systems are better than cash for moving large sums of money, non-face to face business relationships favour the use of straw buyers, and false identities, the absence of credit risk, as there is usually a prepaid payment, discourages service providers from obtaining a complete, and accurate customer information, and the nature of the trade, and the speed of transactions make it difficult to control property or freezing. However, the development of technologies, including the internet, has unquestionable advantages involved and even provides, through online resources, verification of identity, or other duty of surveillance, for the prevention of money laundering. In addition, the reform of June 22, 2010 introduced in Spain the criminal liability of legal persons, and incorporated money laundering together with other crimes to this innovative model of criminal responsibility. Soon after, Organic Law 1/2015, of March 30, modified the hereto barely applied regulation. Itis quite surprising that Organic Law 1/2015 boasts of making a technical improvement, as it incurs obvious contradictions by exempting criminal liability to legal persons for a money laundering, that should not have existed due to the adoptionand effective execution of suitable or adequate compliance programs to prevent it, as well as taking into account to limit the punishment non-serious breaches of supervisory, monitoring, and control duties, when letter b) of the first paragraph of article 31 bis only takes into consideration serious breaches of those duties. Already in 2010, in order to introduce the criminal liability of legal persons, the Spanish Legislator invoked the alleged need to comply with international commitments. However, this model of responsibility was not mandatory, because international agreements normally only require effective, proportionate, and dissuasive sanctions. In addition, managers and executives, who have not adopted an effective compliance program, will be held liable together with the company, given that now all act as police officers. In conclusion, the use of dummy corporations for money laundering is frequent, as it is evidenced by the judgments of theSupreme Court of June 26, 2012, and February 4, 2015, but until recently, the accessory consequences and the doctrine of piercing the corporate veil were sufficient.

scholarly journals The manifestation of coordination failures in service triads

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jas Kalra ◽  
Michael Lewis ◽  
Jens K. Roehrich
Keyword(s):  
Bounded Rationality ◽  
Military Service ◽  
Service Providers ◽  
Third Party ◽  
Coordination Failures ◽  
Content Type ◽  
Unethical Practices ◽  
Knowledge Asymmetry ◽  
The Impact ◽  
Bridge Position

Purpose This paper aims to investigate governance in service triads, specifically studying significant steering and connecting coordination failures, to reveal typically hidden characteristics and consequences. Design/methodology/approach This study focuses on coordination functions and activities between a buyer (a government department), a customer (a military service) and two service providers. Rich data on these normally confidential service ties are drawn from an official report into the causes of a fatal accident involving a UK reconnaissance aircraft and specifically from the evidence presented regarding the earlier development of its complex safety case. The authors also analysed a range of additional secondary data sources. Findings The authors examine the sources, drivers and manifestation of coordination failures. The authors uncover a series of coordination failures driven from the bridge position, revealing that while bounded rationality and opportunism influenced steering coordination failures, connecting coordination failures were associated with knowledge asymmetry, dyadic inertia and unethical practices. Practical implications Organisations and governments delivering complex projects and knowledge-intensive professional services should guard against outsourcing the “coordination” activity to a third party, thereby relinquishing the bridge position. Handing over the bridge position to an integrator would leave the client vulnerable to coordination dysfunctions such as bounded rationality, opportunism, knowledge asymmetry, dyadic inertia and unethical practices. Originality/value The study links the previously separate research streams of service triads and inter-organizational coordination. While extant research pays attention to mainly positive control functions, this study focuses on all three actors in two (failed) service triads – and highlights the impact of coordination activities and failures.

scholarly journals The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges

2021 ◽  
Vol 5 (1) ◽  
pp. 95-101
Author(s):  
Hashim Sabo Bello ◽  
Shamsuddeen Abubakar ◽  
Sunusi Abdulkadir Fateh
Keyword(s):  
Social Services ◽  
Low Income ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Islamic Microfinance ◽  
And Gender ◽  
High Level ◽  
Financial Transactions ◽  
The Impact

One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.

scholarly journals Securing Open Banking with Model-View-Controller Architecture and OWASP

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Deina Kellezi ◽  
Christian Boegelund ◽  
Weizhi Meng
Keyword(s):  
Data Storage ◽  
Web Applications ◽  
Service Providers ◽  
Third Party ◽  
Security Level ◽  
The European Union ◽  
Security Measures ◽  
Security Issues ◽  
Separation Of Concern ◽  
The Right

In 2015, the European Union passed the PSD2 regulation, with the aim of transferring ownership of bank accounts to the private person. As a result, Open Banking has become an emerging concept, which provides third-party financial service providers open access to bank APIs, including consumer banking, transaction, and other financial data. However, such openness may also incur many security issues, especially when the data can be exposed by an API to a third party. Focused on this challenge, the primary goal of this work is to develop one innovative web solution to the market. We advocate that the solution should be able to trigger transactions based on goals and actions, allowing users to save up money while encouraging positive habits. In particular, we propose a solution with an architectural model that ensures clear separation of concern and easy integration with Nordea’s (the largest bank in the Nordics) Open Banking APIs (sandbox version), and a technological stack with the microframework Flask, the cloud application platform Heroku, and persistent data storage layer using Postgres. We analyze and map the web application’s security threats and determine whether or not the technological frame can provide suitable security level, based on the OWASP Top 10 threats and threat modelling methodology. The results indicate that many of these security measures are either handled automatically by the components offered by the technical stack or are easily preventable through included packages of the Flask Framework. Our findings can support future developers and industries working with web applications for Open Banking towards improving security by choosing the right frameworks and considering the most important vulnerabilities.

Vertical Application Service Provision

2011 ◽  
pp. 201-223
Author(s):  
Nigel J. Lockett ◽  
David H. Brown
Keyword(s):  
Service Provision ◽  
Service Providers ◽  
Third Party ◽  
Trusted Third Party ◽  
Application Service Providers ◽  
Application Service ◽  
Business Application ◽  
The Impact

Against a background of the low engagement of small to medium-sized enterprises (SMEs) in e-business, this chapter investigates the impact of e-aggregation applications, provided by emerging vertical application service providers (VSP), and defined as “an e-business application, promoted by a trusted third party, which engages a significant number of SMEs by addressing an important shared business concern within an aggregation”. By conducting quantitative surveys of four aggregations of SMEs using these applications (users) and comparing these results with similar enterprises who are not (non-users) the research takes a deliberate SME perspective.

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