Identifying export risks of non-oil products related to money laundering and related strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Tanabandeh

Purpose The purpose of this study is to identify the risks associated with money laundering in the scope of non-oil products export and related strategies to manage them. Design/methodology/approach The statistical population of the research was the managers and experts of the Islamic Republic of Iran Customs Administration in Tehran. The sample needed for qualitative interviews was collected to the extent of theoretical saturation through a targeted judgment sampling. The qualitative data was analyzed by thematic analysis. In sum, 20 interviews were conducted. Findings Out of 181 subcategories extracted from verbal propositions, 41 core categories were extracted. In this way, 23 subcategories constructed final codes, 6 codes were export risks and 70 codes were final and 12 codes constructed strategy of export risk management. Originality/value This qualitative study provides the first exploration of the state-of-art on export risk management and money laundering.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hadi Saeidi

Purpose This study aims to investigate the impacts of the psychological behaviors of managers, including entrenchment, myopia, narcissism and overconfidence, on money laundering at Iranian companies listed on the Tehran Stock Exchange. Design/methodology/approach The present study is descriptive-correlational in terms of methodology and applied research in terms of objectives. The statistical population consisted of all companies listed on the Tehran Stock Exchange during 2013–2019. A total of 150 companies were selected as samples via screening. Logistic regression was used to analyze the data and test the hypotheses in EViews v10. Findings The findings revealed that management entrenchment, managerial myopia, managerial narcissism and managerial overconfidence have significant impacts on money laundering. Originality/value This study pioneer investigating the impacts of psychological behaviors among managers on money laundering in Iran. As an economic crime, money laundering poses an adverse impact on economic growth in countries. The continuous monitoring of manager performance and the deployment of performance measurement systems could prevent the negative impacts of manager behavior on money laundering.


2020 ◽  
Vol 23 (4) ◽  
pp. 913-930
Author(s):  
Shaban Mohammadi ◽  
Nader Naghshbandi ◽  
Zahra Moridahmadibezdi

Purpose The purpose of the present study is to investigate the impact of audit features, including audit quality, audit fees and auditor tenure on money laundering in Iranian stock companies. Design/methodology/approach This research is descriptive-correlational and applied in terms of purpose. To evaluate the audit features, variables including audit quality, audit fee and auditor tenure were used. The statistical population of this study includes all companies listed in Tehran Stock Exchange and the research period from 2012 to 2018. A sample of 150 companies was selected by the screening method. In this study, logistic regression and Eviews 10 software were used for data analysis and hypothesis testing. Findings The results showed that variables including audit quality, normal audit fee and auditor tenure have a significant effect on money laundering. Originality/value Observing money laundering rules and regulations for businesses involves is a critical issue. In auditing the financial statements of the business units subject to these laws, the auditor reviews their actions to obtain reasonable assurance of guaranteeing the money laundering laws, evaluates their effectiveness and gains approval of managers regarding observing laundering regulations. In this regard, the auditor is required to report definitive or suspected money-laundering cases or its certain or suspected evidence to the relevant authorities. Although the law prohibits the auditor from disclosing such matters to the client, it is not necessary. It seems that even if the auditors perform non-audit functions, they should report money laundering or suspicious operations and transactions.


2014 ◽  
Vol 17 (1) ◽  
pp. 96-109 ◽  
Author(s):  
Radiah Othman ◽  
Rashid Ameer

Purpose – The aim of this paper is to propose solutions for improving internal controls and transparency to alleviate concerns of international community over alleged linked with terrorist groups. Design/methodology/approach – The authors explore the counter-insurgency theory and political process model to explain the current state of counter-terrorism activities aimed at Islamic NGOs after 9/11. Findings – The authors believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. Practical implications – Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. The authors propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities. Originality/value – The proposed risk management framework is to complement various regional and international initiatives championed by Asia/Pacific Group on Money Laundering and Financial Action Task Force to combat money laundering and terrorist financing.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eric Pettersson Ruiz ◽  
Jannis Angelis

Purpose This study aims to explore how to deanonymize cryptocurrency money launderers with the help of machine learning (ML). Money is laundered through cryptocurrencies by distributing funds to multiple accounts and then reexchanging the crypto back. This process of exchanging currencies is done through cryptocurrency exchanges. Current preventive efforts are outdated, and ML may provide novel ways to identify illicit currency movements. Hence, this study investigates ML applicability for combatting money laundering activities using cryptocurrency. Design/methodology/approach Four supervised-learning algorithms were compared using the Bitcoin Elliptic Dataset. The method covered a quantitative analysis of the algorithmic performance, capturing differences in three key evaluation metrics of F1-scores, precision and recall. Two complementary qualitative interviews were performed at cryptocurrency exchanges to identify fit and applicability of the algorithms. Findings The study results show that the current implemented ML tools for preventing money laundering at cryptocurrency exchanges are all too slow and need to be optimized for the task. The results also show that while not one single algorithm is most suitable for detecting transactions related to money-laundering, the specific applicability of the decision tree algorithm is most suitable for adoption by cryptocurrency exchanges. Originality/value Given the growth of cryptocurrency use, this study explores the newly developed field of algorithmic tools to combat illicit currency movement, in particular in the growing arena of cryptocurrencies. The study results provide new insights into the applicability of ML as a tool to combat money laundering using cryptocurrency exchanges.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christoph Wronka

Purpose This paper aims to examine the framework for the regulation of crypto assets in Germany, the UK and Switzerland focusing on anti-money laundering (AML) laws. It comprehensively addresses the risks of crypto assets and the benefits along with the changes made to the existing laws to regulate cryptocurrency. Design/methodology/approach Qualitative data was analyzed to collect information for the case study and to challenge/examine the existing data and statistics. Findings The findings suggested that the AML laws are additionally modified to include the cryptocurrencies violations of the legislation, as it is the decentralized financial systems generating opportunities for crimes and terror financing. The moderate or mild laws were found in Switzerland following Germany and the UK has the most traditional and stringent laws of money laundering. Originality/value The paper has focused on the comparison of the three states in their AML laws comprehensively along with their attitude toward the crypto businesses.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philippa Duncan

Purpose This paper aims to provide an easy to follow, practical guide for small traditional banks and credit unions to conduct an enterprise-wide risk assessment of the financial institution’s anti-money laundering compliance program. Design/methodology/approach Information was collected from relevant documents published by global standard setters in the disciplines of anti-money laundering, financial crime prevention and risk management. The data was integrated with common challenges experienced by small financial institutions to produce an application-based guide that practitioners can readily implement. Findings Though not a new concept, macro-level financial crises and institutional level financial crimes have influenced the rapid evolution of risk management in financial institutions over the past three decades. Small unsophisticated banks and credit unions are expected to now perform an internal risk assessment. An abundance of information is available on risk assessment, but small institutions remain challenged in finding a turnkey document that is readily actionable to stimulate a less arduous undertaking, especially given the institutions’ limited resources. Research limitations/implications The setting reflects small deposit-taking institutions with traditional services. It is tailored for easy understanding and practical use by the institutions. Originality/value This could influence small institutions to conduct enterprise-wide risk assessments and formulate and use more specific risk management policies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mario Menz

Purpose The purpose of this paper is two-fold. First, it highlights areas of disconnect between how the financial services sector in the UK approaches the management of politically exposed persons (PEPs) risk; the requirements of the UK’s laws and regulations in relation to PEPs; and the expectations of the Financial Conduct Authority (FCA) in this regard. It then proposes an alternative approach to the risk-management of PEPs. Design/methodology/approach Semi-structured interviews have been carried out among compliance professionals in UK financial services. Findings This paper provides rare insight into the anti-money laundering (AML) arrangements of UK banks, an area that has not yet been widely researched in the academic literature. It argues that the expectations of the FCA exceed both the letter and the spirit of the UK’s laws and regulation around AML by emphasising an administrative approach over a qualitative/analytical approach to risk-management. It further suggests that mixed messages disseminated by the FCA have incentivised banks to shift their focus from financial crime risk (i.e. preventing money laundering and terrorist financing, etc.) towards regulatory risk (i.e. the risk of falling foul of regulatory expectations). Practical implications The paper makes suggestions for a more relationship-centric approach to PEP risk-management. Originality/value It provides unique insight into PEP risk-management in financial services, and argues for the FCA to propagate a more relationship-centric approach to PEP risk-management.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vahid Molla Imeny ◽  
Simon D. Norton ◽  
Mahdi Salehi ◽  
Mahdi Moradi

Purpose Iran has been ranked by the Basel Committee on Banking Supervision and the Financial Action Task Force (FATF) as one of the foremost countries in the world for money laundering. However, Iranian banks claim that they comply with international standards for reporting suspicious activity, risk management and training. This paper aims to investigate this dichotomy between perception and reality. Design/methodology/approach A Wolfsberg-style questionnaire was sent to partners in Iranian accounting firms, which have audited domestic banks over the past five years to investigate the adequacy of risk management systems. Findings Most Iranian banks have anti-money laundering (AML) systems, which compare favourably with those of international counterparties. Banks take a risk-based approach to potential criminal behaviour. The negative perception of Iranian banks is principally attributable to the government’s unwillingness to accede to “touchstone” international conventions. In spite of having in place AML laws, which are comparable in intent with those of the UK and the United States of America (USA), weak enforcement remains a significant impediment of which the political establishment is aware. Practical implications Measures required to bring Iranian banks into compliance with international standards may be less extensive than perceptions suggest. However, failure of the government to accede to conventions stipulated by the FATF means that banks may remain ostracised by foreign counterparties for the foreseeable future. Originality/value This study provides a unique insight into the extent of AML compliance in Iranian banks as verified by external auditors.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Christina Ekström ◽  
Eija Raatikainen ◽  
Annica Isacsson

PurposeThe aim of the study was to research higher education students' meaningful emotions when studying and develop a model for understanding and verbalising the role of emotions. The model will facilitate the awareness of the role of emotions when learning.Design/methodology/approachThe qualitative data consist of 45 narratives, gathered within three Finnish Universities of Applied Sciences in the Finnish metropolitan area. Emotions and their role in different encounters within a learning setting were analysed. The approach was narrative, and content analysis was used to analyse the data. The survey was shared through a link that was visible in the intranet of the students. The questionnaire was open for three weeks in spring 2018. It consisted of five open-ended questions that aimed at helping students in sharing their story which included different emotional experiences in the learning context. The questions were partly inspired by the Critical Incident Technique (CIT).FindingsThe results of the research show that most of the stories related to negative emotions. Most of the stories also described how the situation was resolved because our questions prompted respondents to write about that. The stories also described how students progressed with their studies. Some students considered the emotional experience to be “a lesson learned” for the future. Students also described how they had learned something about themselves and their reactions.Research limitations/implicationsWe collected the qualitative data within different fields and levels of study (Master and Bachelor). The statistical population consisted of approximately 35,000 enrolled students in the three Universities of Applied Sciences (hereafter UAS). The survey generated 45 answers. As the data were qualitative, we consider the richness of the accounts to be sufficient to answer our research questions.Practical implicationsWe have concentrated mainly on students' verbalized emotions, but we are aware of the fact that emotions are born in interaction with other students, systems, contexts, with teachers and with the organizational culture in our universities. No man is an island; so, in other words emotions cannot be taken out of the context. Connecting all the verbalized emotions and the interpretations and combination of them (seven ways of talking about emotions) we created an educational practice “chart” called “Emotional Footprint”, using the concept as introduced by Levine (2015). This practice chart aims at visualizing that emotions should be understood in all possible learning contexts. It is about individuals understanding themselves, understanding others and using emotions as energizers.Originality/valueIt is important to support emotional expression and improve emotional competence during life-long learning. An uncertain future, described as volatile, uncertain, complex and ambiguity need more people, who have a strong understanding of emotions and how these enhance and prohibit. With this model for expressing, verbalizing emotions that is easy to transfer to other contexts in the future professional life of students, we also want to emphasize how our universities can learn to turn negative emotions into constructive energy as well as boost authentic, positive emotions. We have to be aware of the emotional spectrum in order to create a learning experience of high quality. Our emotional footprint as professionals of learning is central. It is part of our societal responsibility.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saule Burkitbayeva ◽  
Emma Janssen ◽  
Johan Swinnen

PurposeThis paper provides one of the first and most detailed accounts of the large modern dairy farms that are emerging in the dairy sector in India. Qualitative interviews are used to understand how these farms differ from their traditional smallholder counterparts and how well integrated they are into the value chains.Design/methodology/approachSnowball sampling was used to identify large farmers. In total, 49 in-depth interviews were conducted with large commercial modern farms in Punjab. A detailed description of the main characteristics of these modern dairy farms is provided. Data from previous studies conducted in Punjab is used to compare the new farms with traditional smallholder farms.FindingsThe modern dairy farms are much more advanced in their use of technology compared to their traditional counterparts. These large commercial modern farms are very well integrated into the value chains. They often, but not exclusively, sell milk to formal supply chains, sometimes on a contractual basis.Originality/valueMost of the literature on the Indian dairy sector focuses on smallholders. However, understanding and acknowledging the emergence of modern dairy farms is very important in understanding the development of value chains not only in the dairy sector in India, but in domestic food sectors in developing countries in general. This qualitative data analysis is a necessary first step if more large-scale representative information is to be collected in the future.


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