Cryptocurrencies: an unconventional challenge to the AML/CFT regulators?

2014 ◽  
Vol 21 (3) ◽  
pp. 249-263 ◽  
Author(s):  
Victor Dostov ◽  
Pavel Shust
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial System ◽  
Content Type ◽  
Payment Instruments ◽  
Informal Communities ◽  
Financing Of Terrorism ◽  
Practical Implications ◽  
Insight Into

Purpose – The purpose of the article is to look closely at the phenomenon of the cryptocurrencies such as and bitcoin to identify their potential vulnerabilities to money laundering and financing of terrorism. It also explores their specific characteristics relevant to ML/FT risks. Design/methodology/approach – Using digicash and bitcoin protocols as primary cases for centralized and decentralized cryptocurrencies we analyse their characteristics against cash and cashless payments. We also draw on “bundle of attributes” that may define their attractiveness for common public or criminals. Findings – Our research shows that characteristics of the cryptocurrencies are unlikely to make them popular among the consumers, as demand for anonymity seems to be overrated. Cryptocurrencies can also be classified as payment instrument rather than private currencies; therefore their embededdness in the financial system minimizes the ML/FT risks. Research limitations/implications – Some decentralized cryptocurrencies operate within informal communities. Therefore, relations within these communities are constantly evolving and need to be monitored further. Practical implications – The paper provides an insight into the mechanics and classification of cryptocurrencies as payment instruments. Place of cryptocurrencies within the broader payment ecosystem defines their potential vulnerabilities to being abused by the criminals. Originality/value – The paper fills the gap in research on cryptocurrencies as payment instruments rather than private currencies and also provides an overview of their relevance for the Anti-money laundering and combating financing of terrorism (AML/CFT) regime.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

Money laundering through exchange offices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann ◽  
Marie-Christin Falker
Keyword(s):  
Qualitative Study ◽  
Money Laundering ◽  
Quantitative Research ◽  
Design Methodology ◽  
Prevention Measures ◽  
Content Type ◽  
Compliance Officers ◽  
Research Gap ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this paper is to illustrate how money launderers circumvent compliance measures by using exchange offices to launder incriminated funds. Design/methodology/approach The three-step process entailed carrying out unofficial interviews with money launderers, which gave first insight into the issue, followed by expert interviews that were reviewed by means of a qualitative study. The findings of the qualitative study were processed during the subsequent quantitative research. Findings Although exchange offices are a known threat to anti-money laundering efforts, they continue to be highly applicable. As exchange offices are responsible for their own compliance measures, compliance officers employed by other institutions do not encounter money laundering through exchange offices regularly. Research limitations/implications The findings of the study are limited to the experiences of the interviewed experts, which, naturally, are highly subjective. Further, they are geographically limited, as certain areas were not represented in the study. Practical implications During the literature review, a research gap was identified. The present study attempts to partially fill the same. The illustrated findings aimed at facilitating an improvement of anti-money laundering measures. The insights into the minds of money launderers provide valuable information for legislators, compliance officers and authorities. Originality/value Presently, the majority of the literature focuses on the issue of money laundering from a compliance perspective. However, accurately understanding how money launderers circumvent the existing prevention measures requires an exploration of their approaches. To effectively inhibit money laundering, it is necessary to gain a holistic overview of the issue, which entails the observation of both perspectives.

The implications of the Brexit from EU and bitcoin

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tareq Na'el Al-Tawil ◽  
Hassan Younies
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial System ◽  
International Community ◽  
Monitoring And Control ◽  
Content Type ◽  
Holistic Approaches ◽  
The World ◽  
Financing Of Terrorism ◽  
And Control

Purpose The purpose of this paper is to tackle the most pressing issues confronting global anti-money laundering (AML) efforts, particularly, the implications of the Brexit from EU and the increasing association of bitcoin and cryptocurrencies with crimes. Design/methodology/approach This paper will evaluate the implications of Brexit to AML efforts and the threat that cryptocurrencies like bitcoin pose to the financial system. Findings Instead of banning trade and other transactions using BTC and other cryptocurrencies, financial experts, with the able assistance of IT and mining experts, from all over the world need to convene and tailor an effective regulatory framework. Solid cooperation among the international community, supported by unitary standards and procedures, will help boost the worlds AML/combatting the financing of terrorism (CFT) efforts. As an added bonus, effective regulation, monitoring and control can facilitate more efficient tax collection. Originality/value Recommendations were advanced about the future of AML/CFT efforts and the need for internationally holistic approaches in combatting these twin scourges on all economies.

Lifting the veil on beneficial ownership

2020 ◽  
Vol 23 (4) ◽  
pp. 717-734
Author(s):  
Paul Michael Gilmour
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Developing Economies ◽  
Content Type ◽  
Intergovernmental Cooperation ◽  
Beneficial Ownership ◽  
The Veil ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose This paper aims to critically explore the challenges facing the UK in implementing registers of beneficial owners, a measure mandated by the EU’s anti-money laundering (AML) directive to enhance beneficial ownership transparency. Design/methodology/approach This study systematically reviews the literature surrounding beneficial ownership transparency to critically analyse the extent to which challenges facing the UK, impact upon its ability to successfully implement registers of beneficial owners. Findings This study demonstrates that a lack of beneficial ownership transparency facilitates money laundering by concealing corrupt wealth and frustrating authorities’ efforts to trace illicit finance. It demonstrates that implementing registers of beneficial owners may be a superficial approach to tackling the multifaceted problem of money laundering. Better intergovernmental cooperation is required to improve beneficial ownership transparency and to ensure measures to curb offshore money laundering are successful. Research limitations/implications This research focuses on one aspect of AML control from the UK’s perspective. Further work is needed to investigate the concerns from the perspective of offshore jurisdictions and how global AML rule affects developing economies. Practical implications The study informs policymakers and other professionals implementing the UK’s registers of beneficial owners to enhance future strategies and better combat offshore money laundering. Originality/value This is the only study to explore the challenges facing the UK in implementing registers of beneficial owners, thus providing novel insight into the moral, legal and practical dilemmas to imposing AML control.

FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases

2018 ◽  
Vol 19 (2) ◽  
pp. 19-23
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Financial Industry ◽  
Electronic Communications ◽  
Content Type ◽  
The Past ◽  
Expert Analysis ◽  
Research Analysts ◽  
Practical Implications

Purpose The purpose of this paper is to analyze the Financial Industry Regulatory Authority’s (FINRA) 2017 disciplinary actions, the issues that resulted in the most significant fines and restitution and the emerging enforcement trends from 2017 and beyond. Design/methodology/approach The approach of this paper discusses the disciplinary actions in 2017 and prior years, details the top 2017 enforcement issues measured by total fines assessed, including anti-money laundering, trade reporting, electronic communications, books and records, research analysts and research reports, and explains current enforcement trends, including restitution, suitability cases and technological issues. Findings In 2017, restitution more than doubled from the prior year, resulting in the fourth highest total sanctions (fines combined with restitution and disgorgement) assessed by FINRA over the past 10 years. Practical implications Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value This paper provides expert analysis and guidance from experienced securities enforcement lawyers.

What makes court-referred mediation effective?

2014 ◽  
Vol 25 (1) ◽  
pp. 21-37 ◽  
Author(s):  
Amira Galin
Keyword(s):  
Design Methodology ◽  
Content Type ◽  
Process And Outcome ◽  
Refusal To Participate ◽  
The Impact ◽  
Practical Implications ◽  
Theoretical Insight ◽  
Insight Into ◽  
Low Rate

Purpose – The purpose of this paper is to obtain insight into court-referred mediation in the Israeli Labor Courts, by analyzing its processes and outcomes, as a function of tactics used by both the disputants and the mediator. Design/methodology/approach – Observation of 103 court-referred mediations, for each of which a detailed process and outcome were documented. Data on disputants' refusal to participate in the mediation was also collected. At the end of each mediation case, disputants were given a questionnaire in which they expressed their satisfaction with the outcome and their evaluation of the mediator's contribution. Findings – A low rate of refusal to participate in court-referred mediation was found. Also, the higher the ratio of soft tactics to pressure tactics employed (by all parties involved) during the process, the higher the rate of agreements. Mediators use significantly more soft tactics than disputants, and are more active in using tactics. The two significant variables that predict the mediation's agreement are the ratio between soft tactics to pressure tactics used by all parties, and mediator contribution to the process. Practical implications – The significant role of soft tactics in the process, outcome, and satisfaction of court-referred mediation may serve as a guideline for disputants and mediators. Originality/value – This unique research, which examines the impact of tactics on court-referred mediation, may provide added and significant theoretical insight into its process and outcome, as well as a better understanding of other “hybrid” (compulsory at the beginning, voluntary at the end) mediations.

scholarly journals A surrogate-based generic classifier for Chinese TV series reviews

2017 ◽  
Vol 45 (2) ◽  
pp. 66-74
Author(s):  
Yufeng Ma ◽  
Long Xia ◽  
Wenqi Shen ◽  
Mi Zhou ◽  
Weiguo Fan
Keyword(s):  
Design Methodology ◽  
Experimental Result ◽  
Digital Information ◽  
Data Set ◽  
Content Type ◽  
Category Labels ◽  
Information Supply Chain ◽  
Feature Selection Techniques ◽  
Practical Implications

Purpose The purpose of this paper is automatic classification of TV series reviews based on generic categories. Design/methodology/approach What the authors mainly applied is using surrogate instead of specific roles or actors’ name in reviews to make reviews more generic. Besides, feature selection techniques and different kinds of classifiers are incorporated. Findings With roles’ and actors’ names replaced by generic tags, the experimental result showed that it can generalize well to agnostic TV series as compared with reviews keeping the original names. Research limitations/implications The model presented in this paper must be built on top of an already existed knowledge base like Baidu Encyclopedia. Such database takes lots of work. Practical implications Like in digital information supply chain, if reviews are part of the information to be transported or exchanged, then the model presented in this paper can help automatically identify individual review according to different requirements and help the information sharing. Originality/value One originality is that the authors proposed the surrogate-based approach to make reviews more generic. Besides, they also built a review data set of hot Chinese TV series, which includes eight generic category labels for each review.

Design and topological optimization of rear pressure bulkhead for a typical aircraft

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marshal Thakran ◽  
Meenakshi ◽  
Jitender Sharma ◽  
Charles Gilbert Martin
Keyword(s):  
Numerical Analysis ◽  
Significant Influence ◽  
Design Methodology ◽  
Structural Integrity ◽  
Topological Optimization ◽  
Content Type ◽  
Iterative Design ◽  
Practical Implications ◽  
Insight Into ◽  
Selection Of

Purpose The purpose of this paper is to evaluate the model of a rear pressure bulkhead with different design optimizations to meet the pressurized cabin requirements of an aircraft. Design/methodology/approach This paper presents the results of the static analysis of a dome-shaped rear pressure bulkhead model designed in Catia-v5. Numerical analysis of model meshed in hyper-mesh and solved using Opti-Struct for iterative design optimizations. Findings All the iterative models are analyzed at 9 Psi. Rear pressure bulkhead designed with L-section stringer shows better results than the model optimized with T-section stringer for the same thickness. The model optimized with L-shaped stinger also reduces the weight of the bulkhead without affecting the structural integrity. Practical implications It has been concluded in this paper that the selection of specific shapes of the stringers shows a significant influence on weight reduction. Originality/value This paper provides a topical, technical insight into the design and development of a rear pressure bulkhead. It also outlines the future development of dome-shaped rear pressure bulkhead.

Role reflections of police reservists: a study of volunteer reserve officers in Malaysia

2018 ◽  
Vol 41 (6) ◽  
pp. 813-827 ◽  
Author(s):  
Phaik Kin Cheah ◽  
N. Prabha Unnithan ◽  
Suresh Suppiah
Keyword(s):  
Police Officers ◽  
Design Methodology ◽  
Theory Approach ◽  
Structured Interviews ◽  
Content Type ◽  
The Public ◽  
Role Orientations ◽  
Grounded Theory Approach ◽  
Practical Implications ◽  
Insight Into

PurposeThe purpose of this paper is to investigate the work roles of the Royal Malaysia Police Volunteer Reserve officers.Design/methodology/approachA grounded theory approach was utilized for the generation and analysis of the data. Data were collected through interviews, observations and follow-ups. Semi-structured interviews were conducted with 20 male and female volunteer reserve officers and 5 regular police officers aged between 24 and 58 years of mixed socioeconomic backgrounds, ethnicities and ranking in the Royal Malaysia Police force. Two civilian respondents (spouses of the Police Volunteer Reserve officers) were also interviewed for this study for the purpose of theory sampling.FindingsThe data were analyzed qualitatively resulting in a model of Royal Malaysia Police Volunteer Reserve officer roles consisting of four orientations.Research limitations/implicationsStudy outcomes are discussed theoretically and administratively. The four role orientations identified will assist researchers studying police reserve volunteerism.Practical implicationsStudy outcomes allow administrators to utilize and deploy police reservists in consonance with the four role orientations identified.Social implicationsThis study provides insight into how police reservists conceive of and execute their roles as they negotiate them in relation to the regular police officers they work with and the public from which they are drawn.Originality/valueThis is the first study of police volunteerism in Malaysia.

Money laundering in a CBDC world: a game of cats and mice

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Dupuis ◽  
Kimberly Gleason ◽  
Zhijie Wang
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Economic Activity ◽  
Design Methodology ◽  
Central Banks ◽  
Content Type ◽  
Digital Currency ◽  
Individual Privacy ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this study is to describe the present taxonomy of money, summarize potential central bank digital currency (CBDC) regimes that central banks worldwide could adopt and explore the implications of the introduction of each of these CDBC regimes for money laundering through the lens of the regulatory dialectic theory. Design/methodology/approach The methodology used in the analysis of significant recent events regarding the progress of central banks in establishing a CBDC and the implications for money laundering under a CBDC regime. This paper also reviews the literature regarding the Regulatory Dialectic to highlight potential innovative responses of money launderers to circumvent the controls generated through the implementation of a CBDC. Findings This study examines the impact of Kane’s regulatory dialectic paradigm on the feasibility of money laundering under a CBDC regime and identifies potential avenues that would be available for those seeking to launder money, based on the form a CBDC would take. Research limitations/implications This paper is unable as of yet to empirically evaluate anti-money laundering (AML) tactics under a CBDC regime as it has not yet been fully implemented. Practical implications Many central banks worldwide are evaluating the structure of and introduction of a CBDC. There are a number of forms that a CBDC could take, each of which has implications for individual privacy and for entities involved in AML efforts within financial institutions and the regulatory community. The paper has implications for AML experts who are considering how AML procedures would change under a CBDC regime. Social implications The regulatory dialectic predicts that regulatory response reactive, rather than proactive when it comes to socially undesirable phenomena. As central banks and governments seek to divert economic activity away from the laundering of the proceeds of illicit activity, there are tradeoffs in terms of a loss of privacy. The regulatory dialectic predicts a corresponding innovative response of those who wish to undermine the controls generated through the establishment of a CBDC. Originality/value To the authors’ knowledge, this is the first paper to explore the impact of a potential CBDC on money laundering and the potential innovative circumventions within the paradigm of the Regulatory Dialectic.

Sign in / Sign up

Export Citation Format

Share Document