Strengthening the role of lawyers and other professional advisers in addressing economic and financial crimes in Indonesia

2019 ◽  
Vol 26 (4) ◽  
pp. 1107-1116 ◽  
Author(s):  
Anastasia Suhartati Lukito
Keyword(s):  
Code Of Ethics ◽  
Economic Crime ◽  
Business Community ◽  
Public And Private ◽  
Content Type ◽  
Legal Professionals ◽  
Financial Crimes ◽  
New Perspective ◽  
Financial Transactions

Purpose This paper aims to explain the regulations in Indonesia that apply to lawyers and other professional advisers in terms of their obligations as reporting parties of suspicious financial transactions with respect to money laundering and other financial crimes. As lawyers and other professional advisers offer services to the business community in Indonesia, they are vulnerable to becoming parties to illegal business transactions. The results could lead to bribery, graft, tax crime and corruption in Indonesia. Design/methodology/approach This paper explores and analyzes the obligations of lawyers and other professional advisers under Indonesian law, with particular reference to their obligations as reporting parties in efforts to prevent economic crime within the country’s business community. Findings Lawyers and other professional advisers, as reporting parties, can be viewed as the gatekeepers that inhibit economic and financial crimes. Consequently, a new perspective is needed for all of the legal professions so that they can protect themselves from the risks of being targeted by nefarious clients/offenders. To strengthen the role of these advisers, it is recommended that both a code of ethics and know your customer principle to be implemented. Practical implications This paper can serve as a resource that explores the functions of lawyers and other professional advisers as reporting parties whose aim is to prevent financial and economic crime in Indonesia. Originality/value This paper encourages lawyers, other professional advisers, and public and private institutions to implement a code of ethics, and also integrity and professionalism, with a view to preventing economic and financial crimes. According to the code, the functions and obligations of lawyers and other professional advisers include discouraging such offenses. The code becomes effective when legal professionals adhere to legal ethics and integrity.

scholarly journals Financial intelligent investigations in combating money laundering crime

2016 ◽  
Vol 19 (1) ◽  
pp. 92-102 ◽  
Author(s):  
Anastasia Suhartati Lukito
Keyword(s):  
Money Laundering ◽  
Economic Crime ◽  
Content Type ◽  
Legal Perspective ◽  
Illegal Activities ◽  
New Perspective ◽  
Banking Institution ◽  
Financial Transactions ◽  
Economic Crimes

Purpose – The purpose of this paper is to analyze the functions of financial intelligent investigations by the Indonesian financial intelligent unit in conjunction with the participating reporting parties, to consider the obstacles and challenges to reduce money laundering cases in Indonesia, realizing that the role of the financial intelligent investigations not only conducted by Indonesian Financial Intelligent Unit itself but the active participation from reporting parties such as banking institution. The function of financial intelligent unit in supervising and monitoring cash financial transactions is importance in fight against economic crimes, particularly in the anti-money laundering regime. Design/methodology/approach – This paper explores the Indonesian laws on prevention and eradication on money laundering crime and analyzing the importance role of financial intelligent investigations and disruption of money laundering crime. Findings – The financial intelligent investigations will become an important strategy to combating the economic crime such as money laundering and corruption. The new perspective is needed to developing the good synergy in the financial intelligent unit and reporting parties to maximizing the eradication of money laundering cases. Practical implications – The paper can be a source to explore about the money laundering eradication based on Indonesia legal perspective. Originality/value – This paper gives contributions by encouraging the financial intelligent unit in conjunction with all the financial institutions to disrupt any money laundering activities, which is associated to other predicate crimes and attempting to conceal the illegal funds derived from illegal activities that commonly happened in Indonesia.

scholarly journals Combating economic and financial crimes in nigeria: the role of the forensic accountant

2020 ◽  
Vol 10 (4) ◽  
pp. 12-28
Author(s):  
Felix Ogbeiyulu Umanhonlen ◽  
Otakefe J.P ◽  
Killian Osikhenaogiedu
Keyword(s):  
Internal Control ◽  
Expert Witness ◽  
Future Research ◽  
Financial Crime ◽  
Public And Private ◽  
Forensic Accounting ◽  
Financial Crimes ◽  
Routine Basis ◽  
Expert’S Opinion

Economic and financial crime has been a clog in the wheel of progressand a majorproblem be devil economic prosperity and growth modelsof most nations of the world. Due to this government in some quarters have had the reason to set upinstitutions to unravel as well asdispels themenace. Despite this,fewer than much success mayhave been achieved by the respective anti-corruption agencies as a result of not identifying with therole of forensic accounting science in planning, investigating and representing expert witness/testimony on be fore law suit. This paper attempts toappraisethe role of forensic accountant in combating economic and financial crimes in Nigeria. The paper explored relevance components of economic and financial crimes and extensively discussed concepts of crime and criminality, corruption, white collar and cybercrimes. Specifically, the study reviews the historical antidotes of forensic accounting, emphasizes on the role of forensic accounting science in litigation and forensic accountantensuring economic and financial crime immersed. Moreso, the study identifies basis for future research, some potential crimes factors and forensic accounting science expert’s opinion in crime scene as well as reviewed prior studies and gap envisaged. Essentially, the study reviewed theoretical issues using qualitative approach thereby involving a survey of literature to decipher relevant issues. It there fore sought that forensic accounting serves the basis for investigation, expert witness testimonyand opinion of expert in lawsuit so as to unravel crimes, and reach resolution for recovering. However, concludes that there is need to involve and embrace accounting expert science in all facets of crime investigation in order to accelerate detections and ameliorate incidences of failed attempt on crime recovery related to economic and financial crimes. Therefore, propose that public and private sectors should engage, recruit and employservices of and/or stationed forensic accountant to review,strengthen, reappraises records and internal control on routine basis. Also to check incidences of crime perception as well as anti-corruption agencies saddled with the responsibilities of fighting economic and financial crimes to employ and adopt engagement of forensic accountant on regular basis among others for all-inclusiveness works of planning, investigating, detecting,and recovering.

The role of state ownership on earnings quality: evidence across public and private European firms

2018 ◽  
Vol 19 (2) ◽  
pp. 312-332 ◽  
Author(s):  
Cristina Gaio ◽  
Inês Pinto
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Capital Markets ◽  
Capital Market ◽  
Earnings Quality ◽  
State Ownership ◽  
Public And Private ◽  
Content Type ◽  
Large Sample

Purpose The purpose of this paper is to examine the role of state ownership on financial reporting quality regarding the characteristics of conservatism and earnings management. Design/methodology/approach Using a large sample of public and private European firms during the period 2003-2010, the authors test the hypotheses following Ball and Shivakumar’s (2005) model for conservatism and the modified Jones (1991) model proposed by Dechow and Sloan (1995) for earnings management. To ensure that the results are robust, the authors conduct sensitivity analysis with regard to potential endogeneity and selection bias. Findings The authors find that state-owned firms are less conservative than non-state-owned firms, which is consistent with the idea that there is less need for accounting conservatism due to government protection. The authors also show that capital markets play an important role in shaping the relation between state ownership and earnings management. Among public firms, the authors find that state-owned firms have higher abnormal accruals and worse accruals quality than non-state-owned firms, which suggests that state-owned firms are not immune to capital market pressures. Research limitations/implications The study has two limitations. First, as state-owned and non-state-owned firms face quite different incentive structures, management behavior might be determined by factors that have yet to be identified. Second, prior research results suggest an inverted U-shape relation between ownership concentration and earnings management (Ding et al., 2007). It would be interesting to investigate the impact of different levels of state ownership on earnings quality. Practical implications As the paper investigates the role of state ownership on earnings quality using a sample of European firms, it brings new insights regarding the role of state ownership in accounting quality and firm performance. In addition, it considers the role of capital markets in the relation between the quality of financial reporting and ownership by considering a sample with both public and private firms. Originality/value The study contributes to the debate about state intervention in the corporate sector, by extending the knowledge of the effects of government ownership on earnings quality by using a large sample of European firms. Furthermore, the authors also introduce the effect of capital market forces on managers’ behavior in state-owned and non-state-owned companies by analyzing private and publicly listed firms.

Challenge-hindrance stressors and career initiative: a moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yan Liu ◽  
Lei Ren
Keyword(s):  
Positive Affect ◽  
Job Autonomy ◽  
Content Type ◽  
Mba Students ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
Part Time ◽  
New Perspective ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between challenge-hindrance stressors and employees’ career initiative while incorporating the mediating role of positive affect and the moderating role of job autonomy.Design/methodology/approachFive proposed hypotheses were tested using path analysis with two waves of data collected from 136 part-time MBA students.FindingsThe findings show that challenge stressors indirectly facilitate career initiative, whereas hindrance stressors indirectly inhibit career initiative, both with positive affect as mediators. Job autonomy enhances the direct relationship between positive affect and career initiative, as well as the indirect relationships among challenge/hindrance stressors, positive affect and career initiative.Originality/valueThe study brings a new perspective to understanding why an employee conducts career initiative, thereby widening the scope of the antecedents of career initiative. The study discloses positive affect as the mediator that transmits the opposite effects from challenge-hindrance stressors to career initiative. It also identifies job autonomy as an important boundary condition for positive affect to exert its influence on career initiative, as well as challenge-hindrance stressors that influence career initiative via positive affect.

“Hey Alexa–order groceries for me” – the effect of consumer–VAI emotional attachment on satisfaction and repurchase intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reema Singh
Keyword(s):  
Emotional Attachment ◽  
Repurchase Intention ◽  
Self Disclosure ◽  
Content Type ◽  
Self Identity ◽  
New Perspective ◽  
Grocery Purchase ◽  
Strategic Market ◽  
Purchase Satisfaction

Purpose Given the growing prominence of voice-activated artificial intelligent devices (VAIs) as the strategic market-facing technology for grocery purchases, this article aims to bring together theories on anthropomorphism, trust, emotional attachment, self-connection and self-disclosure in one conceptual framework establishing that consumer–VAI relationship has significant implications for grocery purchase satisfaction and intention to repurchase using VAIs. Design/methodology/approach The study tested seven hypotheses through a survey-based approach comprising of two studies. Findings The study empirically supports VAI anthropomorphism and trust in VAIs as predictors of consumer–VAI emotional attachment and establishes the moderating role of consumer self-disclosure. Consumer–VAI self-connection resulting from emotional attachment results in grocery purchase satisfaction and intention to repurchase using VAIs. Research limitations/implications The article offers a novel perspective on consumer–VAI relationships and the use of VAIs for grocery purchases. It establishes an agentic role of consumers when ordering groceries using VAIs, creating a deeper understanding of how consumer–VAI emotional attachment results in extensions of consumers’ self-identity, resulting in purchase satisfaction and repurchase intention using VAIs. Practical implications Establishing a consumer–VAI relationship, the article brings out the strategic importance of VAIs for marketers in grocery purchases and repurchases, which can be extended to other purchases. Originality/value The article offers a new perspective on establishing VAIs as strategically important market-facing devices by examining consumer relationships with VAIs and offering valuable insights on how consumer emotional attachment with VAIs results in satisfaction and intention to repurchase using VAIs.

Mediating role of attitude in halal cosmetics purchase intention: an ELM perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anubha  
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Muslim Women ◽  
Final Analysis ◽  
Mediation Effect ◽  
Content Type ◽  
Purchasing Intention ◽  
Likelihood Model ◽  
New Perspective

Purpose The purpose of this study is to examine the role of attitude as a mediator in exploring the Halal cosmetics purchase intention of Indian Muslim women. Various drivers of electronic word of mouth (eWOM) (quality, quantity, consistency and quantity) have been tested as antecedents of purchase intention through the lenses of the elaboration likelihood model (ELM). Design/methodology/approach The positivist paradigm approach has been used to test the proposed mediation model using structural equation modelling. Responses of 313 Indian Muslim women who read reviews shared on various social media platforms before making any halal cosmetics purchase intention have been used for the final analysis. Mediation was tested using bootstrapping. Findings The findings of the study revealed that attitude towards halal cosmetics mediates the relationships of various drivers of eWOM with halal cosmetics purchase intention. However, it was observed that this mediation was partial in the context of eWOM quality, eWOM valence and eWOM consistency. Furthermore, for eWOM quantity, the mediation effect was full as the direct impact of eWOM quality on halal cosmetics purchase intention was not significant but its indirect impact on the latter via attitude was found to be significant. Research limitations/implications This study adds to the marketing communication literature, especially in the context of eWOM. The study also validates ELM theory in explaining the attitude that shapes the halal cosmetics purchase intention, thus the current study enriches the ELM literature. Practical implications The current study offers several implications for halal cosmetics marketers. It offers various suggestions to them on how to capitalize on eWOM as it influences Indian Muslim women’s purchasing intention for halal cosmetics by shaping their attitude towards such cosmetics favourably. Originality/value With reference to halal cosmetics, the current study offers a new perspective by examining the purchasing intention for such cosmetics based on various drivers of eWOM. The attitude towards halal cosmetics as a mediator has helped in better explaining the purchase intention for halal cosmetics.

The bounded incentive effect of informal institutions

2019 ◽  
Vol 10 (2) ◽  
pp. 207-232
Author(s):  
Yilin Zhang ◽  
Dongling Cai ◽  
Fansheng Jia ◽  
Guangzhong Li
Keyword(s):  
Executive Compensation ◽  
Formal System ◽  
Governance Mechanism ◽  
Content Type ◽  
The Sustainable Development ◽  
Informal System ◽  
Corporate Governance Mechanism ◽  
New Perspective ◽  
Compensation Incentives

Purpose This paper aims to mainly investigate the role of trust, which is an important informal system, in executive compensation incentives. Design/methodology/approach Using the data of Chinese A-share private enterprises from 2003 to 2014, the paper estimates the effect that trust has on executive compensation incentives. Findings Results indicate that trust can significantly enhance the effectiveness of executive compensation incentives. Furthermore, the better the regional trust environment in which companies are located, the more pronounced the effect is. In particular, the effect of trust on executive compensation incentives is only significant when the formal legal system is immature. As companies continue to grow and develop and the formal system becomes perfect, the role of trust weakens. The formal system, including the corporate governance mechanism and perfect legislation, then becomes the key to promoting executive compensation incentives. Practical implications This paper provides evidence of the significance of both informal and formal systems. It not only emphasises the important role that the informal system has played in “the mystery of China’s economic growth” but also supports the “ruling the country by law” strategy for the sustainable development of China’s economy. Originality/value This paper reveals the relationship between the formal and informal systems, which provides a new perspective on and empirical evidence for the determinants of executive compensation incentives, and it also finds an explanation for the rapid growth of China’s economic development.

Funding higher education through waqf: a lesson from Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Usman ◽  
Asmak Ab Rahman
Keyword(s):  
Higher Education ◽  
Educational Institutions ◽  
Public And Private ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
Academic Activities ◽  
Higher Educational ◽  
The Government

Purpose This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation. Design/methodology/approach The paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources. Findings In Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions. Research limitations/implications In Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs. Practical implications The study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan. Social implications The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs. Originality/value The study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

scholarly journals The concept and application of ḍamān al-milkiyyah (ownership risk)

2017 ◽  
Vol 9 (2) ◽  
pp. 148-163 ◽  
Author(s):  
Lutfi Abdul Razak ◽  
Muhammad Nabil Saupi
Keyword(s):  
Design Methodology ◽  
Islamic Law ◽  
Content Type ◽  
Practical Applications ◽  
For Profit ◽  
Descriptive Research ◽  
Financial Products ◽  
Financial Transactions ◽  
Practical Implications

Purpose The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its application in contemporary Islamic financial products and services. Design/methodology/approach The methodology adopted is that of descriptive research. Findings From an Islamic law of contract perspective, the concept of ḍamān al-milkiyyah is central to legitimate profit-making transactions and hence must be adhered to in practical applications of Islamic finance. Research limitations/implications This study should help motivate further investigation into the position of ḍamān al-milkiyyah among different parties in existing Islamic financial products and services. Practical implications Policymakers and regulators should ensure that Islamic financial products and services are structured in a way that does not allow parties to profit without adequately bearing the liability for potential loss. Social implications The condition of ḍamān al-milkiyyah as a source of legitimate profit reflects the idea that the role of finance in Islam is to promote and ensure social benefits. Originality/value This paper emphasizes the importance of ḍamān al-milkiyyah as a fundamental condition for profit in Islamic financial transactions.

Jet without fuel: nosedive of Jet Airways

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Satwik Upadhyay ◽  
Rayees Farooq ◽  
Nachiketa Tripathi
Keyword(s):  
Case Reports ◽  
Business Community ◽  
Aviation Industry ◽  
Strategic Decisions ◽  
Content Type ◽  
Secondary Sources ◽  
External Threats ◽  
Available Information ◽  
Present Case Study

PurposeThis case describes the vulnerability of the Indian aviation sector by highlighting the fall of Jet Airways from one of the biggest airlines in India to bankruptcy. The present case discusses the role of Jet Airways' leadership in managing the external threats that affect aviation business in India.Design/methodology/approachThe present case is built on data collected from secondary sources, including publicly available information about the company, journals, websites, newspapers and reports.FindingsThe case reports findings of how hubris-driven strategic decisions and insecurity of the leader in losing control of the company, led to the grounding of one of the major airline companies in the Indian aviation industry.Originality/valueThe present case study provides valuable insights into the aviation industry in India, focusing on the threats to the aviation business. The case is useful to other airline companies and the aviation business community in dealing with external threats to business and issues of leadership dysfunction.

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