Impediments affecting the curbing of illicit financial flows of organised crime in developing economies

2019 ◽  
Vol 26 (1) ◽  
pp. 5-21 ◽  
Author(s):  
Emmanuel Sotande
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Task Force ◽  
Organised Crime ◽  
Policy Implications ◽  
Periodic Review ◽  
Financial Flows ◽  
Content Type ◽  
Serious Crime ◽  
Illicit Financial Flows

Purpose The purpose of this paper is to examine the treats hindering war against illicit financial flows of organised crime in developing economies and Nigeria in particular. The examination shows that the impediments facing the fight against money laundering and organised crime financial flows vary from one country to another. It may be lesser in developed economies where most instruments, treaties and best practice recommendations to curb serious crime originated from. However, the impediments against the proceeds of organised crime in developing economies are overwhelming. Design/methodology/approach The research methodology adopted was qualitative analysis. This was applied through the use and analysis of documents and expert interviews. Findings The impediments jeopardising the success against organised crime and other related serious crime financial flows in developing economies are devastating. Consequently, the study offered some policy implications to help mitigate these impediments in developing countries. The dynamics and the phenomena of organised crime business model are operated with ingenious strategies within the global states. Therefore, staying in control of the menace and the threats originated from the organised criminal activities would require periodic review of the global initiatives, standards and strategies deployed by the standard setters to combat organised crime and its financial flows in developing and evolving economies. Additionally, the implementing countries should be carried along and allow to make inputs when such initiatives and standards are being developed. Social implications In Nigeria, there is a clear evidence of “collateral damage” in terms of social justice as result of financial exclusion of many bankable adults of the country that do not possess unique identities for account opening documentation and customer due diligence of the Financial Action Task Force recommendation 10. Originality/value There have been quite a number of studies on organised crime and still fewer have recognised the need to explore the success or failure of combating the proceeds of crime in developing economies. This study provides answer to these gaps by screening associated risks of fighting the proceeds of organised crime in developing countries and Nigeria in particular.

Strategies for preventing illicit financial flows in developing countries

2020 ◽  
Vol 23 (3) ◽  
pp. 601-608
Author(s):  
Bello Umar ◽  
Martins Mustapha Abu ◽  
Zayyanu Mohammed
Keyword(s):  
Developing Countries ◽  
Task Force ◽  
Journal Articles ◽  
Financial Flows ◽  
Content Type ◽  
Effective Strategies ◽  
Beneficial Ownership ◽  
Assessment Techniques ◽  
Illicit Financial Flows ◽  
Financing Of Terrorism

Purpose This paper aims to critically review the strategies for prevention of illicit financial flows to and from developing countries with a view of ascertaining the most effective strategies to be selected and implemented by developing countries to stem the scourge. Design/methodology/approach The peer-reviewed journal articles were studied; those that discussed illicit financial flows were selected and reviewed critically using the systematic quantitative assessment techniques together with an output table. Findings The critical review deduced that enacting effective trade laws, trade regulations, creating a beneficial ownership registry, multinational companies disclosing information on business, automatic exchange of information on tax issues, the Financial Action Task Force 40 guidelines on anti-money laundering and countering financing of terrorism and domestic and international cooperation are the most reliable strategies that should be implemented by developing countries. Research limitations/implications The wide geographic scope of developing countries, use of only high-quality databases that restricted the use of other articles and use of public sector perspective are the limitations for this paper. Originality/value This study is amongst the limited works to discuss the most reliable and effective strategies to prevent illicit financial flows in developing countries.

The regime against money laundering: a call for scientific modelling

2018 ◽  
Vol 21 (4) ◽  
pp. 584-593 ◽  
Author(s):  
Emmanuel Sotande
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Developing Economies ◽  
International Standards ◽  
Dark Side ◽  
Financial Flows ◽  
Content Type ◽  
Illicit Financial Flows ◽  
Scientific Modelling ◽  
Combat Money Laundering

PurposeThe purpose of this paper is to examine the magnitude of the global problem of money laundering and the scholarly critics of money laundering concept. The paper further explores the scientific modelling to combat money laundering transactions.Design/methodology/approachThe research methodology adopted was qualitative analysis. This was applied through the use and analysis of documents and expert interviews.FindingsThe paper reveals how the global displacement on the fight against money laundering is being determined by “attractiveness index”. This attractiveness index is the dark side affecting anti-money laundering (AML) concept within developing economies. The critics of the AML accounts for major discrepancies associated with the context of the term AML regimes and international standards to combat illicit financial flows.Social implicationsThe regimes against money laundering compel countries to adopt the same recommendations and standards and were not given opportunity to proffer their own creative alternatives within their own circumstances.Originality/valueThe paper suggests AML Transaction Validation Model in the quest to combat illicit financial flows originated from organized and serious crime within the global jurisdictions.

FATF mission may find Paraguay corruption worsening

2021 ◽  
Keyword(s):  
Private Sector ◽  
Foreign Investment ◽  
Risk Premium ◽  
Task Force ◽  
Country Image ◽  
Financial Flows ◽  
Content Type ◽  
International Evaluation ◽  
Illicit Financial Flows ◽  
Financial Action Task

Significance The controversial decision coincided with the start of a major international evaluation of Paraguay’s compliance with international guidelines on combatting illicit financial flows. SEPRELAD head Carlos Arregui has admitted that it is by no means certain that Paraguay will pass the Financial Action Task Force (FATF) exam. Impacts Failure to pass would mean a negative ‘country image’, involving a higher risk premium on government foreign borrowing costs. A negative result would lead to reduced foreign investment inflows, something that the private sector is keen to avoid. The Biden administration will step up pressure for greater Paraguayan vigour in combatting corruption.

Curbing Illicit Financial Flows

2018 ◽  
Author(s):  
Xiaodon Liang
Keyword(s):  
Tax Evasion ◽  
Developing Economies ◽  
International System ◽  
Tax Avoidance ◽  
Incentive Structure ◽  
Global Finance ◽  
Tax Havens ◽  
Financial Flows ◽  
Playing Field ◽  
Illicit Financial Flows

Illicit financial flows (IFFs) drain state finances and economic vitality, with disproportionate impact on developing economies. IFFs—including money laundering, tax evasion, and tax avoidance—pose a transnational problem addressed so far through international regimes of coordination and cooperation. But meaningful reductions in IFFs require addressing the root of the problem: information asymmetries. Developed nations and tax havens know where money is hidden and profits are made, while developing nations do not. Since the international system of global finance creates the incentive structure and permissive environment for illicit flows, it is at this level that states must focus their policy-making attention. New information-sharing mechanisms, such as automatic exchange of tax information and public country-by-country tax reporting, can level the playing field and enable lower-income states to effectively address the IFF problem.

Financial literacy and its determinants: the case of rural farm households in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Salina Adhikari ◽  
Caven Adu Gyamfi ◽  
Isaac Asare
Keyword(s):  
Developing Countries ◽  
Financial Literacy ◽  
Financial Education ◽  
Policy Implications ◽  
Farm Households ◽  
Community Group ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Rural Dwellers

PurposeThis paper aims to examine the determinants of rural dwellers financial literacy in Ghana.Design/methodology/approachA cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.FindingsThe findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.Research limitations/implicationsThe paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.Practical implicationsThis paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.Originality/valueAlthough previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

scholarly journals Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amna Zardoub ◽  
Faouzi Sboui
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Development Assistance ◽  
Business Environment ◽  
Official Development Assistance ◽  
Financial Flows ◽  
Content Type

PurposeGlobalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – FDI, remittances and official development assistance – can be a key factor in the development of the economy. The subject of this article is to analyses the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been employed. As part of this work, an attempt was made to use a panel data approach. The results indicate ambiguous effects and confirm the results of previous work.Design/methodology/approachThe authors seek to study the effect of foreign direct investment, remittances and official development assistance (ODA) and some control variables i.e. domestic credit, life expectancy, gross fixed capital formation (GFCF), inflation and three institutional factors on economic growth in developing countries by adopting the panel data methodology. Then, the authors will discuss empirical tests to assess the econometric relevance of the model specification before presenting the analysis of the results and their interpretations that lead to economic policy implications. As part of this work, the authors have rolled panel data for developing countries at an annual frequency during the period from 1990 to 2016. In a first stage of empirical analysis, the authors will carry out a technical study of the heterogeneity test of the individual fixed effects of the countries. This kind of analysis makes it possible to identify the problems retained in the specific choice of econometric modeling to be undertaken in the specificities of the panel data.FindingsThe empirical results validate the hypotheses put forward and indicate the evidence of an ambiguous effect of financial flows on economic growth. The empirical findings from this analysis suggest the use of economic-type solutions to resolve some of the shortcomings encountered in terms of unexpected effects. Governments in these countries should improve the business environment by establishing a framework that further encourages domestic and foreign investment.Originality/valueIn this article, the authors adopt the panel data to study the links between financial flows and economic growth. The authors considered four groups of countries by income.

Managerial role in organizational CSR: empirical lessons from Ghana

2014 ◽  
Vol 14 (1) ◽  
pp. 104-119 ◽  
Author(s):  
James Baba Abugre
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Empirical Literature ◽  
Work Behaviors ◽  
Content Type ◽  
Managerial Role ◽  
Universal Approach ◽  
Corporate Social ◽  
Industry Sectors ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the managerial role in the practices of corporate social responsibility (CSR) in developing economies. Design/methodology/approach – The paper takes the form of an empirical analysis of employees' opinions based on a quantitative survey of 100 middle and senior level managers from four organisations chosen from relatively high impact industry sectors. Findings – Managerial role in the practice of CSR is limited and ineffective in Ghana. Difficulties of effective CSR implementation mainly stem from leadership weak spots in the form of mismanagement and corruption, lack of leadership commitment and unwillingness to allocate monies due for CSR activities. Organisations can do better in the practice of CSR if management's attitude to CSR, corruption, and work behaviors are positive. Practical implications – The paper provides valuable information on managerial activities with regards to organisational CSR, and how these can be improved. Originality/value – Empirical literature on CSR in developing countries is limited. This paper identifies the roles that management and organisational leadership can play in the practice of CSR in developing countries. The paper proposes a universal approach which aims to address the need for adequate and effective enforcement of CSR.

Systems approach to cloud computing adoption in an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahak Sharma ◽  
Ruchita Gupta ◽  
Padmanav Acharya ◽  
Karuna Jain
Keyword(s):  
Cloud Computing ◽  
Developing Countries ◽  
Systems Approach ◽  
Service Providers ◽  
Developing Economies ◽  
Resistance To Change ◽  
Cloud Services ◽  
Financial Loss ◽  
Content Type ◽  
Cloud Computing Adoption

PurposeCloud computing (CC) services have given a tremendous boost to the creation of efficient and effective solutions. With developing countries at a slow pace of adoption, this research aims to identify factors and their interrelationships influencing the adoption of CC in a developing country context. The developing countries are enjoying numerous benefits from CC services; however, its low adoption is still a question in developing economies; hence, the authors have selected the context of information and communication technology (ICT) firms in India.Design/methodology/approachThe qualitative research method is used where experts from thirteen ICT firms in India are interviewed.FindingsSixteen factors, twenty-eight subfactors, and 25 interrelationships are revealed through content analysis. Further, causal loop diagrams are proposed to display the behavior of cause and effect of these factors from a system's perspective. This will help to understand the relationships among the factors in order to enhance the speed of CC adoption. Possible financial loss and resistance to change are found as the key barriers to adoption. The proposed interrelationships can guide both policymakers and service providers for designing effective CC policies.Originality/valueThis is the first scholarly work that identifies interrelationships among factors and subfactors, thereby providing a holistic picture to decision-makers while making a choice on whether to adopt cloud services or continue with on premise data centers and servers.

The Empirical Determinants of Corruption in Developing Countries

2017 ◽  
Vol 16 (4) ◽  
pp. 392-409 ◽  
Author(s):  
Azmat Gani
Keyword(s):  
Developing Countries ◽  
Direct Investment ◽  
Fixed Effects ◽  
Developing Economies ◽  
Policy Implications ◽  
Country Size ◽  
Colonial Legacy ◽  
Level Of Economic Development ◽  
Main Factors ◽  
Determinants Of Corruption

This paper investigates the main factors determining corruption in developing countries. It employs the fixed-effects estimation technique to data for several developing countries, pooled for the period 2004 to 2010. The empirical results revealed that the level of economic development, country size, natural resource exports, foreign direct investment, absence of democracy, and colonial legacy as the main correlates of corruption in the developing economies. Some policy implications are drawn.

Preliminary insights and analysis into weapon enabled sexual offenders

2014 ◽  
Vol 6 (3) ◽  
pp. 174-184 ◽  
Author(s):  
Paul Dawson ◽  
Alasdair M. Goodwill ◽  
Louise Dixon
Keyword(s):  
Sexual Offenders ◽  
Design Methodology ◽  
Organised Crime ◽  
Crime Analysis ◽  
Sexual Assaults ◽  
Demographic Differences ◽  
Content Type ◽  
Serious Crime ◽  
Weapon Use ◽  
Attack Location

Purpose – Weapon use is recognised as a key crime concern in England and Wales but has received relatively little focused research. The purpose of this paper is to examine weapon use by sexual offenders to develop new insights relevant for a police audience. Specifically, to examine the prevalence of weapons within sexual offenders and explore the differences between weapon and non-weapon enabled offenders on a range of characteristics. Design/methodology/approach – A sample of 1,618 single, stranger, solved, serious sexual assaults were provided by the Serious Crime Analysis Section of the Serious Organised Crime Agency. In all, 20 per cent of offenders were weapon enabled. Findings – There were almost no demographic differences between weapon enabled and non-weapon enabled offenders. In terms of the offence itself, there were many significant differences between the groups in terms of precautions used, victim involvement, injury, attack behaviours, victim approach and attack location. Further multivariate analysis revealed aspects of the offence that were associated with weapon use; these are broadly discussed within themes of violence and evidence of planning. Originality/value – The authors argue that an examination of weapon use is valuable in illustrating how offenders differ in their offence and provide insights for the investigation of such crime.

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