Non-linear impact of globalization on financial crimes: a case of developing economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabia Muhammad Amjad ◽  
Abdul Rafay ◽  
Noman Arshed ◽  
Mubbasher Munir ◽  
Maryam Muhammad Amjad
Keyword(s):  
Quantile Regression ◽  
Regression Model ◽  
Money Laundering ◽  
Developing Economies ◽  
Financial Crime ◽  
Content Type ◽  
Quantile Regression Model ◽  
Panel Quantile Regression ◽  
Financial Crimes ◽  
Non Linear

Purpose The Financial Action Task Force defines money laundering as “processing of these criminal proceeds to disguise their illegal origin”. This is the major portion of financial crime that has ties across borders and like all financial crimes which are well planned and camouflaged, this crime is difficult to detect and deter. Over the years, on one side, globalization has provided development opportunities, it has also become one reason for the pervasiveness of money laundering. This has led to a disturbance in the global financial system and social unrest as proceeds from money laundering are being used in terrorism. The purpose of this study is to explore the non linear effect of globalization on financial crime in the form of money laundering. Design/methodology/approach An investigation based on 119 developing countries from the time period of 1985 till 2015 is conducted in this study. The panel quantile regression model was used to estimate antecedents of money laundering. Findings The study confirmed that globalization follows an inverted U-shaped relationship with money laundering. Furthermore, indicators such as investment portfolio and socioeconomic conditions have a significant effect on money laundering. Originality/value The panel quantile regression model was used to estimate antecedents of money laundering.

The impact of national culture on financial crime

2019 ◽  
Vol 22 (2) ◽  
pp. 373-387
Author(s):  
Ahmed Yamen ◽  
Anas Al Qudah ◽  
Ahmed Badawi ◽  
Ahmed Bani-Mustafa
Keyword(s):  
National Culture ◽  
Money Laundering ◽  
Holistic Approach ◽  
Uncertainty Avoidance ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
The Impact ◽  
Low Uncertainty

Purpose Despite the existence of laws, regulations and sanctions, financial crime remains widespread. The Panama leaks have proven that people from all over the world are participating in money laundering and other financial crimes. This study aims to investigate the influence of national culture on financial crimes across 78 countries. Design/methodology/approach This study uses Hofstede’s cultural framework as a basis for its hypotheses on financial crime. It also uses the Basel anti-money laundering index as a proxy for measuring the incidence of financial crime across the countries under review. Findings The findings show that countries whose cultural profiles are characterized by low uncertainty avoidance, low individualism, high masculinity and low long-term orientation have high rates of financial crime. The finding also shows that countries whose cultural profiles are characterized by individualism or positive collectivism, uncertainty avoidance and long-term orientation have low rates of financial crime. Originality/value Laws, regulations and sanctions are not the only factors that can help deter the crime; governments should also take a holistic approach that includes the cultural factors that encourage deterrence.

Perception and willingness to contribute towards food banking in the Ashanti Region of Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicholas Oppong Mensah ◽  
Ernest Christlieb Amrago ◽  
Jeffery Kofi Asare ◽  
Anthony Donkor ◽  
Frank Osei Tutu ◽  
...  
Keyword(s):  
Quantile Regression ◽  
Regression Model ◽  
The Body ◽  
Social Implications ◽  
Food Banks ◽  
Content Type ◽  
Ashanti Region ◽  
Quantile Regression Model ◽  
Positive Knowledge ◽  
Willingness To Contribute

PurposeThe purpose of this study is to examine the perception and willingness to contribute towards food banking in the Ashanti Region of Ghana.Design/methodology/approachStructured questionnaire was used to elicit primary data for the study from 385 respondents via the multistage sampling approach. The quantile regression model was used to analyse the factors that influence the willingness to contribute towards food banks across quantiles of contribution. Factor analysis was further used to examine the perception of food banking.FindingsGender, education and awareness influence the quantiles of contribution. Gender positively influences contribution at the 0.50 quantile. Education negatively affects contribution at the 0.25 and 0.50 quantiles whereas awareness influences contribution at the 0.75 quantiles. The benefit perception of the user and the social status perception of receiving food from food banks convey a sense of positive knowledge concerning what food banking should entail.Research limitations/implicationsThe study provides insights on the determinants affecting the contribution towards food banking across quantiles of contribution. However, it worth noting that, the study uses cross-sectional data which fail to account for the changes over time. A Longitudinal study would therefore be imperative concerning the implementation of food banking.Practical implicationsThe perceived positive knowledge of food banking is suggestive that, the Government of Ghana through the Ministry of Food and Agriculture (MOFA) should strengthen measures directed towards the implementation of food banking. Moving forward, non-governmental organisations on the verge of conducting a pilot implementation of food banks should give critical focus to the given area of study as the inhabitants are most likely to be attuned to such a course. Finally, to champion contribution amongst the inhabitants, leaders of food banking initiatives and other stakeholders should work in conjunction with residents that are aware of food banks at the high-income class. This procedure would aid in reducing the chances of low contributions to the implementation of food banking.Social implicationsThis paper provides empirical implications for the development of food banks in Ghana. The findings emanating from this study has substantial social implications, because it serves as an instrumental guide to the implementation of food banks by the MOFA, and when implemented would assuage the poor living conditions of individuals that do not meet a three-square meal per day.Originality/valueIn this research, the authors add to the body of knowledge by employing a quantitative approach. Moreover, the authors extend the frontiers of the methodological approach by using the quantile regression model to understand the factors that influence the contribution towards food banking across quantiles of contribution. Furthermore, several studies in the developed world have been geographically limited to UK, USA, Canada and Germany with few studies in Ghana. Besides, there is limited rigorous empirical study of the perception and willingness to contribute towards food banking in Ghana.

Financial crime, corruption and tax evasion: a cross-country investigation

2018 ◽  
Vol 21 (4) ◽  
pp. 545-554 ◽  
Author(s):  
Ines Amara ◽  
Hichem Khlif
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Design Methodology ◽  
Positive Relationship ◽  
Policy Implications ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
Cross Country ◽  
The Relationship

Purpose This paper aims to examine the relationship between the financial crime and tax evasion and tests whether corruption moderates such a relationship. Design/methodology/approach Tax evasion measure is based on Schneider et al. (2010). Financial crime is collected from Basel anti-money laundering (AML) report. Findings Using a sample of 120 countries, the authors find that the level of financial crime is positively associated with tax evasion. When testing for the moderating effect of corruption, they document that the positive relationship between financial crime and tax evasion is more pronounced for high corrupt environments. Originality/value The findings have policy implications for governments aiming to combat tax evasion and financial crimes.

Unearthing money laundering at Brazilian oil giant Petrobras

2019 ◽  
Vol 22 (2) ◽  
pp. 400-406
Author(s):  
Lucas Maragno ◽  
José Alonso Borba
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial Crime ◽  
Content Type ◽  
Key Points ◽  
Financial Crimes ◽  
State Agents ◽  
Brazilian History ◽  
Practical Implications ◽  
Allowed State

Purpose This paper aims to provide an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil. Design/methodology/approach The paper is based on an analysis of the scandal and on legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation. Findings Fraud perpetrators continue to find new ways to move laundered money into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages. Research limitations/implications This study comprehends the first stage of the Federal Police’s operation, comprising 14 allegations of financial crimes. Practical implications A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings being investigated. Originality/value The Petrobras fraud, individual experiences of organized financial crime and a widespread lack of understanding of how to detect and prevent fraud on this scale.

Moving in the right direction to fight financial crime: prevention and detection

2018 ◽  
Vol 25 (2) ◽  
pp. 362-368
Author(s):  
Fitriya Fauzi ◽  
Kenneth Szulczyk ◽  
Abdul Basyith
Keyword(s):  
Literature Review ◽  
Money Laundering ◽  
Financial Institutions ◽  
Design Methodology ◽  
Asia Pacific ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
The Right ◽  
Financial Intelligence

Purpose The purpose of this paper is to identify current measures taken for financial crime’s prevention and detection in the context of Indonesia. Design/methodology/approach This study is based on data from articles in Indonesian newspapers relating to the current financial crimes, current measures of preventing financial crimes in Indonesia and based on the literature review. Findings There are some attempts to combat financial crimes in Indonesia, both internally and externally. The attempts that have been made for the internal scope are the enactment of anti-money laundering law, the new monitoring system of financial institutions and the formation of a superintendent institution. The attempts that have been made for the external scope are the agreement between Indonesia’ financial intelligence unit Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), and other countries’s financial intelligence unit, the affiliation member of the Asia/Pacific Group on Money Laundering (APG) to combat financial crimes through strengthening its anti-money laundering and terror financing capabilities. Originality/value This paper presents an overview of current prevention and detection measures in the context of Indonesia, and it is hoped that this paper will contribute to the current discussion of eliminating financial crimes.

scholarly journals ON THE IMPACT OF REAL ESTATE PRICES ON THE DEVELOPMENT OF REGIONAL ECONOMY IN CHINA–AN ESTIMATION BASED ON PANEL QUANTILE REGRESSION MODEL

2021 ◽  
Vol 5 (2) ◽  
pp. 51-54
Author(s):  
Baili Zhang ◽  
Yadong Ma ◽  
Mengyue Yin ◽  
Zhengxun Li
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Quantile Regression ◽  
Regression Model ◽  
Marginal Effect ◽  
Quantile Regression Model ◽  
Panel Quantile Regression ◽  
Real Estate Prices ◽  
Impact Of Urbanization ◽  
The Impact

The paper analyzes the mechanism of real estate prices on economic development with panel quantile regression model. It is found that real estate prices can significantly promote economic development. Generally speaking, the contribution of real estate prices to economic development in regions with higher level of economic development is higher than that in regions with lower level. With the continuous improvement of the quantile, the impact of real estate prices has generally increased gradually, and the impact of urbanization level basically shows the law of diminishing marginal effect.

Effect of cultural tightness-looseness on money laundering: a cross-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mariem Mejri ◽  
Hakim Ben Othman ◽  
Basiem Al-Shattarat ◽  
Kais Baatour
Keyword(s):  
Money Laundering ◽  
Political Stability ◽  
Negative Influence ◽  
Dynamic Panel Data ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
Country Study ◽  
Cross Country ◽  
Control Of Corruption

Purpose The purpose of this interdisciplinary cross-country study is to investigate the influence of cultural tightness-looseness on money laundering. Design/methodology/approach The authors rely on tightness-looseness theory as the basis for their predictions. The authors use the Basel Anti Money Laundering Index to operationalize financial crimes. They use dynamic panel data regressions spanning from 2012 to 2018 across 66 countries. Findings The authors find a positive and significant effect of national culture on money laundering financial crime. This suggests that financial crimes increase in countries with higher levels of cultural looseness orientation. Moreover, the authors show that the absence of violence, control of corruption, political stability and voice and accountability has a significant and negative influence on money laundering financial crime. Practical implications Formal institutional factors are not the only factors that can help curb financial crimes, but policy regulators should also consider the degree of cultural tightness-looseness. Originality/value To the best of authors’ knowledge, this is the first research ever to examine the effects of cultural tightness-looseness on the level of financial crimes.

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