Why money laundering is nurtured in Ethiopia?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Messay Asgedom Gobena
Keyword(s):  
Risk Factors ◽  
Money Laundering ◽  
Political System ◽  
Foreign Currency ◽  
Secondary Data ◽  
Primary Data ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Goods And Services ◽  
Identity Card

Purpose The purpose of this paper is to examine the divers and facilitators of money laundering in Ethiopia. Specifically, it looks at the risk factors that existed in the country’s economic and political system, which provide an appealing environment for money laundering to grow. Design/methodology/approach This qualitative study relies on primary data generated from interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, Ethiopian Customs Commission, selected financial institutions and certain non-financial businesses and professions and law enforcement agencies, as well as secondary data from government reports, media press, statutes and other online and offline sources. Findings This study finds that the risk factors for the growth of money laundering in Ethiopia are highly reliant on the country’s economic and political system. Accordingly, the nature of Ethiopia’s economy, which is cash-intensive, loosely regulated economic growth and the raise associated criminality, the development of underground banking activities, scarcity of foreign currency reserves and the existence of societal demand for illicit goods and services are all risk factors for the growth of money laundering. The raise of an elite cartel model type of systematic corruption, limited institutional capacity to prevent and suppress money laundering and the absence of a national identity card system are also identified as risk factors for the rife of money laundering in Ethiopia. Moreover, the geopolitical location of the country, its porous borders, limited cross-border cooperation and information sharing add further fuel to the vulnerability of the country to money laundering and associated predicate offense. Originality/value To the best of the author’s knowledge, this paper provides a first-of-its-kind analytical perspective on the risk factors for the raise of money laundering in Ethiopia.

Cash economy, criminality and cash regulation in Ethiopia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Messay Asgedom Gobena
Keyword(s):  
Rural Areas ◽  
Critical Role ◽  
Secondary Data ◽  
Criminal Activity ◽  
Primary Data ◽  
Law Enforcement Agencies ◽  
Financial Flows ◽  
Content Type ◽  
Cash Economy ◽  
Financial Awareness

Purpose This paper aims to examine the contribution of Ethiopia’s cash economy to financial crimes. It also investigates the regulation of cash in the context of controlling crime stemming from the cash economy. Design/methodology/approach This study relies on primary data generated from 20 interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, selected commercial banks and law enforcement agencies and document review from government reports, media press and statutes, as well as secondary data from online and offline sources. Findings The cash-intensive nature of Ethiopia’s economy has enabled a significant amount of cash to circulate outside of the formal financial system. This money is partly to blame for the prevalence of criminal activities such as cash hoarding, corruption and illicit financial flows. To address the threat of crime posed by the cash economy, the Ethiopian Government has taken measures such as restricting cash withdrawals from financial institutions, limiting the amount of cash individuals can hold and demonetizing the banknotes. The measures enable the banks to collect the cash circulating outside of the formal financial sector. However, the effect of these measures on reducing future criminality remains uncertain. Improving the financial inclusivity of the country, specifically expanding basic financial products to the rural areas, digitalizing the country’s payment system, raising general financial awareness and establishing a strong financial consumer protection framework would play a critical role in reducing future criminality and transforming the cash-intensive into a cashless economy. Originality/value This paper provides a first-of-its-kind analytical perspective on the contribution of Ethiopia’s cash economy to criminal activity and the adequacy of countermeasures so far taken.

Customer due diligence (CDD) mandate and the propensity of its application as a global AML paradigm

2014 ◽  
Vol 17 (1) ◽  
pp. 76-95 ◽  
Author(s):  
Norman Mugarura
Keyword(s):  
Money Laundering ◽  
Web Sites ◽  
Secondary Data ◽  
Data Sources ◽  
Primary Data ◽  
Content Type ◽  
Regulatory Domains ◽  
The Usa ◽  
Secondary Data Sources ◽  
The Uk

Purpose – It has become customary for states or regulatory domains to come together and evolve normative regimes to deal with overlapping exigencies such as money laundering. Over the past two decades, there has been a proliferation of global AML laws designed to foster international cooperation against money laundering and its predicate crimes. In this same vein, some states have adopted domestic AML laws designed with an ethos of extra-territorial dimension as a caution against the threats posed by money laundering crimes. The paper aims to critically examine CDD to tease out the possibility of harnessing it as a global AML paradigm. Design/methodology/approach – The paper was written by critically examining primary and secondary data sources. In terms of primary data, the author has studied the relevant provision of different AML legislation such as BSA (1970), MLCA (1986), and PATRIOT (2001) Act in the USA; and FSMA (2000) and POCA (2002) in the UK. The author then evaluated these data in the context of the challenges of harnessing CDD across countries. In terms of secondary data sources, the author utilised data in academic text books, journal papers, electronic sources (web sites of AML agencies), and policy and research papers from specialist institutions such as FATF. Findings – The findings corroborate the thesis that much as CDD is an important AML measure, it needs to be streamlined and implemented with care to apply across the board. Research limitations/implications – The paper was written largely by way of library-based research. The author did not carry out interviews to corroborate some of the secondary data sources used in writing it. Carrying out interviews would have helped to minimise the potential for bias secondary data sources used was generated. Practical implications – It is anticipated that this paper can be utilised to foster desired strategic and policy changes at a multiple institutional levels. Originality/value – The paper is one of its kind to be written in its context. It will therefore make a viable contribution to the study of money counter-measures and how they are harnessed globally. It is therefore a must read!

scholarly journals Banks’ vulnerabilities to money laundering activities

2019 ◽  
Vol 23 (1) ◽  
pp. 122-135
Author(s):  
Peter Yeoh
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Banking Sector ◽  
Secondary Data ◽  
Social Implications ◽  
Primary Data ◽  
Content Type ◽  
Corporate Scandals ◽  
Effective Compliance ◽  
Practical Implications

Purpose This paper aims to provide insights as to why money laundering persists in banks and their weaknesses as gatekeepers. Design/methodology/approach This paper contextualizes the design and proliferation of anti-money laundering (AML) measures; investigates the different manners of conceptualizing them; and provides insights pertaining to probable limitations of these measures. The paper relies on primary data from statutes and secondary data from published sources. Findings The paper’s findings suggest that competitive pressures, shareholders return imperative, and lucrative misaligned incentives for management contributed to weaknesses in effective compliance in banks. Practical implications Insights drawn from this paper reinforces the notion that banks need to seriously review their business approaches, as well as their roles as gatekeepers. Social implications Given the slew of corporate scandals and other materially harmful misjudgments in money-laundering compliance, banks might need to seriously review their role and obligations in the economy. Originality/value Much has been said about money-laundering activities enabled by the banking sector. This paper contributed to insights as to why they persist despite AML rules, and what measures could be further taken to enhance compliance effectiveness.

Money laundering through raw diamonds

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann ◽  
Marie-Christin Falker
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Qualitative Content Analysis ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Compliance Officers ◽  
German Speaking ◽  
Three Stages ◽  
Practical Implications ◽  
Combat Money Laundering

Purpose This paper aims to illustrate how illegally obtained funds are laundered through raw diamonds in Austria, Germany, Liechtenstein and Switzerland. Design/methodology/approach To identify specific money laundering techniques involving raw diamonds, this study used a qualitative content analysis of data collected from 60 semi-standardized interviews with both criminals and prevention experts and a quantitative survey of 200 compliance officers. Findings Raw diamonds are extraordinarily suitable for money laundering in European German-speaking countries. In particular, they may be used in all three stages of the laundering process, namely, placement, layering and integration. Research limitations/implications Because the qualitative findings are based on semi-standardized interviews, their insights are limited to the perspectives of the 60 interviewees. Practical implications Identifying gaps in existing anti-money laundering mechanisms should provide compliance officers, law enforcement agencies and legislators with valuable insights into how criminals operate. Originality/value While prior studies focus on the methods used by organizations to combat money laundering and how to improve anti-money laundering measures, this paper investigates how money launderers operate to avoid detection, thereby illustrating authentic experiences. Its findings provide valuable insights into the minds of money launderers and combines criminal perspective with that of prevention experts.

Toward a theory on workplaces for smart workers

Facilities ◽  
2019 ◽  
Vol 38 (3/4) ◽  
pp. 298-315
Author(s):  
Luisa Errichiello ◽  
Tommasina Pianese
Keyword(s):  
Web Sites ◽  
Participant Observation ◽  
Secondary Data ◽  
Primary Data ◽  
Innovative Design ◽  
Content Type ◽  
New Type ◽  
Smart Working ◽  
Research Propositions

Purpose The purpose of this paper is to identify the main features of smart work centers (SWCs) and show how these innovative offices would support the implementation of smart working and related changes in workspaces (“bricks”), technologies (“bytes”) and organizational practices (“behaviors”). Design/methodology/approach In this study, scientific literature is combined with white papers and business reports and visits to 14 workplaces, including offices designed as SWCs, co-working spaces, one telecenter, one accelerator and one fab lab. Primary data were collected through interviews with managers and users and non-participant observation, whereas secondary data included web-sites, brochures, presentations, press releases and official documents. Findings The authors developed research propositions about how the design of spaces and the availability of technology within SWCs would support the “bricks” and “bytes” levers of smart working. More importantly, the authors assumed that this new type of workplace would sustain changes in employees’ behaviors and managers’ practices, thus helping to overcome several challenges traditionally associated with remote working. Research limitations/implications The exploratory nature of the research only provides preliminary information about the role of SWCs within smart working programs. Additional qualitative and quantitative empirical investigation is required. Practical implications This study provides valuable knowledge about how the design of corporate offices can be leveraged to sustain the implementation of smart working. Originality/value This study advances knowledge on workplaces by focusing on an innovative design of traditional offices (SWC). It also lays the foundations for future investigation aimed at testing the developed propositions.

The sustainable management design of oxbow lake to determine the factors in lake management in Buluh Cina village, Indonesia

2020 ◽  
Vol 11 (4) ◽  
pp. 395-430
Author(s):  
Adi Susilo
Keyword(s):  
Survey Methods ◽  
Secondary Data ◽  
Lake Management ◽  
Monte Carlo Analysis ◽  
Oxbow Lake ◽  
Primary Data ◽  
Economic Dimension ◽  
Content Type ◽  
Sustainability Index ◽  
Index Value

Purpose The purpose of this study at the level of sustainability of oxbow lake was intended to determine the status of sustainability, leverage attributes and driving factors in the management of oxbow lake in Buluh Cina village in Kampar, Riau, Indonesia. Design/methodology/approach The types of data collected include primary data and secondary data. Data was collected using survey methods, library research, laboratory analysis and interviews. The analytical method used this study is multidimensional scaling (MDS) analysis and prospect analysis. Sustainability analysis is done using the MDS analysis approach with the help of RapOxbow software and compared to Monte Carlo analysis results. Findings The current sustainability status of the management of Lake Baru ecosystem according to a number of dimensions is considered sustainable with a sustainability index value of 50.95. Meanwhile, the analysis results of each dimension shows that the sustainability index for the ecological dimension is 42.56 and the sustainability index for the economic dimension is 47.44, which means that the index is less sustainable. Originality/value The approach of this research is MDS analysis and prospect analysis and research locations in Buluh Cina village in Kampar, Indonesia which have never been studied before. This is one of few studies that investigates comprehensively the analysis of management sustainability, especially in the dimensions of ecology, economics and socio-culture, especially in Indonesia.

An analysis of the forfeiture regime under the anti-money laundering law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aspalella A. Rahman
Keyword(s):  
Money Laundering ◽  
Secondary Data ◽  
Primary Sources ◽  
Court Cases ◽  
Sources Of Information ◽  
Content Type ◽  
Terrorism Financing ◽  
Bona Fide ◽  
Descriptive Approach ◽  
Insight Into

Purpose This paper aims to analyze the forfeiture regime under the Malaysian anti-money laundering law. Apart from discussing the relevant provisions, several court cases also were examined to identify the problems which arise in the implementation of such a powerful forfeiture regime. Design/methodology/approach This paper mainly relies on statutes and court cases as its primary sources of information. It is supported by secondary data to justify the analysis. This paper also used analytical descriptive approach to analyze relevant forfeiture provisions from statutes and to examine current court cases regarding the implementation of the forfeiture regime. Findings The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLATFPUAA) provides comprehensive procedures for the forfeiture of criminal proceeds. Any limitations of the previous statutory legislations have been addressed, and more importantly, the AMLATFPUAA introduces more powerful and innovative measures that can facilitate the recovery of illegal proceeds from money laundering and any other serious crimes. The AMLATFPUAA also provides avenue for the bona fide third parties to contest the forfeiture order. However, it appears that such right is not easy to be enforced. Originality/value This paper provides an analysis of the forfeiture regime under Malaysian anti-money laundering laws. It is hoped that the content of this paper can provide some insight into this particular area for enforcement authorities, practitioners, academics, policymakers and legal advisers not only in Malaysia but also elsewhere. The findings of this paper also expose any weakness or lacunae in the aspects of application and implementation of the forfeiture regime. Thus, more effective and workable legal solution especially on the issue of civil forfeiture of criminal assets could be considered for further accomplishment.

BUSINESS ENVIRONMENT EFFICIENCY AND COMPETTIIVENESS OF LOCALLY MANUFACTURED GOODS BY AUTOSTERILE EAST AFRICA, KENYA

2021 ◽  
pp. 12-21
Author(s):  
Margaret Kamau ◽  
Isabella Sile
Keyword(s):  
East Africa ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Political Stability ◽  
Business Environment ◽  
Middle Level ◽  
Primary Data ◽  
Goods And Services ◽  
Manufactured Goods

Absrtact This study investigated the influence of business environment efficiency on competitiveness of locally manufactured goods by Autosterile East Africa, Kenya. This study used case study design. This study sampled 69 respondents, including 8 top level employees, 22 middle level employees and 39 lower level employees in Autosterile East Africa. Census sampling was used to select the respondents. Secondary data was obtained from the Autosterile East Africa publications that touches on determinants of competitiveness. Questionnaires used in the survey formed the primary data and was analyzed by use of Statistical Packages for Social Science version 23. Linear regression analysis was done to test the relationship between the independent and dependent variables. The study findings led to the conclusion that business environment efficiency have a positive relationship with competitiveness of locally manufactured goods. The findings revealed that business environment efficiency is significant determinant of competitiveness of locally manufactured goods. It was found out that the demand for goods and services and political stability influences competition of goods and services. The regulations dictate the competition among companies and supply of goods and services controls a firm's competitive advantage. Keywords: Business environment efficiency, competitiveness, Locally manufactured goods, Autosterile East Africa.

Impacts of electronic monitoring on the community life: blessing or disguise?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Katarína Vitálišová ◽  
Kamila Borseková ◽  
Anna Vanˇová ◽  
Samuel Koróny
Keyword(s):  
Local Community ◽  
Electronic Monitoring ◽  
Slovak Republic ◽  
Secondary Data ◽  
Primary Data ◽  
Original Research ◽  
Community Life ◽  
Content Type ◽  
Depth Analysis ◽  
The Usa

Purpose The purpose of this paper is to identify and evaluate critically the impacts associated with the implementation of electronic monitoring (EM) of accused and convicted persons on society based on the foreign experience and compare these findings with the original research results on EM in the Slovak Republic. Design/methodology/approach This paper elaborates the secondary data of previous researches in Scotland, Sweden and Florida in the USA. Secondary research is based on in-depth analysis of articles, reports and studies searched via database of Google, Scopus and Science Direct. Based on the studies processed by a causal and qualitative analysis, the authors identify the benefits and risks of EM influencing community life in Europe and the USA. The additional sources of secondary data are the Statistical Yearbook of Ministry of Justice of Slovak Republic, the content of the original law (including relevant amendments) that introduced EM into the Slovak criminal justice system and data on the application of EM in Slovakia provided by the Ministry of Justice. Subsequently, this paper presents the original research findings about the EM implementation in the Slovak Republic. The primary data were conducted via interviews with the representatives of Ministry of Justice, and through the national survey of opinions of judges, probation and mediation officers. The authors used the descriptive statistics and the statistical deduction methods. Findings The key finding of the paper is that there is a very narrow border between EM as blessing and disguise for community involved. Setting proper measures to protect the community, targeted communication and support with attendance of professionals (e.g. mediator and psychologist) for community members might help to avoid possible risks and support the benefits related with EM implementation, namely, social and economic inclusion of offenders, maintaining family and community tights, reducing recidivism or protection of sensitive sites. Practical implications To support the acceptation of EM by local community, the authors recommend to perceive sensitively community involvement and consider potential risks related with EM implementation; to suggest the proper measures to protect the community; and to develop better or targeted communication oriented towards increasing awareness or establishment supporting groups with attendance of professionals (e.g. mediator and psychologist) that might help to avoid possible risks and support the benefits related with EM implementation. Originality/value This paper compares experience with EM based on the secondary data of previous researches in Scotland, Sweden and Florida in the USA. Subsequently, it presents the unique data about the implementation of EM in the Slovak Republic. The topic of EM is still vastly underrated in the literature, and there is a lack of empirical data, so this paper as a combination of case studies and original research could be very helpful in the efficient implementation of EM and setting the proper measures.

Does holding offshore jurisdictions to higher AML standards really assist in preventing money laundering?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrew James Perkins
Keyword(s):  
Money Laundering ◽  
Secondary Data ◽  
Cayman Islands ◽  
Content Type ◽  
Task Forces ◽  
Financial Crimes ◽  
Financial Action Task ◽  
Practical Implications ◽  
Combat Money Laundering

Purpose This paper aims to contend that when tackling financial crimes such as money laundering and terrorist financing, international regulators are seeking to hold offshore jurisdictions such as the Cayman Islands to higher standards and that this detracts from the pursuit of detecting and prosecuting money launders. Design/methodology/approach This paper will deal with the following perceived issues: firstly, to offshore jurisdictions as a concept; secondly, to outline the efforts made by the Cayman Islands to combat money laundering and to rate these changes against Financial Action Task Forces’ (FATAF’s) technical criteria; thirdly, to demonstrate that the Cayman Islands is among some of the world’s top jurisdictions for compliance with FATAF’s standards; and finally, to examine whether greylisting was necessary and to comment upon whether efforts by international regulators to hold offshore jurisdictions to higher standards detracts from the actual prosecution of money laundering within the jurisdiction. Findings Greylisting the Cayman Islands in these authors’ view was something that should have never happened; the Cayman Islands is being held to standards far beyond what is expected in an onshore jurisdiction. There is a need for harmonisation in respect of international anti money laundering rules and regulations to shift the tone to prosecution and investigation of offences rather than on rating jurisdictions technical compliance with procedural rules where states have a workable anti-money laundering (AML) regime. Research limitations/implications The implications of this research are to show that offshore jurisdictions are being held by FATAF and other international regulators to higher AML standards than their onshore counterparties. Practical implications The author hopes that this paper will begin the debate as to whether FATAF needs to give reasons as to why offshore jurisdictions are held to higher standards and whether it needs to begin to contemplate higher onshore standards. Originality/value This is an original piece of research evaluating the effect of FATAF's reporting on offshore jurisdictions with a case study involving primary and secondary data in relation to the Cayman Islands.

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