Alternate remittance systems in Ghana: a trade enabler or an organised fraud

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexander Asmah ◽  
Williams Abayaawien Atuilik
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Participant Observation ◽  
Banking System ◽  
Multiple Sources ◽  
Content Type ◽  
Case Study Analysis ◽  
Business Operations ◽  
Border Trade ◽  
Single Method

Purpose Alternate remittance systems (ARS) are inherently not illegal; however, the nature of their activities has mostly been linked with money laundering and terrorist financing, which raises several questions as to why businesses in Ghana rely on these systems to conduct their cross-border trade. The purpose of this study is seeks to understand the nature of ARS in Ghana and analyse why business owners rely on them for their transactions. Design/methodology/approach Three companies were selected for the case study analysis. This research paper used a qualitative data analysis for the study. Interviews, direct participant observation and documentary review were the main techniques for data collection. The multiple sources of evidence helped to reduce the potential bias of the single method. Findings This paper found that some businesses using the system in Ghana can acquire unsecured loans at little or no interest cost, which provides a good source of funding to support business growth. Unlike other studies, this study proves that in some instances, ARS operators transact business with the clients they do not, particularly trust. Within the context of this study, this paper found evidence that supports money laundering, but the underlining crime is mostly tax evasion. The adoption of the system is an attempt to disguise the proceeds of the tax evasion crime and clean them through business operations. Research limitations/implications This analysis was based on the strain theory from the perspective of the clients. Future studies can focus attention on the ARS operators and understand their perspectives. Several other fraud theories could be used as a lens to understand the phenomena in Ghana and other jurisdictions. Practical implications The study throws more light on a “secret” or an underground banking system that operates in Ghana. It provides insights that can guide regulatory authorities in their policy implementation. The need for stricter enforcement of the law has also been highlighted. Originality/value To the best of the authors’ knowledge, this study is original, as it focuses on a sector that is highly secretive but has significant implications on the Ghanaian economy.

Money laundering detection system (MLD) (a complementary system of Rastin banking)

2017 ◽  
Vol 20 (4) ◽  
pp. 354-366 ◽  
Author(s):  
Bijan Bidabad
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Detection System ◽  
Banking System ◽  
Value Added ◽  
General Definition ◽  
Economic Activities ◽  
Content Type ◽  
Complementary System ◽  
A Chain

Purpose This paper aims to define a new system for detecting money-laundering activities by comparing tax payments (especially value-added tax) data to banking transactions data. Design/methodology/approach A money laundering detection (MLD) system provides the necessary bases for detecting deception and fraud. Though MLD is a complementary system of the Rastin Banking system, it can also be installed and executed separately. Findings The underground economic activities can be detected and traced by comparing banking information and transaction information in MLD system. It needs to force the direct transactors or other related forms of transaction to perform their money operations through the banks. In the next step, the tax information of transactors (in a chain of transactions) can be compared with them, and the incompatibility of the two sets of data will explore money-laundering operations. Research limitations/implications This system is novel and needs to be more elaborate to remove further practical problems and specific cases. Practical implications MLD system provides necessary protection for those who perform legal economic activities by detecting financial criminals. Social implications Money laundering harms individual and public rights as well as economies. Financial crimes, tax evasion, smuggling, conspiracy, embezzlement and various other offences are included in the general definition of money laundering, so detecting them will lead to important economic improvements in the society as well as international community. Originality/value MLD system provides structural and electronic bases for computerized tax data and banking data comparison.

Tax evasion and money laundering: a complete framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deen Kemsley ◽  
Sean A. Kemsley ◽  
Frank T. Morgan
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Task Force ◽  
Regulatory Agencies ◽  
Content Type ◽  
Single Process ◽  
Financial Action Task ◽  
Tax Savings ◽  
Practical Implications ◽  
Complete Framework

Purpose This paper aims to define the fundamental nexus between income tax evasion and money laundering. The G7 Financial Action Task Force (FATF) designates tax evasion as a predicate offense for money laundering. We determine whether this designation is complete from a conceptual standpoint, or whether there is a stronger connection between tax evasion and money laundering. Design/methodology/approach This paper applies the FATF definition for money laundering – as well as generally accepted definitions for tax evasion and for a standard predicate offense – to identify the necessary conditions for each crime. This paper then uses these conditions to test opposing hypotheses regarding the nexus between tax evasion and money laundering. Findings This paper demonstrates that tax evasion does not meet the conditions for a standard predicate offense, and treating it as if it were a standard predicate could be problematic in practice. Instead, it is concluded that the FATF’s predicate label for tax evasion, together with tax evasion methods and objectives, imply that all tax evasion constitutes money laundering. In a single process, tax evasion generates both criminal tax savings and launders those criminal proceeds by concealing or disguising their unlawful origin. Practical implications The FATF could strengthen its framework by explicitly defining all tax evasion as money laundering. This would enable regulatory agencies to draw upon the full combined resources dedicated to either offense. Originality/value The analysis demonstrates that tax evasion completely incorporates money laundering as currently defined by the FATF.

Terrorism financing and money laundering: two sides of the same coin?

2018 ◽  
Vol 25 (4) ◽  
pp. 962-968 ◽  
Author(s):  
Frederic Compin
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
White Collar Crime ◽  
Islamic State ◽  
Content Type ◽  
Fully Integrated ◽  
Financial Crimes ◽  
Terrorism Financing ◽  
Utilitarian Approach ◽  
The Cost

Purpose The purpose of this paper is to analyse how terrorism financing can be assimilated with money launderning when the amounts ofmoney involved differ so markedly. Not only is the cost of financing terrorist attacks minimal compared to the huge sums often at stake in financial crimes, but also the psychological profile of terrorists, who are reclusive by nature, contrasts starkly with that of financial criminals, who are usually fully integrated members of society. When terrorism financing is equated with money laundering this represents a utilitarian approach in that it facilitates the creation of a security strategy and stifles criticism of criminogenic capitalismthat turns a blind eye to tax evasion. Design/methodology/approach The analysis is conceptual, focussing on the assimilation of terrorism financing with money laundering. There is an interview with a French magistrate, specialized in the fight against corruption and white-collar crime, and data have been collected from international organizations and scholarly articles. Findings The fight against money laundering and money dirtying has clearly sparked numerous controversies around evaluation, scope, criminal perpetrators and a lack of vital cooperation between administrative and judicial services. Social implications This paper raises questions about the reasons behind the linking of money laundering and money dirtying by states and players in public international law and why the fight against money laundering is very much overshadowed by their focus on terrorist financing in dealing with the growing threat of Islamic State, otherwise known as ISIS or ISIL, in the Middle East and West Africa. Originality/value The paper enables the reader to raise the question of similarities between the fight against money laundering and the fight against terrorism financing.

Macroeconomics of money laundering: effects and measurements

2017 ◽  
Vol 24 (1) ◽  
pp. 65-81 ◽  
Author(s):  
Nella Hendriyetty ◽  
Bhajan S. Grewal
Keyword(s):  
Developing Countries ◽  
Money Laundering ◽  
Tax Evasion ◽  
Developed Countries ◽  
Tax Revenue ◽  
Negative Effects ◽  
Policy Makers ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Illicit Flows

Purpose The purpose of this paper is to review studies focusing on the magnitude of money laundering and their effects on a country’s economy. The relevant concepts are identified on the basis of discussions in the literature by prominent scholars and policy makers. There are three main objectives in this review: first, to discuss the effects of money laundering on a country’s macro-economy; second, to seek measurements from other scholars; and finally, to seek previous findings about the magnitude and the flows of money laundering. Design/methodology/approach In the first part, this paper outlines the effects of money laundering on macroeconomic conditions of a country, and then the second part reviews the literature that measures the magnitude of money laundering from an economic perspective. Findings Money laundering affects a country’s economy by increasing shadow economy and criminal activities, illicit flows and impeding tax collection. To minimise these negative effects, it is necessary to quantify the magnitude of money laundering relative to economic conditions to identify the most vulnerable aspects of money laundering in a country. Two approaches are used in this study: the first is the capital flight approach, as money laundering will cause flows of money between countries; the second is the economic approach for measuring money laundering through economic variables (e.g. tax revenue, underground economy and income generated by criminals) separately from tax evasion. Originality/value The paper offers new insights for the measurement of money laundering, especially for developing countries. Most methods in quantifying money laundering have focused on developed countries, which are less applicable to developing countries.

Responding to organizational identity change: ethnographic insights from multinational hotel subsidiaries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Sun-Ah Ponting
Keyword(s):  
Organizational Identity ◽  
Participant Observation ◽  
Internal Communication ◽  
Hospitality Management ◽  
Organizational Memory ◽  
Multiple Sources ◽  
Content Type ◽  
Emotional Challenges ◽  
Organizational Ethnography ◽  
History Of

Purpose This paper aims to use an organizational ethnography perspective to explore how subsidiary hotel properties of a multinational hotel corporation experience planned organizational identity (OI) change instituted by headquarters. Design/methodology/approach This study uses a multi-site approach to collect ethnographic data on organizational change from six hotel subsidiaries in California, USA. Over three years, multiple sources of data were collected including: 31 interviews with hotel subsidiary leaders; more than 100 participant observation hours including job shadows, conferences and meetings; and photographs and internal communication materials. Findings Multinational hospitality companies face struggles between corporate standardization and subsidiary localization. This paper reveals that when headquarters plan changes focused on employees at their subsidiaries, the ways the latter initially accept and resist change are significantly impacted by the organizational memory and history of subsidiary leaders. However, as time progressed, properties with strong financial performance continued to operationalize new identity initiatives while properties with poorer profit margins played a balancing act between headquarters’ visionary identity and subsidiary ownership’s revenue expectations. Additionally, the situational realities caused by the COVID-19 pandemic put a halt to all properties which amplified practical and emotional challenges of organizational ethnography in hospitality research. Originality/value This paper contributes to hospitality literature by introducing an under-researched concept, OI change and advances understanding of the struggles in managing multinational company change. More importantly, this paper is a stepping stone for future hospitality management to embark on organizational ethnography.

scholarly journals O crime de lavagem de dinheiro no âmbito da convenção sobre o combate a corrupção de funcionário públicos estrangeiros em transações comerciais internacionais da Organização para a Cooperação e Desenvolvimento Econômico (OCDE)

2015 ◽  
Vol 10 (2) ◽  
pp. 187
Author(s):  
Notari Bonini Notari ◽  
Rogério Gesta Leal
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Economic Cooperation ◽  
General Assumption ◽  
Fundamental Rights ◽  
Social Rights ◽  
Public Officials ◽  
Brazilian Government ◽  
Business Operations ◽  
Financial Issues

O presente artigo tem por objetivo analisar o fenômeno da corrupção e o crime de lavagem de dinheiro e a forma como vem sendo abordada essa temática no âmbito da Convenção sobre o Combate da Corrupção de Funcionários Públicos Estrangeiros em Transações Comerciais Internacionais da Organização para a Cooperação e Desenvolvimento Econômico (OCDE) e à formulação de políticas públicas para o Combate a Corrupção e a Lavagem de Dinheiro, por parte do Estado Brasileiro. A Lavagem de Dinheiro é uma das espécies de práticas corruptivas, de tal modo que esse tipo de ilícito compromete a efetivação dos direitos fundamentais, dos direitos sociais, do direito penal econômico, o Estado Democrático de Direito afetando, de forma direta, as políticas públicas tributárias em razão do cometimento de ilegalidades e delitos ligados às questões de ordem econômica, tais como, o suborno, fraudes, sonegação fiscal, propina, lavagem de dinheiro, tráfico de drogas, armas, ligados de maneira indireta, ao crime organizado. Considerando que o artigo é de natureza bibliográfica, será utilizado quanto ao método de abordagem a ser adotado no seu desenvolvimento o dedutivo, tendo pressuposto argumentos gerais (premissa maior) para argumentos particulares (premissa menor); enquanto o procedimento será analítico. Palavras chaves: Políticas Públicas Tributárias, Lavagem de Dinheiro, Corrupção de Funcionários Públicos Estrangeiros, ordem econômica, ilegalidades. MONEY LAUNDERING CRIME UNDER THE CONVENTION ON THE FIGHT AGAINST CORRUPTION OF FOREIGN public employee in the business operations of the International Organization for Economic Cooperation and Development (OECD) This article aims to analyze the phenomenon of corruption and money laundering and how it is addressing this issue under the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions of the Organization for Economic Cooperation and Economic Development (OECD) and the formulation of public policies for the Fight against Corruption and Money Laundering, by the Brazilian government. Money laundering is a kind of corrupt practices, so this type of crime committed with the observance of fundamental rights, social rights, economic criminal law, the democratic rule of law affecting directly the tax public policy because the commission of unlawful acts and crimes related to financial issues such as bribery, fraud, tax evasion, bribery, money laundering, drug trafficking, arms linked indirectly to the crime organizado.Considerando that the article is a bibliographic character , will be used as a method of approach is adopted in its deductive development, with arguments general assumption (major premise) for particular arguments (minor premise); while the procedure is analytic.

Baltic shells: on the mechanics of trade-based money-laundering in the former Soviet space

2015 ◽  
Vol 18 (1) ◽  
pp. 81-98 ◽  
Author(s):  
Graham Stack
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Court Cases ◽  
Content Type ◽  
Soviet Space ◽  
Tax Fraud ◽  
The Baltic ◽  
Practical Implications ◽  
Post Soviet Space

Purpose – The purpose of this paper is to describe a platform of interconnected international shell companies operated through Baltic banks, used for trade-based money laundering (TBML) across Russia, Ukraine and other post-Soviet states. Design/methodology/approach – This is a case study that draws extensively on the results of journalist investigations and court cases to describe one example of a money-laundering platform. Findings – Platforms of international shell companies operated through Baltic banks play a key role in TBML for the post-Soviet countries. They are created for systematic laundering of revenues from tax evasion, tax fraud, corruption and criminality across the post-Soviet space, and also globally. Research limitations/implications – This study implies that TBML for the post-Soviet space is a specialized industry, hosted by collaborating banks centered in the Baltic states, in conjunction with mass use of international shell companies. Practical implications – This study implies that analysis of suspicious transactions cannot remain on the level of single companies but has to take into account the interconnected payment patterns produced by such a platform. Originality/value – Provides the first study of a trade-based money-laundering platform operating in the post-Soviet space.

Tunisia's presidential candidates will need allies

2019 ◽  
Keyword(s):  
Political Parties ◽  
Money Laundering ◽  
Tax Evasion ◽  
Content Type ◽  
Presidential Candidates ◽  
Election Results ◽  
Independent Candidates ◽  
Opposition Parties

Significance Two independent candidates will contest the second round: Kais Saied, a constitutional lawyer, who garnered 18.4% of the vote and Nabil Karoui, a media mogul currently imprisoned on money laundering and tax evasion charges, with 15.6%. The election results are a rebuke to the main political parties that have dominated politics over recent years but failed to improve the economy. Not only did the candidates of the three main parties (Islamist-inspired Ennahda, and secularist Nidaa Tounes and Tahya Tounes) fail to reach the second round, long-standing opposition parties also failed to attract disillusioned voters. Impacts Both candidates will support Tunisia’s democratic achievements, even if they themselves are no revolutionaries. Saied has no party connections and could find himself isolated if elected. Karoui can count on some Nidaa Tounes support. Either president would be constrained in the likely event of an unfriendly parliament.

Money laundering in Ukraine

2015 ◽  
Vol 18 (3) ◽  
pp. 382-394 ◽  
Author(s):  
Graham Stack
Keyword(s):  
Open Source ◽  
Money Laundering ◽  
Tax Evasion ◽  
International Political Economy ◽  
Foreign Banks ◽  
Financial Flows ◽  
Content Type ◽  
Soviet State ◽  
Open Source Data ◽  
Source Data

Purpose – This paper aims to examine the role in tax evasion and corruption played in Ukraine by money-laundering organisations called “conversion centres”: networks of sham firms and banks implementing “black cash” schemes that facilitate tax evasion by the private sector and embezzlement by the state sector. The paper describes their embedding both in a post-Soviet state as well as in the international political economy. Design/methodology/approach – It draws on scholarship, journalist investigations, court records, government agency reports and other open source data and interviews with market participants. It first describes “conversion centres” as an ideal type and then presents three case studies, focusing on international financial flows and the domestic political setting. Findings – Ukraine’s conversion centres generate significant international flows of dirty money handled by specialised foreign banks mostly in the Baltic states. Domestically, conversion centres thrive through state capture, resulting from their facilitation of embezzlement by state actors. Research limitations/implications – Open source data and investigative methods make it possible to conduct empirical research in crime and corruption in the post-Soviet context. As open sources expand, the scope for such enquiry will increase. Originality/value – This is the first empirical description of “black cash” money-laundering platforms in terms of embedding in a post-Soviet state and in the international financial system.

The use of cryptocurrencies in the money laundering process

2019 ◽  
Vol 22 (2) ◽  
pp. 210-216 ◽  
Author(s):  
Chad Albrecht ◽  
Kristopher McKay Duffin ◽  
Steven Hawkins ◽  
Victor Manuel Morales Rocha
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Design Methodology ◽  
Banking System ◽  
Central Banking ◽  
Content Type ◽  
Digital Currency ◽  
Theoretical Paper ◽  
New Form ◽  
Financial Transactions

Purpose This paper aims to analyze the money laundering process itself, how cryptocurrencies have been integrated into this process, and how regulatory and government bodies are responding to this new form of currency. Design/methodology/approach This paper is a theoretical paper that discusses cryptocurrencies and their role in the money laundering process. Findings Cryptocurrencies eliminate the need for intermediary financial institutions and allow direct peer-to-peer financial transactions. Because of the anonymity introduced through blockchain, cryptocurrencies have been favored by the darknet and other criminal networks. Originality/value Cryptocurrencies are a nascent form of money that first arose with the creation of bitcoin in 2009. This form of purely digital currency was meant as a direct competitor to government-backed fiat currency that are controlled by the central banking system. The paper adds to the recent discussions and debate on cryptocurrencies by suggesting additional regulation to prevent their use in money laundering and corruption schemes.

Sign in / Sign up

Export Citation Format

Share Document