Leak poses challenges for Dominican president

2021 ◽  
Keyword(s):  
Dominican Republic ◽  
Money Laundering ◽  
Tax Evasion ◽  
Due Diligence ◽  
Public Officials ◽  
Public Attention ◽  
Content Type ◽  
Push Up

Significance While this is not illegal, the matter has drawn public attention and criticism on the basis that it appears to conflict with the stated commitment of Abinader’s government to tackling corruption, tax evasion and money laundering. Impacts Investigations into other public officials named in the Pandora Papers will keep the issue at the forefront of public attention. Accelerated pro-transparency reform may push up due diligence costs for companies operating in the Dominican Republic. Perceptions of inaction on corruption could lead to renewed popular protests on the issue.

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.

China’s dirty laundry – international organizations posing a risk to China’s AML systems

2018 ◽  
Vol 21 (2) ◽  
pp. 189-202 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
International Organizations ◽  
Banking Sector ◽  
Due Diligence ◽  
International Banking ◽  
Content Type ◽  
International Money ◽  
Customer Due Diligence ◽  
Chinese Banking

PurposeThis paper aims to review some of the current challenges that international money laundering schemes are posing in the Chinese banking sector. Anti-money laundering (AML) systems in China are relatively new, and customer due diligence checks and other AML systems are underdeveloped in some areas.Design/methodology/approachThe paper considers a particular case example of a multi-company organization that has known links to China. This company has been the target of both European and US investigations for suspected embezzlement and money laundering, and yet is still in operation.FindingsThe paper considers the complexities of this organization and how a seemly innocent link to a used clothing charity can fund an international organization spanning several countries. The paper offers a list of basic indicators of risk that could be applied to a risk-based system used within the Chinese banking context by using this group as an example.Originality/valueThe paper uses empirical and academic studies from other authors working in this region and supports many of the findings of the need to develop stronger risk-based, as opposed to rules-based, systems for managing AML risk assessment. Previous work by the author and suggestions from other authors are both used to suggest a basic framework for AML risk assessment. The paper concludes by reiterating the fact that China, like all other countries, is now operating in an international banking context, in much the same way that international organized crime is also operating at a global level.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

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.

Challenges in customer due diligence for banks in the UAE

2020 ◽  
Vol 23 (2) ◽  
pp. 527-539
Author(s):  
Dina ElYacoubi
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Business Environment ◽  
Law Firms ◽  
Due Diligence ◽  
Remedial Action ◽  
Content Type ◽  
Narcotics Control ◽  
Financing Of Terrorism ◽  
Customer Due Diligence

Purpose The purpose of this paper is to unpack the customer due diligence (CDD) vulnerabilities and to examine and analyze the UAE specific dynamics that make the country exposed to these threats. This research also intends to put on the table suitable solutions and remedial action steps that the UAE government, regulators and financial institutions (FIs) can adopt. Design/methodology/approach This study is qualitative in nature. Findings Despite the impressive regulatory framework and the satisfactory practices by FIs, there still remains some UAE specific challenges that make it difficult to undertake CDD for certain customers. The challenges that were identified include difficulties in Arabic names, complications in identifying the beneficial owners, impediments in establishing the source of wealth/funds, concerns with politically exposed persons, the increasing cost of compliance that resulted in a pattern of de-risking within FIs. Research limitations/implications The international bodies whose mandate is to formulate the necessary anti-money laundering and combating the financing of terrorism policies and regulations for global implementation together with Association of Certified Anti-Money Laundering Specialists (ACAMS) have published sufficient studies on CDD-related issues in the UAE. Yet on the other hand, very limited literature was found by independent scholars. This paper will, therefore, largely reference publications by Financial Action Task Force, the International Narcotics Control Strategy Report and ACAMS. It will also include works by respected law firms that have operations in the UAE, local publications, government documents, academic papers by the International Monetary Fund and the World Bank, legal journals and others. Originality/value Illicit actors exploit the UAE’s relatively open business environment, a multitude of global banks and exchange houses and global transportation links to undertake illicit financial activity […] the UAE does not have any major anti-money laundering (AML) deficiencies. However, the monitoring of FIs for AML purposes, particularly in the area of CDD, could be improved. This paper unpacks the CDD vulnerabilities and analyzes the UAE specific dynamics that make the country exposed to these threats. This research also puts on the table suitable remedial action steps that the UAE government, regulators and FIs can adopt.

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.

Rethinking the internal mechanism of the EGMONT group in financial crime control

2019 ◽  
Vol 22 (2) ◽  
pp. 327-338
Author(s):  
Johnson Adeoye Adetunji
Keyword(s):  
Money Laundering ◽  
Technical Assistance ◽  
Financial Crime ◽  
Due Diligence ◽  
Member States ◽  
Content Type ◽  
Historical Perspectives ◽  
Fundamental Needs ◽  
Financing Of Terrorism ◽  
Investigation Process

Purpose This paper aims to evaluate the use of Intelligence gathering, especially the exercise of customer due diligence (CDD), enhanced due diligence (EDD), know your customer (KYC) and recordkeeping as effective anti-money laundering (AML) and counter-terrorism financing (CTF) measures. It re-appraises the risk of breach of privacy associated with recordkeeping of clients’ information in countries where there are no data protection laws and the role of the EGMONT group against the backdrop of the recent suspension of Nigeria from the group; it argues that, in view of other existing liberal punitive measures, suspending a developing nation like Nigeria by the EGMONT group (arising from a rigid demand for an autonomous financial intelligence unit (FIU)) is draconian and counterproductive. Finally, it argues that the fundamental needs and challenges of developing member states of the EGMONT group, particularly members that are battling with weak and non-transparent investigation process and terrorism require, inter alia, technical and manpower assistance to disrupt financial crime and financing of terrorism. Design/methodology/approach A doctrinal approach is utilised to analyse AML and CTF from the social and historical perspectives. A comparative analysis of international control of money laundering and terrorist financing, appraising the challenges of developing member states in complying with the Financial Action Task Force regulations and the principles of the Egmont group. Findings There are liberal punitive measures than suspension which the EGMONT group could apply when dealing with developing members of the group, especially on the issue of rigid demand for an autonomy of a national FIU. The fundamental needs and challenges of developing member states of the Egmont group, particularly members that are battling with weak and non-transparent investigation process and terrorism require, inter alia, technical and manpower assistance to disrupt financial crime and financing of terrorism. Originality/value The paper queries the appropriateness of the decision to suspend Nigeria by the Egmont group for failure to comply with its policy autonomy of its FIU when there are other liberal disciplinary measures that could have been applied. And, it suggests the need to lay more emphasis on technical assistance for member states to achieve the objectives of the group.

Tunisia reconciliation law will overcome opposition

2015 ◽  
Keyword(s):  
Transitional Justice ◽  
Tax Evasion ◽  
The Political ◽  
Economic Potential ◽  
Public Officials ◽  
Old Regime ◽  
Content Type ◽  
Financial Crimes ◽  
Justice Process ◽  
Islamist Movement

Subject Reconciliation law prospects Significance Tunisia's parliament is expected to debate a controversial reconciliation law proposed by President Beji Caid Essebsi, which grants amnesty for financial crimes committed during the rule of President Zine El Abidine Ben Ali (1987-2011). The law aims to recover an estimated 3.5 billion dollars from thousands of former public officials and businessmen acquired through embezzlement, unfair loans and tax evasion. The legislation contradicts and undermines a 2013 transitional justice law intended to uncover past abuses and promote a transitional justice process. Impacts Whitewashing past financial abuses will deepen a sense among many Tunisians that the old regime remains firmly in control. Without addressing authoritarian economic structures and passing economic reforms, Tunisia's economic potential will remain limited. Tensions within the Islamist movement Ennahda will intensify, furthering a push for separating the political party from the movement.

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