The Legal Combat of Financial Crimes: A Comparative Assessment of the Enforcement Regimes in Nigeria and South Africa

2020 ◽  
pp. 1-23
Author(s):  
Nelson Ojukwu-Ogba> ◽  
Patrick C Osode
Keyword(s):  
South Africa ◽  
Money Laundering ◽  
Tax Evasion ◽  
Task Force ◽  
Effective Control ◽  
Market Manipulation ◽  
Economic Implications ◽  
System Integrity ◽  
Financial Crimes ◽  
Terrorism Financing

Abstract Financial crimes are debilitating problems for economies, especially emerging ones. The scourge of financial crimes includes money laundering, fraud, drug and human trafficking, terrorism financing, bribery, embezzlement, market manipulation, tax evasion, identity theft, forgery and cybercrime. These problems are so intractable and potentially destructive that the collective effort to prevent or contain them has gone global. The imperative of enhanced transparency and financial system integrity, not only in national financial systems but also in the international financial order, has become inevitable. This has resulted in the landmark frameworks of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the G7’s Financial Action Task Force. This paper discusses the legal combat of financial crimes in two major African economies: Nigeria and South Africa, with particular emphasis on money laundering and terrorism financing due to their direct negative macro-economic implications for any economy. The focus on the twin problems in those two economies is based on their pre-eminent position in Africa. The paper examines the legal frameworks for the prevention or containment of the scourge in the two countries and interrogates measures that could engender their effective control.

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.

scholarly journals Legal, Administrative and Judicial Framework in Pakistan to Combat Tax Evasion and Money Laundering: An Analytical Study

2021 ◽  
Vol 3 (1) ◽  
pp. 69-77
Author(s):  
Aamir Khan ◽  
Naureen Akhtar
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Analytical Study ◽  
Research Paper ◽  
Tax Administration ◽  
Financial Instability ◽  
Money Launder ◽  
Financial Crimes ◽  
Narcotics Trafficking ◽  
Terrorism Financing

Purpose: The main objective of this research paper is to look at Pakistan's legal, administrative, and judicial framework in terms of countering money laundering and tax evasion. Money laundering and tax evasion are two financial crimes that have been linked, either directly or indirectly, to one other. Money laundering was formerly solely associated with the crimes of narcotics trafficking and terrorism financing. At present, it has been also associated with tax evasion. Methodology: The framework regarding tax evasion and money laundering is varied. In Pakistan, two different mechanisms exist to combat both crimes. This article analytically studies the parliamentary statutes and ordinance, the working of investigating and prosecuting agencies and judicature structure concerning tax evasion and money laundering in Pakistan. Findings: This article concludes that the problem of tax evasion and money launder are causing financial instability in Pakistan. There is an urgent need of revamping the current tax administration to detect tax evasion and frauds. Implication: this article recommends potential reforms in the existing legal, administrative and judicial framework to control and curb both crimes more effectively.

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.

Institutionalization of risk management framework in Islamic NGOs for suppressing terrorism financing

2014 ◽  
Vol 17 (1) ◽  
pp. 96-109 ◽  
Author(s):  
Radiah Othman ◽  
Rashid Ameer
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Process Model ◽  
Task Force ◽  
Political Process ◽  
Asia Pacific ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Terrorism Financing

Purpose – The aim of this paper is to propose solutions for improving internal controls and transparency to alleviate concerns of international community over alleged linked with terrorist groups. Design/methodology/approach – The authors explore the counter-insurgency theory and political process model to explain the current state of counter-terrorism activities aimed at Islamic NGOs after 9/11. Findings – The authors believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. Practical implications – Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. The authors propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities. Originality/value – The proposed risk management framework is to complement various regional and international initiatives championed by Asia/Pacific Group on Money Laundering and Financial Action Task Force to combat money laundering and terrorist financing.

FATF’s Concerns and Pakistan's Measures for Compliance

2020 ◽  
Vol 3 (2) ◽  
pp. 185-196
Author(s):  
Tehmina Aslam ◽  
Muhammad Asad Aslam
Keyword(s):  
Comparative Analysis ◽  
Literature Review ◽  
Money Laundering ◽  
Task Force ◽  
Legal Assistance ◽  
Current Position ◽  
The Social ◽  
Terrorism Financing ◽  
Financial Action Task ◽  
Harsh Conditions

Since August 2018, Pakistan has been dealing with the Financial Action Task Force (FATF) to avoid its harsh conditions. The aim of the study was to examine the current position of Pakistan vis-à-vis the conditions laid down by the FATF. A literature review was conducted to assess the situation over 20 months and a comparative analysis was done. Findings of the study showed that the ministry took nine actions. First, it banned two main and eleven affiliated organizations. Second, it froze 976 moveable and immovable assets of the banned organizations. Third, it intervened in the social welfare activities conducted by the banned organization and seized relevant institutes. Fourth, it ministry convicted more than 200 individuals concerned. Fifth, it appropriated funds amounting to Rs 2,400 million. Sixth, it introduced the mutual legal assistance law and contacted about 84 countries to glean information from them. Seventh, it formulated asset-freezing regulations. Eight, it introduced the charity law across the country. Ninth, it tri-furcated the 4th schedule of the Anti-Terrorism Act of 1997 and established procedures for watching the prospective offenders. The result was that, in 20 months, Pakistan formulated policies meant for curbing money laundering and combating terrorism financing.

Southern and Eastern African Money Laundering Conference

1997 ◽  
Vol 41 (1) ◽  
pp. 150-151
Keyword(s):  
United States ◽  
South Africa ◽  
United Kingdom ◽  
Money Laundering ◽  
Task Force ◽  
Cape Town ◽  
African Countries ◽  
Financial Action Task Force ◽  
Financial Action Task

Representatives of 13 African countries attended the first such conference in Cape Town, South Africa on 1–3 October, 1996. These were Botswana, Kenya, Lesotho, Malawi, Mauritius, Namibia, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. Representatives of several members of the Financial Action Task Force (FATF) were also present, namely Canada, France, Italy, Portugal, United Kingdom and United States.

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.

FATF and money laundering in Iran

2018 ◽  
Vol 21 (3) ◽  
pp. 314-327 ◽  
Author(s):  
Mansour Rahmdel
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Armed Forces ◽  
Penal Code ◽  
Content Type ◽  
Psychotropic Substances ◽  
International Regulations ◽  
Terrorism Financing ◽  
The Subject ◽  
International Conventions

Purpose The aim of this paper is considering that obtaining illegitimate property and obtaining property illegally is morally outrageous. The law also condemns it as a crime. The act of those who launder the proceeds of crime is also condemned. This condemnation is almost universal. So, money laundering as a way of diversion of the origin of the illegal gains into legitimate currency or other assets has been criminalized in most of the countries, including in Iran. Before criminalization of money laundering, there were different laws which referred to the case without referring to the term of money laundry. According to Article 49 of the Iranian Constitution “all proceeds of illegal sources like embezzlement, bribery, gambling and other ways should be confiscated.” Design/methodology/approach Article 662 of the Islamic Penal Code (IPC) ratified in 1996 criminalized dealing with the proceeds of theft and Note 2 of Article 119 of the Penal Code of the Armed Forces criminalized obtaining the proceeds of embezzlement. But, in 2008, to follow the international conventions, especially Article 3 of the psychotropic substances 1988 in Vienna and also Financial Action Task Force (FATF) recommendations on Money Laundering and Terrorism Financing, the legislator ratified the anti-money laundering code (AMLC). The methodology is an analytical one. The author using an analytical method, has analyzed the subject with consideration of Iran’s situation, as well as international documents and FATF’s recommendations. Findings The author has studied the issue, believing that domestic regulations of Iran comply with international regulations and FATF recommendations. The current paper considers the different aspects of the AMLCs in Iran in relation to FATF recommendations. Originality/value The author confirms the originality of the paper and declares that he has referred all the other materials.

scholarly journals Towards Ingenious Technology and the Robust Enforcement of Financial Markets Laws to Curb Money Laundering in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-47
Author(s):  
Howard Chitimira ◽  
Menelisi Ncube
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Money Laundering ◽  
Task Force ◽  
Stock Exchange ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Use Of Technology ◽  
Financial Crimes ◽  
Effective Use

Technology has positively contributed to the creation of financial markets and the facilitation of payments globally. The effective use of robust technology could enhance the consistent enforcement of financial market laws by curbing financial crimes in any country. This in turn would enhance the integrity of financial markets and promote the viability of financial markets. In relation to this, it appears that Zimbabwe has struggled to comply with international measures to combat money laundering and the financing of terrorism (AML/CFT) since it has poor financial market laws which are inconsistently enforced due inter alia to its poor money laundering detection mechanisms and inadequate resources. For instance, Zimbabwe has to date failed to make satisfactory progress to adopt and enforce adequate risk mitigation measures against money laundering practices in accordance with the Financial Action Task Force (FATF) recommendations. This is evidenced by the increased incidence of money laundering in Zimbabwean financial markets. Furthermore, the inconsistent enforcement of financial market laws has resulted in poor liquidity and the recent suspension of the Zimbabwe Stock Exchange (ZSE). The viability and integrity of the Zimbabwean financial market has thus been compromised. This article discusses the integration and use of robust technology in the Zimbabwean financial market to curb financial crimes such as money laundering and bank fraud. The adequacy of financial market laws and/or regulations will also be discussed vis-à-vis their consistent enforcement by relevant bodies such as the Financial Intelligence Inspectorate Evaluation Unit (FIU) in Zimbabwe. This is done to evaluate the use of technology to curb money laundering and promote a viable economy and financial market in Zimbabwe. It is submitted that the relevant authorities should promote the effective use of technological inventions like artificial intelligence (AI) and machine learning to curb money laundering, bank fraud and other related financial crimes in Zimbabwe.

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