scholarly journals Banks’ Digital Challenges

2021 ◽  
Vol 5 (3) ◽  
Author(s):  
Elena Stavrova
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Drug Trafficking ◽  
Tax Evasion ◽  
Cyber Attacks ◽  
Easy Access ◽  
Current Application ◽  
Continuous Growth ◽  
Electric Cars ◽  
Regulatory Institutions

Digital currencies make transfers in digital markets, providing transaction participants with many advantages: easy access to markets, maintaining the identity of participants in transfer transactions, even their application is constantly expanding when buying new and innovative goods. Banks are an integral and significant part of this turnover, which gives them additional advantages and direct effects and exposes them to additional difficulties and dangers. The increased interest in them was noted mainly due to the continuous growth of their market rate and the additional growth of cryptocurrency extraction. Most transactions with them are based on the regulations of the applicable law. Still, the possibility of being the object of a crime has provoked a backlash from financial supervisors to protect the rights of other market participants and especially banks as the most accessible of all. Although it is a legal system in place to prevent banking institutions from being involved in money laundering operations, digital currencies are now a new opportunity with the specific advantages that ensure their smooth transfer to the network. The leading business companies such as TESLA have offered the opportunity to buy electric cars with digital currencies, with the growing demand for cryptocurrency services. Partly aided by the rising value of essential natural resources, important components for building information infrastructure, and the Covid-19 pandemic, significant financial institutions have permanently established themselves in digital markets such as JPMorgan, BNY Mellon, and Morgan Stanley, BlackRock and many others. Despite the targeted actions of state regulatory institutions, whose duty is to ensure the public good “cybersecurity”, the mass entry into these markets leaves consumers relatively unprotected. Money laundering or terrorist financing often provokes crises among regulatory institutions because they are usually accompanied by arms deals, drug trafficking, tax evasion, and others, as well as tax fraud, terrorism, and drug trafficking. A current application of digital currencies is their use to pay for services related to cyber attacks on financial institutions, objects of national security, etc. when the entire population suffers the damage. The new roles of financial institutions in the digital markets strengthen the notion of compliance as possible risk threats, realizing through compliance functions to automate and implement the integrated approach to all types of risk that accompanies the movement of digital financial assets. For some banking intermediaries, this has changed their cybersecurity strategy.

Panama faces FATF greylisting

2019 ◽  
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Tax Evasion ◽  
Task Force ◽  
Capital Flight ◽  
Content Type ◽  
National Assembly ◽  
Legislative Proposal ◽  
Financial Action Task ◽  
Financing Of Terrorism

Significance The move comes despite the passing of a long-delayed legislative proposal by Panama’s National Assembly on January 31 to make tax evasion a criminal (rather than administrative) offence -- the latest in a series of efforts to improve Panama’s image. The Financial Action Task Force (FATF) -- the international standard-setting body for anti-money laundering and combating the financing of terrorism (AML/CFT) -- will publish an assessment of Panama this month, before deciding whether to 'greylist' it around June. Impacts Poor AML controls leave Panama vulnerable to the entrance of funds from the expanding cocaine trade in neighbouring Colombia. Greylisting would hit local financial institutions' access to US correspondent banks, raising international transaction and transfer costs. Capital flight is possible by financial institutions seeking to avoid international regulatory risks associated with Panamanian operations.

scholarly journals The meaning of money laundering in business life and prevention of it

2014 ◽  
Vol 8 (2) ◽  
pp. 106-108
Author(s):  
Anikó Türkössy
Keyword(s):  
Money Laundering ◽  
Drug Trafficking ◽  
Tax Evasion ◽  
Financial Services ◽  
Task Force ◽  
Criminal Activity ◽  
Political Life ◽  
Sudden Increase ◽  
Select Committee ◽  
The World

Money laundering is the process whereby the proceeds of crime are transformed into ostensibly legitimate money or other assets. The actuality of the subject derives from the Select Committee on the Evaluation of Anti Money Laundering Measures aided by the Financial Action Task Force. Money obtained from certain crimes, such as extortion, drug trafficking, illegal gambling and tax evasion trough off shore companies as "dirty". The reason of the Committee program is to give aides to those countries which wore not FATF members as money laundering is the most profit yielding business on the world with it’s 2800 milliard USD turnover. This organization controls Hungary by supervising the law and overall actions giving a so called Progress Report about the achievements. In aspect of criminal affairs Money laundering includes all activities which achieve to transform the origin of funds coming from criminal activity as well as tax evasion activity into a legalized form. Money laundering as a phenomenon became a global problem in the second half of the 20th century parallel to sudden increase of drug trafficking. In the past few decades money laundering and the chain of criminal activities as underlying offences got into the scope of the leading economic states. Those activities of money laundering maximally exploit the free movement of capital and financial services. In both the economy and political life there is a need for having laws and regulations against money laundering which rigorously regulate the different financial, bank supervisory activities. According to estimations in the nineties three hundred billion dollars were circulating annually across the world in order to be laundered. Nowadays this figure is well over thousand billion dollars.

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.

Illegal migration as an encroachment on the sovereignty and security of the state

2021 ◽  
pp. 341-352
Author(s):  
Sergey D. Grinko
Keyword(s):  
International Law ◽  
Organized Crime ◽  
Drug Trafficking ◽  
Tax Evasion ◽  
Illegal Migration ◽  
Legal Norms ◽  
World Community ◽  
Large Length ◽  
The Subject ◽  
Entire World

We consider the issues of correlation between the international law of citizens of different states to travel and national legislation restricting illegal migration, which are the subject of interstate agreements. The issue of combating organized illegal migration for Russia is urgent, since the dynam-ics of this crime indicates an increase in the registration of such crimes and the identified persons who committed them. This is due to the large length of Russian borders and integration with foreign states, which entails an increase in the penetration of foreign citizens into the territory of our country. Illegal migration leads to an increase in ethnic organized crime and related smug-gling, drug trafficking, tax evasion and extortion. The fight against this criminal phenomenon is relevant for the entire world community. States seek to protect their citizens, but at the same time are obliged to comply with in-ternational legal norms on the issue under consideration. This activity of states should be carried out in accordance with the principles of respect for human rights and freedoms. We analyze international and Russian legisla-tion, damage caused by illegal migration, and propose measures to prevent crime related to illegal migration.

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.

scholarly journals A Study on Anti-Money Laundering: Principles And Perceptions in Context to India

2021 ◽  
pp. 127-137
Author(s):  
R. Harika ◽  
V. N. V. Sai Ramresh
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Combat Money Laundering

Tax evasion is the focal turn of numerous genuine offenses. Hacking frameworks or laundering cash has become an extraordinary calling of individuals where they exploit distinctive monetary and general sets of laws of various nations. AML is needed to make the country less appealing for the launderers, in this manner shielding the monetary area from functional and reputational hazards. To have a thorough paper, the paper is partitioned into four sections. Part I opens up with clarifying the ideas and cycles of tax evasion calling attention to the causes and methods of illegal tax avoidance. Part II moves with rules and guidelines/control instruments to manage the issue of illegal tax avoidance. Considering the previously mentioned conversation Part III continues in expounding the ideas to have a decent enemy of tax evasion system. The paper is the principal endeavor to move toward AML Bill 2008 to combat money laundering.

scholarly journals Does the Implementation of DAC 5 Represent a Breach of Attorney Confidentiality?

2019 ◽  
pp. 525-534
Author(s):  
Tomáš Sejkora
Keyword(s):  
Czech Republic ◽  
Money Laundering ◽  
Tax Evasion ◽  
Relevant Information ◽  
The Czech Republic ◽  
Scientific Methods ◽  
The Law

This contribution is devoted to an issue of the correlation between anti-money laundering measures and measures combating tax evasion. This problem is widely discussed and the regulation requiring sharing tax relevant information between tax and AML authorities begins to occur. The example is the well-known directive DAC 5 and its transposition into the national legal orders which initiated the discussion about the nature of the confidentiality of the lawyer and the attorney–client privilege once again. This contribution therefore analyses the new obligation imposed on attorneys by the law implementing DAC 5 in the Czech Republic. The used scientific methods are description, analysis, induction and deduction.

scholarly journals Vulnerability and risk assessment for operating system (OS) with framework STRIDE: comparison between VulnOS and Vulnix

2021 ◽  
Vol 23 (3) ◽  
pp. 1643
Author(s):  
Adityas Widjajarto ◽  
Muharman Lubis ◽  
Vreseliana Ayuningtyas
Keyword(s):  
Information Disclosure ◽  
Risk Estimation ◽  
Rapid Development ◽  
Denial Of Service ◽  
Cyber Attacks ◽  
Easy Access ◽  
Case Scenario ◽  
Worst Case ◽  
Network Function ◽  
The World

<p><span lang="EN-US">The rapid development of information technology has made security become extremely. Apart from easy access, there are also threats to vulnerabilities, with the number of cyber-attacks in 2019 showed a total of 1,494,281 around the world issued by the </span><span lang="EN-US">national cyber and crypto agency (BSSN) honeynet project. Thus, vulnerability analysis should be conducted to prepare worst case scenario by anticipating with proper strategy for responding the attacks. Actually, vulnerability is a system or design weakness that is used when an intruder executes commands, accesses unauthorized data, and carries out denial of service attacks. The study was performed using the AlienVault software as the vulnerability assessment. The results were analysed by the formula of risk estimation equal to the number of vulnerability found related to the threat. Meanwhile, threat is obtained from analysis of sample walkthroughs, as a reference for frequent exploitation. The risk estimation result indicate the 73 (seventy three) for the highest score of 5 (five) type risks identified while later on, it is used for re-analyzing based on the spoofing, tampering, repudiation, information disclosure, denial of service, and elevation of prvilege (STRIDE) framework that indicated the network function does not accommodate the existing types of risk namely spoofing.</span></p>

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