scholarly journals The Effectiveness of Anti-Money Laundering / Counter Financing of Terrorism Requirements in Fund Management Companies

2021 ◽  
Vol 6 (2) ◽  
pp. 53
Author(s):  
Norziaton Ismail Khan ◽  
Mohamad Asri Abdul Jani ◽  
Anis Asfarina Zulkifli
Keyword(s):  
Money Laundering ◽  
Regulatory Compliance ◽  
Effective Control ◽  
Fund Management ◽  
Team Members ◽  
Policies And Procedures ◽  
Level Of Satisfaction ◽  
Monitoring Process ◽  
Compliance Officers ◽  
Financing Of Terrorism

Anti-Money Laundering / Counter Financing of Terrorism (AML/CFT) broadly encompasses regulatory requirements, acts and guidelines designed to curtail the practice of generating funds through unlawful or criminal activities. Several infringement notices were issued to market intermediaries due to provision breaches of the guidelines. Although policies and procedures have been tightened up to the level of satisfaction, assessing the effectiveness of AML/CFT legislation is still necessary. The main aim of the study is to examine the independent variables, namely competency level of compliance team members, regulatory compliance and quality of AML/CFT framework that influence the effectiveness of AML/CFTrequirements of the compliance officers that are working in FMCs in Malaysia. The Expectancy Theory has been applied to form the framework and to develop the hypotheses. Three hypotheses were developed and tested using the data from 70 samples of FMC's in Malaysia. The result of the study showed that there were significant relationships between the factors analysed in this study. This study will help the financial institutions especially the Fund Management Companies (FMCs) in understanding the factors that influence the effectiveness of AML/CFT requirements and taking necessary action to enhance their internal AML/CFT process and its compliance with the regulations. This would help the FMCs to have effective control of AML/CFT during the on-boarding and ongoing monitoring process.

European antiquities trade: a refuge for money laundering and terrorism financing

2019 ◽  
Vol 22 (3) ◽  
pp. 410-416 ◽  
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Money Laundering ◽  
Qualitative Content Analysis ◽  
Criminal Activity ◽  
Valuable Insight ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Compliance Officers ◽  
Terrorism Financing ◽  
Financing Of Terrorism ◽  
Antiquities Trade

Purpose This paper aims to demonstrate how criminals launder money in the antiquities trade in Austria, Germany, Liechtenstein and Switzerland. Design/methodology/approach A qualitative content analysis of 58 semi-structured expert interviews with both criminals and prevention experts and a quantitative survey of 184 compliance officers revealed the concrete techniques used to launder money in the European antiquities trade. Findings The antiquities market facilitates the placement, layering and integration of the transfer of assets to terrorist organizations. Most importantly, it is among the few profitable methods of laundering money. Research limitations/implications As the findings of the qualitative study are based on semi-standardized interviews, they are limited to the 58 interviewees’ perspectives. Practical implications The identification of concrete methods of money laundering and terrorism financing aims to provide compliance officers, law enforcement agencies and legislators with valuable insight into criminal activity. Originality/value While the existing literature focuses on organizations fighting money laundering and the financing of terrorism, this study instead describes how criminals avoid detection by taking into account prevention and criminal perspectives.

scholarly journals The effectiveness of Anti-Money Laundering policies and procedures within the Banking Sector in Bahrain

2020 ◽  
Vol 23 (4) ◽  
pp. 769-781
Author(s):  
Mark Eshwar Lokanan ◽  
Noor Nasimi
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Banking Sector ◽  
Positive Impact ◽  
Gulf Cooperation Council ◽  
Structured Interviews ◽  
Content Type ◽  
Policies And Procedures ◽  
Compliance Officers ◽  
Practical Implications

Purpose The purpose of this paper is to identify the anti-money laundering (AML) policies and procedures applied by the banks operating in Bahrain and assess the effectiveness of these policies. Design/methodology/approach Data for the study came from semi-structured interviews with compliance officers in Bahrain’s banking sector. A total of 22 interviews were conducted with Bahraini money laundering reporting officers and bankers. Findings The findings indicate that the banks in Bahrain comply with international AML procedures in combating money laundering. Despite Bahrain being ranked as having strong compliance policies and AML procedures among the Gulf Cooperation Council region, there are still issues with regulatory technology that needs to be addressed. Practical implications While there has been a positive impact of AML procedures, there are always more procedures that can be taken into consideration by banks in Bahrain to have more robust mechanisms to mitigate against the threat of money laundering. Originality/value To the best of authors’ knowledge, this paper is among the first to conduct an informed study of the effectiveness of compliance in the Bahrain’s financial sector. It can be used as a foundation paper for more mix-research on money laundering threats facing Bahrain’s banks.

Analyzing Russian compliance with anti-money laundering and combating the financing of terrorism, insider trading and anti-corruption laws

2014 ◽  
Vol 22 (4) ◽  
pp. 318-327
Author(s):  
Maria Shalimova
Keyword(s):  
Money Laundering ◽  
Insider Trading ◽  
Practical Experience ◽  
Regulatory Compliance ◽  
Primary Sources ◽  
Developed Country ◽  
Content Type ◽  
Legal Documents ◽  
Financing Of Terrorism ◽  
Mixed Approach

Purpose – The purpose of this study is provide a critical overview of compliance with anti-money laundering and combating the financing of terrorism, insider trading and anti-corruption laws in Russia. Design/methodology/approach – The mixed approach for this article will be used with some elements of grounded theory. The method used includes the following: observations, various interviews and analysis of legal documents and other primary sources. Findings – Russian regulatory compliance has a tremendous pressure and significant challenges for both regulators and regulated banks and organizations. It is a moment when Russia could become a more developed country and play a bigger role in international arena or come back to the past time. Originality/value – The article is based on my practical experience and PhD research observations.

scholarly journals Malta

2019 ◽  
Vol 19 (347) ◽  
Author(s):  
Keyword(s):  
European Union ◽  
Central Bank ◽  
Money Laundering ◽  
Euro Area ◽  
European Central Bank ◽  
Single Supervisory Mechanism ◽  
European Central ◽  
Policies And Procedures ◽  
Financing Of Terrorism

The mission focused on selected topics in relation to the supervision of less significant institutions (LSIs), which are not directly supervised by the European Central Bank (ECB), and on non-European Union (EU) branches. The supervision of all banks’ anti-money laundering and combating the financing of terrorism (AML/CFT) policies and procedures was also included, as no tasks related to AML/CFT have been conferred upon the Single Supervisory Mechanism (SSM) of the eurozone. The mission took into account the findings and recommendations formulated by the 2018 euro area (EA) FSAP and coordinated closely with FSAP missions organized in France and Italy.

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.

The essential role of the investigation in fighting economic crime in Italy

2016 ◽  
Vol 23 (2) ◽  
pp. 465-480 ◽  
Author(s):  
Domitilla Vanni
Keyword(s):  
Money Laundering ◽  
Comparative Method ◽  
Economic Crime ◽  
European Convention ◽  
Right To Privacy ◽  
Content Type ◽  
Community Law ◽  
The Law ◽  
Financing Of Terrorism ◽  
The Right

Purpose This paper aims to analyse the evolution of European anti-money laundering discipline passing from the First Money Laundering Directive 91/308/EEC, that was only referred to banks and financial intermediaries, that has been furthermore extended to some activities and professions outside the financial sector. The research examines the different steps done buy Italian Legislation in the field of economic crime: at first Law n. 14/2003 of 3 February 2003 (Community Law 2002), they transposed the 2001 Directive 2001/97/EC and then the Law n. 56/2004 of 20 February 2004, that has implemented Directive 2001/97/EC. Now it is urgent to implement Directive 2005/60/EC that has extended the scope of the legislation, including the fight against the financing of terrorism and modified anti-money laundering obligations. Design/methodology/approach This paper deals with the Legislations of some European States (in particular UK and Italy) interpreting them by a comparative method. Findings This paper has put in clear some differences and some analogies between national legislations of different countries. Research limitations/implications In Italy, at first Law n. 14/2003 of 3 February 2003 (Community Law 2002), has transposed the 2001 Directive 2001/97/EC and then the Law n. 56/2004 of 20 February 2004, has implemented Directive 2001/97/EC. In 2005, Directive 2005/60/EC has extended the scope of the legislation, including the fight against the financing of terrorism and modified anti-money laundering obligations. Practical implications In the context of economic crime, capital investigations represent one of the most effective tools to fight the activities of organized crime in the phase of managing wealth illicitly produced and its immission in the circuit of the legal economy. Social implications The need of fighting economic crime must always be harmonized with the protection of right to privacy that has been acknowledged by Article 8 of the European Convention of Human Rights of 1950 as a fundamental right. Originality/value This paper develops the need to balance the right to privacy of every European citizen (Article 8 CEDU) with investigative power exercised by Public or Private Authorities, considering the possibility to comprise the first – if necessary – to allow the regular exercise of the second.

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