International cooperation in the investigation of economic crimes related to cryptocurrency circulation

2021 ◽  
Vol 39 (6) ◽  
Author(s):  
Oleh Kreminskyi ◽  
Olena Kuzmenko ◽  
Anastasiia Antoniuk ◽  
Olha Smahlo
Keyword(s):  
International Cooperation ◽  
Money Laundering ◽  
Task Force ◽  
Criminal Activity ◽  
International Community ◽  
Economic Crime ◽  
Global Level ◽  
Financial Action Task ◽  
Illegal Activities ◽  
Economic Crimes

The cross-border nature of transactions with virtual currencies and the use of anonymity technologies exacerbates the difficulties in investigating economic crimes. The purpose of the article was to study the effects of international cooperation in the investigation of economic crimes related to the circulation of cryptocurrency. The research methodology is based on the method of content analysis of reports, recommendations and standards of the FATF (Financial Action Task Force) for 2012-2020, as a leading international organization for the prevention and development of policies for the regulation of economic crimes related to the circulation of cryptocurrencies. The results demonstrate the following effects of international cooperation in the investigation of economic crimes related to cryptocurrency: 1) the need to use a risk-oriented approach of the international community at the global level, coordination of government efforts to prevent economic crimes; 2) formation of a network of organizations that provides an effective balance between existing threats and opportunities for cryptocurrency circulation; 3) the development of free, decentralized management networks at the global level, which is an innovative and effective way to combat criminal activity, compared to traditional centralized forms of coercion in an era of rapid and unpredictable technological change. The considered experience of the absence of regulatory acts of cryptocurrency circulation and taxation of virtual assets on the principle of traditional assets indicates the absence of concern about illegal activities and possible economic crimes in this area. At the same time, decentralized and quasi-autonomous virtual assets could potentially threaten years of global anti-money laundering efforts. There is a “race” in the international community for leadership in combating economic crime. However, such efforts to establish legitimate jurisdictions that meet the requirements of the AML (Anti-Money Laundering) provide few measures in practice to counter and limit the opportunities for money laundering in other jurisdictions.

Anti-Money Laundering Law in India: A ‘Glocalization’ Model

2018 ◽  
Vol 40 (3) ◽  
pp. 224-235 ◽  
Author(s):  
Shannu Narayan
Keyword(s):  
United Nations ◽  
Money Laundering ◽  
Task Force ◽  
Transnational Crime ◽  
International Community ◽  
International Standards ◽  
Financial Action Task Force ◽  
Governmental Organizations ◽  
Financial Action Task ◽  
Set Up

Abstract The move towards harmonization of International Anti-Money Laundering (AML) regimes has attained importance during the last two decades and has been almost universally adopted by the international community. Member States of the United Nations, and Inter-governmental Organizations like the Financial Action Task Force (FATF), have criminalized money laundering, and many of them have set up specialized agencies to combat it. Money laundering is the life blood of all transnational crimes. Illicit/illegitimate money is integrated and reinvested into the legitimate financial system, which in turn facilitates commission of further transnational crimes. The term ‘glocalization’ describes the locally embedded nature of transnational crime. India’s AML law regime is a perfect example of adopting a glocalization model which is manifested through various amendments carried out to the principal Act to align it with international standards and policies.

scholarly journals Financial intelligent investigations in combating money laundering crime

2016 ◽  
Vol 19 (1) ◽  
pp. 92-102 ◽  
Author(s):  
Anastasia Suhartati Lukito
Keyword(s):  
Money Laundering ◽  
Economic Crime ◽  
Content Type ◽  
Legal Perspective ◽  
Illegal Activities ◽  
New Perspective ◽  
Banking Institution ◽  
Financial Transactions ◽  
Economic Crimes

Purpose – The purpose of this paper is to analyze the functions of financial intelligent investigations by the Indonesian financial intelligent unit in conjunction with the participating reporting parties, to consider the obstacles and challenges to reduce money laundering cases in Indonesia, realizing that the role of the financial intelligent investigations not only conducted by Indonesian Financial Intelligent Unit itself but the active participation from reporting parties such as banking institution. The function of financial intelligent unit in supervising and monitoring cash financial transactions is importance in fight against economic crimes, particularly in the anti-money laundering regime. Design/methodology/approach – This paper explores the Indonesian laws on prevention and eradication on money laundering crime and analyzing the importance role of financial intelligent investigations and disruption of money laundering crime. Findings – The financial intelligent investigations will become an important strategy to combating the economic crime such as money laundering and corruption. The new perspective is needed to developing the good synergy in the financial intelligent unit and reporting parties to maximizing the eradication of money laundering cases. Practical implications – The paper can be a source to explore about the money laundering eradication based on Indonesia legal perspective. Originality/value – This paper gives contributions by encouraging the financial intelligent unit in conjunction with all the financial institutions to disrupt any money laundering activities, which is associated to other predicate crimes and attempting to conceal the illegal funds derived from illegal activities that commonly happened in Indonesia.

A critical approach to trade-based money laundering

2014 ◽  
Vol 17 (2) ◽  
pp. 230-242 ◽  
Author(s):  
Melvin R.J. Soudijn
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Critical Approach ◽  
Content Type ◽  
Traded Goods ◽  
True Value ◽  
Police Investigations ◽  
Financial Action Task

Purpose – The purpose of this paper is to broaden the discussion on trade-based money laundering (TBML). The literature is too narrowly focused on the misrepresentation of the value, quantity or quality of the traded goods. This focus leads to the analysis of price anomalies as a signal of over- or under-invoicing. However, TBML can also occur without manipulation of these factors. Design/methodology/approach – A review of the literature and case study of police investigations. Findings – Financial action task force (FATF) definitions are seriously flawed. The question of whether detecting TBML on the basis of statistical trade data is effective should be much more open to debate. Police investigations show that goods are shipped at their true value within the context of TBML. Research limitations/implications – Using outliers to identify and act on cases of TBML has often been propagated, but scarcely been used to actually show TBML. Real findings are needed. Practical implications – Goods intended for TBML can also be paid for in cash. These cash payments are often out of character with the normal clientele. This should alert companies and compliance sections of banks alike. Originality/value – The critique on the FATF definition opens the field for a more fitting definition. The description of actual TBML cases makes it possible to better understand this method of money laundering.

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.

scholarly journals THEORETICAL AND LEGAL CHARACTERISTICS OF ECONOMIC CRIMES OF A TRANSNATIONAL NATURE

2021 ◽  
Vol 7 (1) ◽  
pp. 93-101
Author(s):  
Vadym Popko ◽  
Yevgen Popko
Keyword(s):  
International Cooperation ◽  
Social Relations ◽  
International Crime ◽  
Legal Regulation ◽  
Economic Crime ◽  
Theoretical Research ◽  
Modern World ◽  
Main Category ◽  
Economic Sphere ◽  
Economic Crimes

The article examines the theoretical and legal foundations of economic crimes of a transnational nature formed under the influence of globalisation processes in the world, the growth of international crime and other factors. The author provides a conceptual description of transnational crime as the main category of transnational criminal law, including economic crimes. Scientific views of domestic and foreign scientists on the nature of crimes of an international nature, including criminal acts in the economic sphere are analysed; the most dangerous and widespread economic crimes are characterised. Attention is paid to the legal regulation of these relations, universal and regional conventions, other sources. The authors justify the need to criminalise transnational economic crimes in national law, regardless of whether a particular state is a party to international conventions adopted by international organisations. The authors pay special attention to the characteristics of the subjects of the crime and reveals the debatable nature of their definition, in particular, analyse the problematic nature of the recognition of a legal entity as a subject of crime. The authors use a conceptual approach to clarifying the subject of study, which determines the reasonability of theoretical research, and modern principles of scientific methodology: the principle of scientific pluralism, impartiality, comprehensiveness of research, historicism, complexity and others. A modern requirement in the methodology of science is the rejection of methodological monism, which has long been dominant in theoretical and historical studies of social (including legal) phenomena and the rejection of the ideology of scientific knowledge, which provides an objective, unbiased attitude to any legal phenomena, legal systems, etc. The purpose of the article is to provide theoretical and legal characteristics of international crime in the economic sphere, identify the transnational nature of these crimes, clarify the state of legal regulation of these relations at the international level, as well as international cooperation to combat these crimes. Based on the study and theoretical generalisation of the research topic, the authors emphasise the following conclusions: modern world problems are global in nature; economic crime transcends borders and becomes international; economic crimes of a transnational nature are recognised as socially dangerous acts that encroach on the system of social relations in the field of financial and credit, investment, information, trade, etc. activities, and have a transnational nature, i.e. go beyond one state; countering economic crimes of a transnational nature is within the internal competence of states, but international cooperation in this area also has an objective basis; the legal basis of international cooperation of states are international legal anti-criminal conventions, which define the criminal acts and obligations of states to criminalise economic crimes and provide legal assistance in criminal proceedings, in particular in extradition and transfer of accused and convicted persons, disposal of confiscated property, joint investigation and other issues.

Camorra Clans in the United Kingdom

2016 ◽  
Author(s):  
Felia Allum
Keyword(s):  
United Kingdom ◽  
Money Laundering ◽  
Criminal Activity ◽  
Organizational Structures ◽  
Web Based ◽  
The United Kingdom ◽  
Local Police ◽  
Violent Criminal ◽  
Illegal Activities ◽  
Criminal Groups

This chapter discusses the Camorra's presence in the United Kingdom. Mafia and Camorra members and their associates have been present and active in the United Kingdom for some time. However, their specific organizational structures, activities, and accomplices remain unknown. This is often because British police have not investigated mafia members, since they have not officially broken English or Scottish law, and thus the police profile is minimal. Clan members may be involved in illegal activities, but they remain below the radar of local police. For example, in 2013, a local police force identified six criminal groups made up of Italian nationals engaging in money laundering, economic and web-based fraud, violent criminal activity, organized theft, and drug-related activities, but only one was identified as having possible links to an Italian mafia group, whereas the others were not systematically investigated.

Soft Organizations, Hard Powers: The FATF and the FSB as Standard-Setting Bodies

Global Jurist ◽  
2018 ◽  
Vol 19 (2) ◽  
Author(s):  
Sara De Vido
Keyword(s):  
International Law ◽  
Money Laundering ◽  
Financial Stability ◽  
Task Force ◽  
Standard Setting ◽  
Financial Action Task Force ◽  
Financial Action Task

Abstract The purpose of this contribution is to analyze two major standard setting bodies, namely the Financial Action Task Force on money laundering and the Financial Stability Board from an international law perspective. It will be demonstrated that they are “soft organizations”, which, despite their loose structure, can exercise “hard powers” in inducing States to comply with their standards.

Part II Public Obligations and Regulatory Responsibilities, B Sanctions and Regulatory Responsibilities, 10 Regulatory Responsibilities

2017 ◽  
Author(s):  
Brent Richard
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Financial Action Task Force ◽  
Obvious Advantage ◽  
The Third ◽  
Financial Action Task ◽  
English Law ◽  
Direct Incorporation ◽  
Incorporation Method

This chapter looks at the Money Laundering (ML) Regulations of 2007. These regulations implement both the Third Money Laundering Directive and the first implementing directive of the EC Commission. For the most part, the ML Regulations 2007 adopt the ‘copy-out’ or ‘direct incorporation’ method of transposing the Community measures into English law. This means that there is a verbatim transposition of the provisions of the directive into national law. This has an obvious advantage and difficulty. The advantage is that it ensures that all of the provisions of the directive are transposed into English law. The difficulty is that it can create uncertainty. That is to say, it removes from the domestic legislature the responsibility for interpreting Community concepts in an English law context and instead imposes that burden on individuals who have to decide how these measures are to be applied in practice. The chapter also looks at the Financial Action Task Force (FAFT) recommendations.

Sign in / Sign up

Export Citation Format

Share Document