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.

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.

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.

scholarly journals Need of Legal, Administrative and Judicial Reforms in Pakistan to Combat Money Laundering and Terrorism Financing: An Analytical Study

2020 ◽  
Vol 3 (1) ◽  
pp. 91-100
Author(s):  
Khalil Haider ◽  
Naureen Akhtar
Keyword(s):  
Money Laundering ◽  
Analytical Study ◽  
Economic Prosperity ◽  
Financial Systems ◽  
Global Problems ◽  
Terrorism Financing ◽  
Financing Of Terrorism ◽  
The Stability ◽  
Combat Money Laundering

The main objective of this article is to discuss, review and analyze money laundering and terrorism financing simultaneously as both share common incentives, line of action and executing strategies. Money laundering and financing of terrorism are global problems which not only threaten security but also compromise the stability, transparency and efficiency of financial systems, thus undermining economic prosperity and peace of a country. This research defines and expounds the terms ‘money laundering’ and ‘terrorism financing’, and common strategies to execute both of these criminal activities. It also analyzes the current predicament of legal, administrative and judicial skeleton of Pakistan which makes the country more vulnerable to money laundering and terrorism financing. Furthermore, it would also provide its readers with the most needed reforms in the all-over blueprint of the country, and imperative amendments to make the Anti-money Laundering Act, 2010 and the Anti-terrorism Act, 1997 more efficacious to encounter money laundering and terrorism financing in one fell swoop.

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.

An embezzler test for norms, standards and regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tiago Cardao-Pito
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Design Methodology ◽  
Methodological Approach ◽  
Future Research ◽  
Content Type ◽  
Financial Crimes ◽  
Standards And Regulations ◽  
Practical Implications ◽  
Resultant Material

Purpose The purpose of this study is to address the question that economic standards, norms and regulations can possess weak spots that might be exploitable for the embezzlement of an organization’s assets with resultant material consequences in money laundering,tax evasion, fraud, corruption and other potential financial crimes. Design/methodology/approach The author’s methodological approach is to introduce and discuss a new logical-deductive test that the author names “embezzler test”. The author’s test investigates regulatory architectures from the perspective of someone attempting to divert assets from or to an organization. It appraises whether a potential embezzler could divert resources without being detected and sanctioned. Findings The embezzler test can be applied to a broad range of standards, norms and regulations. Research limitations/implications This new test can be improved and further calibrated in future research. Practical implications Researchers, regulators and law makers can use the new test to identify and eventually fix weak spots for embezzlement in norms, standards and regulations. Originality/value To the best of the author’s knowledge, such a test has never been formulated or applied before to identify weak spots for potential embezzlement in regulatory architectures.

Impact of Mobile Money on Financial Crime, Money Laundering, and Terrorism Financing

2021 ◽  
pp. 416-429
Author(s):  
Gilbert Ouko Oyoo
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Financial Inclusion ◽  
Financial Crime ◽  
Mobile Money ◽  
The Past ◽  
Financial Crimes ◽  
Terrorism Financing ◽  
The Face ◽  
Made In

Financial crime, money laundering, and terror financing have been perennial menaces that downplay the major headway made in the financial transaction space. Businesses and individuals have found it prudent to always try remaining ahead of the perpetrators behind the vices. The springing into life of the mobile money in the second half of the first decade of this century has revolutionized the manner with which risk management in this respect is handled. In this chapter, the author posits that although mobile money has led to greater financial inclusion, the rate with which the myriad financial crimes have been reported over the past decade in the face of this phenomenon raises the need to stay abreast of developments in this space.

Fiscal Paradises and G-20 as a Global Decision Maker

2015 ◽  
pp. 162-170
Author(s):  
Alper Dogan
Keyword(s):  
Economic Crisis ◽  
Money Laundering ◽  
Tax Evasion ◽  
Global Economy ◽  
Tax Avoidance ◽  
Dark Side ◽  
Financial Instability ◽  
International Level ◽  
Negative Role ◽  
Terrorist Finance

Fiscal Paradises are described as the “dark side of globalization” because of the negative role they have been playing in the global economy. Today, they are an extremely important reason of tax evasion and tax avoidance, financial instability, money laundering, terrorist finance, and other issues. Recent actions by G-20 have focused on fiscal paradise countries, targeting tax evasion and avoidance issues, because of the fact that the economic crisis in 2008 has showed the destructive influence of fiscal paradises in the economy not only on national but also on international level. The following year, in 2009, struggling with the fiscal paradises was the main focus of the G-20 London Summit. In addition, the following four G-20 summits refined the issue concern in fiscal paradises. This chapter aims to explain what has been achieved regarding the fiscal paradise problems at G-20 summits since the economic crisis of 2008.

Identifying Money Laundering in Business Operations as a Factor for Estimating Risk

2017 ◽  
Vol 3 (3) ◽  
pp. 7-16
Author(s):  
Sonja Cindori ◽  
Jelena Slović
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Cash Flows ◽  
Terrorist Financing ◽  
Business Transactions ◽  
Business Operations ◽  
Terrorism Financing ◽  
Business Changes ◽  
Butterfly Diagram ◽  
A Company

Money laundering and terrorist financing can be performed in many ways, regular business operations being among them. Business activities go through a large number of business changes, which offers numerous options for money or assets to enter the company via seemingly legal business transactions, enabling money or assets to remain in regular business flows once money laundering is completed. On the other hand, the opposite scenario, in which there is interest in money to be transferred from regular flows to alternative flows, including terrorism financing, is also common. This paper will discuss legal business operations as a framework for money laundering and terrorist financing. Cash flow cycles are presented in form of an algorithm as connections between irregularly and regularly acquired assets in the process of money laundering through business operations, as well as re-entry from regular flows into alternative cash flows. The “Butterfly Diagram”, presenting groups of business changes enabling entry of larger amounts of money and assets owned by a company in order to be laundered or their exit with the effect or tax evasion or terrorism financing, evolved from the algorithm. Also, the “Butterfly Diagram” includes certain forms of legal and tax misuse which enable legalizing the specified activities. The business reality is exceptionally dynamic and needs of money launderers keep growing, this is why there is an increase in types and numbers of business transactions that can be used for money laundering or terrorism financing, resulting in the need to keep modifying the presented “Butterfly Diagram”.

scholarly journals Informal Economy Enabling Tax Evasion and Money Laundering in Pakistan: An Analytical Study

2020 ◽  
Vol 2 (2) ◽  
pp. 131-138
Author(s):  
Amir Khan ◽  
Naureen Akhtar ◽  
Muhammad Danyal Khan ◽  
Rao Imran Habib
Keyword(s):  
Money Laundering ◽  
Informal Sector ◽  
Informal Economy ◽  
Tax Evasion ◽  
Small Businesses ◽  
Analytical Study ◽  
Primary Objective ◽  
Depth Analysis ◽  
Operations And Maintenance ◽  
Wage Earners

Purpose: The primary objective of this article is to conduct an in-depth analysis of the informal economy in Pakistan enabling money laundering and tax evasion in Pakistan. Furthermore, it also looks into the informal economy’s implications for the economic growth of Pakistan. Finally, this article recommends potential reforms for formalization of economy of Pakistan for prevention of such crimes. Methodology: A review regarding informal economy in Pakistan enabling money laundering and tax evasion with the help of prior studies has been conducted. Findings: The formalization of the informal sector, according to this article, is important not only for raising tax revenues, but also for digital, skilled-based improvement of business activities, ramping up the operations and maintenance size of small businesses, increasing and diversifying production, and enhancing the lot of low-wage earners. Implications: Lawmakers should focus on the implications of informal financial channels like hawala and hundi, which continue to operate beneath the radar of the informal sector. In order to identify money laundering, the Pakistani government must focus on strengthening and encouraging the digitization of the economy. The digitization of the economy is critical to the formalization of Pakistan's economy.

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