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

2020 ◽  
pp. 213-230
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.

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.

Concealment of Illegally Obtained Assets in Nigeria: Revisiting the Role of the Churches in Money Laundering

2020 ◽  
Vol 28 (1) ◽  
pp. 106-121
Author(s):  
Kato Gogo Kingston
Keyword(s):  
Economic Growth ◽  
Money Laundering ◽  
Financial Crime ◽  
The Past ◽  
Key Drivers ◽  
Nigerian Government

Financial crime in Nigeria – including money laundering – is ravaging Nigeria's economic growth. In the past few years, the Nigerian government has made efforts to tackle money laundering by enacting laws and setting up several agencies to enforce the laws. However, there are substantial loopholes in the regulatory and enforcement regimes. This article seeks to unravel the involvement of the churches as key drivers in money laundering crimes in Nigeria. It concludes that the permissive secrecy which enables churches to conceal the names of their financiers and donors breeds criminality on an unimaginable scale.

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.

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.

scholarly journals DEVELOPMENT OF UNIFIED PROCEDURES FOR FINANCIAL INSTITUTIONS IN ORDER TO PREVENT MONEY LAUNDERING AND TERRORISM FINANCING

2019 ◽  
Vol 2 (87) ◽  
pp. 141
Author(s):  
Suzanna Kalinina
Keyword(s):  
Risk Management ◽  
Public Relations ◽  
Money Laundering ◽  
Financial Institutions ◽  
Financial Institution ◽  
Legal Regulation ◽  
Graphical Analysis ◽  
Terrorism Financing ◽  
Financing Of Terrorism ◽  
Financial Monitoring

The relevance of the topic is confirmed by the changes taking place in the financial monitoring system: the expansion of the financial monitoring range of procedures complication´s supervisory bodies aimed at countering money laundering and financing of terrorism, the creation of specialized international and European requirements, which causes changes in the legal regulation of public relations in this area, both at the level of the Estonian Republic, and at international level. Taking into account these changes, financial institutions are a subject to significant legal risks. The purpose of this topic is to improve the financial institution risk management system, in the field of anti-money laundering and countering financing of terrorism. The theoretical and methodological basis of the study are the provisions and conclusions regarding anti-money laundering and countering financing of terrorism risk management issues contained in the research works of different Estonian and Russian authors; as well as the author analysed anti money laundering and counter terrorism financing legal acts and revealed the main recommendations to financial institutions for preventing money laundering and terrorism financing.  The author analyses reasons, which affect licenses withdrawal due to breach of money laundering. The nature of the tasks and the system approach to their solution determined the use of the following research methods in the research: analysis and synthesis, grouping and classification, scientific generalization, expert assessments and graphical analysis.

The impact of national culture on financial crime

2019 ◽  
Vol 22 (2) ◽  
pp. 373-387
Author(s):  
Ahmed Yamen ◽  
Anas Al Qudah ◽  
Ahmed Badawi ◽  
Ahmed Bani-Mustafa
Keyword(s):  
National Culture ◽  
Money Laundering ◽  
Holistic Approach ◽  
Uncertainty Avoidance ◽  
Financial Crime ◽  
Content Type ◽  
Financial Crimes ◽  
The Impact ◽  
Low Uncertainty

Purpose Despite the existence of laws, regulations and sanctions, financial crime remains widespread. The Panama leaks have proven that people from all over the world are participating in money laundering and other financial crimes. This study aims to investigate the influence of national culture on financial crimes across 78 countries. Design/methodology/approach This study uses Hofstede’s cultural framework as a basis for its hypotheses on financial crime. It also uses the Basel anti-money laundering index as a proxy for measuring the incidence of financial crime across the countries under review. Findings The findings show that countries whose cultural profiles are characterized by low uncertainty avoidance, low individualism, high masculinity and low long-term orientation have high rates of financial crime. The finding also shows that countries whose cultural profiles are characterized by individualism or positive collectivism, uncertainty avoidance and long-term orientation have low rates of financial crime. Originality/value Laws, regulations and sanctions are not the only factors that can help deter the crime; governments should also take a holistic approach that includes the cultural factors that encourage deterrence.

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.

Unearthing money laundering at Brazilian oil giant Petrobras

2019 ◽  
Vol 22 (2) ◽  
pp. 400-406
Author(s):  
Lucas Maragno ◽  
José Alonso Borba
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Financial Crime ◽  
Content Type ◽  
Key Points ◽  
Financial Crimes ◽  
State Agents ◽  
Brazilian History ◽  
Practical Implications ◽  
Allowed State

Purpose This paper aims to provide an overview of key points pertaining to financial crimes taking place during the single largest fraud scandal in Brazilian history. The authors provide details on how the historic fraud was carried out at Petrobras, as well as an overview of recent anti-money laundering regulation in Brazil. Design/methodology/approach The paper is based on an analysis of the scandal and on legal ramifications enacted by the prevailing Public Ministry taking place through the “Lava Jato” operation. Findings Fraud perpetrators continue to find new ways to move laundered money into campaign finance. The authors provide details on how the scheme was perpetrated at the placement, layering and integration stages. Research limitations/implications This study comprehends the first stage of the Federal Police’s operation, comprising 14 allegations of financial crimes. Practical implications A disconnect between regulations in effect and the reality of money laundering in Brazil over several years has failed to impede numerous cases of fraud. However, changes in legislation have allowed state agents to discover cases of fraud, with more and more wrongdoings being investigated. Originality/value The Petrobras fraud, individual experiences of organized financial crime and a widespread lack of understanding of how to detect and prevent fraud on this scale.

Anti-money laundering law: a new legal regime to combat financial crime in Malaysia?

2016 ◽  
Vol 23 (3) ◽  
pp. 533-541 ◽  
Author(s):  
Aspalella A. Rahman
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Traditional Approach ◽  
Financial Crime ◽  
Sources Of Information ◽  
Legal Regime ◽  
Content Type ◽  
Legal Enforcement ◽  
Terrorism Financing ◽  
The Individual

Purpose Before the enactment of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA), the fight against financial crime can be found in several statutes such as the Penal Code, Anti-Corruption Act 1997 and Companies Act 1965. It is generally accepted that by freezing and forfeiting the proceeds of the crime, it would give significant impact on the fight against financial crime. However, under these legislations, there were few shortcomings of the procedures on how the proceeds of the crime could be seized and forfeited. As such, the enactment of the AMLATFA is considered timely to overcome these problems. This paper aims to examine how the AMLATFA could be utilized to combat financial crime in Malaysia. Design/methodology/approach This paper mainly relies on statutes as its primary sources of information. As such, the relevant provisions under the Malaysian anti-money laundering laws that relate to measures for freezing, seizure and forfeiture of proceeds of the crime will be identified and analyzed. Findings The AMLATFA provides innovative tools for the law enforcement officials to follow the money trail, which will eventually lead to those who committed the financial crime. It also provides authorities with more powerful seizure and forfeiture measures. This is seen as a new law enforcement strategy to combat financial crime. It is believed that this approach is more effective than the traditional approach, which only punished the individual criminal but failed to diminish the criminal operations. However, it is vitally important to ensure that the effectiveness of the regime must not jeopardize the innocent third parties who could lose their money or any other proprietary interest due to the invocation of the forfeiture order. Originality/value This paper analyzes the new legal regime under the Malaysian anti-money laundering law that can be invoked to combat financial crimes activities. This paper would provide some guidelines into this particular area for legal enforcement authorities, academics, legal practitioners and policy makers, not only in Malaysia but also elsewhere.

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