Explaining prosecution outcomes for cryptocurrency-based financial crimes

Purpose Cryptocurrencies have been used to commit various offences, but enforcement efforts remain underdeveloped relative to the value of these crimes. This paper aims to examine factors associated with outcomes of US-based cryptocurrency financial crime prosecutions. Design/methodology/approach The authors studied the 37 resolved cryptocurrency-based financial crime cases in the USA to date, exploring the impact of offence, defendant and evidence characteristics on the mode of disposition and penalties. The authors used bivariate analyses and logistic regression models to determine relationships among these variables. Findings The presence of individual defendants only (rather than a corporate defendant or combination thereof) and the use of only a cryptocurrency other than Bitcoin in committing a crime each made a case less likely to be resolved by dismissal, trial or summary or default judgement. Originality/value This paper is the first to examine variables contributing to financial crime prosecution outcomes and has implications for prosecutorial decision-making, resource allocation and the prevention and detection of financial offences involving cryptocurrencies.

Corporate financial crimes in Pakistan – a review and analysis

Purpose The purpose of this paper is to highlight those factors which involve elite class criminals in corporate financial crimes. This research implies the fact that the study of criminal behavior is pivotal for finding out the reasons behind such crimes. Design/methodology/approach By describing theories of criminology, researchers assess the nature of financial criminals in Pakistan from a theoretical perspective. Findings Elite-class people commit crimes upon perceiving high benefits and less punishment. Moreover, the social environment contributes greatly to inducing criminal behavior. Research limitations/implications Explanation of criminal behaviors provided in the study will be helpful in providing directions for the prevention of such criminal actions in the future. Originality/value This research examines the criminal behavior of elite class crimes from the theoretical perspective which will be significant in the prevention of such behaviors.

The international fraud triangle

Purpose Fraud omnipresent in the media, the corporate world and the academic literature has attracted a great deal of research interest. Fraud and its various types and forms have been characterized as significant contributing factors to the development of severe financial crises. Recurrent financial crimes in both the private and the public sectors remind us that fraud and its negative consequences paralyze economic entities all over the world. Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper aims to examine the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud. Design/methodology/approach Having identified the fraud theory developed so far, we provide a theoretical framework for international fraud triangle. Findings Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper examines the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud. Drawing on theoretical insights and useful criticism of the fraud triangle, this paper proposes an international fraud triangle model framework to help auditors, managers, regulators and academics in understanding fraud holistically in the private and public sector in a global context. The authors finally provide an overview of fraud in the Greek Context. Originality/value This paper proposes an international fraud triangle model framework.

Does holding offshore jurisdictions to higher AML standards really assist in preventing money laundering?

Purpose This paper aims to contend that when tackling financial crimes such as money laundering and terrorist financing, international regulators are seeking to hold offshore jurisdictions such as the Cayman Islands to higher standards and that this detracts from the pursuit of detecting and prosecuting money launders. Design/methodology/approach This paper will deal with the following perceived issues: firstly, to offshore jurisdictions as a concept; secondly, to outline the efforts made by the Cayman Islands to combat money laundering and to rate these changes against Financial Action Task Forces’ (FATAF’s) technical criteria; thirdly, to demonstrate that the Cayman Islands is among some of the world’s top jurisdictions for compliance with FATAF’s standards; and finally, to examine whether greylisting was necessary and to comment upon whether efforts by international regulators to hold offshore jurisdictions to higher standards detracts from the actual prosecution of money laundering within the jurisdiction. Findings Greylisting the Cayman Islands in these authors’ view was something that should have never happened; the Cayman Islands is being held to standards far beyond what is expected in an onshore jurisdiction. There is a need for harmonisation in respect of international anti money laundering rules and regulations to shift the tone to prosecution and investigation of offences rather than on rating jurisdictions technical compliance with procedural rules where states have a workable anti-money laundering (AML) regime. Research limitations/implications The implications of this research are to show that offshore jurisdictions are being held by FATAF and other international regulators to higher AML standards than their onshore counterparties. Practical implications The author hopes that this paper will begin the debate as to whether FATAF needs to give reasons as to why offshore jurisdictions are held to higher standards and whether it needs to begin to contemplate higher onshore standards. Originality/value This is an original piece of research evaluating the effect of FATAF's reporting on offshore jurisdictions with a case study involving primary and secondary data in relation to the Cayman Islands.

COMBATING TRANSNATIONAL FINANCIAL CRIMES: SUPERVISE OR COORDINATE?

The article considers the role of the prosecutor's office in the fight against transnational financial crimes by examining the differences between the institutions of prosecutorial supervision, coordination of law enforcement agencies activities and the interaction of law enforcement agencies, taking into account the views of representatives of modern legal science. Also, based on the analysis of best foreign practice and national legislation on this issue, the author provides recommendationsfor further improvement of legislation and law enforcement practice in this area.Keywords:prosecutor's supervision, interaction of law enforcement agencies, coordination of law enforcement agencies

Editorial: Special Edition on Corporate and Financial Markets Law: Embracing Technology in Corporate, Securities and Financial Markets Law and the Combating of Financial Crimes in the 4th Industrial Revolution

This special edition consists of a selection of contemporary and well thought out academic contributions that were developed into full journal articles by presenters who delivered their key findings at the 2nd Annual Colloquium on Corporate and Financial Markets Law at the Faculty of Law, North-West University, on 29-30 October 2020. These contributions were developed into articles, subjected to a rigorous double-blind peer review process to determine their quality, and subsequently accepted for publication in the Potchefstroom Electronic Law Journal.

Modern indicators of financial crimes detection and their prevention in Ukraine

The increase in the level of financial crime is caused by the technological development, weak moni-toring of financial institutions, low level of international cooperation in terms of combating these types of crimes. The paper aims to develop effective ways to combat financial crimes in Ukraine. With the help of a systematic analysis of financial crime modern indicators, theoretical sources, prac-tical measures and international experience, the main indicators of financial crimes are identified. Such indicators are the use of false documents and other people's accounts, international payment systems; frequent and complex financial transactions of a confusing nature; unusual for a client amounts and counterparties of the transaction; incomplete or missing payment information. The study has found that the increase in the level of financial crime is influenced by the presence of off-shore zones, the low level of liability for the crime, the reluctance of financial institutions to interact with law enforcement agencies in regard to combating such crimes. It is possible to increase the level of financial crime counteraction by conducting an external audit and investigation of financial crimes, establishing international cooperation to combat such crimes, blocking suspicious financial transactions, taking preventive measures and combating related crimes.

Liability in Criminal Law

This chapter highlights the complexity of the interaction of the criminal law with the regulation of medicines and medical devices. It outlines the elements of the broader criminal law that include offences against the person and corporate and financial crimes that can be committed by individuals or corporate entities, such as corporate manslaughter, fraud, and bribery. It also elaborates on the criminal investigation in the UK that can be led by law enforcement agencies, including the Medicines and Healthcare products Regulatory Agency (MHRA). The chapter considers the relevance of the broader criminal law for individuals and corporates and the criminal law aspects of the regulatory regime. It refers to the criminal enforcement process and the role of the Proceeds of Crime Act 2002 (POCA), including the application of the controlled drugs licensing regime to cannabis-based products for medicinal use (CBPMs).

Financial Inclusion through Digital Financial Services (DFS): A Study in Uganda

This study unravels trends and momentum in banking and mobile money channels and uptake of select services and thereafter draws implications for enhancing financial inclusion through Digital Financial Services (DFS). The Rate of Change (ROC) approach was applied to analyze the growth momentum in banking and mobile money channels in Uganda. Implications for growth momentum in banking and mobile money channels for DFS and financial inclusion was drawn from observing and making informed interpretation of such observed trends and momentum. The findings of this study imply that banks must innovate to increase their contribution towards enhancing financial inclusion. Additional channel innovations, which may infuse banking and mobile money channels, are needed for banking to leverage on growth of mobile money and regain its role in enhancing financial inclusion. Leveraging the application of digital innovations in services such as payments and digitizing alternative channels such as agent banking are likely to increase efficiencies in physical channels and the provision of banking services and thereby increase overall reach and penetration of banking. The fast pace of mobile money penetration is good for speeding up financial inclusion. However, this calls for better regulatory approaches for DFS risk reduction, consumer protection, and protecting mobile money against integrity and financial crimes.