Emerging international compliance: Policy implications of a money laundering case

By conducting a qualitative single case study, we have depicted in this study a suspected case of international money laundering in Finland, and described its consequences in terms of policy changes. The case allowed us to investigate how new anti-money laundering policies emerge over time and thus advance knowledge relevant to formulating effective international business policies. Building on institutional heterogeneity and the co-evolutionary nature of change, we have proposed a new framework depicting emerging international compliance in order to promote understanding of this complex, yet dynamic phenomenon. The literature repeatedly highlights the role of formal policies in mitigating international money laundering, however, we have paid additional attention to unethical business practices and the moral aspect recognised to be important in terms of curbing the problem. This is particularly relevant for MNCs, as they can aid institutional change internationally by spreading ‘company best practices’. We also present the managerial and policy implications of solving moral problems related to money laundering from the perspective of governments, society and organisations.

FinTech Services and Factors Determining the Expected Benefits of Users: Evidence in Romania for Millennials and Generation Z

The purpose of this research is to define the level of significance for various indicators that influence the degree of consumer satisfaction regarding the use of FinTech technologies and services. The most important factors that influence the level of satisfaction when using FinTech services were considered: comfort and ease of use, legal regulations, ease of account opening, mobile payments features, crowdfunding options, international money transfers features, reduced costs associated with transactions, peer-to-peer lending, insurances options, online brokerage, cryptocoins options and exchange options. The study was conducted on a sample of 162 respondents, persons belonging to the Millennials and Generation Z generations. The values of the indicators for different categories of users of FinTech services and different categories of generations can be determined based on the statistical tests performed and the results obtained from the regression analysis. The values of the indicators are the basic elements for determining the regression model that will help the FinTech service vendors to make personalized decisions for each category of users so that the level of customer satisfaction is maximized. The study carried out within the present article is the first of its kind for Romania, because up to this moment in the specialized literature there are no such studies for Eastern Europe. The research we conducted aims to fill the gap existing in the literature and responds to the expectations and needs of stakeholders in the FinTechs’ business area. The results of the article are relevant to both stakeholders and the scientific community that is concerned about the impact of FinTech technologies.

STATE REGULATION OF THE NATIVE MIGRANTS’ REMITTANCES

The remittances of the migrants can become one of the most significant positive results of international migration. Still, the usage of their capabilities demands scientific-based prudent state control. In Ukraine, the policy in this field is merely at the stage of the development. The international experience of the realization of the ways of revenue stimulation from international migrants and the main ways of their mobilization in the development of countries – suppliers of the labor power have been reviewed. The main channels of international money transfers and their fees have been analyzed. According to the sociological survey of the Ukrainian migrants, the individual aspects of their economic behavior have been clarified. In this connection, it turned out that most of the respondents send their funds to Ukraine, where they are mostly spent to the satisfaction of daily needs of the family and also to the accommodations of the migrant during his staying home. Besides, in Ukraine, the common ways of use of money earned abroad are the purchase of durable goods, savings, repairs, and housing reconstruction. In the meantime, the survey has exposed the low willingness to invest their money in Ukraine. The investments into the business function are the most common way of the possible investment of the migrant funds. The research has proved the necessity of the state policy development in the field of regulation of the remittances. The measures of such regulations are systematized in two directions. The first one applies to the transfers and transferring channels themselves. The objective of such regulation is the money transfers of the migrants from abroad through the official channels and increasing of their rate. The second one is connected directly with the transfer usage. Its objective is the spending of such funds for the benefit of development and their effective usage.

Pakistan and the FATF: Exploring the Role of Diplomacy in Getting off the Grey List

Pakistan has been on the ‘Grey List’ of the Financial Action Task Force (FATF) – the international money laundering and terror-financing watchdog. Pakistan’s engagement with the task force is not new, the country faced FATF indictments during 2008 and 2012 to 2015. Despite Pakistan’s efforts to curb AML for CFT and huge diplomatic commitments, the task force retained Pakistan on the ‘Grey List’ on account of its Risk Profile. Though other countries get clearance after fulfilling 80 percent compliance but Pakistan has been pressurized for a hundred percent compliance with the action plan. There are severe drawbacks for being remained in the grey list for banking system, export and imports, remittances, international lending and foreign investments but the most severe would be its dropping into blacklist. The September, 2020 Legislation would help gathering diplomatic support in the forthcoming settings. The supportive role-played so for by China, Turkey, Malaysia at the task force has worked in averting Pakistan from blacklisting. Therefore, the study suggests that powerful diplomacy can break the FATF clutches and get Pakistan out of the ‘strategic deficiencies list’ or grey list. Explorative, historical and analytical conclusions have been brought in content analysis format.

Organic global cryptocurrency: towards a stable international monetary system that is closer to Maqāṣid Sharīʿah

PurposeThe most prominent and persistent problems of our global monetary system are instability and imbalances. We propose an international monetary model to solve these problems while at the same time move the model closer to Maqāṣid Sharīʿah (objectives of Sharīʿah). We name this an organic global monetary model or abbreviated as OGM. OGM is an international monetary model directly built on the national monetary system of each member country so that the two can co-exist.Design/methodology/approachModel design, theory and literature.FindingsThe model can eliminate interest rates at the central bank level, create non-tradable international money, and make a more stable international monetary system.Originality/valueOriginal.