Journal of Financial Crime最新文献

{"title":"Corporate criminal liability and the identification principle: a critical and comparative analysis across Mauritius, US, UK and Canada","authors":"A. Beebeejaun, Raahil Mandarun","doi":"10.1108/jfc-02-2024-0071","DOIUrl":"https://doi.org/10.1108/jfc-02-2024-0071","url":null,"abstract":"Purpose\u0000The identification principle serves as a key tool in holding companies criminally accountable for acts of its agents, with the aim to secure convictions and promote a shift in corporate behaviour. Unfortunately, in Mauritius, the law is still not clear on how to engage the corporate criminal liability of the company although courts have attempted to apply the identification doctrine in some instances. Consequently, several corporate bodies are left unpunished for their criminal acts. Hence, the purpose of this paper is to evaluate the identification principle's applicability to corporate crimes in Mauritius.\u0000\u0000Design/methodology/approach\u0000To achieve the research objective, the black letter research method was adopted to collect secondary data by analysing the related laws on corporate criminal liability and a comparative analysis with some other countries’ rules on the subject matter was conducted. A desk-based approach and content analysis was used to collect this information. The countries selected for the comparison are the USA, UK and Canada.\u0000\u0000Findings\u0000From the critical analysis conducted in this paper, it is imperative for Mauritius to establish a more robust corporate criminal liability framework. The identified deficiencies, notably in Section 44(1)(a) of the Interpretation and General Clauses Act, should be reviewed and replaced with comprehensive norms with the goal of ensuring that corporate crimes are tackled properly. Such a proactive strategy not only empowers authorities to effectively address corporate crimes but also encourages corporate entities to take a proactive approach through the implementation of comprehensive compliance frameworks that are reviewed and updated on a regular basis.\u0000\u0000Originality/value\u0000At present, this study is among the few academic writings on corporate criminal liability in the context of Mauritius and it is being carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"11 48","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141919446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Corporate criminal liability and the identification principle: a critical and comparative analysis across Mauritius, US, UK and Canada","authors":"A. Beebeejaun, Raahil Mandarun","doi":"10.1108/jfc-02-2024-0071","DOIUrl":"https://doi.org/10.1108/jfc-02-2024-0071","url":null,"abstract":"Purpose\u0000The identification principle serves as a key tool in holding companies criminally accountable for acts of its agents, with the aim to secure convictions and promote a shift in corporate behaviour. Unfortunately, in Mauritius, the law is still not clear on how to engage the corporate criminal liability of the company although courts have attempted to apply the identification doctrine in some instances. Consequently, several corporate bodies are left unpunished for their criminal acts. Hence, the purpose of this paper is to evaluate the identification principle's applicability to corporate crimes in Mauritius.\u0000\u0000Design/methodology/approach\u0000To achieve the research objective, the black letter research method was adopted to collect secondary data by analysing the related laws on corporate criminal liability and a comparative analysis with some other countries’ rules on the subject matter was conducted. A desk-based approach and content analysis was used to collect this information. The countries selected for the comparison are the USA, UK and Canada.\u0000\u0000Findings\u0000From the critical analysis conducted in this paper, it is imperative for Mauritius to establish a more robust corporate criminal liability framework. The identified deficiencies, notably in Section 44(1)(a) of the Interpretation and General Clauses Act, should be reviewed and replaced with comprehensive norms with the goal of ensuring that corporate crimes are tackled properly. Such a proactive strategy not only empowers authorities to effectively address corporate crimes but also encourages corporate entities to take a proactive approach through the implementation of comprehensive compliance frameworks that are reviewed and updated on a regular basis.\u0000\u0000Originality/value\u0000At present, this study is among the few academic writings on corporate criminal liability in the context of Mauritius and it is being carried out with the aim of combining a large amount of empirical, theoretical and factual information that can be of use to various stakeholders and not only to academics.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"43 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141919271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Admissibility of illegally obtained evidence in money laundering cases in Pakistan","authors":"Muhammad Fahad Anwar","doi":"10.1108/jfc-05-2024-0160","DOIUrl":"https://doi.org/10.1108/jfc-05-2024-0160","url":null,"abstract":"Purpose\u0000The purpose of this paper is to explore and evaluate the current legal position on the admissibility of illegally obtained evidence in money laundering cases in Pakistan.\u0000\u0000Design/methodology/approach\u0000A comprehensive exploratory analytical examination indicates that illegally collected evidence from money laundering offences can be considered acceptable as long as it does not compromise the fairness of the judicial process or the right to a fair trial.\u0000\u0000Findings\u0000The admissibility and exclusion of illegally obtained evidence in money laundering cases are primarily governed by the rule of admissibility due to the absence of written or codified regulations in Pakistan.\u0000\u0000Originality/value\u0000The Pakistani Criminal Justice System has always depended on well-established admissibility rules to determine the acceptance or rejection of illegally obtained evidence. For many years, courts have exercised their discretion to allow illegally obtained evidence to be admitted using the relevance test. Additionally, they have also shown their discretion by excluding highly unfavourable material. Illegally obtained evidence may be considered admissible if it is relevant to the matter in issue. Illegally obtained evidence from an act related to illegal actions or a predicate offence in money laundering might impact the prosecution's case and, in turn, protect a defendant's right to a fair trial.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"5 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141921442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Can supervisor reminders help prevent fraud in the mutual funds sector","authors":"Hussein Al-Zyoud, Eric Zengxiang Wang, Shahid Ali, Weiming Liu","doi":"10.1108/jfc-04-2024-0138","DOIUrl":"https://doi.org/10.1108/jfc-04-2024-0138","url":null,"abstract":"Purpose\u0000This study is based on the enforcement record from Canada’s natural mutual fund regulator. This record documented a small subset of mutual fund dealers who had been disciplined for their misconduct from 2007 to 2014. The purpose of this paper is to determine what factors contribute to mutual fund dealers’ time to first financial fraud offense. The longer the time to fraud, the healthier the mutual fund industry and the better a mutual fund dealer’s career.\u0000\u0000Design/methodology/approach\u0000Based on the belief that adversity reveals true character, the study approaches a mutual dealer’s career success from human capital, socio-demographic and organizational sponsorship points of view by measuring dealers’ success as their time from career beginning to first instance of financial fraud. Ordinary least square regression analysis was used to identify if those factors, including provision of supervisor reminders, gender, position and penalties, are related to career success within the Canadian mutual fund regulatory framework. The research is based on a small sample of mutual fund dealers who had been disciplined for their misconduct from 2007 to 2014.\u0000\u0000Findings\u0000The study finds that a supervisor’s reminders positively contribute to the career success of a mutual fund dealer in the form of extending their time to fraud. As well, being female is an adverse factor to career success even when both female and male dealers received about the same level of supervisor reminders. It also finds that being in a management position has no association with time to fraud.\u0000\u0000Originality/value\u0000The study establishes the statistically significant positive relationship between time to fraud and supervisor’s reminders for mutual fund dealers. At the same time, it shows that human capital and access to organizational resources, measured by being in a management position, have no significant relation to when fraud is committed. This result indicates the value of continuing education for all mutual fund dealers, both inexperienced and experienced.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"9 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141796667","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Analysing the characteristics of post-disaster funding that make it susceptible to the risk of economic crime: a South African frame of reference","authors":"Nina Du Toit, Philip Steenkamp, Dewald van Niekerk, Andre Groenewald","doi":"10.1108/jfc-03-2024-0099","DOIUrl":"https://doi.org/10.1108/jfc-03-2024-0099","url":null,"abstract":"Purpose\u0000Research indicates a significant risk of economic crime associated with post-disaster funding. The purpose of this paper is to assess the characteristics of post-disaster funding that make it susceptible to the risk of economic crime and to analyse how the statutory and regulatory disaster risk management instruments of South Africa aim to manage post-disaster events.\u0000\u0000Design/methodology/approach\u0000This paper uses secondary sources such as, but not limited to, legislation, institutional reports, textbooks and peer-reviewed academic journal articles.\u0000\u0000Findings\u0000Post-disaster funding is inherently susceptible to economic crime due to characteristics identified such as time pressure; substantial inflow of money, goods and services; inadequate needs assessment, large-scale reconstruction and the involvement of contractors or suppliers; power imbalance; and the responsibility of governments. The Disaster Management Act and National Disaster Management Framework provide an extensive regulatory framework for mitigating post-disaster funding risks by attempting to find a balance between quick aid distribution and financial controls. This paper finds that even though South Africa is known to have some of the best disaster risk management laws, the pervasive nature of the characteristics could still render post-disaster funding structures susceptible to the risk of economic crime.\u0000\u0000Originality/value\u0000There is limited scientific research on this topic. The expected prevalence of future disasters requires the regulatory and legislative disaster risk management instruments to evolve concomitantly. Research on this topic must continue to ensure that risks associated with post-disaster funding and its susceptibility to economic crime can be mitigated as far as possible.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":" 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141822856","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Institutional, economic and cultural safeguards against corruption: a panel study of OECD countries","authors":"Sandra Cunha, P. Camões","doi":"10.1108/jfc-02-2024-0082","DOIUrl":"https://doi.org/10.1108/jfc-02-2024-0082","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to ascertain whether the combination of anti-corruption measures, with simultaneous impact on the institutional, economic and cultural dimensions, is associated with lower levels of corruption.\u0000\u0000\u0000Design/methodology/approach\u0000The authors have developed a research that seeks to find statistical evidence of the relationship between levels of corruption and combinations of anti-corruption measures. To test the hypotheses, the authors performed panel regression analysis using different panel estimation methods, namely, fixed effects (FE) models.\u0000\u0000\u0000Findings\u0000The results do not fully support the idea that the combination of anti-corruption measures with simultaneous impact on the institutional, economic and cultural dimensions has more impact on corruption levels than other measures taken singly, but rather that the most determining factor in preventing corruption lies in government effectiveness.\u0000\u0000\u0000Originality/value\u0000The relevance of this study lies in the shortcomings of this type of research applied to anti-corruption measures. Moreover, the development of panel data analysis makes it possible to approach the phenomenon from a double perspective, over time and in comparative terms between different countries, incorporating non-immediate effects and possible interactive effects between different anti-corruption measures.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"29 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141640134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Willful defaulting of bank loans in a developing country: a Bourdieusian analysis","authors":"Sumon Bhattacharjee, Shimul Chakraborty","doi":"10.1108/jfc-05-2024-0148","DOIUrl":"https://doi.org/10.1108/jfc-05-2024-0148","url":null,"abstract":"\u0000Purpose\u0000Borrowers’ intentional non-payment of bank loans despite being able to pay is a financial crime. This paper explores how willful loan defaulting became a societal practice in Bangladesh, where non-performing loans (NPLs) are assumed to surpass BDT 4 trillion mainly due to habitual defaults of large borrowers.\u0000\u0000\u0000Design/methodology/approach\u0000This study reviewed publicly available documents and interviewed bank managers, loan takers, regulators and industry experts. It drew on Pierre Bourdieu’s practice theory, specifically the concepts- habitus, capital and field, to explain the permeation of “intentional defaulting culture” in the banking industry.\u0000\u0000\u0000Findings\u0000Willful defaulting in Bangladesh is an outcome of a harmonious blend of defaulters’ mindsets and possession of capital supported by the structure and rules of the field. The socio-political context facilitates, rather than impedes, the “unwillingness to pay” motive of the habitual defaulters due to their possession of different forms of capital.\u0000\u0000\u0000Research limitations/implications\u0000Understanding of how the crime of willful defaulting emerges and persists in society may have policy and practice implications in economies suffering NPL problems.\u0000\u0000\u0000Originality/value\u0000This study explicates how individual intents and institutional structures jointly amplify financial crimes in society.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"7 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141642006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Fraud awareness, information accountability and sustainable competitive advantage: governance moderation and capacity for accessing financing mediation","authors":"Tarjo Tarjo, Alexander Anggono, Bambang Haryadi, Lummatul Mahya, Eklamsia Sakti, Jamaliah Said","doi":"10.1108/jfc-04-2024-0121","DOIUrl":"https://doi.org/10.1108/jfc-04-2024-0121","url":null,"abstract":"Purpose\u0000This paper aims to empirically test the influence of fraud awareness, information accountability and capacity for accessing financing on sustainable competitive advantage. Furthermore, this research examines the influence of fraud awareness and information accountability on sustainable competitive advantage through capacity for accessing financing. Finally, this research examines the influence of governance as a moderator of fraud awareness and information accountability on capacity for accessing financing.\u0000\u0000Design/methodology/approach\u0000This research uses quantitative methods. Researchers collected data by distributing questionnaires to tourism destination operators. This research used tourist destinations in Indonesia and obtained 506 samples. The data analysis technique uses SEM-PLS.\u0000\u0000Findings\u0000This research finds that fraud awareness, information accountability and the capacity for accessing financing increase sustainable competitive advantage. Furthermore, the capacity for accessing financing can mediate the influence of fraud awareness and information accountability on sustainable competitive advantage. Finally, governance strengthens the influence of fraud awareness and information accountability on the capacity for accessing financing.\u0000\u0000Research limitations/implications\u0000Research limitations are the difficulty accessing all tourist destinations in Indonesia and difficulty controlling respondent answer bias.\u0000\u0000Practical implications\u0000Practical implications are increasing the ability of tourist destinations to compete, helping to increase funding sources, good governance and information accountability.\u0000\u0000Social implications\u0000Apart from that, the main implication of this research is to increase fraud awareness and reduce fraud so that tourist destinations can achieve their goals.\u0000\u0000Originality/value\u0000The gap lies in previous research, which was unaware of the existence of fraud, which could damage the ability of tourist destinations to compete. Therefore, this research adds the fraud awareness variable. Besides, this study develops a different and unique model because it combines mediation and moderation variables into one research model.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"19 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141646368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An analysis of measures to combat the risk of economic crime associated with post-disaster funding in South Africa","authors":"Nina Du Toit, Philip Steenkamp, Andre Groenewald","doi":"10.1108/jfc-03-2024-0114","DOIUrl":"https://doi.org/10.1108/jfc-03-2024-0114","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to analyse the measures that could be taken to combat the risk of economic crime in the aftermath of South African disasters.\u0000\u0000\u0000Design/methodology/approach\u0000This paper used secondary sources including, but not limited to, institutional reports, newspaper articles and peer-reviewed academic journal articles.\u0000\u0000\u0000Findings\u0000The COVID-19 pandemic was used as an example in this paper to discuss the susceptibility of post-disaster funding to the risk of economic crime and to assess how the South African government attempted to combat this risk during the pandemic. The Auditor-General of South Africa (AGSA) conducted a real-time audit of the government’s essential COVID-19 initiatives in collaboration with the newly established Fusion Centre. Through their collaborative efforts, they successfully identified mismanaged funds, facilitated the recovery thereof and prosecuted individuals and entities involved. This paper found that to proactively combat economic crime in future post-disaster events, the collaborative use of the AGSA and the Fusion Centre, in conjunction with existing bodies established under the Disaster Management Act, should be considered.\u0000\u0000\u0000Originality/value\u0000This paper contributes to the body of knowledge in disaster risk management and forensic accountancy. As the frequency of disasters is expected to increase in the future, so will the economic crime risk associated with post-disaster funding. This paper demonstrates that post-disaster funding is especially susceptible to the risk of economic crime and it is therefore important to research methods to combat this problem and prevent further losses.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"22 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141659116","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do the fraud triangle components fuel complex financial fraud? A study of nonfinancial firms in Pakistan","authors":"Kinza Shahzadi, Wajid Alim, Salleh Nawaz Khan","doi":"10.1108/jfc-10-2023-0270","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0270","url":null,"abstract":"Purpose\u0000Financial fraud is a severe corporate fraud committed for achieving various objectives, like attaining financial targets, lowering debt and providing good signals to the market. Such financial fraud deceives stakeholders and results in substantial financial losses. This study aims to detect financial fraud using the modified Beneish M-Score, the most appropriate forensic tool for fraud detection. Furthermore, the current study also examines the influential role of the fraud triangle’s elements (pressure, opportunity and rationalization) on financial fraud in nonfinancial firms during 2018–2021, offering insight for understanding and mitigating fraudulent activities in the corporate world.\u0000\u0000Design/methodology/approach\u0000Financial fraud is treated as a dependent variable measured through a modified Beneish M-score, while the fraud triangle elements (pressure, opportunity and rationalization) are measured through six proxies, which are financial stability, leverage, financial target, nature of the industry, the effectiveness of supervision and auditor changes.\u0000\u0000Findings\u0000The study's finding proclaimed that fraud triangle elements result in financial fraud. Findings unveil that all elements (pressure, opportunity and rationalization) of the fraud triangle significantly influence financial fraud. The study confirms that these elements must be considered to protect investors and provide a safe environment for investment.\u0000\u0000Originality/value\u0000Rare literature found addressing the detection of financial fraud and its nexus with the fraud triangle specifically in Pakistan where deficient governance is notably prevalent. This study attempts to fill such a gap and contribute to knowledge.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"43 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141664947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}