Journal of Financial Crime最新文献

{"title":"The cryptocurrency conundrum: the emerging role of digital currencies in geopolitical conflicts","authors":"Milind Tiwari, Cayle Lupton, Ausma Bernot, Khaled Halteh","doi":"10.1108/jfc-12-2023-0306","DOIUrl":"https://doi.org/10.1108/jfc-12-2023-0306","url":null,"abstract":"Purpose\u0000This paper aims to investigate technological innovations within the crypto space that have engendered novel financial crime risks and their potential utilization amidst geopolitical conflicts.\u0000\u0000Design/methodology/approach\u0000The theoretical paper uses an analysis of recent geopolitical events, with a key focus on using cryptocurrencies to undertake illicit activities.\u0000\u0000Findings\u0000The study found that cryptocurrencies and the innovations made within the crypto domain are used for both legitimate and illicit purposes, including money laundering, terrorism financing and sanction evasion.\u0000\u0000Originality/value\u0000This research contributes to understanding the critical role cryptocurrencies play amidst geopolitical conflicts and emphasizes the need for regulatory considerations to prevent their misuse. To the best of the authors’ knowledge, this paper is the first scholarly contribution that considers the evolving mechanisms afforded by cryptocurrencies amidst geopolitical conflicts in undertaking illicit activities.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"73 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140223099","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":"Editorial: Integrity – where art thou?","authors":"G. P. Rutledge","doi":"10.1108/jfc-01-2024-314","DOIUrl":"https://doi.org/10.1108/jfc-01-2024-314","url":null,"abstract":"","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"28 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140248638","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":"Unmasking company liability for corruption by associated persons","authors":"Nurazlina Abdul Raof, Norazlina Abdul Aziz, Nadia Omar, Wan Liza Md Amin @ Fahmy","doi":"10.1108/jfc-05-2023-0104","DOIUrl":"https://doi.org/10.1108/jfc-05-2023-0104","url":null,"abstract":"\u0000Purpose\u0000The Malaysian Anti-Corruption Commission Act 2009 (MACC Act) has introduced Section 17 A, which holds companies and their management accountable for bribery committed by their Associated Persons in the interest of the company. This study aims to explore the evolving concept of Associated Persons and corporate liability within this legal framework. It delves into three primary legal models of Associated Persons, particularly focusing on corrupt cases falling under Sections 17 A (1), 17 A (6) and 17 A (7) of the MACC Act. The study also investigates the extent of Associated Persons’ involvement in these cases that eventually led to company liability.\u0000\u0000\u0000Design/methodology/approach\u0000The study deployed thematic and comparative analyses to assess the legal framework and highlight the significance of Section 17 A of the MACC Act.\u0000\u0000\u0000Findings\u0000The study disclosed that, despite having corruption policies, there is still a possibility for Associated Persons to engage in corrupt activities. To ensure long-term business sustainability, it is crucial to implement effective mechanisms and a strong compliance culture.\u0000\u0000\u0000Originality/value\u0000This study suggests implementing a due diligence checklist and conducting risk assessments for companies as measures against corruption caused by Associated Persons. Corporate entities and legal professionals may benefit from the reported findings to better comprehend the corruption offences outlined in Section 17 A of the MACC Act.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"32 14","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140431730","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":"Foreign corrupt practices act violations and enforcement","authors":"Adam W. Du Pon, Andrea M. Scheetz, Zhenyu “Mark” Zhang","doi":"10.1108/jfc-12-2023-0318","DOIUrl":"https://doi.org/10.1108/jfc-12-2023-0318","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the determinants of Foreign Corrupt Practices Act (FCPA) violations and consequences of FCPA enforcements.\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses publicly available data from Compustat, I/B/E/S and Thomson Reuters databases, combined with Securities and Exchange Commission (SEC) and Department of Justice (DOJ) cases, to extract insights on FCPA violations and enforcements using econometric approaches.\u0000\u0000\u0000Findings\u0000The main determinants of FCPA violations appear to be firm size, multinational structure, country corruption and Sarbanes-Oxley Act control weaknesses. Traditional misreporting risks (F-score and M-score) do not predict FCPA violations. This study discovers significant differences between FCPA violations by motivation, as in, sale generation, rent extraction or cost evasion. Bribes motivated by sale generation or rent extraction are partially driven by the extent of the firm’s global operations, whereas bribes motivated by cost evasion relate to internal influences. This study also finds that enforcement is more salient for criminal violations (DOJ enforcement), compared to civil violations (SEC enforcement).\u0000\u0000\u0000Research limitations/implications\u0000This research provides new insights into the determinants of FCPA violations while underscoring the need for effective measures to combat bribery and promote ethical business practices. This research contributes to the ongoing efforts to curtail bribery, offering valuable insights into the characteristics of firms more likely to engage in bribery and contexts in which these activities occur. It provides critical implications for regulatory bodies, highlighting the differential responses of firms to varying types of enforcement, namely, criminal versus civil, as the authors observe greater decreases in internal control weaknesses following DOJ enforcement compared to SEC enforcement.\u0000\u0000\u0000Practical implications\u0000For enforcement agencies, the findings underscore the importance of rigorous criminal enforcement against FCPA violations, highlighting the improved control environments prompted by DOJ actions. Managers will find this research relevant, as it demonstrates that a firm’s entry into international markets substantially elevates the risk of its representatives engaging in bribery with foreign officials. In addition, the results are of interest to regulators, revealing that the underlying motivations driving a firm’s activities can significantly alter the factors to consider that might lead to an FCPA violation.\u0000\u0000\u0000Originality/value\u0000This paper is the original work of the authors and explores the determinants and consequences of FCPA violations and enforcement actions since 2002. To the best of the authors’ knowledge, it is the first to explore bribe determinants by their motive and documents industry-wide benefits arising from criminal enforcement.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"5 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139959056","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":"Legal guidelines for identifying online illegal fund-raising crimes in China","authors":"Jingkun Liu","doi":"10.1108/jfc-01-2024-0006","DOIUrl":"https://doi.org/10.1108/jfc-01-2024-0006","url":null,"abstract":"\u0000Purpose\u0000This paper aims to elucidate the responsiveness of China’s judicial system in addressing the challenges of identifying online illegal fund-raising crimes that have emerged in recent years. This study systematically evaluates the efficacy and potential pitfalls of legal guidelines contained in judicial interpretations, such as holistic determination, sampling verification and presumption of the nature of funds. In addition, the research endeavors to propose pertinent recommendations for refining the existing judicial rules.\u0000\u0000\u0000Design/methodology/approach\u0000This research mainly uses a doctrinal methodology, focusing on the principal judicial interpretations formulated by the Supreme People’s Court and other central judicial entities in China. The scope encompasses the realm of online illegal fund-raising crimes as well as other cybercrimes. The analytical framework involves a comprehensive examination of these authoritative judicial documents, coupled with a theoretical and critical analysis of relevant academic materials.\u0000\u0000\u0000Findings\u0000This research underscores that while judicial interpretations serve as an effective legal strategy to confront the challenges posed by online illegal fund-raising crimes, their implementation introduces a nuanced landscape. These legal guidelines, often emanating from diverse judicial departments and tackling specific issues, carry the inherent risk of giving rise to new complexities and fostering inconsistency. Judicial authorities shall exercise prudence in both the formulation and application of these guidelines, ensuring their harmonization with existing legal norms and fundamental legal principles.\u0000\u0000\u0000Originality/value\u0000This research constitutes a critical and comprehensive examination of judicial interpretations in China pertaining to online illegal fund-raising crimes. It offers valuable insights into the country’s judicial interpretation system and its legal responses to financial crimes. The paper serves as a valuable resource for academics, law enforcement professionals, policymakers, legislators and researchers.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"4 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139959065","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":"The Belt and Road Initiative: conflict of laws and dispute resolution","authors":"Veltrice Tan","doi":"10.1108/jfc-12-2023-0310","DOIUrl":"https://doi.org/10.1108/jfc-12-2023-0310","url":null,"abstract":"\u0000Purpose\u0000This paper aims to determine the adaptability of China’s legal system in recognizing and enforcing foreign judgements in China.\u0000\u0000\u0000Design/methodology/approach\u0000Academic articles, case law and books are examined as are relevant reports by various regulatory authorities and organizations.\u0000\u0000\u0000Findings\u0000Historically, Chinese courts have strictly adhered to “de facto reciprocity”, which made it difficult for foreign judgements to be recognized and enforced in China. Fortunately, Chinese courts have since abandoned their rigid adherence to de facto reciprocity, and have instead, used flexible tests of reciprocity such as de jure reciprocity, reciprocal commitment and reciprocal understand/consensus. Accordingly, this would facilitate the recovery of stolen assets, as there is a lower threshold for the recognition and enforcement of a foreign judgement.\u0000\u0000\u0000Research limitations/implications\u0000There are limited data available in relation to the recognition and enforcement of foreign judgements pertaining to the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs within the Belt and Road Initiative.\u0000\u0000\u0000Practical implications\u0000Those who are interested in examining the viability in recognizing and enforcing foreign judgements relating to stolen assets will have an interest in this topic.\u0000\u0000\u0000Originality/value\u0000The value of the paper is to demonstrate the difficulties in recognizing and enforcing foreign judgements in China in relation to stolen assets.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"101 20","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139605909","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":"Belt and Road Initiative: legal mechanisms to recover stolen assets","authors":"Veltrice Tan","doi":"10.1108/jfc-11-2023-0294","DOIUrl":"https://doi.org/10.1108/jfc-11-2023-0294","url":null,"abstract":"\u0000Purpose\u0000This paper aims to determine the types of legal mechanisms that authorities can use to recover stolen assets for and from China.\u0000\u0000\u0000Design/methodology/approach\u0000Newspaper articles and books are examined as are relevant reports by various regulatory authorities and academic institutions.\u0000\u0000\u0000Findings\u0000The effectiveness of legal mechanisms in the recovery of stolen assets may be affected by issues such as the difficulties in tracing illicit funds, the ambiguous nature of “value” as well as the rise in technology.\u0000\u0000\u0000Research limitations/implications\u0000There are limited data available in relation to the prevalence of corrupt officials along the Belt and Road Initiative and the statistical success in the recovery of stolen assets. Any discussions within this paper are based on the impressionistic observations of this author, which may not reflect the true state of affairs of the Belt and Road Initiative.\u0000\u0000\u0000Practical implications\u0000Those who are interested in examining how authorities could recover stolen assets from and for China will have an interest in this topic.\u0000\u0000\u0000Originality/value\u0000The value of the paper is to demonstrate the difficulties in recovering stolen assets for and from China.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"120 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139391518","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":"Ponzi schemes in Brazil: what leads people to still invest in this fraud?","authors":"Thiago Da Silva Telles Constantino, Antônio Carlos Magalhães Da Silva, Maria Aline Moreira De Oliveira Constantino","doi":"10.1108/jfc-10-2023-0262","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0262","url":null,"abstract":"\u0000Purpose\u0000Most scientific research has focused on understanding Ponzi schemes from the point of view of the schemes and their operators, based on qualitative analysis. This paper aims to analyze Ponzi schemes from the perspective of their investors, emphasizing behavioral aspects, which have been little explored in the scientific literature, especially in quantitative research. In this way, the authors sought to understand the effects of heuristics and cognitive biases in understanding investor behavior.\u0000\u0000\u0000Design/methodology/approach\u0000A logistic regression was carried out with Brazilian investors, some of them participants in Ponzi schemes, who answered a structured questionnaire by means of a survey.\u0000\u0000\u0000Findings\u0000The authors found that social pressures, overconfidence and deliberate ignorance lead to credulity, generating little risk analysis and the desire to make a lot of money quickly.\u0000\u0000\u0000Practical implications\u0000Helping investors improve their levels of information through financial education and self-knowledge about their behavior. Contribute to the competent authorities in the search for improvements in the information displayed to investors.\u0000\u0000\u0000Social implications\u0000Understanding the mechanisms used when making a financial decision from the point of view of investors in general, but especially those exposed to Ponzi schemes, has the mission of enlightening them about the importance of financial education and the weight of psychological factors so that they can reduce the effects of heuristics and analysis biases when faced with a financial decision.\u0000\u0000\u0000Originality/value\u0000The basis of this work will be the inclusion of psychological variables and financial education, adapting existing models in an attempt to demonstrate the effects they may or may not have on mental accounting in the specific case of investors\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"11 20","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139391613","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":"Where is the life we have lost in living (beyond means)? An exploratory inquiry into the deceptive world of corruption and consumerism","authors":"Hendi Yogi Prabowo","doi":"10.1108/jfc-10-2023-0273","DOIUrl":"https://doi.org/10.1108/jfc-10-2023-0273","url":null,"abstract":"Purpose The primary purpose of this exploratory paper is to propose a novel analytical framework for examining corruption from a behavioral perspective by highlighting multiple issues associated with consumerism. Design/methodology/approach This paper examines the relationship between excessive consumption activities and corrupt acts, drawing upon existing literature on corruption, consumerism and consumption, as well as multiple reports and cases of corruption and money laundering in Indonesia. With regard to corruption networks, this paper analyses the associated behavioral patterns and social dynamics by using the Fraud Triangle and the Fraud Elements Triangle frameworks to examine the phenomenon of living beyond one’s means. This paper also addresses the notion of sacredness in the context of consumer activities and how such sacredness plays a role in causing otherwise honest individuals to engage in corrupt acts. Findings The author established that corruption represents a complex societal issue that extends across several dimensions of society, encompassing both horizontal and vertical aspects. Consequently, addressing this problem poses significant challenges. Excessive consumption has been identified as one of the various behavioral concerns that are implicated in the widespread occurrence of corruption in many nations. Individuals who partake in excessive consumption play a role in shaping ethical norms that serve to legitimize and rationalize immoral behavior, therefore fostering a society marked by corruption. The act of engaging in excessive consumption is also associated with cases of money laundering offenses that are connected to corruption and several other illicit activities. The lifestyle of corrupt individuals is one of the primary behavioral concerns associated with corruption, as “living beyond means” is the most common behavioral red flag among occupational fraud offenders worldwide. The phenomenon of consumerism may also shape the minds of individuals as if it were an “implicit religion” due to the fact that it may generate human experiences that elicit highly positive emotions and satisfy certain sacredness-associated characteristics. The pursuit of transcendental experiences through the acquisition and consumption of sacred consumption objects may heighten the incentive to commit fraudulent acts such as corruption. Research limitations/implications This self-funded exploratory study uses document analysis to examine the corruption phenomenon in Indonesia. Future studies will benefit from in-depth interviews with former offenders and investigators of corruption. Practical implications This exploratory study contributes to advancing corruption prevention strategies. It does this by introducing a novel analytical framework that allows for the examination of several behavioral issues associated with consumerism, which have the potential to foster the proliferation of corruption. Originality/value This exploratory st","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"82 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139174790","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":"Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysis","authors":"Misbah Javid, Khurram Ejaz Chandia, Qamar Uz Zaman Malik","doi":"10.1108/jfc-08-2023-0198","DOIUrl":"https://doi.org/10.1108/jfc-08-2023-0198","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption.\u0000\u0000\u0000Design/methodology/approach\u0000Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results.\u0000\u0000\u0000Findings\u0000The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan.\u0000\u0000\u0000Research limitations/implications\u0000The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future.\u0000\u0000\u0000Originality/value\u0000This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.\u0000","PeriodicalId":38940,"journal":{"name":"Journal of Financial Crime","volume":"1 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138584280","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}