Journal of Money Laundering Control最新文献

{"title":"The EU MiCA Directive – chances and risks from a compliance perspective","authors":"F. Teichmann, Sonia R. Boticiu, B. Sergi","doi":"10.1108/jmlc-02-2023-0030","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0030","url":null,"abstract":"\u0000Purpose\u0000This study aims to review the current EU approach to regulating crypto assets. It highlights the key points, opportunities and risks of the MiCA regulation, which is designed to provide a comprehensive regulatory framework for digital assets in the EU.\u0000\u0000\u0000Design/methodology/approach\u0000To do so, the authors extensively reviewed the literature and reports from several advisory and watchdog bodies and international organizations.\u0000\u0000\u0000Findings\u0000Although MiCA is an ambitious piece of legislation, there are still many unresolved issues and questions that the new regulation raises. Controversially several items have also been excluded from the MiCA regulations, including decentralized finance, non-fungible tokens unless they qualify under the existing cryptocurrency categories, as well as central bank digital currencies.\u0000\u0000\u0000Originality/value\u0000This study also addresses the Liechtenstein Token Act Regulation, which is considered to have served as a model for the EU MiCA Directive and the regulation of cryptocurrencies at the European level.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81927388","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":"Estimating the magnitude of money laundering in the United Arab Emirates (UAE): evidence from the currency demand approach (CDA)","authors":"Mariam Aljassmi, Awadh Ahmed Mohammed Gamal, Norasibah Abdul Jalil, J. David, K. Viswanathan","doi":"10.1108/jmlc-02-2023-0043","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0043","url":null,"abstract":"\u0000Purpose\u0000Despite the vulnerability of rapidly developing and emerging market economies, researchers have paid less attention to the determination of the size of money laundering (ML) in these economies, including the United Arab Emirates (the UAE). Therefore, this paper aims to estimate the magnitude of ML in the UAE between 1975 and 2020 based on the currency demand approach (CDA).\u0000\u0000\u0000Design/methodology/approach\u0000The study uses the Gregory–Hansen cointegration technique alongside the autoregressive distributed lag bounds testing procedure to estimate the CDA model.\u0000\u0000\u0000Findings\u0000The results illustrate that an amount equivalent to about 19.034% of the GDP is laundered in the UAE between 1975 and 2020, on average, with the value lying between 15.129% and 23.121%. In addition, the results demonstrate the importance of the real estate market, gold trade, remittance channels and the size of the underground economy in facilitating the laundering of illicit funds in the country.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, the study is the pioneering attempt at estimating the amount of illicit funds laundered in the UAE. Besides, the adoption of a novel, yet robust, approach based on the modification of the CDA technique also sets the study apart as it ensures a correct, clear, unambiguous and indisputable estimate of the magnitude of ML is obtained. In addition, it is expected that the outcome of the study will expand the frontiers of knowledge among policy makers and relevant agencies and ensure the adoption of the most efficient and effective measures to curb the ML menace in the country.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84318975","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":"Deploying artificial intelligence for anti-money laundering and asset recovery: the dawn of a new era","authors":"G. Pavlidis","doi":"10.1108/jmlc-03-2023-0050","DOIUrl":"https://doi.org/10.1108/jmlc-03-2023-0050","url":null,"abstract":"\u0000Purpose\u0000This paper aims to critically examine the digital transformation of anti-money laundering (AML) and countering the financing of terrorism (CFT) in light of the Financial Action Task Force (FATF) San Jose principles, the Organisation for Economic Co-operation and Development (OECD) principles for artificial intelligence (AI) and the proposed European Union (EU) Artificial Intelligence Act. The authors argue that AI tools can revolutionize AML/CFT and asset recovery, but there is a need to strike a balance between optimizing AML efficiency and safeguarding fundamental rights.\u0000\u0000\u0000Design/methodology/approach\u0000This paper draws on reports, legislation, legal scholarships and other open-source data on the digital transformation of AML/CFT, particularly the deployment of AI in this context.\u0000\u0000\u0000Findings\u0000A new regulatory framework with robust safeguards is necessary to mitigate the risks associated with the use of new technologies in the AML context.\u0000\u0000\u0000Originality/value\u0000This study is one of the first to examine the use of AI in the AML/CFT context in light of the FATF San Jose principles, the OECD AI principles and the proposed EU AI Act.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80163571","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":"Exploration of potential money laundering crimes with virtual currency facilities in Indonesia","authors":"Meiryani Meiryani","doi":"10.1108/jmlc-01-2023-0010","DOIUrl":"https://doi.org/10.1108/jmlc-01-2023-0010","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to exploration potential money laundering crimes with virtual currency facilities in Indonesia. Money laundering using crypto is the process of disguising the origin of money obtained illegally. Then, the perpetrator transfers it to a legitimate business. Virtual money then started to become a phenomenon in society since the emergence of cryptocurrencies as a form of technology development of e-commerce activities.\u0000\u0000\u0000Design/methodology/approach\u0000This research method is normative law which is prescriptive. The data collection technique used is document study or literature study by collecting primary and secondary legal materials.\u0000\u0000\u0000Findings\u0000The results of this study show that the bitcoin virtual currency has the potential to act as a means of money laundering. There are technologies and online platforms that are moving with more sophisticated methods. Through bitcoin exchanges, it has the greatest potential for money laundering. The usage of virtual currency (cryptocurrency) by those who commit money laundering offenses is responsible for the actions’ severe negative effects on the State of Indonesia.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first study conducted in Indonesia that explores potential money-laundering crimes using virtual currency facilities.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77173532","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":"Illicit capital movement through trade misinvoicing in Burundi: a disaggregated approach","authors":"A. Ndoricimpa","doi":"10.1108/jmlc-03-2023-0056","DOIUrl":"https://doi.org/10.1108/jmlc-03-2023-0056","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the illicit capital movement through trade misinvoicing in Burundi, at disaggregated levels by major trading partners and by major export and import commodities.\u0000\u0000\u0000Design/methodology/approach\u0000Trade misinvoicing is estimated by comparing the trade values declared by Burundi with those declared by trading partners in a bilateral international transaction, after adjusting for the cost of freight and insurance. Disaggregated trade misinvoicing by major trading partners is computed using the Direction of Trade Statistics database of the International Monetary Fund over the period 1970–2019. Disaggregated trade misinvoicing by major trading commodities is computed using the UN-COMTRADE database over the period 1993–2019.\u0000\u0000\u0000Findings\u0000Exports of Burundi to most of its major trading partners are found to be underinvoiced. The top destinations for export underinvoicing are United Arab Emirates, Belgium and Germany. However, exports to UK and Switzerland are found to be overinvoiced. The major export commodities considered, coffee and gold, are found to be affected by trade misinvoicing to a great extent. On the import side, the estimation results indicate that imports of Burundi from its major trading partners are in general overinvoiced. High import overinvoicing is observed in the trade with Saudi Arabia, China and Japan. At commodity level, for the top 6 commodities considered, imports were to a great extent found to be overinvoiced. Cases of illicit capital outflows and inflows through trade misinvoicing are highlighted.\u0000\u0000\u0000Practical implications\u0000Some policy implications are drawn from this study. First, in collaboration with its development partners, the Government of Burundi should put in place measures to reduce the trade misinvoicing phenomenon, which undermines poverty reduction efforts. The study has shown which trade partners are involved and which commodities are mostly affected. Policy efforts could then be focused in that regard. Investigations at the company and transaction levels can be made to identify the mechanisms of trade misinvoicing. Second, more effort is needed in ensuring systematic and transparent reporting of international trade transactions. To fight trade misinvoicing, transparency in international trade is key, through coordinated enforcement of reporting rules.\u0000\u0000\u0000Originality/value\u0000Previous studies analyzed the problem of trade misinvoicing at an aggregated level. However, this leaves out essential information on trading partners involved in the phenomenon as well as trading commodities affected. This study investigates trade misinvoicing at disaggregated levels, at product level and by trading partner.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78389069","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":"Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan","authors":"Nasir Sultan, Norazida Mohamed, Mervyn Martin, Hafizah Mohd Latif","doi":"10.1108/jmlc-02-2023-0024","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0024","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the Financial Action Task Force’s recommendations on virtual currencies (VCs) and how Pakistan has responded to them.\u0000\u0000\u0000Design/methodology/approach\u0000Qualitative document and jurisprudence analysis techniques were used to achieve the study’s goal.\u0000\u0000\u0000Findings\u0000According to this study, VCs are modern FinTech that no jurisdiction can ignore. However, Pakistan has not adopted regulations to govern VCs but comprehensively prohibits their use. It is primarily due to the apathy of various regimes and regulators. Furthermore, the geographical location, undocumented economy and rampant corruption could facilitate the abuse of VCs for money laundering.\u0000\u0000\u0000Originality/value\u0000This study has provided a significant overview for developing regulations for VCs in Pakistan and other developing jurisdictions with the same characteristics.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90587906","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":"Money laundering, media and European banks","authors":"Markus Tiemann","doi":"10.1108/jmlc-02-2023-0032","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0032","url":null,"abstract":"\u0000Purpose\u0000This paper aims to assess, from an empirical perspective, the research question if public media reports which relate concrete banks to concrete allegations of money laundering have an adverse impact on banks stock prices and what are the drivers of such impact?\u0000\u0000\u0000Design/methodology/approach\u0000The paper makes use of event study methodology and uses the constant mean and the market model. The event window is calibrated towards a five-day window, and the estimation window has a length of 90 days, in line with best academic practices. Drivers are identified by correlation analysis. and the market model uses ordinary least squares regression.\u0000\u0000\u0000Findings\u0000The application of event study methodologies yields the results that stock prices of affected banks generate, at the date of the news appearance, statistically significant negative abnormal returns under both the market model and the constant mean model. As negative abnormal returns have been mainly found at the date of the event itself, the findings confirm that the impacts of money laundering may be severe but short natured. In addition, the paper finds that the identified negative abnormal returns may be driven by the banks’ size in terms of total assets, by the bank’s profitability in terms of return on assets and by the bank’s sustainability risk.\u0000\u0000\u0000Practical implications\u0000The findings have implications in terms of banking and supervisory practices. In specific, the findings help to argue that banking consolidation is needed to lower the impacts of AML cases, as stock prices of larger banks show less sensitivity. In addition, the findings could be used to determine financial sanctions against banks violating AML regulation. Finally, the findings imply that AML news can have severe and fast-moving financial stability considerations and are, therefore, important in crisis situations.\u0000\u0000\u0000Originality/value\u0000As there appears to be no substantial research that applies event study methodology to the money laundering context, the combination of research question and methodology has an innovative character. In addition, there is no clear literature on media and money laundering.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81758175","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":"Evidencing source of wealth–challenges, questions, solutions and recommendations","authors":"M. Menz","doi":"10.1108/jmlc-02-2023-0041","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0041","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is twofold. Firstly, it highlights areas of disconnect between how the financial services sector in the UK approaches the requirement to evidence source of wealth when conducting customer due diligence; the requirements of the UK’s laws and regulations in relation to evidence source of wealth; and the expectations of the Financial Conduct Authority (FCA) in this regard. It then proposes an alternative approach to evidencing source of wealth.\u0000\u0000\u0000Design/methodology/approach\u0000Semi-structured interviews have been carried out among compliance professionals in UK financial services.\u0000\u0000\u0000Findings\u0000This paper provides rare insight into the anti-money laundering arrangements of UK banks, an area that has not yet been widely researched in the academic literature. It highlights a lack of legal certainty in the UK’s laws and regulation around anti-money laundering and argues that the expectations of the FCA exceed both the letter and the spirit of the laws. It suggests that mixed messages disseminated by the FCA have incentivised banks to shift their focus from financial crime risk (i.e. preventing money laundering and terrorist financing, etc.) towards regulatory risk (i.e. the risk of falling foul of regulatory expectations) and proposes a change to the law and regulatory guidance to enhance the level of legal certainty needed for the law to be effective.\u0000\u0000\u0000Practical implications\u0000The paper makes suggestions for a more practical and risk-based approach to anti-money laundering compliance and for a much-needed change in the law.\u0000\u0000\u0000Originality/value\u0000It provides unique insight into the due diligence challenges of financial services firms and argues for the FCA to propagate a more risk-based approach to enhanced due diligence.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75184275","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":"Mutual legal assistance and extradition under anti-money laundering laws: a comparative analysis between Palestine and Malaysia","authors":"Husameddin Alshaer, Muhamad Helmi Md Said, Ramalinggam Rajamanickam","doi":"10.1108/jmlc-03-2023-0053","DOIUrl":"https://doi.org/10.1108/jmlc-03-2023-0053","url":null,"abstract":"\u0000Purpose\u0000The global cooperation and cooperation between nations at differing stages in anti-money laundering (AML) is critical. To improve the effectiveness of international cooperation in AML, it is essential to diversify international cooperation mechanisms and improve the capacity of law enforcement officers in the field of preventing this crime. This paper aims to provide a comparative analysis of mutual legal assistance (MLA) and extradition within the AML legal framework in Palestine and Malaysia. It investigates the gaps and weaknesses in Palestine’s AML legal framework and offers recommendations to address them.\u0000\u0000\u0000Design/methodology/approach\u0000The present paper is solely legal. The method adopted in this research paper is qualitative research with an emphasis on the doctrinal mechanism. As a result, it concentrates on procedures, protocols, legislation and policies.\u0000\u0000\u0000Findings\u0000The Malaysian AML legal framework offers a clearer and more comprehensive framework for MLAs and extradition than the Palestinian AML legal framework. This framework is supported by laws that meet the basic requirements to support the issues of AML international cooperation. Both countries agree that the absence of a “bilateral or multilateral agreement” is not considered a reason for rejecting international cooperation in the field of AML with foreign countries. Moreover, the Malaysian AML legal framework divides the roles well between the law enforcement agencies and the competent authorities competing to Palestine.\u0000\u0000\u0000Originality/value\u0000This paper would be beneficial for the Palestinian legislative, policymakers and law enforcement agencies to make international cooperation, especially with MLAs and extradition effective.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81237342","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":"Is the UK’s anti-money laundering regime “worth the candle”? A tentative cost-benefit analysis","authors":"P. Sproat","doi":"10.1108/jmlc-02-2023-0027","DOIUrl":"https://doi.org/10.1108/jmlc-02-2023-0027","url":null,"abstract":"\u0000Purpose\u0000This paper aims to raise, and consider, first-order questions about the United Kingdom’s anti-money laundering (AML) regime.\u0000\u0000\u0000Design/methodology/approach\u0000The paper contrasts the original rationale for introducing AML and asset recovery to the UK with data on the assets recovered from organised crime and those involved in drug trafficking. It does this by analysing historical and contemporaneous literature – both official and academic.\u0000\u0000\u0000Findings\u0000When assessed against its original aims of combating drugs and organised crime, the tentative conclusion is that the UK’s AML system does not appear to be worth the candle.\u0000\u0000\u0000Research limitations/implications\u0000While based upon publicly available information that is far from ideal, the analysis raises credible questions as to whether the UK’s AML regime is worthwhile and whether it could be done differently.\u0000\u0000\u0000Practical implications\u0000Raises the question of whether the impact of the AML regime could be made worthwhile by investing a great deal more in those law enforcement agencies that use the suspicious activity reporting regime. It also raises the question as to whether the AML regime could be re-purposed to achieve aims that are different from the original.\u0000\u0000\u0000Social implications\u0000Given the financial costs, which run into billions of pounds, and the fact that the regime has failed to have a significant impact on the level of drug trafficking or the revenue of organised criminals, the paper raises questions as to when the policy can be re-designed or abandoned.\u0000\u0000\u0000Originality/value\u0000While most other analytical work simply makes suggestions as to how to improve the number of inputs into the AML system, this paper provides a critical analysis of the costs and benefits of the AML regime in the UK.\u0000","PeriodicalId":46042,"journal":{"name":"Journal of Money Laundering Control","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2023-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84694112","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}