Journal of Money Laundering Control

Publisher: Emerald

Description

Guided by its expert editors and eminent International Advisory Board, Journal of Money Laundering Control is the world's only quarterly, peer-reviewed journal designed to keep subscribers up to date with the latest law, regulation, techniques and best practice in the prevention, identification and prosecution of money laundering.

Publisher details

Emerald

  • Pre-print
    • Author can archive a pre-print version
  • Post-print
    • Author can archive a post-print version
  • Conditions
    • Voluntary deposit by author of author's pre-print or author's post-print allowed on author's personal website or Institutional repository, where there is no mandate to deposit
    • If mandated by a funding agency, the author's post-print may be deposited in any open access repository after a 24 months embargo period
    • Author's pre-print and Author's post-print not allowed on subject-based repository
    • Must link to publisher version with DOI
    • Publisher's version/PDF cannot be used
    • Published source must be acknowledged with set statement
    • Non-commercial
    • Publisher last contacted on 02/04/2013
  • Classification
    ​ green

Publications in this journal

  • [Show abstract] [Hide abstract]
    ABSTRACT: Purpose ‐ The purpose of the paper is to trace the historical foundations of forfeiture from antiquity to its migration into early criminal law statutes. From there the discussion turns to gaps in the law that gained recognition with the emergence of globalized economies and the development of technologies that allowed illicit wealth to be moved transnationally with ease and stealth. The balance of the paper will give an overview of the countermeasures taken in response to these gaps. The paper concludes with comment on the recent spread of non-conviction-based asset forfeiture laws and the practical use to which these laws can be put in relation to the tracing, seizing and forfeiture of illicitly acquired wealth. Design/methodology/approach ‐ The paper opted for a historical legal review of the development of forfeiture laws in common law jurisdictions. Findings ‐ The paper traces the development of the origins of forfeiture in the common law. It lays out the original compensatory objectives of forfeiture and its eventual migration into the criminal law. The paper describes how non-conviction-based asset forfeiture has evolved in modern times as a response to gaps in the criminal law that have been exposed by the pernicious aspects of globalized economies and the ease with which electronic intangible assets can be moved and beneficial ownership obscured. Originality/value ‐ This paper provides an overview of the origins of forfeiture law and traces the use and adaptation of that law as an emerging and effective response to transnational money laundering.
    Journal of Money Laundering Control 07/2014; 17(3).
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    ABSTRACT: Purpose ‐ This paper aims to verify the perceptions of Cypriot society in relation to corruption. In an attempt to do so, 1,521 Cypriots participated between the months of September 2011 and October 2011 in the survey on the level of corruption in Cyprus. The survey was conducted by the organization "Transparency Cyprus". Participants were 52 per cent female and 48 per cent male, age groups covered by 18 years until retirement, of whom 51 per cent work in the private sector, 16 per cent in the public sector, 24 per cent do not work, while 9 per cent work in semi-governmental organizations. Finally, 34 per cent are high school graduates, 37 per cent had higher education and 29 per cent hold a postgraduate university degree. The survey results show that corruption in Cyprus is considered by the vast majority of participants (86 per cent) as a serious problem and will also increase due to the economic crisis (79 per cent). The majority (93 per cent) of respondents believes that corruption and/or abuse of power for personal benefit exists and is widespread in most national politicians, in government officials in awarding public tenders (92 per cent) and in the police (90 per cent). Design/methodology/approach ‐ In an attempt to verify the perceptions of Cypriot society in relation to corruption, 1,521 Cypriots participated between the months of September 2011 and October 2011 in the survey on the level of corruption in Cyprus. To analyze the results of the survey, the statistical package SPSS has been utilized. Findings ‐ Seventy per cent consider corruption a major issue in Cyprus, while 60 per cent are being or have been affected by corruption directly. Almost all interviewees (92 per cent) believe that the police are also corrupted. Sixty-one per cent believe that not enough is being done to fight corruption, and in the cases that something was done, it was not enough. Seventy-five per cent blame the government, 67 per cent blame the police and 58 per cent blame the prosecutors and judges. Research limitations/implications ‐ On the completion of the upcoming survey (for the year 2013), one can compare these results and identify the associations between the two surveys. Another limitation of this survey is that people could have answered based on their perceptions; therefore, the results should be treated with extra care. Originality/value ‐ This research manuscript takes a step further to deepen our understanding of corruption in Cyprus. The findings of the survey performed could serve as policy prescription for the policy-makers who aim to strengthen the institutional environment in Cyprus. To do so, one should examine the current stage of the environment in Cyprus, something that this research paper explores through the survey conducted.
    Journal of Money Laundering Control 07/2014; 17(3).
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    ABSTRACT: Purpose ‐ The purpose of this paper is to examine the current state and future pressures of money laundering on Jamaica and the financial crime connections between the UK and Jamaica. Design/methodology/approach ‐ The paper focuses on the primary data collected from a series of semi-structured interviews with members from the law enforcement and financial services sectors of Jamaica. The main objective of the interviews was to secure a range of opinions concerning the problem of money laundering in the country. Interviewees were selected from the Office of the Director of Public Prosecutions, the Financial Investigation Division of the Ministry of Finance and Planning, the British High Commission and the Financial Services Commission. The names of all subjects shall remain anonymous to protect the privacy of those who were interviewed. Findings ‐ Through the analysis of primary data it will be shown that Jamaica remains vulnerable to money laundering ‐ particularly the proceeds of crime laundered through the remittance sector ‐ despite a legislative overhaul in 2007 to adopt the UK's Proceeds of Crime Act. Ineffective legislation is most certainly due to generic weaknesses and flaws which are applicable to many Caribbean states, for example, a lack of political will to enforce anti-money laundering regulations, corruption, inadequate police training, lack of resources, a strong remittance sector and geographical positioning along a drug-trafficking route. Originality/value ‐ This paper is the first of its kind to comprehensively analyze the money laundering situation in Jamaica, using detailed first accounts from members of the law enforcement and financial sectors.
    Journal of Money Laundering Control 07/2014; 17(3).
  • [Show abstract] [Hide abstract]
    ABSTRACT: Purpose ‐ The purpose of this paper is to review inadequacies of anti-money laundering (AML) and whistleblowing laws particularly in the UK financial services sector and suggest various reforms initiatives. Design/methodology/approach ‐ The article relies extensively on secondary data analysis including extensive literature review, analysis of applicable cases and evaluation of current whistleblowing and AML laws. Findings ‐ The preponderance of defensive reporting particularly in the financial services sector appears to blunt the effectiveness of AML laws in the UK. Working adults generally are unaware or unfamiliar with whistleblowing laws, whereas the laws themselves are also deficient in some ways even though they have been adopted and adapted in various other jurisdictions because of its perceived comprehensiveness. Preliminary indications from money laundering scandals demonstrate how and why early disclosures of wrongdoings through whistleblowing might have helped to reduce the magnitude of the adverse consequences and hence the importance of whistleblowing in the fight against money laundering. Originality/value ‐ This article provides the argument that while money laundering is perpetuated by hard-core criminals, it could be aided along by others motivated by profits in the financial system and that those closes to the process and in particular workers when encountering such activities should be encouraged to report these via appropriate channels. This together with further revamping of the suspicious activity reports procedures required under AML laws is argued to be able to contribute to the reduction of defensive reporting thereby enabling enforcement agencies to have more effective focus on remedial actions.
    Journal of Money Laundering Control 07/2014; 17(3).
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    ABSTRACT: Purpose ‐ This paper aims to highlight present strategies to prevent money laundering in Dubai. Design/methodology/approach ‐ Thirty semi-structured interviews were conducted with Anti Money Laundering Suspicion Cases Unit (AMLSCU), Anti Organized Crime Department (AOCD) and Central Bank employees. Findings ‐ This paper shows that AMLSCU, AOCD and Central Bank employees are aware that future strategies to prevent money laundering are needed. Research limitations/implications ‐ Limited available secondary data and cases of money laundering. Originality/value ‐ Interviews with key personnel in main organisations tasked with preventing money laundering in Dubai.
    Journal of Money Laundering Control 07/2014; 17(3).
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    ABSTRACT: Purpose ‐ This paper aims to investigate the purpose, reach and effectiveness of the customer identification framework of the Financial Action Task Force (FATF). Design/methodology/approach ‐ The article draws on relevant research and documents of the FATF, the Basel Committee on Banking Supervision and the Alliance for Financial Inclusion to determine whether compliance with the standards and practices of the FATF would prevent anonymous usage of financial services. Findings ‐ The FATF's identification principles, guidance and practices resulted in processes that are largely bureaucratic and do not ensure that identity fraud is effectively prevented. Strict identification requirements on the other hand may impact on financial inclusion, leaving the FATF with little leeway to raise its standards. There are potential solutions, but they are longer-term and partial in nature. Originality/value ‐ Current identification and verification practices affect the lives of millions of people around the globe. The measures are being enforced to ensure that users are appropriately identified. This article informs the debate by highlighting the weaknesses of the current approach.
    Journal of Money Laundering Control 07/2014; 17(3).
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    ABSTRACT: Purpose – The purpose of this paper is to broaden the discussion on trade-based money laundering (TBML). The literature is too narrowly focused on the misrepresentation of the value, quantity or quality of the traded goods. This focus leads to the analysis of price anomalies as a signal of over- or under-invoicing. However, TBML can also occur without manipulation of these factors. Design/methodology/approach – A review of the literature and case study of police investigations. Findings – Financial action task force (FATF) definitions are seriously flawed. The question of whether detecting TBML on the basis of statistical trade data is effective should be much more open to debate. Police investigations show that goods are shipped at their true value within the context of TBML. Research limitations/implications – Using outliers to identify and act on cases of TBML has often been propagated, but scarcely been used to actually show TBML. Real findings are needed. Practical implications – Goods intended for TBML can also be paid for in cash. These cash payments are often out of character with the normal clientele. This should alert companies and compliance sections of banks alike. Originality/value – The critique on the FATF definition opens the field for a more fitting definition. The description of actual TBML cases makes it possible to better understand this method of money laundering.
    Journal of Money Laundering Control 05/2014;
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    ABSTRACT: Purpose ‐ A measure of how much money is laundered is required to determine the effectiveness of any anti-money laundering regime and the reduction of money laundering in targeted areas. In the absence of useful estimates, authorities need to look at the best quality data available to arrive at a meaningful estimate and a consequent target for reduction of money laundering. Since tax crimes are viewed as one of the top three sources of laundered money, an understanding of the underlying predicate offence ‐ tax evasion ‐ may be indicative of the values or volumes involved in order to facilitate a target setting process. It is suggested that a "whole of government approach", as is advanced by the OECD, is applied between the tax administration and the financial intelligence centre in South Africa. The paper aims to discuss these issues. Design/methodology/approach ‐ By reviewing tax gap and money laundering estimation models and results from South Africa's first tax amnesty, it is proposed that micro analysis methodologies are applied to arrive at an estimate of the size and impact of money laundering which results from tax evasion practices. Findings ‐ By making basic inferences from the results of the 2003 voluntary disclosure programme, it is estimated that a potential revenue gap of between ZAR4 billion and ZAR12 billion exists for personal income tax alone and that the value of personal assets acquired from the proceeds of crime can, at any time, be as high as ZAR1.4 trillion. Originality/value ‐ In the absence of empirical and statistical data, it is necessary for authorities in developing countries to identify and make use of the most relevant and detailed data to assess its effectiveness in identifying, quantifying and reducing money laundering.
    Journal of Money Laundering Control 01/2014; 17(1).
  • Journal of Money Laundering Control 01/2014; 17(1).
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    ABSTRACT: Purpose ‐ The purpose of this paper is to increase the awareness of attorneys-at-law about the potential risks that they may encounter as a result of the developments in "intermeddler liability". The article is also aimed at informing attorneys about the Proceeds of Crime Act (POCA) civil recovery machinery. Design/methodology/approach ‐ The article is divided into two parts. The first part involves an analysis of the provisions in the POCA of Jamaica that invoke a civil machinery to recover criminally obtained wealth. In addition to a review of the main provisions of POCA, an examination of recent cases in Jamaica and in the UK, which has a similar legislative regime, has been undertaken. The legislative framework for providing a remedy to a victim of crime has also been examined. The second part of the article explores developments in the law of restitution and the law relating to constructive trusts which may impact lawyers and financial intermediaries who become engaged in transactions dealing with illicit funds. Findings ‐ The first aspect of the article focuses on the ability of the Asset Recovery Agency to follow and recover illicitly obtained property in the absence of a criminal conviction. In the second part of the article, the evolution of the law relating to "intermeddler liability", that is, knowing receipt and dishonest assistance, has been explored. It is observed that these developments are significant in providing a victim of financial crime with a remedy where the illicit activity involves a breach of trust or other fiduciary relationship. Originality/value ‐ Much of the focus on anti-money laundering initiatives in Jamaica is on the money laundering offence and post-conviction orders under POCA. This article seeks to highlight the power of the civil law in countering serious crime.
    Journal of Money Laundering Control 01/2014; 17(1).
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    ABSTRACT: Purpose ‐ It has become customary for states or regulatory domains to come together and evolve normative regimes to deal with overlapping exigencies such as money laundering. Over the past two decades, there has been a proliferation of global AML laws designed to foster international cooperation against money laundering and its predicate crimes. In this same vein, some states have adopted domestic AML laws designed with an ethos of extra-territorial dimension as a caution against the threats posed by money laundering crimes. The paper aims to critically examine CDD to tease out the possibility of harnessing it as a global AML paradigm. Design/methodology/approach ‐ The paper was written by critically examining primary and secondary data sources. In terms of primary data, the author has studied the relevant provision of different AML legislation such as BSA (1970), MLCA (1986), and PATRIOT (2001) Act in the USA; and FSMA (2000) and POCA (2002) in the UK. The author then evaluated these data in the context of the challenges of harnessing CDD across countries. In terms of secondary data sources, the author utilised data in academic text books, journal papers, electronic sources (web sites of AML agencies), and policy and research papers from specialist institutions such as FATF. Findings ‐ The findings corroborate the thesis that much as CDD is an important AML measure, it needs to be streamlined and implemented with care to apply across the board. Research limitations/implications ‐ The paper was written largely by way of library-based research. The author did not carry out interviews to corroborate some of the secondary data sources used in writing it. Carrying out interviews would have helped to minimise the potential for bias secondary data sources used was generated. Practical implications ‐ It is anticipated that this paper can be utilised to foster desired strategic and policy changes at a multiple institutional levels. Originality/value ‐ The paper is one of its kind to be written in its context. It will therefore make a viable contribution to the study of money counter-measures and how they are harnessed globally. It is therefore a must read!
    Journal of Money Laundering Control 01/2014; 17(1).
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    ABSTRACT: Purpose ‐ The purpose of this paper, which is based on author's study, is to shed light on the behavioral elements of corruption in particular the decision-making process undertaken by potential offenders to construct a solid basis for effective corruption eradication strategy in Indonesia. Design/methodology/approach ‐ This study examines corruption cases in Indonesia in the past two years which have been investigated by the Indonesian Corruption Eradication Commission as well as relevant literature on corruption to gain a better understanding of corruption offenders' behavior. Findings ‐ The author establishes that by looking at the behavioral side of corruption we may gain more understanding on potential offenders' way of thinking as a reference in dealing with corruption. The discussions in this paper suggest that when potential offenders are exposed to pressure/motivation, opportunity and rationalization to commit corruption, they will (consciously or subconsciously) assess all the perceived benefits and costs before deciding to commit (or not to commit) corruption. Understanding the mechanics by which potential offenders decide to engage (or not to engage) in corruption will provide government and decision makers with a solid basis for formulating an effective corruption eradication strategy. Research limitations/implications ‐ This study utilizes only secondary data sources to build its analysis on the perceived benefits and costs of engaging in corrupt practices. For future studies, primary sources, such as incarcerated corruption offenders, will offer a more accurate view of the actual decision-making process behind corrupt practices. Practical implications ‐ This paper contributes to the development of effective corruption eradication strategy in Indonesia by introducing the fraud decision scale as a framework by which appropriate measures will be devised so as to yield the intended results. Originality/value ‐ Instead of taking the more popular legal or political standpoint, this paper takes an unconventional view of assessing corruption problem from the behavioral perspective.
    Journal of Money Laundering Control 01/2014; 17(3).
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    ABSTRACT: Purpose ‐ The purpose of this paper is to investigate the role and responsibility of credit rating agencies in promoting soundness and integrity, especially in the course of their business activities. Design/methodology/approach ‐ The paper describes, and uses, the framework for the activities of credit rating agencies introduced by the International Organization of Securities Commissions (IOSCO), in order to give effect to this investigation. Findings ‐ Credit rating agencies have implemented the provisions of the Code of Conduct Fundamentals for Credit Rating Agencies of the IOSCO on the quality and integrity of the rating process, to the extent of the resources available to them. Research limitations/implications ‐ The main source of data is the information collected by the IOSCO from nine credit rating agencies, including the main three, on the quality and integrity of their rating processes. The absence of triangulation of research methods limits the robustness of the findings. Originality/value ‐ The paper addresses a specific aspect of the credit ratings story since the financial crisis on which there is currently little in the literature. It also focuses upon the actions of credit rating agencies, rather than on how these organisations are, or should be, regulated.
    Journal of Money Laundering Control 01/2014; 17(1).
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    ABSTRACT: Purpose ‐ A key problem in money laundering investigations based on open source intelligence gathering is the performance (efficiency and accuracy) of people in the team, where suspects will typically try to conceal incriminating evidence or deliberately deceive investigators to avoid prosecution. If we are able to develop a suitable psychological model of deception for web-based investigations, it should be possible to develop training programmes to improve investigators' ability to "see beyond" deliberate concealment. The purpose of this paper is to empirically test a model based on non-linear system identification using a well-known psychological phenomenon (the Stroop effect), where conflicting colour and text information is presented to subjects which they are instructed to process in a certain way. Design/methodology/approach ‐ The paper uses an experimental approach. Findings ‐ The results indicate that strategies for improving investigator information processing performance can benefit from models that incorporate both linear and non-linear components. Originality/value ‐ Although the Stroop effect is well known, no other papers have investigated how it may be used to evaluate and monitor the performance of investigators. The real value of this study will emerge when tools are developed to better train investigators to identify concealment within conflicting input data.
    Journal of Money Laundering Control 07/2013; 16(3).
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    ABSTRACT: Purpose ‐ This paper attempts to examine new technologies, typologies, FATF recommendations and the last Spanish penal reform on money laundering. Design/methodology/approach ‐ The paper describes the potential provided via internet and electronic transfers, prepaid cards and payment services with mobile phones for executing money laundering, and comments on the Spanish penal reform on this crime. Findings ‐ The study finds that the new payment systems facilitate money launderers' criminal activity. However, the development of technologies, including the internet, has unquestionable advantages involved, and even provides verification of identity or other duty of surveillance for the prevention of money laundering. Also, this paper analyzes the amendments made recently in the Spanish Criminal Code regarding money laundering. Originality/value ‐ This paper would be beneficial to the legislature. Future development of measures for the prevention of money laundering should take into account all potential threats that arise from the use of new technologies. Moreover, the long list of modifications on laundering undermines the legal certainty and the consideration of criminal law as ultima ratio, within the framework of a globalized crime policy.
    Journal of Money Laundering Control 07/2013;
  • Journal of Money Laundering Control 01/2013; 9(2):157-172.