Journal of Financial Crime
- Emerald Group Publishing Limited
- Publication date:
- Nbr. 28-1, March 2021
- Nbr. 27-4, December 2020
- Nbr. 27-3, September 2020
- Nbr. 27-2, May 2020
- Nbr. 27-1, February 2020
- Nbr. 26-4, October 2019
- Nbr. 26-3, July 2019
- Nbr. 26-2, April 2019
- Nbr. 26-1, January 2019
- Nbr. 25-4, October 2018
- Nbr. 25-3, July 2018
- Nbr. 25-2, May 2018
- Nbr. 25-1, January 2018
- Nbr. 24-4, October 2017
- Nbr. 24-3, July 2017
- Nbr. 24-2, May 2017
- Nbr. 24-1, January 2017
- Nbr. 23-4, October 2016
- Nbr. 23-3, July 2016
- Nbr. 23-2, May 2016
- Ude Jones Udeogu v FRN & Ors no SC. 622C/2019: its implication on fighting financial crime and the way forward
Purpose: The purpose of this paper is to show how fighting financial crime suffered a setback in Nigeria as a result of the Supreme Court ruling in an appeal case – Ude Jones Udeogu v FRN and Ors no SC. 622C/2019. Design/methodology/approach: This paper is a critical analysis of the implication of Supreme Courts’ ruling in Ude Udeogu Jones, its implication to law enforcement’s effort in fighting financial crime and the way to get around the ruling. The paper adopts qualitative methods. It is conducted through the analysis of the ruling and the relevant laws. Findings: Due to the ruling in UdeUdeogu Jones, Section 396(7) of the Administration of Criminal Justice Act 2015 is no longer good law. Federal High Court judges elevated to the Court of Appeal no longer have special dispensation to conclude criminal cases they part heard. Furthermore, the ruling is a serious setback on the law enforcement’s efforts in fighting corruption. However, the drastic effect of the ruling can be mitigated by amending Section 396(7). Research limitations/implications: Because the ruling is very recent, analysis is based on the relevant enactments and case laws including recent decisions of the Court of Appeal and the Supreme Court. Originality/value: There is no comprehensive work on this ruling. Therefore, this paper adds value to knowledge as it makes clear the background of the appeal case, as well as the impact of the ruling of the Supreme Court on fighting financial crime in Nigeria and the way to get around the ruling.
- Strategic management of credit card fraud: stakeholder mapping of a card issuer
Purpose: The purpose of this paper is to set a framework for strategic management of credit card fraud, by mapping its stakeholders within a card issuer and outlining its ideal strategies. Design/methodology/approach: The objectives are attained via case study. Primary data was collected by interviewing two fraud risk managers at the card issuer, while secondary data was collected by gathering all investor reports released from 2015 to 2019 by the financial institution. All data were submitted to content analysis and further analyzed using Mendelow’s power/interest matrix. Findings: Seven groups of stakeholders were identified, the expectations of each group uncovered and KPIs proposed to measure how well the financial institution meets those expectations. Strategies to deal with and prioritize groups were outlined, while highlighting the need for repositioning stakeholders identified as potential blockers or facilitators of strategic initiatives and pressure factors in times of low performance. Practical implications: Strategic management of stakeholders is essential for fraud risk managers and researchers to understand what is relevant and what is not. This paper creates a framework for addressing managerial and academic efforts based on stakeholders mapping. Further initiatives in research and practice should consider the following question: “Which stakeholder expectation will be better satisfied?” In case the answer is “none”, it is advised that the initiative be reconsidered. Originality/value: Previous literature focusses mostly on the technical challenges, leaving a gap in both literature and practice for using Strategic Management. For the first time in literature, this research combines theories and terminologies from fraud risk management and strategic management.
- Suitability of forensic accounting in uncovering bank frauds in India: an opinion survey
Purpose: Economic robustness is the heart of any country’s prosperity. It is no wonder that economic progression is a crucial force that keeps a nation rolling on its wheels. As economic well-being is such an important piece in the jigsaw of a country’s health, economic shocks must be kept at a bare minimum. India in recent years has experienced various banking failures and scams that put the financial system at stake and crushed investor confidence. There are examples aplenty of banks collapsing because of siphoning and diversion of funds in risky propositions that ultimately put the depositors and financial institutions at the receiving end. As per Reserve Bank of India’s latest annual report, it has been reported that there have been bank frauds worth a whopping Rs 72,000 crore in the financial year 2019. Therefore, this study aims to obtain the perception of Academicians and Practitioners regarding forensic accounting’s suitability in uncovering bank frauds. Design/methodology/approach: A strategically constructed Likert scale questionnaire was designed to obtain perception of Academicians and Practitioners regarding forensic accounting’s suitability in uncovering bank frauds. The analysis was performed by applying the “non-parametric test” on the data gathered from the questionnaire. Findings: By testing the relevant hypotheses, it has been found that insiders working in the bank team up with outsiders in perpetrating fraudulent activities resulted in bank failures, that both forensic accountant and traditional accountant were different from each other and that adoption of forensic accounting in India will aid regulatory authorities in doing their job more efficiently. Research limitations/implications: This study uses purposive sampling, as it only takes the perception of college and professional course students (chartered accountants/company secretary/certified management accountant) and teachers having knowledge in accounting which made sample size quite small (156). This study only covers frauds that were conjured in the banking industry and hence does not touch upon scams that occurred in other financial institutions. This study is confined to Indian banks only. This study uses an opinion survey to ensure the suitability of forensic accounting in uncovering bank frauds. Originality/value: The originality of this study has been checked through Turnitin plagiarism software in which the similarity was 8%.
- The nexus between records management and perceived corruption in sub-Saharan Africa
Purpose: This paper aims to chronicle perceived corruption cases emanating from poor records management in selected countries in sub-Saharan Africa by examining the nexus between records management and perceived corruption in Africa. Design/methodology/approach: Using a content analysis approach, based on auditor’s report and detailed analysis of available literature, this study examines the nexus between records management and perceived corruption in Africa. Findings: It observed that government agencies can easily be corrupted by inefficiencies in records management. However, a clear commitment to records management, underpinned by transparency and accountability, ensures that public office holders can be held accountable for their actions. Free and unhampered access to information promotes transparency in the administration of public funds and public participation. Research limitations/implications: The study selected only 14 African countries for the study to establish the nexus between corruption and records management. Further studies are needed to cover all the countries in Africa. Practical implications: The paper contributes to the ongoing debate that effective records management is crucially important in the prevention of corruption. It does this at a time when most African countries have made commitments towards the 17 goals of the 2030 Sustainable Development goals of the UN. The implementation of these goals can effectively be achieved in an environment where there is an effective records management system to ensure that public officers have access to information in the delivery of their duties. Originality/value: The paper is written at a time when most African countries have made commitments towards the 17 goals of the 2030 Sustainable Development goals of the UN.
- Tax evasion, political/public corruption and increased taxation: evidence from Zimbabwe
Purpose: The purpose of this paper is to examine the relationship between tax evasion, political/public corruption and increased taxation in Zimbabwe’s small and medium-sized enterprises (SMEs). Design/methodology/approach: The study as a descriptive survey used questionnaires and interviews as research instruments for collecting data. Findings: The findings revealed that most SMEs are no longer paying some form of taxes as expected since the Government of Zimbabwe through the Ministry of Finance and Reserve Bank of Zimbabwe introduced the 2% tax levy on all bank electronic transactions greater than US$10 from October 2018. Originality/value: The paper recommends that the government should create an independent anti-corruption committee with strong monitoring and regulatory mechanism so as to fight political/public corruption; hence, creating a paradigm of trust and confidence among different economic players. Lastly, the tax authorities should engage all the key economic players when crafting the country’s tax laws/rates so as to promote a sense of equity, equality and economic transparency among citizens.
- Understanding and application of crime of sabotaging production and operation in internet era
Purpose: The purpose of this study is to investigate the understanding and application of crime of sabotaging production and operation in internet era, and, at the same time, discuss the basic position for criminal law interpretation in cyberspace. Design/methodology/approach: Doctrinal analysis and case study. Findings: Along with the advent of the internet era, how to apply the traditional crime of sabotaging production and operation in virtual space has attracted people’s attention. The controversy caused by the conviction of malicious application of fake transactions is a typical example. The legal interest protected here includes not only the property value of the means of production itself, but also the expectation interest that can be obtained by normal production and operation activities. There is no reliable basis to believe that overlap of articles between special provision and general laws occurs in crime of sabotaging production and operation and crime of intentional damage of property. The production and operation activities carried out online can also be covered by crime of sabotaging production and operation, without doubt. Ejusdem Generis Rule should be fully respected, but crime of sabotaging production and operation has a dual structure of means behavior and purpose behavior, where the purpose behavior, sabotaging production and operation, is the key to the conviction. However, it is not necessarily premised on physical damage and violent characteristics. The understanding and application of traditional crimes should keep pace with the times in the internet era, and we should not stick to a completely rigid subjective interpretation. Originality/value: This study demonstrates the possible application of crime of sabotaging production and operation in cyberspace, and clarifies many misunderstandings about this crime.
- Perpetrators of corporate crimes in commercial organizations in Italy and Russia
Purpose: The purpose of this paper is dedicated to the features of subjects of official crimes in commercial organizations in accordance with the laws of Italy and Russia. Design/methodology/approach: Based on the study of Russian and Italian legislation, it was revealed that the Italian criminal law provides for a more extensive system of the criminal law provisions on liability for corporate economic crimes. Findings: These norms are in various normative legal acts (civil legislation, separate legislative acts). In the Russian criminal legislation, the norms in the sphere of corporate crimes in the sphere of economy are systematized and are located in a separate chapter of the Criminal Code of the Russian Federation. At the same time, the list of acts for which liability is provided is significantly narrower than in the Italian criminal law. Originality/value: In general, the institute of criminal liability for subjects of economic crimes with special features is adopted and developed as in the Russian criminal law as in the Italian criminal law. The existence of this institution shows the awareness by legislators of the increased danger to the society of such persons’ actions owing to the fact that the existence of the official status, special powers of certain duties or the lack of an appropriate indication on the contrary allows such a person to commit an act that is not available to other persons.
- Red teaming financial crime risks in the banking sector
Purpose: In recent years, Australian regulators have focussed on the financial crime compliance obligations of banks and other reporting entities, and there is a clear expectation that banks develop effective approaches to the management of non-financial risk. Red teaming is a methodology used in the intelligence and military domains to understand external threats. The purpose of this paper is to provide an overview of red teaming methods, set out a framework for using them in financial crime compliance and provide practical examples of red teaming exercises, which banks can use to manage financial crime risks. Design/methodology/approach: This paper provides an overview of the financial crime compliance landscape in Australia. It outlines some of the key concepts and techniques used in red teaming, drawing in particular on the framework developed by strategic policy expert Micah Zenko. It explores the benefits of red teaming for financial crime compliance practice, concluding with three example exercises for financial crime teams. Findings: Based on this research, red teaming methods can assist banks in taking a proactive approach to identify and mitigating financial crime risks. Rather than confining red teaming to cybersecurity applications, banks should consider they can use red teaming methods in their financial crime compliance functions. Originality/value: This paper represents the first assessment of how to apply red teaming methods to risk management in financial crime compliance. It combines a historical and theoretical overview of red teaming methods with example red teaming exercises for money laundering, sanctions and strategic policy scenarios.
- A cross-country study on manipulations in financial statements of listed companies. Evidence from Asia
Purpose: The purpose of this study is threefold: first, to detect trends in financial statement manipulation; second, to measure the level of manipulation and to measure the variation in manipulation between countries; and, third, to identify widely used techniques in financial statements...
- A strategic approach for the crime of tax evasion
Purpose: Crime games cannot be simply read with mixed strategies. These strategies are inconclusive of how the players act rationally. This is undeniably true for the crime of tax evasion, where dishonest taxpayers are rational agents, motivated by the comparison of payoffs, when considering the...
- Advancing theory of fraud: the S.C.O.R.E. model
Purpose: This paper aims to elaborate on the theory of fraud by enhancing the existing theories behind the factors that force people to commit fraud. Design/methodology/approach: The paper reviews the most commonly used and widely accepted models for explaining why people commit fraud – the fraud...
- An examination of judicial independence in China
Purpose: The purpose of this paper is to consider and evaluate judicial independence in China, through reviewing the value in its presence, assessing its current state in China and evaluating what the future holds for it. Design/methodology/approach: The paper reviews the benefits of judicial...
- Anti-bribery laws – compliance issues in Australia
Purpose: The purpose of this paper is to examine the scope of the legal responses to bribery and particularly foreign bribery in the global context. It identifies the corrosive effect of bribery and its negative effect on the economy, before turning to Australia’s mixed response to foreign bribery. ...
- Are local authority fraud teams fit for purpose?
Purpose: The purpose of this paper is to analyse fraud investigative practice in London local authorities with reference to recognised best practice and two comparator organisations, the Department for Work and Pensions (DWP) and National Health Service (NHS). Design/methodology/approach: Primary...
- Asset Location in Corporate Insolvency
This paper considers the methods open to a liquidator to discover and recover assets. In particular, it focuses on the powers conferred on the liquidator in the 1986 insolvency legislation and their effectiveness in commercial reality....
- Australia: The Privilege Against Self‐incrimination in Australian Civil Proceedings — The Decision in Reid v Howard
Courts around the world have, in recent years, spent much time and effort in trying to solve the problem of the privilege against self‐incrimination in civil proceedings. In Reid v Howard, the High Court decided that, in Australia at least, this was time and effort wasted and that only legislators...
- Battling corruption in Malaysia: What can be learned?
Purpose: Corruption is a serious problem in Southeast Asian countries. Based on the average ranking of Transparency International’s Corruption Perception Index, Malaysia is ranked as the second least corrupt country among Southeast Asian countries. However, this country is still facing problems in...
- Blowing the Whistle on Fraud
Employees who blow the whistle at work on serious fraud and malpractice out of concern for public interest, are to be afforded new protection against reprisals and unfair dismissal in the Whistleblower Protection Bill, introduced in Parliament on 28th June, 1995, with all‐party support....