Journal of Financial Crime

vLex
Publisher:
Emerald Group Publishing Limited
Publication date:
2011-12-21
ISBN:
1359-0790

Issue Number

Latest documents

  • Editorial: Hope springs eternal!
  • Assessing the impact of the COVID-19 pandemic and the Russian–Ukrainian war on cryptocurrency volatility

    Purpose: This paper aims to investigate the impact of the COVID-19 pandemic and the Russian−Ukrainian war on the volatility of several cryptocurrencies. Design/methodology/approach: To do this, the study uses the GJR-GARCH and dynamic conditional correlation (DCC)-GJR-GARCH models, which allow the author to estimate the conditional variance of the cryptocurrencies’ returns and assess their dependence structure over time. Findings: The results show that the health crisis had a negative impact on all cryptocurrencies studied, except for Bitcoin, which experienced a positive impact. Additionally, the study finds that the Russian-Ukrainian war had a mixed impact on the cryptocurrencies studied, with some experiencing positive impacts (BNB, Dogecoin, Ethereum and Tether) and others experiencing negative impacts (Bitcoin, BUSD, Coin and XRP). Moreover, the author analyzes the spillover effects among the cryptocurrencies and observe significant interdependence during the periods under study. Originality/value: Finally, the study discusses the implications of the findings for investors, policymakers and regulators, highlighting the importance of considering external factors when making investment decisions or designing regulatory frameworks for the cryptocurrency market.

  • Editorial: Time for human factors to drive the fight against corruption
  • Editorial: Cryptocurrency and crime: old crimes committed in new ways, or a new order of challenges for law enforcement?
  • The regulatory dialectic and innovation in service-based money laundering

    Purpose: The purpose of this paper is to describe the progression from trade-based money laundering to service-based money laundering using the Regulatory Dialectic Theory with an explanation for the success of this progression arising from Agency Theory. Design/methodology/approach: The authors provide a literature review regarding agency theory and the regulatory dialectic as the framework to examine service-based money laundering using three documented case studies. Using the caselet approach, this paper demonstrates that innovation in financial crime typologies is ongoing. Findings: The short cases in this paper illustrate the factors related to the regulatory dialectic theory that have yielded innovation in service-based money laundering. Research limitations/implications: This paper examines only three recent SBML innovations. Practical implications: Service-based money laundering represents an incremental advancement in money laundering beyond trade-based money laundering, in part supported by agency conflicts between financial intermediaries and stakeholders. Social implications: Managers and regulators should take into account that typologies will change as predicted by the regulatory dialectic and that the regulatory response can be burdensome to financial sector entities. This paper also provides recommendations for managers and regulators. Originality/value: To the best of the authors’ knowledge, this paper is the first to uncover new innovations in SBML in a high-risk geographic region.

  • Public perceptions of counterfeit drugs in Nigeria and the European Union

    Purpose: The purpose of this paper is to examine the perception and experience of counter pharmaceuticals in Nigeria compared to the European Union. Design/methodology/approach: The findings from this paper are based upon a survey of 362 Nigerians sourced in public places with the data and then compared results from a survey by the European Union. Findings: The key findings from this research showed some areas of similarity between Nigerians and Europeans on their views on the acceptability of purchasing counterfeits. However, Nigerians were more open to purchasing counterfeits despite the risks. There was also more anxiety over the risk of purchasing counterfeit medicines compared to the European Union. Research limitations/implications: Due to security issues, survey data could only be sourced from Abuja, Lagos and the relatively peaceful southwestern region of Nigeria. The data is, therefore, not representative of Nigeria. Practical implications: The purchasing experience of counterfeit medicines by Nigerians along with their anxieties highlights the need for more enforcement action to tackle this problem and reassure the public. Social implications: The paper highlights the challenges of securing genuine pharmaceutical products in the Global South and the need for more greater cross-border action to tackle the problem. Originality/value: To the best of the authors’ knowledge, this is the first survey of Nigerian citizens on this issue.

  • Exploring South Africa’s capacity to criminalise illicit enrichment

    Purpose: Illicit enrichment refers to the unjustified increase in the assets of a public official. Criminalisation of illicit enrichment is required under Article 20 of the United Nations Convention Against Corruption, and as a State Party, South Africa is thus expected to deal effectively with illicit enrichment as an offence. This paper aims to address different approaches of various jurisdictions to deal with illicit enrichment and discusses the elements of the crime, drawing on a South African perspective, to determine how illicit enrichment can be criminalised in South Africa. Design/methodology/approach: The research methodology used was a critical analysis of the definition and elements of the crime, as well as the global action taken to implement this offence. A comparative analysis was used to compare international frameworks with those of South Africa to conclude on the practicality and challenges of introducing the offence of illicit enrichment. Findings: It was found that an element of the crime, in particular the lack of justification, has been a primary point of criticism, as it is claimed that illicit enrichment laws reverse the burden of proof when an accused is required to prove the legitimacy of his or her assets. However, this issue is not insurmountable in the South African context, and the paper concludes that the criminalisation of illicit enrichment is possible, as South Africa possesses the necessary legislation and case law to support such measure. Originality/value: This paper contributes to the scholarly research on criminalising illicit enrichment in South Africa.

  • Does corruption play a role in the process of financial globalization in emerging countries?

    Purpose: This paper aims to examine various indicators related to corruption and determine their impact on financial globalization in emerging countries. It will consider other factors that may impact financial globalization and focus on how corruption within political, executive and public sector institutions can affect this process. Design/methodology/approach: This paper uses a generalized method of moments (GMM) for a data sample of emerging countries covering 2000–2020. Corruption measurements are derived from the varieties of democracy data sets and Transparency International. It also includes data on foreign direct investment, portfolio flows, foreign exchange and international debt as separate indicators of financial globalization. These measures provide more detailed information on the types of financial transactions occurring across countries. Findings: The results reveal that foreign investors may be less likely to enter certain sectors of the economy due to concerns about unethical practices and difficulties navigating the regulatory landscape in countries with high levels of corruption. This can lead to underdevelopment in sectors that are attractive to foreign investment and a reliance on a narrow range of sectors. Originality/value: This paper offers valuable insights by integrating corruption and financial globalization indicators, using the GMM for robust analysis. It highlights how corruption influences foreign investment decisions, potentially leading to sectoral underdevelopment and overreliance in emerging countries.

  • Village fund corruption mode: an anti-corruption perspective in Indonesia

    Purpose: This paper aims to highlight the corruption mode of village funds in Indonesia and provide recommendations to reduce such crime. Design/methodology/approach: This paper uses Diamond Fraud theory to explain why the mode of corruption continues, using secondary data from journal articles, research reports and websites. Findings: Corruption mode is carried out through fund misuse, cover-up, fictional reports, fictitious activities and projects and budget markup. Practical implications: Prevention and detection of fraud can be more effective when considering pressure, opportunities, rationalization and individual abilities. Originality/value: The novelty of this paper is to provide a more comprehensive view of the factors that can lead to fraud or corruption using the Fraud Diamond Theory.

  • Treat me fairly now or I will commit misconduct later: integrating general strain and procedural (in)justice in graduate education

    Purpose: The purpose of this paper is to integrate general strain theory and procedural justice in the context of research misconduct in university settings. Design/methodology/approach: Drawing on media accounts and past research, the authors present data on the financial costs of research misconduct to universities and identify graduate school processes as a possible source of strain may lead to misconduct. Relevant research on procedural justice in organizational settings is also examined. Findings: The available literature suggests that the use of procedurally just practices will help reduce strain, and in doing so, potentially prevent research misconduct in university settings. The authors present an integrated theoretical model that can be tested in future empirical studies of research misconduct and other forms of white-collar crime in universities. Directions for future theoretically informed research are discussed, along with recommendations for graduate program administrators. Originality/value: Research misconduct causes significant financial and reputational costs to universities. While past research focuses on mentoring and training for preventing misconduct by graduate students, this study argues that the use of fair evaluations and other procedurally just processes is also important.

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