Effect of cultural tightness-looseness on money laundering: a cross-country study
| DOI | https://doi.org/10.1108/JMLC-03-2021-0025 |
| Published date | 14 June 2021 |
| Date | 14 June 2021 |
| Pages | 414-426 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Mariem Mejri,Hakim Ben Othman,Basiem Al-Shattarat,Kais Baatour |
Effect of cultural tightness-
looseness on money laundering: a
cross-country study
Mariem Mejri
Department of Accounting, Prince Sultan University, Riyadh, Saudi Arabia
Hakim Ben Othman
American University of Malta, Bormla, Malta and
University of Tunis, Tunis Business School, El Mourouj, Tunisia
Basiem Al-Shattarat
Prince Sultan University, Riyadh, Saudi Arabia, and
Kais Baatour
Department of Accounting and Finance, University of Kairouan, Kairouan,
Tunisia; Business Analytics and Decision Making Laboratory (BADEM),
University of Tunis, Tunis Business School, El Mourouj, Tunisia and Institute for
Globally Distributed Open Research and Education (IGDORE), Ubud, Indonesia
Abstract
Purpose –The purpose of this interdisciplinary cross-country study is to investigate the influence of
culturaltightness-looseness on money laundering.
Design/methodology/approach –The authors rely on tightness-looseness theory as the basisfor their
predictions.The authors use the Basel Anti Money Laundering Index to operationalize financialcrimes. They
use dynamicpanel data regressions spanning from 2012 to 2018 across66 countries.
Findings –The authors find a positive and significant effect of national culture on money launderingfinanci al
crime. This suggests that financial crimes increase in countries with higher levels of cultural looseness
orientation. Moreover, the authors show that the absence of violence, control of corruption,political stability and
voice and accountability has a significantand negative influence on money laundering financial crime.
Practical implications –Formal institutionalfactors are not the only factors that can help curb financial
crimes,but policy regulatorsshould also consider the degree of cultural tightness-looseness.
Originality/value –To the best of authors’knowledge,this is the first research ever to examine the effects
of cultural tightness-loosenesson the level of financial crimes.
Keywords Anti-money laundering, Financial crimes, Cultural tightness and looseness,
National culture, Cross-country study
Paper type Research paper
1. Introduction
Financial crimes are one of the most serious issues worldwide, especially with the
continuous increase in internationalterrorism, which raises some questions with respect to
financial sources and how terrorists can claim legitimacy to any gains achieved from their
JEL classification –M41, M48
JMLC
25,2
414
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 414-426
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-03-2021-0025
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