• Journal of Financial Crime

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

Latest documents

  • Editorial
  • Editorial
  • Creative accounting a tool for financial crime: a review of the techniques and its effects

    Purpose The purpose of this paper is to study the concept and procedure of creative accounting as how is it worked around and how it can lead to financial crimes. The procedure which are followed and which are the people who are involved and who are the victims of such crimes. The methods which are used to perform the action and how is it done. What are the findings of different researchers who have studied the same concept and how can it be curbed is the main purpose of the paper. Design/methodology/approach This paper is designed to find out the working of accounting policies and how the loopholes in the same can actually be taken into account, resulting in a certain number games which can be played around it, and to get the desired outcome in the preparation of financial statements. Findings Creative accounting, though legal and acceptable around the world, gives in the way to loopholes provided by the acts and rules governing the preparation of financial statements and eventually leading to financial crimes and hampering the economy as a whole. Research limitations/implications The limitations of this study remain to the fact that it is an empirical study, as a lot of papers and articles were studied before giving it a shape and reaching a conclusion. Practical implications Creative accounting though not illegal but the excess use of the same has given daunting effects on the financial statements and as a result have resulted into financial frauds and looting of peoples money throughout the world. Social implications Hard-earned money of the investors is looted and no action can be taken against as the mechanism and the legal bodies are still struggling to curb the problem, and thus it is very important to learn about creative accounting. Originality/value This study leads to the understanding of the growth of creative accounting and how it has resulted in accounting frauds leading to financial crimes in an economy.

  • Creative accounting a tool for financial crime: a review of the techniques and its effects

    Purpose The purpose of this paper is to study the concept and procedure of creative accounting as how is it worked around and how it can lead to financial crimes. The procedure which are followed and which are the people who are involved and who are the victims of such crimes. The methods which are used to perform the action and how is it done. What are the findings of different researchers who have studied the same concept and how can it be curbed is the main purpose of the paper. Design/methodology/approach This paper is designed to find out the working of accounting policies and how the loopholes in the same can actually be taken into account, resulting in a certain number games which can be played around it, and to get the desired outcome in the preparation of financial statements. Findings Creative accounting, though legal and acceptable around the world, gives in the way to loopholes provided by the acts and rules governing the preparation of financial statements and eventually leading to financial crimes and hampering the economy as a whole. Research limitations/implications The limitations of this study remain to the fact that it is an empirical study, as a lot of papers and articles were studied before giving it a shape and reaching a conclusion. Practical implications Creative accounting though not illegal but the excess use of the same has given daunting effects on the financial statements and as a result have resulted into financial frauds and looting of peoples money throughout the world. Social implications Hard-earned money of the investors is looted and no action can be taken against as the mechanism and the legal bodies are still struggling to curb the problem, and thus it is very important to learn about creative accounting. Originality/value This study leads to the understanding of the growth of creative accounting and how it has resulted in accounting frauds leading to financial crimes in an economy.

  • The effectiveness of the international anti-corruption legal framework in the context and practice of Colombia

    Purpose This study aims to investigate the impact of the enforcement of the international anti-bribery legal framework in developing countries. Design/methodology/approach It uses the PetroTiger case to examine the effects of foreign bribery prosecutions in Colombia, from a bribe-receivers perspective. PetroTiger is a USA-based company that was prosecuted for bribing public officials in Colombia. As a result, the public officials involved were also prosecuted in Colombia for receiving bribes. This case serves to illustrate how international anti-bribery law operates in practice and how it impacts Colombian law enforcement institutions and their capacity to prosecute bribe-receivers. The Colombian response to the international anti-corruption framework is examined in this study through the review of legislative efforts taken to address the problems of bribery and corruption in public procurement. Findings This study finds that enforcement of foreign bribery laws raise awareness of the situation of corruption in developing countries, generate parallel prosecutions of individuals at the receiving end of bribes and helps developing countries to develop technical expertise to fight corruption. Practical implications In practice, due to the transnational nature of foreign bribery, without international agreements, this type of corruption in international business would seldom lead to prosecution. Although the effectiveness of the enforcement of international anti-corruption law is debated, in reality, prosecutions of foreign bribery by developed countries have more positive than negative implications for developing countries. Social implications Assist to continue efforts to deter corruption. Originality/value No many studies have looked at the effectiveness of anti-corruption international law in developing countries. As indicated by Mr. Moulette Patrick head of Anti-Corruption Division at organisation for economic co-operation and development more research on the effectiveness of the UN enacted Convention against Corruption, which is what this paper does.

  • The effectiveness of the international anti-corruption legal framework in the context and practice of Colombia

    Purpose This study aims to investigate the impact of the enforcement of the international anti-bribery legal framework in developing countries. Design/methodology/approach It uses the PetroTiger case to examine the effects of foreign bribery prosecutions in Colombia, from a bribe-receivers perspective. PetroTiger is a USA-based company that was prosecuted for bribing public officials in Colombia. As a result, the public officials involved were also prosecuted in Colombia for receiving bribes. This case serves to illustrate how international anti-bribery law operates in practice and how it impacts Colombian law enforcement institutions and their capacity to prosecute bribe-receivers. The Colombian response to the international anti-corruption framework is examined in this study through the review of legislative efforts taken to address the problems of bribery and corruption in public procurement. Findings This study finds that enforcement of foreign bribery laws raise awareness of the situation of corruption in developing countries, generate parallel prosecutions of individuals at the receiving end of bribes and helps developing countries to develop technical expertise to fight corruption. Practical implications In practice, due to the transnational nature of foreign bribery, without international agreements, this type of corruption in international business would seldom lead to prosecution. Although the effectiveness of the enforcement of international anti-corruption law is debated, in reality, prosecutions of foreign bribery by developed countries have more positive than negative implications for developing countries. Social implications Assist to continue efforts to deter corruption. Originality/value No many studies have looked at the effectiveness of anti-corruption international law in developing countries. As indicated by Mr. Moulette Patrick head of Anti-Corruption Division at organisation for economic co-operation and development more research on the effectiveness of the UN enacted Convention against Corruption, which is what this paper does.

  • Persistence of bribery in West African countries

    Purpose The purpose of this paper is to empirically test persistence of bribery transactions in West African countries in spite of combative policy measures put in place by various governments in the sub-continent. Design/methodology/approach Data for this paper is obtained from the data set of Trace International’s Bribery Risk Matrix covering 2016 to 2018. The matrix is used to allow firms to determine risks associated with contact with government officials in a particular country. The data set is used to test this paper’s hypotheses. The generalize methods of moments (GMM) was used to estimate panel data of 16 West African Countries in STATA 14.0. Findings The result of the estimations reveals that in spite of combative policy measures put in place and millions of dollars spent, bribery is on the increase in West African countries. Originality/value Prior studies tend to focus on prevalence and pervasiveness of bribery transactions across the globe. This paper is one of the few that focuses on persistence of bribery particularly in West African countries.

  • Persistence of bribery in West African countries. Generalise methods of moments (GMM) approach

    Purpose The purpose of this paper is to empirically test persistence of bribery transactions in West African countries in spite of combative policy measures put in place by various governments in the sub-continent. Design/methodology/approach Data for this paper is obtained from the data set of Trace International’s Bribery Risk Matrix covering 2016 to 2018. The matrix is used to allow firms to determine risks associated with contact with government officials in a particular country. The data set is used to test this paper’s hypotheses. The generalize methods of moments (GMM) was used to estimate panel data of 16 West African Countries in STATA 14.0. Findings The result of the estimations reveals that in spite of combative policy measures put in place and millions of dollars spent, bribery is on the increase in West African countries. Originality/value Prior studies tend to focus on prevalence and pervasiveness of bribery transactions across the globe. This paper is one of the few that focuses on persistence of bribery particularly in West African countries.

  • Assessment of corruption in the humanitarian assistance in Puntland State of Somalia

    Purpose Corruption in humanitarian aid is one of the most worried and worst problems around the world. The existence of corruption acts in humanitarian aid delivery can endanger the already susceptible lives of the neediest individuals in the community. Amid serious humanitarian allegation in the country, this study aims to capture meaningful insights in humanitarian aid corruption in Puntland State of Somalia. Design/methodology/approach The study applied qualitative method and used interview as a technique of data collection. The information obtained through the interview was analyzed by quoting and narration forms. Findings The findings indicated numerous acts of corruption in all project stages including corruption in project granting and humanitarian staff employment, distortion of project targets and diversion of humanitarian project from targeted communities. The research also found that governmental and non-governmental actors are involved in the humanitarian corruption such as project managers and support staffs in addition to line ministries, parliament and community representatives. Research limitations/implications Corruption is a taboo and is difficult to research; people do not want to share the information for fear of victimization. Concerned institutions were not willing to provide necessary materials which led to shortage of secondary data. Another problem encountered during the study has been that the humanitarian stakeholders (for instance, government, non-government and private institutions) acted reluctantly to cooperate because of suspicion that disclosing information may lead to negative effect on their business. To overcome the challenges, the study assured the confidentiality of the members and that information collected would be used for research purposes only. The study further combined various tools of data collection so that the weakness of one tool becomes the strength of the other; while the researcher made efforts to build rapport with the research participants. Originality/value This study will contribute to the literature on corruption in the humanitarian aid. Specifically, the findings of this study will benefit academicians/researchers by giving empirical insights of corruption in the humanitarian aid in Puntland. It will benefit the government policymakers in the formulation of policies to combat corruption in the sector. Donors and aid agencies may also find the findings useful as they are key stakeholders who are interested in corruption in the humanitarian sector and finally the findings will benefit the wider society that is the primary victim of corruption in the humanitarian sector.

  • Assessment of corruption in the humanitarian assistance in Puntland State of Somalia

    Purpose Corruption in humanitarian aid is one of the most worried and worst problems around the world. The existence of corruption acts in humanitarian aid delivery can endanger the already susceptible lives of the neediest individuals in the community. Amid serious humanitarian allegation in the country, this study aims to capture meaningful insights in humanitarian aid corruption in Puntland State of Somalia. Design/methodology/approach The study applied qualitative method and used interview as a technique of data collection. The information obtained through the interview was analyzed by quoting and narration forms. Findings The findings indicated numerous acts of corruption in all project stages including corruption in project granting and humanitarian staff employment, distortion of project targets and diversion of humanitarian project from targeted communities. The research also found that governmental and non-governmental actors are involved in the humanitarian corruption such as project managers and support staffs in addition to line ministries, parliament and community representatives. Research limitations/implications Corruption is a taboo and is difficult to research; people do not want to share the information for fear of victimization. Concerned institutions were not willing to provide necessary materials which led to shortage of secondary data. Another problem encountered during the study has been that the humanitarian stakeholders (for instance, government, non-government and private institutions) acted reluctantly to cooperate because of suspicion that disclosing information may lead to negative effect on their business. To overcome the challenges, the study assured the confidentiality of the members and that information collected would be used for research purposes only. The study further combined various tools of data collection so that the weakness of one tool becomes the strength of the other; while the researcher made efforts to build rapport with the research participants. Originality/value This study will contribute to the literature on corruption in the humanitarian aid. Specifically, the findings of this study will benefit academicians/researchers by giving empirical insights of corruption in the humanitarian aid in Puntland. It will benefit the government policymakers in the formulation of policies to combat corruption in the sector. Donors and aid agencies may also find the findings useful as they are key stakeholders who are interested in corruption in the humanitarian sector and finally the findings will benefit the wider society that is the primary victim of corruption in the humanitarian sector.

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