Marc-Alain Galeazzi, Barbara Mendelson and Malka Levitin
The purpose of this article is to inform stakeholders about the Anti-Money Laundering Act of 2020 (AMLA), explain its impact on the U.S. anti-money laundering (AML) regime, and…
Abstract
Purpose
The purpose of this article is to inform stakeholders about the Anti-Money Laundering Act of 2020 (AMLA), explain its impact on the U.S. anti-money laundering (AML) regime, and highlight critical updates for financial institutions.
Design/methodology/approach
The article provides an overview of the AMLA, and specifically addresses three key components: (1) the development of uniform beneficial ownership requirements and the creation of a beneficial ownership registry at the Financial Crimes Enforcement Network (FinCEN); (2) the expansion of FinCEN’s powers and the Bank Secrecy Act/AML program requirements; and (3) new subpoena powers with potential extraterritorial effect granted to the U.S. Secretary of the Treasury and the U.S. Attorney General for documents located at foreign banks that have a correspondent banking account in the U.S. The article also notes the purpose and goals of the AMLA.
Findings
The AMLA is the first major overhaul of the U.S. AML regime since the 2001 USA PATRIOT Act, and is designed to strengthen national security, protect the financial system, and simplify compliance obligations. The beneficial ownership reporting requirements represent an effort to combat illicit financial activity conducted by shell companies formed and registered in the U.S.
Originality/value
The article provides financial institutions with a brief overview of a lengthy new law that will impact their AML compliance obligations. Financial institutions should be on alert for forthcoming regulations.
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This chapter delves into the significant role Higher Education Institutions (HEIs) play in advancing the Sustainable Development Goals (SDGs) aim of strengthening and refocusing…
Abstract
This chapter delves into the significant role Higher Education Institutions (HEIs) play in advancing the Sustainable Development Goals (SDGs) aim of strengthening and refocusing institutional efforts toward the 2030 Agenda and beyond. Acknowledging the limited progress made toward the 2030 Agenda, the chapter discusses the extent to which universities are meeting their social and ethical responsibilities in fostering sustainable development and human rights. Through an examination of the relationship between universities and the SDGs (including criticism of their role in reinforcing urban inequalities), the chapter articulates a vision for HEIs to embrace transformative partnerships, interdisciplinary approaches, and community engagement to rebuild public trust and reinforce their place as pivotal actors in driving social and economic progress. Three essential tasks for HEIs are identified: fostering SDG synergies, establishing trust and collaboration with local communities, and advancing a data-informed progress assessment that provides a roadmap for how to use the SDGs to further new agendas.
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The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online…
Abstract
The following bibliography focuses mainly on programs which can run on IBM microcomputers and compatibles under the operating system PC DOS/MS DOS, and which can be used in online information and documentation work. They fall into the following categories:
Prajwal Eachempati and Praveen Ranjan Srivastava
A composite sentiment index (CSI) from quantitative proxy sentiment indicators is likely to be a lag sentiment measure as it reflects only the information absorbed in the market…
Abstract
Purpose
A composite sentiment index (CSI) from quantitative proxy sentiment indicators is likely to be a lag sentiment measure as it reflects only the information absorbed in the market. Information theories and behavioral finance research suggest that market prices may not adjust to all the available information at a point in time. This study hypothesizes that the sentiment from the unincorporated information may provide possible market leads. Thus, this paper aims to discuss a method to identify the un-incorporated qualitative Sentiment from information unadjusted in the market price to test whether sentiment polarity from the information can impact stock returns. Factoring market sentiment extracted from unincorporated information (residual sentiment or sentiment backlog) in CSI is an essential step for developing an integrated sentiment index to explain deviation in asset prices from their intrinsic value. Identifying the unincorporated Sentiment also helps in text analytics to distinguish between current and future market sentiment.
Design/methodology/approach
Initially, this study collects the news from various textual sources and runs the NVivo tool to compute the corpus data’s sentiment polarity. Subsequently, using the predictability horizon technique, this paper mines the unincorporated component of the news’s sentiment polarity. This study regresses three months’ sentiment polarity (the current period and its lags for two months) on the NIFTY50 index of the National Stock Exchange of India. If the three-month lags are significant, it indicates that news sentiment from the three months is unabsorbed and is likely to impact the future NIFTY50 index. The sentiment is also conditionally tested for firm size, volatility and specific industry sector-dependence. This paper discusses the implications of the results.
Findings
Based on information theories and empirical findings, the paper demonstrates that it is possible to identify unincorporated information and extract the sentiment polarity to predict future market direction. The sentiment polarity variables are significant for the current period and two-month lags. The magnitude of the sentiment polarity coefficient has decreased from the current period to lag one and lag two. This study finds that the unabsorbed component or backlog of news consisted of mainly negative market news or unconfirmed news of the previous period, as illustrated in Tables 1 and 2 and Figure 2. The findings on unadjusted news effects vary with firm size, volatility and sectoral indices as depicted in Figures 3, 4, 5 and 6.
Originality/value
The related literature on sentiment index describes top-down/ bottom-up models using quantitative proxy sentiment indicators and natural language processing (NLP)/machine learning approaches to compute the sentiment from qualitative information to explain variance in market returns. NLP approaches use current period sentiment to understand market trends ignoring the unadjusted sentiment carried from the previous period. The underlying assumption here is that the market adjusts to all available information instantly, which is proved false in various empirical studies backed by information theories. The paper discusses a novel approach to identify and extract sentiment from unincorporated information, which is a critical sentiment measure for developing a holistic sentiment index, both in text analytics and in top-down quantitative models. Practitioners may use the methodology in the algorithmic trading models and conduct stock market research.
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Reports on a conference held in 1989 in Wisconsin, which focused onthe topic of providing better access to information for people withdisabilities. According to the author, the…
Abstract
Reports on a conference held in 1989 in Wisconsin, which focused on the topic of providing better access to information for people with disabilities. According to the author, the conference concentrated mainly on those with vision‐related difficulties. Summarizes two of the speeches made at the conference and examines some of the technology on display. Stresses the need for adaptive technology to enable people with a disability to access the increasing amounts of computer technology in everyday life.
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Renee Feinberg and Rita Auerbach
It is customary these days to denounce our society for its unconscionable neglect of the elderly, while we look back romantically to some indeterminate past when the elderly were…
Abstract
It is customary these days to denounce our society for its unconscionable neglect of the elderly, while we look back romantically to some indeterminate past when the elderly were respected and well cared for. Contrary to this popular view, old people historically have enjoyed neither respect nor security. As Simone de Beauvoir so effectively demonstrates in The Coming of Age (New York: Putnam, 1972), the elderly have been almost universally ill‐treated by societies throughout the world. Even the Hebrew patriarchs admonished their children to remember them as they grew older: “Cast me not off in time of old age; when my strength fails, forsake me not” (Psalms 71:1). Primitive agrarian cultures, whose very existence depended upon the knowledge gleaned from experience, valued their elders, but even they were often moved by the harsh conditions of subsistence living to eliminate by ritual killing those who were no longer productive members of society. There was a softening of societal attitudes toward the elderly during the period of nineteenth century industrial capitalism, which again valued experience and entrepreneurial skills. Modern technocratic society, however, discredits the idea that knowledge accumulates with age and prefers to think that it grows out‐of‐date. “The vast majority of mankind,” writes de Beauvoir, “look upon the coming of old age with sorrow and rebellion. It fills them with more aversion than death itself.” That the United States in the twentieth century is not alone in its poor treatment of the aged does not excuse or explain this neglect. Rather, the pervasiveness of prejudice against the old makes it even more imperative that we now develop programs to end age discrimination and its vicious effects.
Barbara Dömötör and Kata Váradi
The purpose of this paper is to investigate the possibility of monitoring stress on stock markets from the perspective of a central counterparty (CCP). Due to their balanced…
Abstract
Purpose
The purpose of this paper is to investigate the possibility of monitoring stress on stock markets from the perspective of a central counterparty (CCP). Due to their balanced positions, CCPs are exposed to extreme price movements in both directions; thus, the major risk for them derives from extreme returns and market illiquidity. The authors examined the connection of the stress alarms of return- and liquidity-based measures to find an objective basis for stress measurement.
Design/methodology/approach
The authors defined two types of stress measures: indicators based on extreme returns and liquidity. It is suggested that the stress indicators should be based on the existing risk management methodology that examines different risk measure oversteps. The stress signals of the past nine years on the German stock market were analyzed. The authors investigated the connection between the chosen stress measures to obtain a robust measure for alarming stress.
Findings
Although extreme returns and illiquidity are both characteristics of stress, the correlation of returns- and liquidity-based stress indicators is low when taking daily values. On the other hand, the moving averages of the indicators correlate significantly in the case of measures of downward and upward extreme returns and liquidity measured by the relative spread. The results are robust enough to be used for monitoring stress periods.
Originality/value
This paper contributes to understanding the characteristics of stress periods and points to the fact that stress signals measured by different aspects can also differ within the same asset class. The moving averages of returns- and relative spread-based indicators, however, could provide a cost-effective quantitative support for the risk management of a CCP and make the margin calculation predictable for clearing members as well.
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This paper aims to empirically indicate the factors influencing stock liquidity premium (i.e. the relationship between liquidity and stock returns) in one of the leading European…
Abstract
Purpose
This paper aims to empirically indicate the factors influencing stock liquidity premium (i.e. the relationship between liquidity and stock returns) in one of the leading European emerging markets, namely, the Polish one.
Design/methodology/approach
Various firms’ characteristics and market states are analysed as potentially affecting liquidity premiums in the Polish stock market. Stock returns are regressed on liquidity measures and panel models are used. Liquidity premium has been estimated in various subsamples.
Findings
The findings vividly contradict the common sense that liquidity premium raises during the periods of stress. Liquidity premium does not increase during bear markets, as investors lengthen the investment horizon when market liquidity decreases. Liquidity premium varies with the firm’s size, book-to-market value and stock risk, but these patterns seem to vanish during a bear market.
Originality/value
This is one of the first empirical papers considering conditional stock liquidity premium in an emerging market. Using a unique methodological design it is presented that liquidity premium in emerging markets behaves differently than in developed markets.
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Ekaterina Chernobai and Tarique Hossain
This study aims to investigate the determinants of homeowners’ planned holding periods. Real estate market is known for displaying buying and selling behavior that does not…
Abstract
Purpose
This study aims to investigate the determinants of homeowners’ planned holding periods. Real estate market is known for displaying buying and selling behavior that does not conform to traditional economic theories such as rational expectation or expected utility. Mounting evidence of anomalous observations appear to be supported by other theories, such as prospect theory, which in particular helps explain the disposition effect – sellers are too quick to sell when prices are climbing and hold on to properties longer when prices are plummeting. While this evidence is widely documented in housing studies based on data on realized holding periods (i.e. ex post), this study explores factors that may motivate homeowners to alter their expected holding horizons (i.e. ex ante) to form new preferred holding periods that may be shorter or longer than those planned during house search.
Design/methodology/approach
The empirical study uses data collected from two cross-section surveys of recent homebuyers in rising and declining housing markets in Southern California in 2004-2005 and 2007-2008, respectively.
Findings
The empirical results demonstrate that in addition to the financial characteristics of the recent homebuyer, the characteristics of the buying experience – non-monetary, such as the realized search duration, and monetary, such as perception of negative or positive premium paid for the house relative to its market value – have a statistically significant effect on the holding horizon revision. The data strongly indicate that the perception of having overpaid increases the likelihood of upward revision of the original holding horizon. This effect is stronger in the declining than in the rising market – a crucial finding that mirrors the disposition effect.
Originality/value
This study sheds new light on what may contribute to the disposition effect in housing markets that has not yet been investigated in past literature. The novel approach here is to look at how different house price environments may affect homeowners’ holding periods ex ante when they begin, rather than ex post when already realized.