Money laundering poses significant challenges for policymakers and law-enforcement authorities. The money-laundering phenomenon is often acknowledged as a type of “serious and…
Abstract
Purpose
Money laundering poses significant challenges for policymakers and law-enforcement authorities. The money-laundering phenomenon is often acknowledged as a type of “serious and organised crime” yet has traditionally been described as a complicated three-stage process, involving the “placement, layering and integration” of criminal proceeds. This article aims to reexamine the money-laundering concept within the realm of organised crime and critique its legal underpinnings.
Design/methodology/approach
This paper explores how criminal actors collude in organised money-laundering schemes to circumvent laws and frustrate the efforts of officials, while advancing the regulatory-spatial paradigms of which organised money launderers operate. In doing so, it reframes the debate towards the “who” and “where” of money laundering.
Findings
This paper argues that authorities’ efforts to combat money laundering relies on rigid legal definitions and flawed ideals that fail to address the money-laundering problem.
Originality/value
There has been little scholarly debate that questions the fundamental approach to conceptualising money laundering. This paper proposes a new approach to combating money laundering that better incorporates the actors involved in money laundering and the spaces in which it occurs.
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Durgesh Pandey and Paul Gilmour
The “metaverse” is the new buzzword. With the phenomenal growth of the metaverse comes accounting, taxation and jurisdictional challenges, which business and governments have yet…
Abstract
Purpose
The “metaverse” is the new buzzword. With the phenomenal growth of the metaverse comes accounting, taxation and jurisdictional challenges, which business and governments have yet to fully address. This paper aims to highlight and rationalise the lack of regulatory framework and multiplicity of jurisdictions on metaverse transactions. This paper addresses some of the complications with respect to accounting and taxation in virtual environments.
Design/methodology/approach
This study relies on secondary data and emerging literature to understand the multiplicity of jurisdiction and complexity of the accounting transactions. The concept of the metaverse is rapidly evolving, and this study uses extant literature to provide the foundation for understanding the key challenges relating to accounting and taxation.
Findings
Concepts of revenue recognition and deferment are challenged by the transactions in the metaverse. There are novel applications, underpinned by emerging technologies and blockchain supporting new crypto assets, such as non-fungible tokens and other decentralised finance (DeFi) tools; however, the caveats of anonymity and jurisdictional issues persist. The paper suggests that the industry must adapt to the unique reporting requirements of these assets and develop new standards for evaluating their value for financial reporting purposes. The paper emphasises the need for a case-based approach in the absence of standardised regulations for the accounting industry in the metaverse.
Originality/value
This paper adds original contributions to extant literature of the metaverse and advances ongoing debates into the accounting and taxation issues pertinent to the metaverse and DeFi.
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This study aims to provide a critical overview of freeports’ trading operations and consider to what extent they may present a money-laundering and tax-evasion risk.
Abstract
Purpose
This study aims to provide a critical overview of freeports’ trading operations and consider to what extent they may present a money-laundering and tax-evasion risk.
Design/methodology/approach
This study reviews the literature surrounding freeports and offers an up-to-date narrative of their potential money-laundering and tax-evasion activities. The paper relies on secondary data from published sources referencing peer-reviewed papers and “grey-literature” material relating to freeports, offshore finance and anti-money laundering control.
Findings
This study demonstrates the attractive trading advantages offered by freeports to enable enterprise and innovation. However, the study reveals that the secretive offshore space in which freeports operate also helps to obscure beneficial ownership and illicit trade-based practices that frustrate authorities’ efforts to trace laundered monies and recover government taxes. Despite freeports’ trade offerings, stronger regulation is needed to prevent them from being abused for money-laundering and tax-evasion purposes.
Originality/value
This study provides an important insight into the money-laundering and tax-evasion risks presented by freeports and, in doing so, advances the contemporary debate on illicit activities occurring through offshore jurisdictions.
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Branislav Hock, Mark Button, David Shepherd and Paul Michael Gilmour
This paper aims to provide a comprehensive review of literature on policing money laundering to evaluate the quality of evidence presented in academic and grey literature. In…
Abstract
Purpose
This paper aims to provide a comprehensive review of literature on policing money laundering to evaluate the quality of evidence presented in academic and grey literature. In doing so, this paper reflects upon what strategies and mechanisms work in preventing, detecting and disrupting money laundering.
Design/methodology/approach
To investigate the quality of evidence presented in academic and grey literature on money laundering, the authors have conducted a structured literature review of over 1,000 sources. The authors have then evaluated the quality of evidence of these sources by using three distinct methods, namely, the Maryland scale, research excellence framework and quality of empirical evidence framework.
Findings
This paper finds a large number of studies on money laundering meeting the highest academic quality standard. However, only a very small number of those studies include empirical evidence that policing measures actually work with no study able to demonstrate a correlation between money laundering measures and risk factors at any point in time.
Originality/value
This paper provides practical and theoretical insights into what works in money laundering and the role of scientific evaluations. It is particularly relevant for the successful implementation of anti-money laundering policy measures, including, for example, the UK’s Economic Crime Plan 2023–2026, which aspires to measure the progress and impact of policing in this area.
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This paper aims to critically explore the challenges facing the UK in implementing registers of beneficial owners, a measure mandated by the EU’s anti-money laundering (AML…
Abstract
Purpose
This paper aims to critically explore the challenges facing the UK in implementing registers of beneficial owners, a measure mandated by the EU’s anti-money laundering (AML) directive to enhance beneficial ownership transparency.
Design/methodology/approach
This study systematically reviews the literature surrounding beneficial ownership transparency to critically analyse the extent to which challenges facing the UK, impact upon its ability to successfully implement registers of beneficial owners.
Findings
This study demonstrates that a lack of beneficial ownership transparency facilitates money laundering by concealing corrupt wealth and frustrating authorities’ efforts to trace illicit finance. It demonstrates that implementing registers of beneficial owners may be a superficial approach to tackling the multifaceted problem of money laundering. Better intergovernmental cooperation is required to improve beneficial ownership transparency and to ensure measures to curb offshore money laundering are successful.
Research limitations/implications
This research focuses on one aspect of AML control from the UK’s perspective. Further work is needed to investigate the concerns from the perspective of offshore jurisdictions and how global AML rule affects developing economies.
Practical implications
The study informs policymakers and other professionals implementing the UK’s registers of beneficial owners to enhance future strategies and better combat offshore money laundering.
Originality/value
This is the only study to explore the challenges facing the UK in implementing registers of beneficial owners, thus providing novel insight into the moral, legal and practical dilemmas to imposing AML control.
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Abstract
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Christine L. Rush and Nicholas C. Zingale
We argue that the proliferation of governance in the public sector has raised questions regarding individual constitutional rights. While some proclaim cost savings and…
Abstract
We argue that the proliferation of governance in the public sector has raised questions regarding individual constitutional rights. While some proclaim cost savings and entrepreneurial solutions to vexing social ills, others suspect that these benefits donʼt outweigh the risk of diminished accountability and the loss of constitutional protection over public service production. We propose a new model to examine the relationships between direct government, governance, public value, and public law value. We apply this model to analyze two landmark Supreme Court cases and one contemporary federal appellate court case to explore the ongoing tension between the governance model and public service production. Our findings suggest that enforcible contract language and public-private entwinement can be used as tools to protect constitutional rights in the face of increasing pressure of governance approaches.