bluuebunny/crossref_metadata_2025 huggingface dataset:
Corporate governance and disclosure in Africa: Issues and challenges
Authors: Okeahalam Charles C.
Published: June 2007

In general, the 1990s was a decade of considerable and broad economic growth. It was also characterised by extensive corporate (financial) sector failure in South‐East Asia. Since 2001 a number of major (non‐financial) corporations have failed in the USA and Europe. The majority of these failures have been attributed to an absence or dereliction of efficient disclosure and corporate governance. Africa has yet to witness the level of corporate failure experienced elsewhere, but it should be able to learn some lessons and perhaps leapfrog some of these experiences. This will only be possible, however, if disclosure and corporate governance in Africa is carefully analysed, and implemented in the context of appropriate institutions. This paper carries out an assessment of the state of play of corporate governance in Africa. An extensive literature search of academic, policy and private sector documentation on corporate governance in Africa shows that there has been little or no academic research and that there are also very few public policy documents on corporate governance in Africa. In some of the larger economies of Africa, however, a number of private sector initiatives on corporate governance have begun to emerge. Accordingly, mindful of the fact that improvement in corporate governance in Africa has to be placed in the context of the level of economic development, specific corporate governance issues and challenges are discussed. The paper concludes by identifying future research needs on corporate governance in Africa.
The Financial Ombudsman Service: not just an alternative to court
Authors: Merricks Walter
Published: June 2007

Purpose

The Financial Ombudsman Service is a statutory body offering a dispute resolution service to consumers and firms. The purpose of this paper is to outline the service as an alternative to the civil courts.

Design/methodology/approach

The paper compares the style, objectives and operation of the service with those of civil court proceedings.

Findings

The Financial Ombudsman Service has developed a very different model from that of the civil courts and is the preferred alternative for most retail consumers of financial services.

Originality/value

The comparison in style, process, institutional systems and legal approach may offer observers food for thought about potential developments in the civil courts themselves.
Internal audit function role in operational risk management
Authors: Fernández‐Laviada Ana
Published: June 2007

Purpose

The objective of this paper is to provide a global perspective of the operational risk (OR) management framework from an internal audit viewpoint.

Design/methodology/approach

This paper describes the new role of the internal audit function in reviewing the OR framework.

Findings

An efficient OR management framework will improve and reinforce the internal controls of the organization. Internal audit should be alert to the whole process of implementation of the systems for managing OR in entities.

Originality/value

This area has not been analyzed in depth to date. The paper provides a summary guide to audit of OR management frameworks in financial institutions.
Prevention of corruption – UK legislation and enforcement
Authors: Brown George
Published: June 2007

Purpose

The aim of the paper is to document the controls that presently exist in relation to domestic corruption, the need for reform of the law, in relation to both domestic and international corruption and the challenges that are faced by the UK Government in relation to enforcement of the laws that regulate corruption overseas.

Design/methodology/approach

The paper details the legislation and enforcement of the legislation to date as well as the proposed changes to the legislation. There is an examination of enforcement of the laws controlling corruption overseas are enforced. There is, in particular, a review of the decision to terminate the investigation into the BAE Al Yamamah contract.

Findings

The paper records what appears to be an accepted need for reform of the laws controlling both domestic and international corruption as well as international suspicion that the UK authorities commitment to enforcement in relation to corruption overseas is questionable and, in particular, that the UK authorities may well be taking account the country's economic interest in coming to a decision to terminate the BAE Al Yamamah investigation.

Practical implications

A failure by the UK Government to put into place effective legislation and enforcement, in relation to corruption overseas, could result in the UK Government being in breach of obligations contained within the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Originality/value

The paper undertakes a review of the present state of law and enforcement in relation to laws controlling corruption in light of the termination of the BAE Al Yamamah investigation which only took place in December 2006.
Bank deregulation and acquisition activity: the cases of the US, Italy and Germany
Authors: Hagendorff Jens , Collins Michael , Keasey Kevin
Published: June 2007

Purpose

Bank regulators across the world have recently lifted restrictions on where banks can operate and what type of activities they can perform. Following the deregulation of the sector, bank mergers and acquisitions have grown substantially. The purpose of this paper is to outline bank deregulation and acquisition activity, focusing on the USA, Italy and Germany.

Design/methodology/approach

The paper looks at how changes in the regulatory regime of the USA, Italy and Germany have spurred bank merger activities. For each country, future polices that bank supervisors may adopt in order to benefit from a more integrated financial sector are also critically discussed.

Findings

Over the last two decades, supervisors in the USA, Italy and Germany have begun to deregulate parts of their banking industries, thus, sparking a process of consolidation in their national banking sectors that still has not ended.

Originality/value

The paper presents a recent history of deregulation in the USA, Italy and Germany, offering recommendations as to what regulators should do next.
The hiding of wealth: organised crime in Japan
Authors: Imai Takeyoshi
Published: June 2007

Introduces the subject of asset concealment by remarking that hiding wealth derived from organised crime is common in East Asia, and can involve tax evasion, money laundering and bankruptcy. Reviews the amount of tax evasion in Japan, followed by recent statistics of money laundering offences under the Organised Crime Countermeasures Law; there have been many reports of suspicions but only four convictions, indicating that prevention is working. Moves on to consider the numbers of offences related to bankruptcy, which are covered by the Penal Code or the Bankruptcy Act; they include concealment of debtors’ or bankrupts’ profits, improper evasion of compulsory seizure of goods by means of transfer or fictitious debts, and causing bankruptcy by a debtor’s fraudulent act.
Global standards for money laundering prevention
Authors: Bauer Hans‐Peter , Peter Martin
Published: June 2007

Describes the Wolfsberg Principles, which are essentially global anti‐money laundering guidelines for private banking only, and were drafted by 11 banks: Citibank, Morgan, Chase, HSBC, Barclays, Banco Santander Central Hispano, Societe Generale, Deutsche Bank, ABM AMRO, Credit Suisse, and UBS. Outlines the topics involved in the guidelines: identification of clients as well as the beneficial owner, situations requiring additional due diligence like business relationships with clients from high risk countries or involving public officials, suspicious activities, and key measures against money laundering such as monitoring, control, or education and training. Assesses the reaction to the Principles, which has generally been good: one problem is that there is no enforcement mechanism. Concludes with the further scope for cooperation between the Wolfsberg group of banks.
Underground and parallel banking systems
Authors: Trehan Jyoti
Published: June 2007

Introduces the two types of underground banking systems used in Indian and Chinese communities in many parts of the world: hundi or hawala, and chop shop or chitti banking. Explains the terms: hawala means money transfer, chops are seals that facilitate money transactions, and chitti means mark; both types lack the paper trail that characterises conventional banking. Discusses the reasons for the prevalence of these systems: Indian and Chinese settlement abroad, and the strong family ties involved. Relates how underground banking funds are generated in developing economies with exchange controls, and with financial and fiscal rules and regulations; and similarly in the free markets of the developed countries. Shows how underground bankers mop up funds for compensatory payments, the system’s linkages and its relationship to tax havens and money laundering centres. Moves on to how underground banking is being countered in both developed and underdeveloped countries, international cooperation, conjoined underground and conventional banking, funding terrorism through hawala and its linkages with drug trafficking and gold smuggling, and the volume of money transactions by underground bankers.
The USA PATRIOT Act: new adventures in American extraterritoriality
Authors: Preston Ethan
Published: June 2007

Gives the background to the Act, whose Title III was meant in part to deal with financial secrecy jurisdictions. Reviews the antagonism of American courts towards financial secrecy when it interferes with domestic disclosure of documents, mentioning the Aerospatiale, Westinghouse and other legal cases. Discusses the extraterritorial provisions of the PATRIOT Act: indirect regulation through domestic institutions, and direct regulation of foreign financial institutions through the extension of American money laundering regulations. Points out that the first major application of the Act was in fact against tax evasion rather than terrorist finance, and concerned VISA International; the Attorney General’s intention was to use VISA credit cards to identify American tax evaders who have stashed money in financial secrecy jurisdictions, and this may sever the links between these jurisdictions and the US banking and financial system. Sets the Act in the context of previous American attempts to legislate outside US jurisdiction, such as the Helms‐Burton Act. Concludes that the new legislation may ultimately hurt long term American interests, both business and diplomatic, all for the sake of impeding tax evasion.
Expectations of privacy and market abuse ‐ support for the Financial Services and Markets Act and the Canadian approach
Authors: Jones Mark , Johnstone Peter
Published: June 2007

Introduces the UK Financial Services and Markets Act 2000 (FSMA), a determined effort to modernise financial regulation which creates the Financial Services Authority (FSA) as a monolithic regulator and the Financial Services and Markets Tribunal as an appellate channel. Shows how the Act represents a shift from self‐regulation to statutory regulation, remedying the shortcomings of the 1986 Financial Services Act. Outlines the FSA’s powers, and how they might conflict with the European Convention on Human Rights. Compares the FSMA with the Canadian approach to the questions of balancing regulation and public confidence in the market on one side, with protection of individual rights on the other; these concerns are embodied respectively in the Securities Act and the Canadian Charter of Rights and Freedoms.
Global financial business and the implications for effective control of money laundering in offshore centres
Authors: Pratt Richard
Published: June 2007

Discusses the effect of globalisation of financial markets, especially the effects of international initiatives to improved financial probity and stability in offshore centres, with Jersey as the specific example. Argues that the effect on offshore centres is always positive, and that globalisation in effect makes all financial markets offshore to each other. Focuses on the use of offshore financial centres like Jersey, London, Switzerland and New York by corrupt and powerful public figures to launder stolen money, and briefly suggests how the defences that the international system has to deal with this can be enhanced; no single jurisdiction can hope to manage such situations.
The misuse of corporate vehicles
Authors: Morgan Talmai P.
Published: June 2007

Comments briefly on the OECD report on Guernsey as an Offshore Financial Centre, one which is emphatically not a Non‐Cooperative Country or Territory. Focuses on the misuse of corporate vehicles for illicit purposes, and outlines the main objectives of the Report to ensure proper access and sharing of beneficial ownership and control information, relying on either up‐front disclosure to the authorities, intermediaries to maintain the information, or an investigative system. Considers how the Guernsey system measures up against these options: in order to incorporate a company proposed, beneficial ownership must be declared in advance to the Guernsey Financial Services Commission, which undertakes due diligence on proposed owners, and there is now a very robust law to regulate fiduciaries, administration businesses and company directors.
Preventing corporate failure: the Cadbury Committee’s corporate governance report
Authors: Hemraj Mohammed B.
Published: June 2007

Describes the 19‐point code of corporate governance produced in 1991 by the Cadbury Committee, which was set up by the Stock Exchange, the Financial Reporting Council and the accounting profession; the aim was to improve the standard of corporate governance in Britain. Outlines its narrow terms of reference, which were to spread the boardroom practices of the best run companies to the rest, rather than to reform practice; the main issues covered were board responsibilities, directors’ qualifications, audit rotation, audit committee and auditor liability. Lists the Confederation of British Industry’s reasons for rejecting some of its proposals, proposals rejected by the Committee itself, general criticisms of the report, and Canadian reaction to it as expressed in the Toronto Stock Exchange committee report. Concludes that the Code, though voluntary and lacking enforcement power, is likely to impact on auditors, upon whom it relies as watchdogs to alert the public, especially as it criticises them for charging high consultancy fees.
The responsibility for handling proceeds of corruption in Polish criminal law
Authors: Bojarski Janusz
Published: June 2007

Introduces the new Polish Penal Code; passed in 1997, it is one of many statutes which are adapting Polish criminal law to the free economy, and includes provisions for economic crime. Outlines its provisions for corruption, which are contained in Chapter XXXVI: Offences Connected with Business Transactions, Article 228. Moves on to the money laundering provisions, which are contained in Article 299; this is very long and contains faults, which explains why there have been no convictions for this very complex offence. Considers the basic principles of responsibility in Polish criminal law, expressed in Articles 109‐113 of the Polish Criminal Code. Concludes that the laws against both corruption and money laundering indicate that the Penal Code has hastily responded to pressure from the international community.
Combating money laundering and smuggling in Colombia
Authors: Ospina‐Velasco Jaime
Published: June 2007

Shows how far Colombia has come in achieving its aim of combating contraband, which is not only an illegal activity which reduces fiscal revenue and causes unemployment, but is also linked to money laundering; losses due to tax evasion can reach $1 billion per year. Outlines the strategies against contraband: short‐term measures include harmonisation and cooperation between agencies and the strengthening of the Taxes and Customs National Administration (DIAN), plus increasing the sanctions against criminals; in the longer term, international cooperation and change in the cultural attitudes towards contraband are the necessary developments.
Prosecution for money laundering in the UK
Authors: Maylam Simon
Published: June 2007

Reports briefly the state of money laundering research on the UK; it is not really known how much goes on, but an estimate was made in 1998 that about £2.5 billion was being laundered though the UK financial system. Asks why there have been so few prosecutions: 357 in the years from 1987 and 1998 in England and Wales. Outlines five areas where prosecutors have been hampered in attacking money launderers: inadequate suspicious transaction reporting, inadequate law enforcement resources, the fragmented legislation, relative neglect of money laundering because of investigative and prosecutorial discretion, and the problems of obtaining evidence in a field characterised by sophisticated criminality.
Micro‐ and macro‐economic effects: secreting assets to evade non‐business (private) obligations and responsibilities
Authors: Harshman Ellen , Islam Muhammed , Nelson Camille A. , Ordower Henry M.
Published: June 2007

Investigates the effects on the family and society when an American business owner hides his wealth from creditors and family members, based on a case study where a non‐custodial father moved funds into highly secret jurisdictions to evade US tax, disappeared, and left his wife left liable for debts. Discusses the ethics of responsibility as they apply to this case of failure to act responsibly, comparing deontological and consequentialist approaches. Outlines the legal remedies for preserving assets: equitable remedy of a preliminary injunction, pre‐judgment attachment, garnishment of wages, transference of property titles, shifting tax burdens, recapturing property, invalidation of obligations, criminalisation of bankruptcy fraud, awarding attorneys’ fees, and contempt rulings. Moves on to the wife’s tax obligations and tax relief, including trust fund taxes and offers in compromise, and then to wider social and behavioural aspects of such cases like childrearing, divorce and remarriage, labour supply, and the feminisation of poverty.
Fraud and the Law Commission: the future of dishonesty
Authors: Kiernan Peter , Scanlan Gary
Published: June 2007

Considers some recommendations proposed by the Law Commission report on fraud, especially regarding the future role of dishonesty in offences involving fraudulent conduct, and the report’s proposal for the creation of a new offence of fraud plus another new offence of obtaining services dishonestly. Outlines the advantages of a single law of fraud, as the report sees them, and comments on them. Examines how the concept of dishonesty features in the draft bill attached to the report, mentioning the Ghosh approach to determining dishonesty, and the human rights perspective. Assesses the possible effects of the draft bill, which would if enacted a general offence of fraud; the three ways that the new offence would be committed are by false representation, wrongfully failing to disclose information, and fraud by abuse of position. Commends the report for proposing the abolition of various overlapping, technical and complexes offences of dishonesty, but argues that the draft bill still contains or creates a dishonesty offence.
Legislating against the financing of terrorism: pitfalls and prospects
Authors: Davis Kevin E.
Published: June 2007

Defines terrorism and the problems of agreeing on a definition, citing the Finance of Terrorism Convention, which essentially equates terrorism with politically motivated violence. Extends the emphasis on semantics to describing what it means to “finance” terrorism, again citing the Finance of Terrorism Convention ‐ and domestic legislation in the Canada, the UK and the USA, which is broader in scope than the Convention. Outlines the advantages and problems of proscribing financing of terrorism rather the terrorist activities. Assesses the prospects for international cooperation against terrorist financing, noting that the scope for this is limited to countries which regard the same acts as criminal and place the same importance on preventing them.
Ethical decision making and policing ‐ the challenge for police leadership
Authors: Mills Anne
Published: June 2007

Proposes a framework for increased awareness of ethical issues within the police service, in the context of a society which no longer accepts authority without question. Discusses the problem of ends and means in decision making, and stresses that there must a reference point or ethos, which is to some extent is expressed as the notion of service; the UK police service’s ethos is to be fair, compassionate and honourable. Explores the dimensions that influence ethical issues inside organisations: the environment and external stakeholders, the organisational context and human resources, recruitment and reward/sanction strategies. Moves on to ethical codes, criteria for making ethical decisions, monitoring and control, the role of the individual, and the nature of leadership: its significance, ethical visibility, and organisational strategies.
Financial regulation and supervision after 11th September, 2001
Authors: Rider Barry A. K.
Published: June 2007

Discusses in a wideranging way the background to official regulation of markets, going back to 17th century Britain’s outlawing of stock‐jobbing, and the “blue sky” frauds in 19th/20th century USA; however, policy has generally been to avoid heavy‐handed interference as counter‐productive. Assesses how far this approach has changed in recent years and the chances of success for attacking terrorism through money laundering control. Moves on to the long history of economically motivated crime, corruption, smuggling and trafficking, and the impact of technology. Reviews finally the techniques of money laundering, relating it to the evasion of sanctions and embargoes, and the attempts to counter it and pursue the proceeds of crime, stressing the differences between terrorists and ordinary criminals.
The private sector become active: the Wolfsberg process
Authors: Pieth Mark , Aiolfi Gemma
Published: June 2007

Examines how the Wolfsberg Anti‐Money Laundering Principles came into being after the first meeting in October 1999, their development and the possible future of the Wolfsberg group of banks. Describes the background to the drive for harmonisation of private banking practice combating money laundering; this has closely involved throughout the 40 Recommendations of the Financial Action Task Force over issues like “know your customer” and customer due diligence, so that a patchwork of regulations emerged which was not effective in preventing money laundering based on drug trafficking. Shows how, by fostering the industry standard, which is risk‐based rather than rule‐based voluntary code, the Wolfsberg group of 12 banks has helped to bridge the gap in attitudes to banking practice, especially between American and European banks.
Strengthening the offshore defences against economic crime and abuse
Authors: Witherell William
Published: June 2007

Reports some recent activities within the Organisation for Economic Cooperation and Development (OECD) which aim to strengthen defences against international economic crime, focusing on offshore financial centres (OFCs) and including cooperation with the Financial Action Task Force. Covers recent work relating to the obtaining of information on beneficial ownership and control of corporate entities and trusts, including a template for countries to assess their information systems, and discusses OECD projects on combating harmful tax practices by encouraging OFCs to commit to the principles of transparency and information exchange. Outlines the work of the Financial Stability Forum from 1999 in assessing the importance of OFCs, and includes a list of uncooperative tax havens.
Compliance issues in the wake of the USA PATRIOT Act
Authors: Silets Harvey M. , Van Cleef Carol R.
Published: June 2007

Reviews the scope of money laundering crimes, the new requirements for anti‐money laundering compliance programmes, and the Office of Foreign Assets Control (OFAC) requirements; the latter, which restricts dealings with foreign entities, was operating since World War 2 but had little impact before Executive Order 13224 on 23 September 2001. Shows how the PATRIOT Act has amended some provisions in the federal Bank Secrecy Act (BSA) by adding terrorism and other predicate offences, and defines the wide range of companies covered. Explains how the Financial Crimes Enforcement Network determines violations of the BSA. Concludes that OFAC and anti‐money laundering compliance law have powerful sanctions in the form of civil and criminal penalties, plus possible loss of charter or federal deposit insurance coverage.
Fraud after Roskill: a view from the Serious Fraud Office
Authors: Wright Rosalind
Published: June 2007

Describes the 1985 Roskill Committee Report on Fraud Trials as a success: of its 112 recommendations only two were not implemented. Explains why Roskill is nevertheless often criticised: there is a lack of resources for fraud investigation, while the amount of computer‐generated data in modern fraud cases is huge, and the demands on the jury much greater. Outlines the work of the Serious Fraud Office, of which the author is Director. Asks what can be done to remedy the lack of resources, given that the number of police squads dedicated to fraud investigation has shrunk over recent years. Assesses how the nature of fraud itself has changed since Roskill: there is much more of it, it is more closely linked with general criminality, and it uses the ever more sophisticated methods of information technology. Suggests that there should be a general offence of fraud, that juries might be replaced in fraud cases, and that there should be more public education about fraud. Concludes that more emphasis on public‐private partnerships will help fight economic crime.
Stanley Works: to Bermuda or not to Bermuda, that was the question
Authors: Johnson Jackie , Holub Mark
Published: June 2007

Deals with the subject of US companies which relocate offshore to take advantage of the tax differentials between countries following globalisation. Focuses on Stanley Works, an established Connecticut manufacturer which in February 2002 announced that it would relocate its legal domicile to Bermuda in order to increase cash flow and decrease tax payments. Describes the strong negative reactions in the USA to this intended reincorporation abroad ‐ from unions, shareholders, the press, the US Treasury, politicians and commentators. Relates this storm of protest to the atmosphere in the US after the financial scandals and terrorist attacks of the early 21st century; although other companies had reincorporated outside the USA before Stanley Works, which eventually withdrew its reincorporation plan, none has since.
The underground economy in Poland and its control
Authors: Bojarski Janusz
Published: June 2007

Analyses the underground economy in Poland as containing both hidden and illegal production: the former refers to illegal drugs, for example, and is not measured by the Polish Central Statistical Office, while the latter includes legal activities undeclared to the tax, customs, social security and statistical authorities. Reports that false claims for VAT and smuggling are two of the main economic crimes, while money laundering control is the official priority. Describes the three main sources of criminal regulation of underground economic activity: the Penal Fiscal Code, the Act on Counteracting Property Values Derived from Illegal or Undisclosed Sources into Financial Circulation, and the Criminal Code. Explains why the efficiency of the fiscal authorities in controlling the underground economy is thought inadequate.
Whistleblowing and the American experience: has anything changed?
Authors: Rossbacher Henry H.
Published: June 2007

Discusses briefly recent developments in US attitudes towards corporate fraud and the role of lawyers in exposing these scandals. Recounts how the years 1997‐2000 saw US companies losing over $500 billion in market capitalisation due to accounting “errors’, and this was before the Enron, WorldCom and Adelphia affairs. Denies that in fact whistleblowing has been an important part of the exposure of wrongdoing: it was collapse of the companies that showed up their phoney accounting. Concludes that there is little evidence of a change in attitudes towards investigation and prosecution of corruption that would protect or reward potential whistleblowers.
The mob: from 42nd Street to Wall Street
Authors: Kevin Carwile P. , Hollis Valerie
Published: June 2007

Focuses on the infiltration of the US stock market by organised crime in the shape of La Cosa Nostra (LCN). Defines what organised crime is and goes on to the history of Cosa Nostra, its reasons for tackling Wall Street and how it does this, analysing two specific cases of infiltration: Mob Stocks and Operation Uptick. Describes the various sectors of the securities market involved: the over‐the‐counter market, penny stocks, and chop stocks. Shows how LCN has invaded securities schemes, including trading scams and brokerage scams; its techniques include protection rackets, hidden ownership, and “pump and dump” schemes, but violence remains as the last resort. Assesses the scope of the corruption and whether organised crime is really a threat to the stock market.
The role of boards in preventing economic crime
Authors: Goldschmidt Leo
Published: June 2007

Reviews the progress in implementing better governance in companies worldwide; company boards have a vital role to play in this. Examines how the typical board functions in a commercial company, including the interests that make it up: shareholders and other stakeholders, executives and independents. Stresses the importance of defining the board’s role in order to increase its awareness of its responsibilities. Outlines principles for ensuring the board’s quality, including the independent members, who are especially well placed to evaluate objectively and frankly the decisions of their colleagues who are actually running the company.
New Zealand: the solicitor’s contractual duty of care in advising guarantors
Authors: Hemraj Mohammed B.
Published: June 2007

Outlines the duties of a solicitor who undertakes to advise a guarantor; solicitors have to do more than explain the guarantee terms and witness the signature, and they can and have been sued for inadequate advice. Describes a case study in New Zealand, Bindon v Bishop, where trustees of a deceased man’s estate sued both the solicitors of a borrower and the adviser of the deceased himself when the borrower defaulted on the loan. Criticises the outcome of the trial, which went to the Appeal Court and led to the judgment that the solicitor had given competent advice on legal risks and liabilities, so that the claim was dismissed. Contends that a solicitor should be obliged to comment on the wisdom of entering into a transaction.
Financial stability as a policy objective
Authors: Jackson Patricia
Published: June 2007

Explains why financial stability is important for official policy: its disruption leads to huge economic costs. Analyses why the involvement of the public sector is necessary to ensure stability; market self‐interest is not sufficient because of externalities, meaning that individual firms’ decisions take into account only their own costs and benefits. Outlines the kinds of action needed: ex ante, the authorities can influence the robust shock‐absorbing capacity of the system by levering capital and liquidity buffers, and oversee the financial infrastructure of payment, clearing and settlement systems. Indicates the balance that has to be made between system safety and the cost of buffers or system improvements. Goes on to the authorities’ influence over market discipline, and to the need for crisis management on certain occasions. Stresses also the importance of market integrity and concludes with the international dimension to financial stability policy.
The Israeli legislation against terrorist financing
Authors: Plato‐Shinar Ruth
Published: June 2007

Outlines the main laws in Israel regulating financing of terrorism: the Defence (Emergency) Regulations 1945, the Prevention of Terrorism Ordinance 5708‐1948, the Penal Law 5737‐1977, the Prohibition on Money Laundering Law 5760‐2000, the Combating Criminal Organisations Law 5763‐2003, and the Prohibition of Terrorism Bill 5763‐2003. Details the provisions of this last Bill; they cover government declaration of an organisation or person engaging in terrorism, offences under the law, administrative seizure proceedings, forfeiture of property in criminal proceedings, and amendments to the Prohibition on Money Laundering Law. Concludes that together the recent legislation provides a secure normative framework against terrorist financing.
Financial crime, terror and subversion
Authors: Kendall Raymond E.
Published: June 2007

Considers briefly the global threats to democracy from organised crime, drug trafficking and terrorism. Discusses the differences between terrorists and other criminals, and the increasingly international nature of criminality. Outlines the role of the United Nations, and the stimulus to international cooperation given by the terrorist attacks on the USA. Warns, however, that even the best security measures and governmental protection cannot prevent all risks, so that companies require a crisis management policy for damage limitation in case of attack.
Using data mining to detect crop insurance fraud: is there a role for social scientists?
Authors: Rejesus Roderick M. , Little Bertis B. , Lovell Ashley C.
Published: June 2007

Defines data mining as the extraction of potentially useful information from large databases. Shows how data mining can be applied to detecting anomalous behaviour in American agriculture and thus support the Risk Protection Agency in its compliance mission to detect fraud in crop insurance, using corn as the crop studied and percentage of acres harvested as the key indicator for “proof of concept”. Indicates potential areas of improvement, such as the development of a single data warehouse, and the role of social scientists with knowledge of data analysis and agricultural management. Concludes that data mining could be more effective than the current technique of random selection for investigation of individual entities.
Business, risk and organized crime
Authors: Gilligan George Peter
Published: June 2007

Purpose

The purpose of this paper is to consider organized crime as various forms of business activity which may or may not have attracted the label of criminality. In particular, how perceptions of legitimacy and the effects of other normative factors will influence strongly whether activities, individuals and groupings may be viewed as constituent parts of organized crime.

Design/methodology/approach

This paper first discusses some of the ambiguities surrounding the definition and practice of organized crime. It then emphasizes the inherent business focus of much organized crime activity and the crucial importance of legitimacy contexts in decision making seeking to counter organized crime.

Findings

The overall effects of organized crime are generally negative for society and organized crime activity can be brutal and harmful. The paper closes by acknowledging the rationality of at least some organized crime activity.

Originality/value

The paper considers the law enforcement potential in developing counter‐strategies that consider organized crime as part of the continuum of business.
A crossroad in combating and preventing financial crime
Authors: Biagioli Antonello , Nardo Massimo
Published: June 2007

Purpose

The paper aims to address regulators, enforcers and the academy, presenting reflections on some research‐driven innovative approaches, strategies and tools in the fight against financial and economic crime, with reference to some instances of concrete application deriving from the Italian FIU's experience and know‐how.

Design/methodology/approach

The paper focuses on the need for a systemic approach both in considering the problems of the regulatory/operational apparatus for combating financial crime (including evaluation issues) and in identifying solutions devised to improve such apparatus and its results. This approach cannot be detached from a methodological attitude based on synergies between the various parts involved.

Findings

In the light of such systemic approach, new perspectives and innovative ideas are put forward with reference to some major topics of the strategies for combating financial crime. These refer to themes such as measuring AML/CTF costs and benefits, bridging regulatory and professional frontiers, modelling and monitoring the status of the financial system and the behaviour therein, developing prevention tools, integrating interdisciplinary knowledge, and profiting from research.

Research limitations/implications

A systemic approach in understanding and fighting financial crime and its complex issues implies pooling together knowledge and expertise gathered under different complementary disciplines. This may provide information on the manifold sides and tinges of the phenomenon. By the same token, it is essential to take into consideration the systemic effects that specific action undertaken by the authorities may entail due to the subsequent reactions from other parts in the system.

Practical implications

Data provided by the system offer a privileged practical basis in order to model the system's structure and understand its dynamics and its reactions to endogenous and exogenous impulses.

Originality/value

The paper explores themes and issues to which the international community is becoming increasingly sensitive, and which would certainly benefit from innovative vision and approach. The ideas and solutions expressed surely need further development, test and discussion, but they are bound to become part of the most significant prospective challenges in the combat against economic and financial crime.
US interagency law enforcement cooperation since September 11, 2001
Authors: Middlemiss Arthur D. , Gupta Nishi
Published: June 2007

Purpose

This paper aims to illustrate by example the value of interagency cooperation between US and international law enforcement and regulatory agencies.

Design/methodology/approach

General review of post‐9/11 criminal cases brought by the Manhattan District Attorney's Office and other parts of the US law enforcement community that involved cooperation between US domestic and international law enforcement and regulatory agencies.

Findings

Finds that confrontation of multi‐jurisdictional crime requires domestic and international interagency cooperation; efforts to promote cooperation between domestic and international law enforcement and regulatory agencies have produced positive results post 9/11 and like efforts should be encouraged.

Originality/value

The paper provides case studies evidencing the benefit of law enforcement interagency cooperation.
Central banks, merging banks and murky Italian waters
Authors: Ridley Nick
Published: June 2007

Purpose

This paper seeks to provide an insight into financial crime in Italy and the highlighting of the anomalous role and position of the governor of the Italian National Bank and the need for reform.

Design/methodology/approach

Research from contemporaneous open and other sources during a comparatively intense period mid to late 2005 regarding Italian financial institutions and international banking operations.

Findings

The ground‐breaking co‐ordinated conventions and regulatory framework of international banking operations on an EU‐wide basis was frustrated in Italy by the questionable conduct of the governor of the Italian National Bank. In this he was aided and abetted by the arguably excessive powers of that office. This conduct was interacting with and linked to, several cross‐currents of ongoing alleged financial crime in Italy.

Originality/value

This gives an insight into financial crime in Italy and the highlighting of the anomalous role and position of the governor of the Italian National Bank and the necessity for reform.
OLAF: the fight against EU fraud
Authors: Quirke Brendan
Published: June 2007

Purpose

The purpose of this paper is to consider the role of the European Anti‐Fraud Office, OLAF, in the fight against EU fraud and to consider the difficulties and problems it has to contend with in attempting to carry out its mission.

Design/methodology/approach

The approach adopted was to carry out a number of semi‐structured interviews with relevant officials and to review secondary materials such as reports by the European Commission, the European Court of Auditors and OLAF itself.

Findings

The paper finds a high degree of both organisational and legal fragmentation as well as difficulties caused by the personnel policies of the European Commission leading to a significant staff turnover often in the midst of complex investigations.

Originality/value

It provides an insight into the difficulties faced by OLAF such as the degree of fragmentation with a multiplicity of agencies involved in the fight against fraud and is a contribution to an area, which does not contain a great amount of academic literature.
Challenges for regulating financial fraud in cyberspace
Authors: Fletcher Nigel
Published: June 2007

Purpose

This paper seeks to examine the problem of cyber fraud, a situation created by online financial transactions.

Design/methodology/approach

Examines the challenges to regulating financial fraud in cyberspace, e.g. those responsible for the fraud; the possibility of prosecution; and the position of cyberspace in the light of jurisdiction and control.

Findings

Finds that the introduction of internet specific regulation would be useful in combating cyberspace fraud.

Originality/value

This paper arguably breaks new ground in recommending measures to combat financial fraud in cyberspace.
A conceptual framework for supply chain collaboration: empirical evidence from the agri‐food industry
Authors: Matopoulos A. , Vlachopoulou M. , Manthou V. , Manos B.
Published: June 2007

Purpose

The purpose of this paper is to analyse the concept of supply chain collaboration and to provide an overall framework that can be used as a conceptual landmark for further empirical research. In addition, the concept is explored in the context of agri‐food industry and particularities are identified. Finally, the paper submits empirical evidence from an exploratory case study in the agri‐food industry, at the grower‐processor interface, and information regarding the way the concept is actually applied in small medium‐sized enterprises (SMEs) is presented.

Design/methodology/approach

The paper employed case study research by conducting in‐depth interviews in the two companies.

Findings

Supply chain collaboration concept is of significant importance for the agri‐food industry however, some constraints arise due to the nature of industry's products, and the specific structure of the sector. Subsequently, collaboration in the supply chain is often limited to operational issues and to logistics‐related activities.

Research limitations/implications

Research is limited to a single case study and further qualitative testing of the conceptual model is needed in order to adjust the model before large scale testing.

Practical implications

Case study findings may be transferable to other similar dual relationships at the grower‐processor interface. Weaker parts in asymmetric relationships have opportunities to improve their position, altering the dependence balance, by achieving product/process excellence.

Originality/value

The paper provides evidence regarding the applicability of the supply chain collaboration concept in the agri‐food industry. It takes into consideration not relationships between big multinational companies, but SMEs.
A study of an augmented CPFR model for the 3C retail industry
Authors: Chang Tien‐Hsiang , Fu Hsin‐Pin , Lee Wan‐I , Lin Yichen , Hsueh Hsu‐Chih
Published: June 2007

Purpose

To propose and test an augmented collaborative planning, forecasting, and replenishment (A‐CPFR) model in a retailer‐supplier context with a view to improving forecasting accuracy and then reducing the “bullwhip effect” in the supply chain.

Design/methodology/approach

After a literature review, the paper presents a real case in which the present authors provided assistance. The description of the case includes: case company background; an “as‐is” model analysis; a “to‐be” (CPFR) model analysis; and a description of the results and potential benefits. The paper then proposes an A‐CPFR model for the case and performs a simulation of the new model for comparison with the existing CPFR model.

Findings

The results show that the mean absolute deviation of forecasting and the inventory variance are both better in the proposed model than in the existing CPFR model. The proposed model can thus improve the accuracy of sales forecasting, reduce inventory levels, and reduce the “bullwhip effect”.

Practical implications

In addition to information provided by the retailer, a logistics supplier should also obtain competitors' promotional information from the market as another factor for forecasting – thus enabling timely responses to demand fluctuations.

Originality/value

The proposed model is an original and useful development on the existing CPFR model. It could become a reference model for the retail industry in implementing CPFR in the future.
The need for wider supply chain management adoption: empirical results from Ireland
Authors: Huber Bernd , Sweeney Edward
Published: June 2007

Purpose

This paper aims to provide empirical results which suggest that there is a need for more widespread adoption of supply chain management among Irish firms.

Design/methodology/approach

The Republic of Ireland is a small, open, trade‐dependent economy and is one of the fastest growing economies in the developed world. However, due to rising costs, there is an increasing trend in Ireland to outsource lower function manufacturing processes to lower‐cost locations but to retain high‐skill functions (such as R&D). This trend, together with other factors such as its peripheral location, suggests that supply chain management is critical from an Irish perspective. In order to gain unique insights of current levels of awareness/adoption of SCM and the potential impact SCM could have on competitiveness, a survey was conducted among 776 Irish firms.

Findings

Overall, the findings suggest that many firms in Ireland pay lip‐service to the importance of SCM elements and objectives but the majority of firms, about two thirds, have only a passing understanding of what constitutes SCM. Only 25 per cent adopt SCM programmes and only 9 per cent of Irish companies have a specialised SCM or logistics manager. The gaps in their understanding of SCM are matched by the gaps in their awareness of key costs (e.g. 59 per cent of companies do not know their total supply chain costs). While there are supply chain management adopters in Ireland that are already well up the s‐curve of innovation transfer, it is the larger group of less aware companies that must become better at how they manage their supply chains.

Originality/value

The paper offers a useful insight into supply chain management and its role in Irish industry.