Academic literature on the topic 'Financial crime and Authorities'
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Journal articles on the topic "Financial crime and Authorities"
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Jarosz, Dariusz. "Authorities and Society vs. Financial Crime in the Gomułka Period in Poland." Studia Historiae Oeconomicae 34, no. 1 (December 1, 2016): 63–84. http://dx.doi.org/10.1515/sho-2016-0005.
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Abstract The pivotal motive behind financial crime in the real socialist states was the chronic shortage of goods and services. In the case of Poland under the Gomułka administration (1956-1970), a factor which contributed to the prevalence of practices considered economically criminal was, ironically, the liberalization of the government in the period following Władysław Gomułka’s rise to power. The procedure of issuing new licenses to private and co-operative manufacturing businesses fostered illegal practices, because the new businesses needed supplies of deficit resources. Private trade businesses struggled with similar problems. The authorities tried to prevent financial crime by concentrating on publishing new laws which allowed heavy punishment for those behind the biggest economic scandals. In this field, the penal policy was shaped by the top authorities of the communist party, and their decisions were binding for the institutions of the justice system. Such decisions of the top authorities of the Polish United Workers’ Party (PUWP) were behind the death sentence for Stanisław Wawrzecki, who was charged with fraudulence in meat trade in Warsaw. Poles’ attitude towards financial crime was not clear-cut. One the one hand, in their letters to authorities, many Poles expressed their support for severe punishment for those responsible for the biggest fraud, while others objected towards capital punishment for Wawrzecki. The information we have on the dynamics of confirmed financial crimes does not provide a clear answer whether it was actually related to the severity of the punishments.
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Rahman, Aspalella A. "Anti-money laundering law: a new legal regime to combat financial crime in Malaysia?" Journal of Financial Crime 23, no. 3 (July 4, 2016): 533–41. http://dx.doi.org/10.1108/jfc-07-2014-0033.
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Purpose Before the enactment of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA), the fight against financial crime can be found in several statutes such as the Penal Code, Anti-Corruption Act 1997 and Companies Act 1965. It is generally accepted that by freezing and forfeiting the proceeds of the crime, it would give significant impact on the fight against financial crime. However, under these legislations, there were few shortcomings of the procedures on how the proceeds of the crime could be seized and forfeited. As such, the enactment of the AMLATFA is considered timely to overcome these problems. This paper aims to examine how the AMLATFA could be utilized to combat financial crime in Malaysia. Design/methodology/approach This paper mainly relies on statutes as its primary sources of information. As such, the relevant provisions under the Malaysian anti-money laundering laws that relate to measures for freezing, seizure and forfeiture of proceeds of the crime will be identified and analyzed. Findings The AMLATFA provides innovative tools for the law enforcement officials to follow the money trail, which will eventually lead to those who committed the financial crime. It also provides authorities with more powerful seizure and forfeiture measures. This is seen as a new law enforcement strategy to combat financial crime. It is believed that this approach is more effective than the traditional approach, which only punished the individual criminal but failed to diminish the criminal operations. However, it is vitally important to ensure that the effectiveness of the regime must not jeopardize the innocent third parties who could lose their money or any other proprietary interest due to the invocation of the forfeiture order. Originality/value This paper analyzes the new legal regime under the Malaysian anti-money laundering law that can be invoked to combat financial crimes activities. This paper would provide some guidelines into this particular area for legal enforcement authorities, academics, legal practitioners and policy makers, not only in Malaysia but also elsewhere.
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Yeoh, Peter. "Artificial intelligence: accelerator or panacea for financial crime?" Journal of Financial Crime 26, no. 2 (April 1, 2019): 634–46. http://dx.doi.org/10.1108/jfc-08-2018-0077.
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PurposeThis purpose of this viewpoint is to address the intended good and unintended bad impacts of artificial intelligence (AI) applications in financial crime.Design/methodology/approachThe paper relied primarily on secondary data resources, business cases and relevant laws and regulations, and it used a legal-economics perspective.FindingsCurrent AI systems could function as antidotes or accelerator of financial crime, in particular cybercrime. Research suggests criminal law could be applied via three approaches to curb these cybercrimes. However, others considered this to be an inappropriate mechanism to hold AI agents accountable, as present AI systems were not deemed capable of making ethically informed choices. Instead, administrative sanctions would be considered more appropriate for now. While keeping vigilance against AI malicious acts, regulatory authorities in the USA and the UK have opted largely for the innovation-friendly, market-oriented, permissionless approach over the state-interventionist stance so as to maintain their global competitive edge in this domain.Originality/valueThe paper reinforced the growing arguments that AI applications should be deployed more as panacea for financial crimes rather than being abused as crime accelerators. There equally though is the need for both public and private sectors to be mindful of the unintended negative, harmful consequences to society, especially those connected to cybercrime. This implied the further need to beef up attention and resources to help mitigate these risks.
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Klementowski, Robert. "Financial Crime in the Operational Work of the State Security Service Until 1956 – Lower Silesian Perspective." Studia Historiae Oeconomicae 34, no. 1 (December 1, 2016): 129–48. http://dx.doi.org/10.1515/sho-2016-0008.
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Abstract Nationalization and the introduction of state-controlled economy led to the emergence of abnormal social phenomena, including system-specific crimes. Economic transformations were the foundation of the systemic revolution carried out in the first decade after the Second World War, therefore they were the subject of interest for the Ministry of Public Security. That is why financial crimes were treated just like political crimes, which was also justified by legal provisions, as no specific definition of this type of crime existed. This allowed the authorities (secret police, prosecutor’s office, courts, media) to interpret the events according to their will and current political needs, and, as a result, to administer various overt or covert repressions (death penalty, imprisonment, forced cooperation with the secret police).
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Wilson, Gary, and Sarah Wilson. "The FSA, “credible deterrence”, and criminal enforcement – a “haphazard pursuit”?" Journal of Financial Crime 21, no. 1 (December 20, 2013): 4–28. http://dx.doi.org/10.1108/jfc-02-2013-0007.
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Purpose– Located within growing scholarly interest in linking the global financial crisis with revelations of financial crime, this piece utilises Roman Tomasic's suggestion that the financial crisis has marked something of a turning point in regulatory responses to financial crime worldwide. Tomasic attributes this to changing attitudes towards light-touch regulation and risk assessment, and the demand for existing agencies to be replaced with new tougher authorities. In the UK, this can be illustrated by the imminent replacement of the FSA with the Financial Conduct Authority (FCA). The paper aims to discuss these issues.Design/methodology/approach– Discussion of the FSA's financial crime fighting activity is an important forecast for the likely directional focus of the FCA in this regard. A focus only on “market abuse” enforcement within this arises on account of the effects for financial systems widely attributed to this activity, with threats to systemic stability being a hallmark of the 2007-2008 financial crisis. This methodology also encourages coherence in focus and management of sources within the article. Market abuse enforcement provides a lens for exploring the FSA's adoption of the philosophy and ethos of “credible deterrence”, and FCA commitment to retain it, and ultimately for applying the hypothesis of the “haphazard pursuit of financial crime” to pre-crisis criminal enforcement relating to financial crime undertaken by the FSA.Findings– The FSA and FCA appear acutely aware that the financial crisis has marked something of a turning point for the enforcement of financial crime, and for signalling changes in approach, for the reasons explored by Tomasic. Tomasic correctly identifies factors encouraging a range of undesirable practices pre-crisis, and ones signalling tougher and more sustained attention being paid to financial crime henceforth. It is noted that, pre-crisis, the FSA's pursuit of criminal enforcement of market abuse was conscious, comprehensively resourced, well publicised, and actually extensive.Originality/value– This exploration of the FSA's criminal enforcement of market abuse given the Authority's own perceptions that it was not, and could never be, a “mainstream” criminal prosecutor considers the likely lasting legacy of this determined pursuit, when domestic politics and pan-European policies suggested against this. This is likely to be enormously valuable as the FCA undertakes this task in a domestic arena which is markedly in contrast from this, and where European agendas are pushing in favour of criminal enforcement, with the “more Europe, or less” debate providing a further dimension of interest.
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Panov, A. Yu. "Topical issues of interaction between operational units of internal affairs bodies and tax authorities in the process of combating tax crimes." Institute Bulletin: Crime, Punishment, Correction 13, no. 2 (July 19, 2019): 207–12. http://dx.doi.org/10.46741/2076-4162-2019-13-2-207-212.
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Criminal law response is not the main but rather effective means of counteracting economic crime. In this regard modern society is feeling an acute need for high-quality regulatory regulation defining certain types of economic crimes and measures of state coercion used for their perpetration. To solve this problem it is necessary to conduct research on the social and legal content of certain types of tax crimes, complex rules for constructing the compositions of these acts and the specifics of technical and legal registration of the relevant provisions of the Special Part of the Criminal Code. To achieve this goal in modern criminal law science separate groups of economic crimes are singled out as an object of study: economic, tax, credit, monopolistic, etc. In modern conditions the need for proper protection of financial relations, including criminal and legal means, becomes indisputable. However a number of relevant norms of the Criminal Code, as well as the practice of their implementation, cannot be considered satisfactory in terms of compliance with the rules of legislative technology, the validity of the differentiation of responsibility enshrined in them and, as a result, the effectiveness of the implementation of the preventive task of criminal law. Qualitative norms of criminal law, ensuring the protection of financial relations, are an important condition for the proper counteraction to crime in the tax sphere, carried out by the state in the person of investigative and judicial bodies. Representatives of commercial and other organizations as well as other economic entities are no less interested in ensuring the high quality of these criminal law norms, since it acts as the legal basis for business security from unreasonable procedural decisions. In the article taking into account modern features of legislation and law enforcement practice aspects affecting the efficiency of the organization of interaction between operational units of the law enforcement bodies and tax authorities in the process of counteracting tax crime have been considered. The typical algorithms of joint work of these subjects the problems that arise and the most promising ways to solve them are shown.
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Moroke, Ntebogang Dinah. "A two step clustering algorithm as applied to crime data of South Africa." Corporate Ownership and Control 12, no. 2 (2015): 482–90. http://dx.doi.org/10.22495/cocv12i2c4p8.
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This study applied a TwoStep cluster analysis on the 29 serious crimes reported at 1119 police stations across South Africa for the 2009/2010 financial year. Due to this high number of variables and observations, it becomes difficult to apply some statistical methods without firstly using others as precursors. Classical methods have also been found to be inefficient as they do not have the ability to handle large datasets and mixture of variables. The AIC and BIC automatically identified the three clusters of crimes. The findings may guide authorities when developing interventions tailored to better meet the needs of individual cluster of crimes. Existing plans may also be enhanced to the advantage of residents. More emphasise may be placed on crimes that pose a serious threat. The SAPS may use these findings when reporting on national crime statistics. For future studies, discriminant analysis can be applied to check the clusters’ validity
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Markov, Mykhailo, Oleh Yemets, and Andrii Forostyanyi. "ORGANIZED CRIME IN THE FINANCIAL SYSTEM: FOREIGN EXPERIENCE." Baltic Journal of Economic Studies 4, no. 5 (February 11, 2019): 188. http://dx.doi.org/10.30525/2256-0742/2018-4-5-188-199.
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The aim of the article is to analyse combating organized crime in the financial system of Ukraine and abroad; develop specific proposals to optimize the legislative provision of such activities on the basis of the study of positive foreign experience with a view to its further implementation into the relevant legal regulations of our state. The subject of the study is the interrogation of legal regulations of leading foreign countries that regulate the issue of combating organized crime in the financial sphere, the principles of the activities of these countries’ respective organizations aimed at counteracting organized crime in the financial system, as well as state mechanisms for countering organized crime in the US financial system, European and other countries. Methodology. The study is based on general scientific and special-scientific methods and techniques of scientific knowledge. The dialectical method enabled to formulate the definition and determine the essence of the subjects in the system of combating crime, as well as mechanisms of anti-shadowing of the Ukrainian economy. The normative-dogmatic method enabled to interpret the content of legal regulations of domestic legislation that regulate the issue of organized crime in the financial system. The comparative legal method enabled to compare doctrinal approaches to the issue of organized crime in the financial system of Ukraine and abroad. The same method was used to analyse legislation of foreign countries regarding the issue under the study. Methods of analysis and synthesis enabled to study individual units of the institute of organized crime in the financial system. The sociological method was used to evaluate the results of the survey, conducted among employees of the National Police of Ukraine, on the need to take into account foreign experience in counteracting organized crime in the financial system. The method of legal modelling allowed making proposals regarding the improvement of the institute for combating organized crime in the financial system of Ukraine. Practical implications. The analysis of foreign experience of police activity, as well as special bodies and organizations, in combating organized crime in the financial system, carried out on the basis of a comparative legal study of principles, provided for in the international legal documents and their use in the police activities of democratic states, determined the expediency of their implementation in the police activities of the bodies of the National Police of Ukraine. Relevance/originality. The study proved that the legal basis for combating organized crime in the financial system of the examined states is the constitution and national laws, as well as specialized legal regulations, which define the status, rights and duties, the responsibility of employees of special subjects in combating organized crime in the financial system. In addition, in foreign countries, competencies are clearly distributed between national and special authorities to exclude duplication of powers. In view of the proved necessity of creating an effective system of counteraction to organized crime in the financial system of Ukraine, positive foreign experience implementation can become the driving force to strengthen the rule of law and legal order in our state.
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Busser, Els De. "EU-US Digital Data Exchange to Combat Financial Crime: Fast is the New Slow." German Law Journal 19, no. 5 (October 2018): 1251–67. http://dx.doi.org/10.1017/s2071832200023026.
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AbstractCriminal offenses with the most different modi operandi and levels of complexity can generate digital evidence, whether or not the actual crime is committed by using information and communication technology (ICT). The digital data that could be used as evidence in a later criminal prosecution is mostly in the hands of private companies who provide services on the Internet. These companies often store their customers’ data on cloud servers that are not necessarily located in the same jurisdiction as the company. Law enforcement and prosecution authorities then need to take two steps that are not exclusive for evidence of a digital nature. First, they need to discover where the data is located—with which company and in which jurisdiction. Second, they need to obtain the data. In considering digital evidence, the last step, however, is complicated by new issues that form the focus of this paper. The first concern is the practice by companies to dynamically distribute data over globally spread data centers in the blink of an eye. This is a practical concern as well as a legal concern. The second issue is the slowness of the currently applicable international legal framework that has not yet been updated to a fast-paced society where increasingly more evidence is of a digital nature. The slowness of traditional mutual legal assistance may be no news. The lack of a suitable legal framework for competent authorities that need to obtain digital evidence in a cross-border manner, nonetheless, creates a landscape of diverse initiatives by individual states that try to remedy this situation. A third issue is the position that companies are put in by the new EU proposal to build a legal framework governing production orders for digital evidence. With companies in the driver's seat of a cross-border evidence gathering operation, guarantees of the traditional mutual legal assistance framework seem to be dropped. A fourth issue is the position of data protection safeguards. US based companies make for significant data suppliers for criminal investigations conducted by EU based authorities. Conflicting legal regimes affect the efficiency of data transfers as well as the protection of personal data to citizens.
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Голованова, Наталья, and Natalya Golovanova. "Seized Property Regulation Issues." Journal of Russian Law 4, no. 10 (September 19, 2016): 0. http://dx.doi.org/10.12737/21525.
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This article provides some insight into foreign states’ regulation of seized property and weaknesses and opportunities for increasing effectiveness of existing regimes. Asset confiscation through proceeds of crime legislation, as well as assets originated from corruption, has taken on a new lease of life over the past few years. The main object of criminal proceeds confiscation laws is to divestiture the financial gain derived from criminal activity and to relinquish it to the state. The author evaluates the legislation and practice in the framework of regulation of seized property in Europe, USA and Australia, and lays stress on social reuse of propriety. In author’s opinion, Italian experience in transferring confiscated assets to local authorities in favour of the society is especially interesting for Russia. It is noted that besides achieving the common goal to seize illicit assets from criminals to the subsequent payment of compensation to victims of crime, to fight against organized crime, terrorism and economic crimes, it is important to create an economically viable asset recovery system, preserving their value in the interests of the state, society and victims, as well as ensuring accountability, transparency and public confidence in the system of asset recovery.
Dissertations / Theses on the topic "Financial crime and Authorities"
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Moroga, Denis wangwi. "An appraisal of the Institutional framework under the Kenyan proceeds of crime and Anti-Money laundering act, 2009." University of the Western Cape, 2017. http://hdl.handle.net/11394/6367.
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Department of Criminal Justice and ProcedureMoney laundering (ML) evolves in tandem with global technological advancement. This phenomenon calls for multi-faceted responsive measures at national and international levels to combat this nefarious crime.1 Today, combating ML requires co-operation among, inter alia, financial intelligence units (FIUs), reporting institutions, law enforcement agencies, the judiciary, as well as inter-state co-operation. In response to the ML threat, Kenya has adopted comprehensive anti-money laundering (AML) laws, such as the Proceeds of Crime and Anti- Money Laundering Act No. 9 of 2009 (POCAMLA) and the Prevention of Terrorism Act No. 30 of 2012. These, among other statutes, constitute the principal arsenal of the AML legal framework.
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Gabriel, Amadeus. "The economics of credit rating agencies : how credit rating agencies became financial market authorities." Angers, 2013. http://www.theses.fr/2013ANGE0039.
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Cette thèse porte sur la montée en puissance des agences de notation dans les marchés financiers ainsi que sur leur rôle dans la crise financière actuelle. L'enjeu est d'étudier les conditions d'une telle situation établies par les gouvernements, que constituent non seulement les licences réglementaires accordées aux agences de notations, mais aussi l'augmentation significative du volume des titres de dettes nécessitant une notation. Ainsi, les agences de notation sont devenues des autorités du marché financier. Des instances régulatrices au niveau local et mondial ont créé des incitations à l'achat de la dette ouveraine, soit de manière directe soit par le biais des notations. La règlementation financière a incité les banques à détenir un volume considérable de dette ayant obtenu une notation élevée, c'est-à-dire la dette souveraine, et ce jusqu'à la naissance de la finance structurée. Ces conditions ont permis au secteur bancaire de s'agrandir de manière significative en réduisant ses capitaux propres, et aux Etats souverains de se refinancer à des taux favorables malgré l'endettement considérable. Toutefois, le déterminant principal reste la politique monétaire. L'existence des banques à réserves fractionnaires ainsi que l'utilisation du papier-monnaie à l'échelle mondiale depuis les années 1970 ont renforcé l'aléa moral et la prise de risque excessive au sein des marchés financiers. En prenant en compte ces facteurs, cette thèse identifie le rôle des agences de notation dans la crise financière actuelle et présente des implications pratiques pour l'industrie de la notation basées sur les résultats de cet ouvrageThis thesis explores the question of how credit rating agencies became financial market authorities and studies subsequently their contribution to the current financial crisis. The prerequisites for the growth of the credit rating industry have been set by government officials. Governments and similar institutions not only attributed ''regulatory'' licenses to credit rating agencies, thereby creating an income guarantee, but they are also the most important driver of the explosion in securities which require a rating. Credit rating agencies became financial market authorities because governments and policy-makers were in favor of it. International and domestic regulatory authorities created incentives to purchase sovereign debt, either directly or indirectly via the use of credit ratings. Financial regulations incentivized banks to hold large amounts of highly rated debts, i. E. Government obligations until the occurrence of structured finance. These conditions significantly reduced the cost of debt for the banking sector through lower equity and provided more favorable refinancing costs for governments despite their high debt levels. However, the main reason for the financial fragility is monetary policy. Fractional-reserve banking and fiat money at a global scale since the 1970s increased moral hazard and excessive risk-taking in financial markets. Taking these factors into account, this thesis studies the role of credit rating agencies in the current financial crisis and sketches practical implications for the rating industry based on the findings of the work at hand
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Brindar, Helan, and Anita Franjicevic. "Myndigheternas syn på revisorns ansvar i att upptäcka bedrägerier Ur Ekobrottsmyndighetens och Skatteverkets perspektiv." Thesis, Högskolan i Skövde, Institutionen för handel och företagande, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:his:diva-20056.
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Background: Previous research has shown that an expectation gap exists between the public and auditors. It has also shown that there is a strong link between the expectation gap and in detecting fraud. Like the public's expectations, there is an imbalance between the authorities and auditors' expectations of the auditor's role. They expect more from the auditors than the auditors think they can provide. This leads to disagreement between the parties. When the auditor has expectations that do not correspond to what the auditor considers to be their role, they end up in a role conflict. The authorities' interest in using the auditor as a law enforcement actor can be a contributing factor to the expectation gap, as the legislation lacks clear guidance and it creates scope for authorities to formulate their own expectations. Based on all of the above, it is interesting to investigate how the Swedish Tax Agency and the economic crime authority view the auditor's responsibility in detecting fraud. Questions: How do authorities view the auditor’s responsibility in detecting fraud? Purpose: The purpose of the essay is to investigate how Ekobrottsmyndigheten (the economic crime authority) and Skatteverket (the swedish tax agency) view the auditor’s responsibility in detecting fraud. The intention is to explain and describe what expectations these authorities have of the auditor in detecting fraud. Method: A qualitative method has been applied in this essay where data collection happened through five semi-structured interviews with people from a certain authority. A strategic selection was made where informants were chosen due to their specific workplace, which is either the Economic Crime Authority or the Swedish Tax Agency. Results and conclusion: The results show that the authorities look at the auditor's role according to legislation, thus no expectation gap arises. The authorities do not expect the auditor to actively seek or look for financial crime or be held liable for financial scandals without cause. On the other hand, the authorities consider that the auditor is an important player in reducing financial crime and expect the auditor to fulfill his reporting obligation when fraud is discovered.Bakgrund: Tidigare forskning har visat på att ett förväntningsgap existerar mellan allmänheten och revisorer. Det har även visat att ett starkt samband finns mellan förväntningsgapet och i att upptäcka bedrägerier. Likt allmänhetens förväntningar finns det en obalans mellan myndigheterna och revisorer förväntningar på revisorns roll. De förväntar sig mer från revisorerna än revisorerna tror de kan tillhandahålla. Detta leder till oenighet mellan parterna. När revisorn har förväntningar som inte stämmer överens med vad revisorn anser är deras roll hamnar de i en rollkonflikt. Myndigheterna intresse i att använda revisorn som brottsbekämpande aktör kan vara en bidragande faktor till förväntningsgapet eftersom lagstiftningen saknar tydlig vägledning och det skapar utrymme för myndigheter att formulera egna förväntningar. Med utgångspunkt av ovanstående är det intressant att utreda hur Skatteverket och Ekobrottsmyndigheten ser på revisorns ansvar i att upptäcka bedrägerier. Problemformulering: Hur ser myndigheter på revisorns ansvar i att upptäcka bedrägerier? Syfte: Syftet med uppsatsen är att utreda hur Ekobrottsmyndigheten och Skatteverket, ser på revisorns ansvar i att upptäcka bedrägerier. Avsikten är att förklara och beskriva vilka förväntningar dessa myndigheter har på revisorn i att upptäcka bedrägerier. Metod: En kvalitativ metod har tillämpats i denna uppsats där datainsamlingen har skett genom semistrukturerade intervjuer med fem personer från myndigheter. Ett strategiskt urval gjordes där informanterna valdes med anledning av deras specifika arbetsplats, vilket är antingen Ekobrottsmyndigheten eller Skatteverket. Resultat och slutsats: Resultatet visar att myndigheterna ser på revisorn roll enligt lagstiftning därmed uppstår inte förväntningsgap. Myndigheterna förväntar sig inte att revisorn aktivt ska söka eller leta efter ekonomisk brottslighet eller hållas ansvariga för finansiella skandaler utan grund. Däremot anser myndigheterna att revisorn är en viktig aktör i att minska ekonomisk brottslighet och förväntar sig att revisorn uppfyller sin anmälningsskyldighet när bedrägerier upptäcks.
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Aziz, Asmah Abdul. "Financial reporting by Scottish local authorities." Thesis, University of Aberdeen, 2000. http://digitool.abdn.ac.uk/R?func=search-advanced-go&find_code1=WSN&request1=AAIU603192.
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This research examines financial reporting by Scottish local authorities. Two particular aspects have been examined, namely audit lags and audit incidents. 65 local authorities were examined for the period 1989/90 until 1995/96. This period is classified as the pre-reorganisation period. Then the research continued by analysing audit lags and audit incidents for the 32 new postreorganisation local authorities for 1996/97 and 1997/98. The researcher used Luder's (1992) contingency model of public sector accounting innovations as a framework to analyse the stimuli for financial reporting changes in the Scottish local authorities. The effect of audit qualifications appears not to be a strong stimulus for the local authorities to improve financial reporting. The discussion on audit lags was divided into pre-reorganisation and postreorganisation periods. In addition, the ten local authorities in the Grampian and Tayside regional areas were studied for an additional 14 years. The results indicated that there was a persistent pattern among the local authorities in Scotland. The good performers were always good and the poor performers were always poor. Authorities like Angus DC managed to get an audit lag of around 4 months, while some local authorities took more than two years. Thus it is not impossible to get the accounts certified within four months. Audit incidents were classified into two categories, that is Audit Qualifications (AQ) and Comments Short of Audit Qualification (CSAQ). The performance among authorities varies tremendously. While some regional councils obtained very few audit incidents, some have many. Likewise some district councils have many and some have none. Islands appear to have more audit incidents. As proven by some authorities, getting a clean report is not impossible. Therefore it is important for local authorities to emphasise improving the audit lags and improving the quality of the accounts to obtain a clean report every year. Lengthy audit lag reflects inefficiency in management. This not only suggests weak internal control but also indicates that financial reporting is considered as a low priority task. Numerous audit incidents seem to signal that local authorities have not complied with all the rules and regulations. Repeated audit incidents imply that they were not serious in rectifying the situation. Reorganisation appears to disturb the ranking of the councils resulting in much longer audit lags in the last year of the abolished councils and the first two years after reorganisation. Thus, reorganisation contributes to longer audit lags and leads to numerous audit incidents, especially for 'limitation in audit scope'. Undoubtedly, Scottish local authorities should improve their financial reporting and their accountability to the public.
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Ahlm, Kristoffer. "IDENTIFIKATION AV RISKINDIKATORER I FINANSIELL INFORMATION MED HJÄLP AV AI/ML : Ökade möjligheter för myndigheter att förebygga ekonomisk brottslighet." Thesis, Umeå universitet, Institutionen för matematik och matematisk statistik, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184818.
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Ekonomisk brottslighet är mer lukrativt jämfört med annan brottslighet som narkotika, häleri och människohandel. Tidiga åtgärder som försvårar att kriminella kan använda företag för brottsliga syften gör att stora kostnader för samhället kan undvikas. En genomgång av litteraturen visade också att det finns stora brister i samarbetet mellan svenska myndigheter för att upptäcka grov ekonomisk brottslighet. Idag uppdagas brotten först ofta efter att en konkurs inletts. I studier har maskininlärningsmodeller prövats för att kunna upptäcka ekonomisk brottslighet och några svenska myndigheter använder maskininlärningsmodeller för att upptäcka brott men mer avancerade metoder används idag av danska myndigheter. Bolagsverket har idag ett omfattande register för bolag i Sverige och denna studie syftar till att undersöka om maskininlärning kan användas för att identifiera misstänkta bolag, genom att använda digitalt inlämnade årsredovisningar och information ur bolagsverkets register för att kunna träna klassificeringsmodeller att identifiera misstänkta bolag. För att träna modellen så har stämningsansökningar inhämtats från Ekobrottsmyndigheten som kunnat kopplas till specifika bolag av de inlämnade årsredovisningar. Principalkomponentanalys används för att visuellt visa på skillnader mellan grupperna misstänkta och icke misstänkta bolag och analyserna visade på ett överlapp mellan grupperna och ingen tydlig klustring av grupperna. Data var obalanserat med 38 misstänkta bolag av totalt 1009 bolag och därför användes översamplingstekniken SMOTE för att skapa mer syntetiskt data och för att öka antalet i gruppen misstänkta. Två maskininlärningsmodeller Random Forest och Stödvektormaskin (SVM) jämfördes i en 10 fold korsvalidering. Där båda uppvisade en recall på runt 0.91 men där Random Forest hade en mycket högre precision och med högre accuracy. Random Forest valdes och tränades på nytt och uppvisades en recall på 0.75 när den testades på osett data bestående av 8 misstänkta av 202 bolag. Ett sänkt tröskelvärde resulterade i en högre recall men med en större antal felklassificerade bolag. Studien visar tydligt problemet med obalans i data och de utmaningar man ställs inför med mindre data. Ett större data hade möjligjort ett strängare urval på brottstyper som hade kunnat ge en mer robust modell som skulle kunna användas av bolagsverket för att lättare kunna identifiera misstänkta bolag i deras register.Economic crimes are more lucrative compared to other crimes as drugs, selling of stolen gods, trafficing. Early preventions that make it more difficult for criminals to use companies for criminal purposes can reduce large costs for sociaty. A litterature study showed that there are large weaknesses in the collaboration between Swedish authorities to detect serious economic crimes.Today most crimes among companies that commit fraud are found after a company has declared bancruptcy. In studies, machine learning models have been tested to detect economic crimes and some swedish authorites are now using machine learning methods to detect different crimes and more advanced methods are used by the danish authorites. Bolagsverket has a large register of companies in Sweden and the aim of this study is to investigate if machinelearning can be used to detect on annual reports that have been digitaly submited and information in Bolagsverket’s register to be able to train classificationsmodels and identify companies that are suspicious. To be able to train the model lawsuits have been collected from the Swedish Economic Crime Authority that can be connected to specific companies through their digitally submited annual report. Principal component analysis is used to visually show differences between the groups suspect companies and not suspected companies and the analysis show that there is an overlap between the groups and no clear clustering between the groups. Because the dataset was unbalanced with 38 suspicious companies out of 1009 companies the oversampling tecnique SMOTE was used to create more synthethic data and more suspects in the dataset. The two machinelearnings models Random Forest and support vector machine (SVM) was compared in a 10 fold crossvalidation. Both models showed a recall on around 0.91 but Random Forest had a much higher precision with a higher accuracy. Random Forest was chosen and was trained again and showed a recall on 0.75 when it was tested on unseen data with 8 suspects out of 202 companies. Lowering the treshold resulted in a higher recall but with a larger portion of wrongly classfied companies. The study shows clearly the problem with an unbalanced dataset and the challanges with a small dataset. A larger dataset could have made it possible to make a more selective selection of certain crimes that could have resulted in a more robust model that could be used by Bolagsverket to easier identify suspicous companies in their register.
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Herbert, Daniel. "Financial reporting by local authorities in England and Wales : linking accounting and accountability." Thesis, University of Birmingham, 2005. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.423622.
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Lee, Pei Shyuan. "A financial crime analysis methodology for financial discussion boards using information extraction techniques." Thesis, Manchester Metropolitan University, 2018. http://e-space.mmu.ac.uk/622189/.
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Financial discussion boards (FDBs) have been widely used for a variety of financial knowledge exchange activities through the posting of comments. Popular public FDBs are prone to be used as a medium for spreading misleading financial information due to having larger audience groups. Moderation of posted content heavily relies on manual tasks. Unfortunately, the daily comments volume received on popular FDBs realistically prevents human moderators or relevant authorities from proactively monitoring and moderating possibly fraudulent FDB content as it is extremely time-consuming and expensive to manually read all the content. This thesis presents a financial crime analysis methodology (which is comprised of novel forward analysis and novel backward analysis methodologies) implemented in a template-based Information Extraction (IE) prototype system, namely FDBs Miner (FDBM). The methodologies aim to detect potentially illegal Pump and Dump (P&D) activities on FDBs with the integration of per minute share prices in the detection process. This integration can reduce false positives during the detection as it categorises the potentially illegal comments into different risk levels for investigation purposes. P&D is a well-known financial crime that happens through different methods including FDBs. P&D happens when fraudsters deceive investors into buying stocks by spreading misleading information. FDBM extracts a company's ticker symbol (i.e. a unique symbol that represents and identifies each listed company on the stock market), comments and share prices from FDBs based in the UK for experimental purposes. Results from both forward and backward analysis experiments show that the two novel methodologies can aid relevant authorities in the detection of potentially illegal activities on FDBs. Semantic Textual Similarity (STS) experiments have also shown that the approach could be adopted in the process of detecting potentially illegal activities on FDBs.
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Pereira, Catarina dos Santos. "Retrato do ofensor de violência conjugal na perspetiva da vítima." Bachelor's thesis, [s.n.], 2018. http://hdl.handle.net/10284/6863.
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Projeto de Graduação apresentado à Universidade Fernando Pessoa como parte dos requisitos para obtenção do grau de Licenciada em CriminologiaA violência conjugal é um fenómeno cada vez mais presente nos dias de hoje. Este tipo de violência foi considerado um problema íntimo e privado do casal, durante muitas décadas, isto porque as agressões ocorriam normalmente dentro da habitação familiar. Todas as formas de violência deveriam ser inaceitáveis, em qualquer comunidade e em qualquer cultura, posto isto, como este é um problema alarmante e ainda há um grande desconhecimento por parte da população em geral, é necessário aprofundar esta temática. O presente estudo tem como objetivo reunir semelhanças descritas pela vítima em relação ao ofensor e assim construir um perfil que o tipifique. Para tal, recorreu-se ao uso do inquérito por questionário e à entrevista para alcançar o objetivo do estudo. Espera-se que com a implementação deste projeto, seja possível ajudar de alguma forma a diminuir a ocorrência deste fenómeno.
Marital violence is a phenomenon that is increasingly present today. This type of violence was considered an intimate and private issue of the couple, for many decades, because aggressions usually occurred within the family home. All forms of violence against people should be unacceptable, in any community and in any culture but as this is an alarming problem and still there is a lack of knowledge by the population in general it is necessary to deepen this theme. The objective of this study is to gather similarities described by the victim in relation to the offender and then build a profile that typifies them. To do so, it was used the questionnaire survey and an interview to reach the study objective. It is hoped that with the implementation of this project it will be possible to help in some way to reduce the occurrence of this phenomenon.
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Aldama-Navarrete, David. "Essays in Banking and Crime:." Thesis, Boston College, 2020. http://hdl.handle.net/2345/bc-ir:108942.
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Thesis advisor: Philip E. StrahanThis dissertation consists of two essays which explore the interface between retail banks and organized criminality. In the first of these, “Dark Banking? Banks and Illicit Financial Flows from the Mexican Drug Trade,” I explore why banks provide financial services to organized-crime syndicates. I also ask whether there is a role for regulation in insulating finance from criminal activity. I address these questions using evidence from the drug trade in Mexico, finding that local drug cartel activity causes an increase in bank deposits, and branch networks grow in affected areas. After the election of a “law-and-order” government, these effects dissipate, with liquidity flowing into branches of U.S. banks along the border. In the second essay, “Bank Branch Networks, Banking Relationships, and Organized Crime,” I explore if banks develop relationships with criminal organizations, exploiting spatial variation in cartel activity, again using Mexico as an empirical laboratory. I test whether banks with prior exposure to criminal activity are more likely to enter areas where cartels operate, as well as whether previous exposure to specific cartels predicts entry into banking markets where said cartels have entered. Results suggest that certain banks do establish these relationships. Bank characteristics that have significant effects on differential behavior regarding collusion with organized criminal organizations are domestic majority equity ownership and bank size
Thesis (PhD) — Boston College, 2020
Submitted to: Boston College. Carroll School of Management
Discipline: Finance
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Parry, T. W. "Local authorities' use of coal : Financial, technical and attitudinal factors affecting the selection of coal as a space heating fuel in Local Authorities' non-domestic premises." Thesis, University of Bradford, 1987. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.379890.
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This research investigates financial, technical and attitudinal factors affectine the selection of coai as a space heating fuel in Local Authorities' non-domestic premises. Financial factors are explored by incorporating statistics of a sample of The City of Bradford Metropolitan Council's sites into a computer model that takes into account: the spread of capital costs of installing coal or other fuels. delivered fuel costs. maintenance and operating costs. and seasonal boiler efficiencies. The sensitivity of the mooei to changes in costs. boiler efficiencies. and financial selection criteria are investigated. Assuming a five year payback criterion and prices as found at the end of 1966, three percent of the space-heating ruel use or the Local Authority's premises is found to be viable for coal. The model is sensitive principally to changes in capital costs. and the availability of gas if a high cost for oit is assumed. Technical tactors are investigated by describing the properties or coal ana available comoustion equipment. Attitudes to the use of coal are researched by interviewing a sample of otticers and members in six Local Authorities in Yorksnire ana Humberside. Interviewees were particularly encouraged to describe their impressions and beliels. The scope of the study is expanded by the use of a postal survey of all United Kingdom Local Authorities. A variety or different topics are considered in the survey. These include the presence and content of fuel selection policies. the use and cost of fuels. financial criteria adopted in assessing projects, availability fr as supplies, and attitudes to the use of coal. The response rate to the questionnaire was over 40%. The study concludes with recommendations to The City or Braotora Metropolitan Council and British Coal.
Books on the topic "Financial crime and Authorities"
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Luchtman, Michiel. European cooperation between financial supervisory authorities, tax authorities and judicial authorities. [Antwerp, Belgium]: Intersentia, 2008.
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European cooperation between financial supervisory authorities, tax authorities and judicial authorities. [Antwerp, Belgium]: Intersentia, 2008.
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National Association of Health Authorities and Trusts. Financial survey of District Health Authorities. Birmingham: NAHAT., 1993.
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Achim, Monica Violeta, and Sorin Nicolae Borlea. Economic and Financial Crime. Cham: Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-51780-9.
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Cheng, Hongming. Financial Crime in China. New York: Palgrave Macmillan US, 2016. http://dx.doi.org/10.1057/9781137571069.
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Vaknin, Shmuel (Sam). Corruption and Financial Crime. Skopje: Narcissus Publications, 2007.
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Kilgour, Linda. Financial reporting by local authorities in Scotland. [s.l.]: [s.n.], 1987.
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John, Grimes. Format of financial reporting to health authorities. London: HFM/CIPFA, 1988.
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Irvine, Lapsley, ed. Financial reporting by local authorities in Scotland. Edinburgh: Institute of Chartered Accountants of Scotland, 1988.
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Kelly, G. Financial resources for local and regional authorities. Strasbourg: Council of Europe, 1985.
Find full textBook chapters on the topic "Financial crime and Authorities"
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Cameron, Robert. "Central–Local Financial Relations in South Africa." In Regulating Local Authorities, 113–34. London: Routledge, 2021. http://dx.doi.org/10.4324/9781315039350-7.
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Bain, Keith, and Peter Howells. "The monetary authorities and financial markets." In Monetary Economics, 271–96. London: Macmillan Education UK, 2009. http://dx.doi.org/10.1007/978-1-137-01342-2_9.
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Salim, Rhonson. "Brexit and financial crime." In Financial Crime and Corporate Misconduct, 118–32. Abingdon, Oxon [UK] ; New York, NY : Routledge,: Routledge, 2018. http://dx.doi.org/10.4324/9781315150642-9.
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Houben, Robby, and Alexander Snyers. "Cryptoassets and financial crime." In The Routledge Handbook of FinTech, 163–89. Abingdon, Oxon ; New York, NY : Routledge, 2021. | Series: Routledge international handbooks: Routledge, 2021. http://dx.doi.org/10.4324/9780429292903-13.
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Gottschalk, Petter. "Convenient Financial Motive." In CEOs and White-Collar Crime, 85–94. Cham: Springer International Publishing, 2017. http://dx.doi.org/10.1007/978-3-319-55935-3_4.
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Gaudard, Gaston. "Transnationalization and Global Financial Equilibrium." In Bankers’ and Public Authorities’ Management of Risks, 233–41. London: Palgrave Macmillan UK, 1990. http://dx.doi.org/10.1007/978-1-349-10980-7_18.
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Cheng, Hongming. "The Financial System in China: Financial Sectors, State Influences, and Opportunities for Crime." In Financial Crime in China, 1–19. New York: Palgrave Macmillan US, 2016. http://dx.doi.org/10.1057/9781137571069_1.
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Cheng, Hongming. "The Upper World." In Financial Crime in China, 21–41. New York: Palgrave Macmillan US, 2016. http://dx.doi.org/10.1057/9781137571069_2.
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Cheng, Hongming. "Bank Fraud." In Financial Crime in China, 43–56. New York: Palgrave Macmillan US, 2016. http://dx.doi.org/10.1057/9781137571069_3.
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Cheng, Hongming. "Securities Fraud." In Financial Crime in China, 57–81. New York: Palgrave Macmillan US, 2016. http://dx.doi.org/10.1057/9781137571069_4.
Full textConference papers on the topic "Financial crime and Authorities"
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Li, Yanli. "Research on Crime Prevention Based on the Economics of Crime." In 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021). Paris, France: Atlantis Press, 2021. http://dx.doi.org/10.2991/aebmr.k.210319.031.
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Atan, Ruhaya, Suryani Abdul Raman, Mohd Sahar Sawiran, Nafsiah Mohamed, and Rasid Mail. "Financial performance of Malaysian local authorities: A trend analysis." In 2010 International Conference on Science and Social Research (CSSR). IEEE, 2010. http://dx.doi.org/10.1109/cssr.2010.5773782.
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Mohamed, Nafsiah, Mohd Hairy Mohd Yusof, and Rozaiha Ab Majid. "The Presentation Formats of Malaysian Local Authorities� Financial Statements." In 2013 International Conference on Advanced Computer Science and Electronics Information. Paris, France: Atlantis Press, 2013. http://dx.doi.org/10.2991/icacsei.2013.110.
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Wang, Juan, and Jiao Chen. "Preventing Financial Illegality and Crime by Using Internet Technology." In 2019 3rd International Conference on Data Science and Business Analytics (ICDSBA). IEEE, 2019. http://dx.doi.org/10.1109/icdsba48748.2019.00050.
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Didimo, Walter, Giuseppe Liotta, Fabrizio Montecchiani, and Pietro Palladino. "An advanced network visualization system for financial crime detection." In 2011 IEEE Pacific Visualization Symposium (PacificVis). IEEE, 2011. http://dx.doi.org/10.1109/pacificvis.2011.5742391.
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Saleem, Muntaha. "Live Video Streaming Application with Geo- Tagging to alert authorities about an on-going crime." In 2019 International Symposium on Networks, Computers and Communications (ISNCC). IEEE, 2019. http://dx.doi.org/10.1109/isncc.2019.8909161.
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Kariuki, Evanson, Amos Gichamba, and Kendi Muchungi. "Mobile subscribers vulnerability to financial crime over the SMS platform." In 2017 IST-Africa Week Conference (IST-Africa). IEEE, 2017. http://dx.doi.org/10.23919/istafrica.2017.8102312.
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Sonmez, Yesim Ulgen, and Asaf Varol. "Review of illegal betting as financial crime in web forensics." In 2018 6th International Symposium on Digital Forensic and Security (ISDFS). IEEE, 2018. http://dx.doi.org/10.1109/isdfs.2018.8355387.
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Scheidat, Tobias, Ronny Merkel, Andreas Gerlach, Volker Krummel, Michala Weisensee, Jana Zeihe, and Jana Dittmann. "On the application of semantic technologies to the domain of forensic investigations in financial crimes." In Counterterrorism, Crime Fighting, Forensics, and Surveillance, edited by Henri Bouma, Felicity Carlysle-Davies, Robert J. Stokes, and Yitzhak Yitzhaky. SPIE, 2017. http://dx.doi.org/10.1117/12.2277695.
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"FINANCIAL AND LEGAL LIABILITY IN THE CUSTOMS AUTHORITIES OF THE RUSSIAN FEDERATION." In Russian science: actual researches and developments. Samara State University of Economics, 2019. http://dx.doi.org/10.46554/russian.science-2019.10-2-446/449.
Full textReports on the topic "Financial crime and Authorities"
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Krasinsky, Vladislav. Organized crime in the elections and in the Russian authorities. LJournal, 2017. http://dx.doi.org/10.18411/a-2018-020.
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Phillips, David, and Kate Ogden. The financial risk and resilience of English local authorities in the coronavirus crisis. Institute for Fiscal Studies, June 2020. http://dx.doi.org/10.1920/bn.ifs.2020.bn0296.
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León-Rincón, Carlos Eduardo, Clara Lía Machado-Franco, Freddy Hernán Cepeda-López, and Miguel Sarmiento. Too-connected-to-fail institutions and payments system's stability: assessing challenges for financial authorities. Bogotá, Colombia: Banco de la República, March 2011. http://dx.doi.org/10.32468/be.644.
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Cedergren, Elin, Diana Huynh, Michael Kull, John Moodie, Hjördís Rut Sigurjónsdóttir, and Mari Wøien Meijer. Public service delivery in the Nordic Region: An exercise in collaborative governance. Nordregio, February 2021. http://dx.doi.org/10.6027/r2021:4.1403-2503.
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Nordic welfare states are world renowned for providing high quality public services. Nordic municipal and regional authorities, in particular, play a central role in the delivery of key public services in areas, such as, health, education, and social care. However, in recent years, public authorities have faced several challenges which have reduced capacity and resources, including long periods of austerity following the 2008 financial crash, rapid demographic changes caused by an ageing population, and the COVID-19 health crisis. In response to these challenges many public authorities have looked to inter-regional, inter-municipal and cross-border collaborations to improve the quality and effectiveness of public service delivery (OECD 2017; ESPON 2019). Indeed, collaborative public service delivery is becoming increasingly prominent in the Nordic Region due to a highly decentralized systems of governance (Nordregio 20015; Eythorsson 2018).
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Gamba-Santamaria, Santiago, Luis Fernando Melo-Velandia, and Camilo Orozco-Vanegas. What can credit vintages tell us about non-performing loans? Banco de la República de Colombia, February 2021. http://dx.doi.org/10.32468/be.1154.
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Using Colombian credit vintage data, we decompose the non-performing loans into one component that captures the evolution of the payment capacity of borrowers, and other component that captures changes in the credit risk taken by the financial system at the time of loan disbursement. We use intrinsic estimators and penalized regression techniques to overcome the perfect multicollinearity problem that the model entails. We find that these two type of components have evolved differently over time, and that good economic conditions and loose financial conditions improve the payment capacity of borrowers to meet their obligations, and in turn, they tend to coincide with the financial system engaging in riskier loans. Finally, we advocate the use of this methodology as a policy tool that is easy to apply by financial and economic authorities that dispose of a constant flow of credit vintage information. Through it, they will be able to identify the origin of the credit risk materialization and curb the risk taken by the financial system.
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Carrasquilla-Barrera, Alberto, Arturo José Galindo-Andrade, Gerardo Hernández-Correa, Ana Fernanda Maiguashca-Olano, Carolina Soto, Roberto Steiner-Sampedro, and Juan José Echavarría-Soto. Report of the Board of Directors to the Congress of Colombia - July 2020. Banco de la República de Colombia, February 2021. http://dx.doi.org/10.32468/inf-jun-dir-con-rep-eng.07-2020.
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In Colombia, as well as in the rest of the world, the Covid-19 pandemic has seriously damaged the health and well-being of the people. In order to limit the damage, local and national authorities have had to order large sectors of the population to be confined at their homes for long periods of time. An inevitable consequence of isolation has been the collapse of economic activity, expenditure, and employment, a phenomenon that has hit many countries of the world affected by the disease. It is an unprecedented crisis in modern times, not so much for its intensity (which is undoubtedly immense), but because its origin is not economic. That is what makes it so unpredictable and difficult to manage. Naturally, its economic consequences are enormous. Governments and central banks from all over the world are struggling to mitigate them, but the final solution is not in the hands of the economic authorities. Only science can provide a way out. In the meantime, the economic indicators in Colombia and in the rest of the world cause concern. The output falls, the massive loss of jobs, and the closure of businesses of all sizes have become daily news. Added to this, there is the deterioration in global financial conditions and the increase in the risk indicators. Financial volatility has increased and stock indexes have fallen. In the face of the lower global demand, export prices of raw materials have fallen, affecting the terms of trade for producing countries. Workers’ remittances have declined due to the increase of unemployment in developed countries. This crisis has also generated a strong reduction of global trade of goods and services, and effects on the global value chains. Central banks around the world have reacted decisively and quickly with strong liquidity injections and significant cuts to their interest rates. By mid-July, such determined response had succeeded to revert much of the initial deterioration in global financial conditions. The stock exchanges stopped their fall, and showed significant recovery in several countries. Risk premia, which at the beginning of the crisis took an unusual leap, recorded substantial corrections. Something similar happened with the volatility indexes of global financial markets, which exhibited significant improvement. Flexibilization of confinement measures in some economies, broad global liquidity, and fiscal policy measures have also contributed to improve global external financial conditions, albeit with indicators that still do not return to their pre-Covid levels.
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Megersa, Kelbesa. Tax Transparency for an Effective Tax System. Institute of Development Studies (IDS), January 2021. http://dx.doi.org/10.19088/k4d.2021.070.
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This rapid review examines evidence on the transparency in the tax system and its benefits; e.g. rising revenue, strengthen citizen/state relationship, and rule of law. Improvements in tax transparency can help in strengthening public finances in developing countries that are adversely affected by COVID-19. The current context (i.e. a global pandemic, widespread economic slowdown/recessions, and declining tax revenues) engenders the urgency of improving domestic resource mobilisation (DRM) and the fight against illicit financial flows (IFFs). Even before the advent of COVID-19, developing countries’ tax systems were facing several challenges, including weak tax administrations, low taxpayer morale and “hard-to-tax” sectors. The presence of informational asymmetry (i.e. low tax transparency) between taxpayers and tax authorities generates loopholes for abuse of the tax system. It allows the hiding of wealth abroad with a limited risk of being caught. Cases of such behaviour that are exposed without proper penalty may result in a decline in the morale of citizens and a lower level of voluntary compliance with tax legislation. A number of high-profile tax leaks and scandals have undermined public confidence in the fairness of tax systems and generated a strong demand for effective counteraction and tax transparency. One of the key contributing factors to lower tax revenues in developing countries (that is linked to low tax transparency) is a high level of IFFs. These flows, including international tax evasion and the laundering of corruption proceeds, build a major obstacle to successful DRM efforts. Research has also identified an association between organisational transparency (e.g. transparency by businesses and tax authorities) and stakeholder trust (e.g. between citizens and the state). However, the evidence is mixed as to how transparency in particular influences trust and perceptions of trustworthiness.
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Financial Stability Report - Second Semester of 2020. Banco de la República de Colombia, March 2021. http://dx.doi.org/10.32468/rept-estab-fin.sem2.eng-2020.
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The Colombian financial system has not suffered major structural disruptions during these months of deep economic contraction and has continued to carry out its basic functions as usual, thus facilitating the economy's response to extreme conditions. This is the result of the soundness of financial institutions at the beginning of the crisis, which was reflected in high liquidity and capital adequacy indicators as well as in the timely response of various authorities. Banco de la República lowered its policy interest rates 250 points to 1.75%, the lowest level since the creation of the new independent bank in 1991, and provided ample temporary and permanent liquidity in both pesos and foreign currency. The Office of the Financial Superintendent of Colombia, in turn, adopted prudential measures to facilitate changes in the conditions for loans in effect and temporary rules for rating and loan-loss provisions. Finally, the national government expanded the transfers as well as the guaranteed credit programs for the economy. The supply of real credit (i.e. discounting inflation) in the economy is 4% higher today than it was 12 months ago with especially marked growth in the housing (5.6%) and commercial (4.7%) loan portfolios (2.3% in consumer and -0.1% in microloans), but there have been significant changes over time. During the first few months of the quarantine, firms increased their demands for liquidity sharply while consumers reduced theirs. Since then, the growth of credit to firms has tended to slow down, while consumer and housing credit has grown. The financial system has responded satisfactorily to the changes in the respective demands of each group or sector and loans may grow at high rates in 2021 if GDP grows at rates close to 4.6% as the technical staff at the Bank expects; but the forecasts are highly uncertain. After the strict quarantine implemented by authorities in Colombia, the turmoil seen in March and early April, which was evident in the sudden reddening of macroeconomic variables on the risk heatmap in Graph A,[1] and the drop in crude oil and coal prices (note the high volatility registered in market risk for the region on Graph A) the local financial markets stabilized relatively quickly. Banco de la República’s credible and sustained policy response played a decisive role in this stabilization in terms of liquidity provision through a sharp expansion of repo operations (and changes in amounts, terms, counterparties, and eligible instruments), the purchases of public and private debt, and the reduction in bank reserve requirements. In this respect, there is now abundant aggregate liquidity and significant improvements in the liquidity position of investment funds. In this context, the main vulnerability factor for financial stability in the short term is still the high degree of uncertainty surrounding loan quality. First, the future trajectory of the number of people infected and deceased by the virus and the possible need for additional health measures is uncertain. For that reason, there is also uncertainty about the path for economic recovery in the short and medium term. Second, the degree to which the current shock will be reflected in loan quality once the risk materializes in banks’ financial statements is uncertain. For the time being, the credit risk heatmap (Graph B) indicates that non-performing and risky loans have not shown major deterioration, but past experience indicates that periods of sharp economic slowdown eventually tend to coincide with rises in non-performing loans: the calculations included in this report suggest that the impact of the recession on credit quality could be significant in the short term. This is particularly worrying since the profitability of credit establishments has been declining in recent months, and this could affect their ability to provide credit to the real sector of the economy. In order to adopt a forward-looking approach to this vulnerability, this Report presents several stress tests that evaluate the resilience of the liquidity and capital adequacy of credit institutions and investment funds in the event of a hypothetical scenario that seeks to simulate an extreme version of current macroeconomic conditions. The results suggest that even though there could be strong impacts on the credit institutions’ volume of credit and profitability under such scenarios, aggregate indicators of total and core capital adequacy will probably remain at levels that are above the regulatory limits over the horizon of a year. At the same time, the exercises highlight the high capacity of the system's liquidity to face adverse scenarios. In compliance with its constitutional objectives and in coordination with the financial system's security network, Banco de la República will continue to closely monitor the outlook for financial stability at this juncture and will make the decisions that are necessary to ensure the proper functioning of the economy, facilitate the flow of sufficient credit and liquidity resources, and further the smooth operation of the payment systems. Juan José Echavarría Governor
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Financial Stability Report - First Semester of 2020. Banco de la República de Colombia, March 2021. http://dx.doi.org/10.32468/rept-estab-fin.1sem.eng-2020.
Full textAbstract:
In the face of the multiple shocks currently experienced by the domestic economy (resulting from the drop in oil prices and the appearance of a global pandemic), the Colombian financial system is in a position of sound solvency and adequate liquidity. At the same time, credit quality has been recovering and the exposure of credit institutions to firms with currency mismatches has declined relative to previous episodes of sudden drops in oil prices. These trends are reflected in the recent fading of red and blue tonalities in the performance and credit risk segments of the risk heatmaps in Graphs A and B.1 Naturally, the sudden, unanticipated change in macroeconomic conditions has caused the appearance of vulnerabilities for short-term financial stability. These vulnerabilities require close and continuous monitoring on the part of economic authorities. The main vulnerability is the response of credit and credit risk to a potential, temporarily extreme macroeconomic situation in the context of: (i) recently increased exposure of some banks to household sector, and (ii) reductions in net interest income that have led to a decline in the profitability of the banking business in the recent past. Furthermore, as a consequence of greater uncertainty and risk aversion, occasional problems may arise in the distribution of liquidity between agents and financial markets. With regards to local markets, spikes have been registered in the volatility of public and private fixed income securities in recent weeks that are consistent with the behavior of the international markets and have had a significant impact on the liquidity of those instruments (red portions in the most recent past of some market risk items on the map in Graph A). In order to adopt a forward-looking approach to those vulnerabilities, this Report presents a stress test that evaluates the resilience of credit institutions in the event of a hypothetical scenario thatseeks to simulate an extreme version of current macroeconomic conditions. The scenario assumes a hypothetical negative growth that is temporarily strong but recovers going into the middle of the coming year and has extreme effects on credit quality. The results suggest that credit institutions have the ability to withstand a significant deterioration in economic conditions in the short term. Even though there could be a strong impact on credit, liquidity, and profitability under the scenario being considered, aggregate capital ratios would probably remain at above their regulatory limits over the horizon of a year. In this context, the recent measures taken by both Banco de la República and the Office of the Financial Superintendent of Colombia that are intended to help preserve the financial stability of the Colombian economy become highly relevant. In compliance with its constitutional objectives and in coordination with the financial system’s security network, Banco de la República will continue to closely monitor the outlook for financial stability at this juncture and will make the decisions that are necessary to ensure the proper functioning of the economy, facilitate the flow of sufficient credit and liquidity resources, and further the smooth functioning of the payment system. Juan José Echavarría Governor
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Payment Systems Report - June of 2020. Banco de la República de Colombia, February 2021. http://dx.doi.org/10.32468/rept-sist-pag.eng.2020.
Full textAbstract:
With its annual Payment Systems Report, Banco de la República offers a complete overview of the infrastructure of Colombia’s financial market. Each edition of the report has four objectives: 1) to publicize a consolidated account of how the figures for payment infrastructures have evolved with respect to both financial assets and goods and services; 2) to summarize the issues that are being debated internationally and are of interest to the industry that provides payment clearing and settlement services; 3) to offer the public an explanation of the ideas and concepts behind retail-value payment processes and the trends in retail payments within the circuit of individuals and companies; and 4) to familiarize the public, the industry, and all other financial authorities with the methodological progress that has been achieved through applied research to analyze the stability of payment systems. This edition introduces changes that have been made in the structure of the report, which are intended to make it easier and more enjoyable to read. The initial sections in this edition, which is the eleventh, contain an analysis of the statistics on the evolution and performance of financial market infrastructures. These are understood as multilateral systems wherein the participating entities clear, settle and register payments, securities, derivatives and other financial assets. The large-value payment system (CUD) saw less momentum in 2019 than it did the year before, mainly because of a decline in the amount of secondary market operations for government bonds, both in cash and sell/buy-backs, which was offset by an increase in operations with collective investment funds (CIFs) and Banco de la República’s operations to increase the money supply (repos). Consequently, the Central Securities Depository (DCV) registered less activity, due to fewer negotiations on the secondary market for public debt. This trend was also observed in the private debt market, as evidenced by the decline in the average amounts cleared and settled through the Central Securities Depository of Colombia (Deceval) and in the value of operations with financial derivatives cleared and settled through the Central Counterparty of Colombia (CRCC). Section three offers a comprehensive look at the market for retail-value payments; that is, transactions made by individuals and companies. During 2019, electronic transfers increased, and payments made with debit and credit cards continued to trend upward. In contrast, payments by check continued to decline, although the average daily value was almost four times the value of debit and credit card purchases. The same section contains the results of the fourth survey on how the use of retail-value payment instruments (for usual payments) is perceived. Conducted at the end of 2019, the main purpose of the survey was to identify the availability of these payment instruments, the public’s preferences for them, and their acceptance by merchants. It is worth noting that cash continues to be the instrument most used by the population for usual monthly payments (88.1% with respect to the number of payments and 87.4% in value). However, its use in terms of value has declined, having registered 89.6% in the 2017 survey. In turn, the level of acceptance by merchants of payment instruments other than cash is 14.1% for debit cards, 13.4% for credit cards, 8.2% for electronic transfers of funds and 1.8% for checks. The main reason for the use of cash is the absence of point-of-sale terminals at commercial establishments. Considering that the retail-payment market worldwide is influenced by constant innovation in payment services, by the modernization of clearing and settlement systems, and by the efforts of regulators to redefine the payment industry for the future, these trends are addressed in the fourth section of the report. There is an account of how innovations in technology-based financial payment services have developed, and it shows that while this topic is not new, it has evolved, particularly in terms of origin and vocation. One of the boxes that accompanies the fourth section deals with certain payment aspects of open banking and international experience in that regard, which has given the customers of a financial entity sovereignty over their data, allowing them, under transparent and secure conditions, to authorize a third party, other than their financial entity, to request information on their accounts with financial entities, thus enabling the third party to offer various financial services or initiate payments. Innovation also has sparked interest among international organizations, central banks, and research groups concerning the creation of digital currencies. Accordingly, the last box deals with the recent international debate on issuance of central bank digital currencies. In terms of the methodological progress that has been made, it is important to underscore the work that has been done on the role of central counterparties (CCPs) in mitigating liquidity and counterparty risk. The fifth section of the report offers an explanation of a document in which the work of CCPs in financial markets is analyzed and corroborated through an exercise that was built around the Central Counterparty of Colombia (CRCC) in the Colombian market for non-delivery peso-dollar forward exchange transactions, using the methodology of network topology. The results provide empirical support for the different theoretical models developed to study the effect of CCPs on financial markets. Finally, the results of research using artificial intelligence with information from the large-value payment system are presented. Based on the payments made among financial institutions in the large-value payment system, a methodology is used to compare different payment networks, as well as to determine which ones can be considered abnormal. The methodology shows signs that indicate when a network moves away from its historical trend, so it can be studied and monitored. A methodology similar to the one applied to classify images is used to make this comparison, the idea being to extract the main characteristics of the networks and use them as a parameter for comparison. Juan José Echavarría Governor