Journal of Financial Crime 

About: Journal of Financial Crime is an academic journal published by Emerald Publishing Limited. The journal publishes majorly in the area(s): Corruption & Money laundering. It has an ISSN identifier of 1359-0790. Over the lifetime, 1329 publications have been published receiving 10834 citations. The journal is also known as: Financial crime.

Corporate financial crime: social diagnosis and treatment

Abstract: Purpose – The purpose of this viewpoint paper is to assist in finding solutions for the growing moral and social issues of financial crime plaguing corporations today.Design/methodology/approach – Methodology includes the synthesis of existing theories in economic sociology and criminology to “diagnose” and “treat” the existing flaws in corporate structures that have led to malaise and malfeasance. Theories include differential association, self‐control, and control balance, taking into consideration the characteristics of individuals and corporate structures.Findings – Findings suggest that corporate structure has to be critically scrutinized and changes implemented, including close examination of informal and formal communication and salary structures.Practical implications – This paper suggests concrete strategies and policy changes for regulators, corporate decision makers, and academics.Originality/value – The synthesis of existing theories in white collar malfeasance and crime provides a template to...

Perceptions of tax fairness and tax compliance in Australia and Hong Kong ‐ a preliminary study

Abstract: Discusses how important perceptions of tax fairness can be in forming tax‐compliant behaviour in various jurisdictions, based on a crosscultural study of Australia and Hong Kong. Defines fairness and its relationship with legitimacy. Describes a tax survey questionnaire administered to business students, which is broken down by demographic data and includes extensive correlations between tax‐fairness perception and tax‐compliance behaviour. Concludes that legitimacy is a crucial normative influence in shaping how fair tax systems are perceived to be and how likely people are to comply with their tax obligations.

The impact of terrorism on financial markets

Abstract: Purpose – The paper seeks to draw lessons for effective policy and regulatory responses to protect financial systems in the face of terrorist attacks.Design/methodology/approach – The paper presents data on the reaction of financial markets to the terrorist attacks in New York (2001) and Madrid (2004). It describes the authorities' crisis management responses and analyses their effectiveness. The paper describes the subsequent regulatory responses to protect the financial systems from abuse by terrorists.Findings – Diversified, liquid, and sound financial markets were efficient in absorbing the shocks of terrorist attacks when supported by well organized crisis management responses.Research limitations/implications – The paper is limited in its coverage to the reaction of the financial markets to the 11 September 2001, terrorist attacks in New York, and 11 March 2004, attacks in Madrid.Practical implications – The paper highlights the importance of effective contingency planning by the authorities and fin...

Corruption and control: A corruption reduction approach

Abstract: Purpose – Corruption is a significant financial crime which is estimated by the World Economic Forum to cost about 5 per cent of global GDP or $2.6 trillion dollars. Explanations of corruption, like explanations of crime, tend to focus on the individuals who commit corruption and the wider conditions which give rise to corrupt behaviour. Approaches designed to reduce corruption usually propose stiffer sanctions, institutional reforms and the passing of new laws. The purpose of this paper is to outline a complementary perspective with which to consider corruption.Design/methodology/approach – Grounded in situational crime prevention and related criminological theory, the paper argues that opportunities in the immediate environment play a causal role in generating corruption. It proposes that corruption can be minimised by removing or reducing opportunities which are conducive to corrupt behaviour. In total, five cases are chosen as illustrative examples of how situational crime prevention might usefully be...

Internal controls and fraud – empirical evidence from oil and gas company

Abstract: Purpose The purpose of this study is to examine the type of internal control weaknesses and its impact that leads to fraud activities in an oil and gas company, which is rarely found in empirical research. Design/methodology/approach A case study approach was taken to investigate and analyse the fraud incidents to the deepest understanding. A mixed method of data collection, specifically document analysis and interviews, was used. Findings The study found that internal control weaknesses can be major contributing factors for fraud to be committed. Poor supervision and improper documentation process provide opportunity to misappropriate the assets, worst off if it includes several people that cooperate to conduct those illegal malpractices. Research limitations/implications The results provide further confirmation of the fraud triangle theory on the causes of the fraud, i.e. opportunity because of weak internal control. It also validates with many prior studies conducted by global professional firms such as KPMG, PricewaterhouseCoopers and Association of Certified Fraud Examiners on fraud and its related causes and implications. This study, however, was conducted on only one company with limited number of interviews. Practical implications This study provides some recommendations to improve weak internal control, which in turn will reduce opportunities of fraud committed in the company. Originality/value This study is original, as it focuses on a company that operates in the highly specialized industry, i.e. oil and gas, which is rare in fraud literature, particularly in developing markets such as Malaysia. It has examined various documents and reports of employee fraud that are generally difficult to be accessed by researchers to be finally published in an academic journal. The findings of this study are inferred from direct access of company documents that are private and confidential.