Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Flexibility is the key to tackling financial crime: New international study edited by Cass Business School financial regulation

20.09.2007
Dr Chizu Nakajima, Director of the Centre for Financial Crime and Regulation at Cass, has edited an international study published in the latest edition of the Journal of The Institute of Economic Affairs (IEA) which shows that flexibility is the key to tackling financial crime.

The study revealed that whilst financial crime is now recognised as a global concern, there are serious dangers in dictating so-called ‘international standards’ to different countries with different cultures and institutions.

For Western economies, the major concern is that the costs of legislation designed to fight financial crime will outweigh the benefits. In Australia, finance industry actors are worried about the associated costs of proposed regulatory reforms and the USA is significantly burdened by the Sarbanes-Oxley Act of 2002.

The research shows that whilst new procedures and controls may help prevent more financial crime in the future, it will always be necessary to balance the effectiveness of government measures with their associated costs. Harmonised and inflexible international standards will arguably make it more difficult for policymakers to adapt to changing local circumstances, with the danger that regulations will become increasingly costly and ineffective.

In South Africa, "international template solutions" were initially applied instead of the country formulating its own responses to the problems concerned. The unintended result of this action was the exclusion of poorer sections of the population from access to financial services. Dr Nakajima said: "a wholesale transplant of foreign measures is destined for failure even though it is often the approach of governments when faced with external pressures."

At the same time it is essential that adequate controls are in place to control serious financial crime in order to ensure the credibility of the financial services industry and government jurisdictions. A study of Jamaica claimed investors who are apprehensive about the integrity of the jurisdiction and its financial markets will lose confidence and simply send their wealth abroad.

Balancing effective financial regulation with cultural issues is particularly important in Islamic regions. The research suggests that Muslim countries currently suffer significant damage as a result of financial crime and corruption. It calls for scholars of Islam to develop their legal system to provide greater recognition of financial crimes and to allow a degree of harmonisation with international agreements in this area.

To download Dr Nakajima's editorial, please visit: http://www.iea.org.uk/record.jsp?type=economicAffairs&ID=331

Dimitra Koutsantoni | alfa
Further information:
http://www.cass.city.ac.uk
http://www.iea.org.uk/record.jsp?type=economicAffairs&ID=331

More articles from Business and Finance:

nachricht Frugal Innovations: when less is more
19.04.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can the immune system be boosted against Staphylococcus aureus by delivery of messenger RNA?

Staphylococcus aureus is a feared pathogen (MRSA, multi-resistant S. aureus) due to frequent resistances against many antibiotics, especially in hospital infections. Researchers at the Paul-Ehrlich-Institut have identified immunological processes that prevent a successful immune response directed against the pathogenic agent. The delivery of bacterial proteins with RNA adjuvant or messenger RNA (mRNA) into immune cells allows the re-direction of the immune response towards an active defense against S. aureus. This could be of significant importance for the development of an effective vaccine. PLOS Pathogens has published these research results online on 25 May 2017.

Staphylococcus aureus (S. aureus) is a bacterium that colonizes by far more than half of the skin and the mucosa of adults, usually without causing infections....

Im Focus: A quantum walk of photons

Physicists from the University of Würzburg are capable of generating identical looking single light particles at the push of a button. Two new studies now demonstrate the potential this method holds.

The quantum computer has fuelled the imagination of scientists for decades: It is based on fundamentally different phenomena than a conventional computer....

Im Focus: Turmoil in sluggish electrons’ existence

An international team of physicists has monitored the scattering behaviour of electrons in a non-conducting material in real-time. Their insights could be beneficial for radiotherapy.

We can refer to electrons in non-conducting materials as ‘sluggish’. Typically, they remain fixed in a location, deep inside an atomic composite. It is hence...

Im Focus: Wafer-thin Magnetic Materials Developed for Future Quantum Technologies

Two-dimensional magnetic structures are regarded as a promising material for new types of data storage, since the magnetic properties of individual molecular building blocks can be investigated and modified. For the first time, researchers have now produced a wafer-thin ferrimagnet, in which molecules with different magnetic centers arrange themselves on a gold surface to form a checkerboard pattern. Scientists at the Swiss Nanoscience Institute at the University of Basel and the Paul Scherrer Institute published their findings in the journal Nature Communications.

Ferrimagnets are composed of two centers which are magnetized at different strengths and point in opposing directions. Two-dimensional, quasi-flat ferrimagnets...

Im Focus: World's thinnest hologram paves path to new 3-D world

Nano-hologram paves way for integration of 3-D holography into everyday electronics

An Australian-Chinese research team has created the world's thinnest hologram, paving the way towards the integration of 3D holography into everyday...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Marine Conservation: IASS Contributes to UN Ocean Conference in New York on 5-9 June

24.05.2017 | Event News

AWK Aachen Machine Tool Colloquium 2017: Internet of Production for Agile Enterprises

23.05.2017 | Event News

Dortmund MST Conference presents Individualized Healthcare Solutions with micro and nanotechnology

22.05.2017 | Event News

 
Latest News

How herpesviruses win the footrace against the immune system

26.05.2017 | Life Sciences

Water forms 'spine of hydration' around DNA, group finds

26.05.2017 | Life Sciences

First Juno science results supported by University of Leicester's Jupiter 'forecast'

26.05.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>