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 Corporate coworking as a driver of innovation
22.11.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

nachricht Mathematical confirmation: Rewiring financial networks reduces systemic risk
22.06.2017 | International Institute for Applied Systems Analysis (IIASA)

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: Nanoparticles help with malaria diagnosis – new rapid test in development

The WHO reports an estimated 429,000 malaria deaths each year. The disease mostly affects tropical and subtropical regions and in particular the African continent. The Fraunhofer Institute for Silicate Research ISC teamed up with the Fraunhofer Institute for Molecular Biology and Applied Ecology IME and the Institute of Tropical Medicine at the University of Tübingen for a new test method to detect malaria parasites in blood. The idea of the research project “NanoFRET” is to develop a highly sensitive and reliable rapid diagnostic test so that patient treatment can begin as early as possible.

Malaria is caused by parasites transmitted by mosquito bite. The most dangerous form of malaria is malaria tropica. Left untreated, it is fatal in most cases....

Im Focus: A “cosmic snake” reveals the structure of remote galaxies

The formation of stars in distant galaxies is still largely unexplored. For the first time, astron-omers at the University of Geneva have now been able to closely observe a star system six billion light-years away. In doing so, they are confirming earlier simulations made by the University of Zurich. One special effect is made possible by the multiple reflections of images that run through the cosmos like a snake.

Today, astronomers have a pretty accurate idea of how stars were formed in the recent cosmic past. But do these laws also apply to older galaxies? For around a...

Im Focus: Visual intelligence is not the same as IQ

Just because someone is smart and well-motivated doesn't mean he or she can learn the visual skills needed to excel at tasks like matching fingerprints, interpreting medical X-rays, keeping track of aircraft on radar displays or forensic face matching.

That is the implication of a new study which shows for the first time that there is a broad range of differences in people's visual ability and that these...

Im Focus: Novel Nano-CT device creates high-resolution 3D-X-rays of tiny velvet worm legs

Computer Tomography (CT) is a standard procedure in hospitals, but so far, the technology has not been suitable for imaging extremely small objects. In PNAS, a team from the Technical University of Munich (TUM) describes a Nano-CT device that creates three-dimensional x-ray images at resolutions up to 100 nanometers. The first test application: Together with colleagues from the University of Kassel and Helmholtz-Zentrum Geesthacht the researchers analyzed the locomotory system of a velvet worm.

During a CT analysis, the object under investigation is x-rayed and a detector measures the respective amount of radiation absorbed from various angles....

Im Focus: Researchers Develop Data Bus for Quantum Computer

The quantum world is fragile; error correction codes are needed to protect the information stored in a quantum object from the deteriorating effects of noise. Quantum physicists in Innsbruck have developed a protocol to pass quantum information between differently encoded building blocks of a future quantum computer, such as processors and memories. Scientists may use this protocol in the future to build a data bus for quantum computers. The researchers have published their work in the journal Nature Communications.

Future quantum computers will be able to solve problems where conventional computers fail today. We are still far away from any large-scale implementation,...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Ecology Across Borders: International conference brings together 1,500 ecologists

15.11.2017 | Event News

Road into laboratory: Users discuss biaxial fatigue-testing for car and truck wheel

15.11.2017 | Event News

#Berlin5GWeek: The right network for Industry 4.0

30.10.2017 | Event News

 
Latest News

Corporate coworking as a driver of innovation

22.11.2017 | Business and Finance

PPPL scientists deliver new high-resolution diagnostic to national laser facility

22.11.2017 | Physics and Astronomy

Quantum optics allows us to abandon expensive lasers in spectroscopy

22.11.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>