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
RWI/ISL-Container Throughput Index ending 2017 on a positive note
24.01.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Uncovering decades of questionable investments
18.01.2018 | University of Texas at Austin, Texas Advanced Computing Center
Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale
Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...
For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.
But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...
Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.
The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...
Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters
Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...
Let’s say the armrest is broken in your vintage car. As things stand, you would need a lot of luck and persistence to find the right spare part. But in the world of Industrie 4.0 and production with batch sizes of one, you can simply scan the armrest and print it out. This is made possible by the first ever 3D scanner capable of working autonomously and in real time. The autonomous scanning system will be on display at the Hannover Messe Preview on February 6 and at the Hannover Messe proper from April 23 to 27, 2018 (Hall 6, Booth A30).
Part of the charm of vintage cars is that they stopped making them long ago, so it is special when you do see one out on the roads. If something breaks or...
15.02.2018 | Event News
13.02.2018 | Event News
12.02.2018 | Event News
16.02.2018 | Information Technology
16.02.2018 | Health and Medicine
16.02.2018 | Physics and Astronomy