Politically exposed persons (PEPs): risks and mitigation
Purpose – The purpose of this paper is to consider the risks posed by politically exposed persons (PEPs) and explain the money laundering risk when entering into financial transactions and business relationships with PEPs. Risk mitigation by regulated entities and corruption prevention strategies are also outlined. To minimise money‐laundering risks associated with PEPs, legislation will need to adapt to deal with threats that organized criminals and terrorists seek to exploit. Future directions for research in relation to PEPs are also identified.Design/methodology/approach – An analysis of how regulated entities can reduce their risk of money laundering when entering into financial transactions and business relationships with PEPs is presented.Findings – It was found that there is a need to harmonise legally enforceable obligations targeting PEPs. PEP monitoring, arguably, should be extended to individuals holding prominent public functions in their own jurisdictions, individuals exercising functions no...
A cost‐effective strategy of implementing international anti‐corruption initiatives
Purpose – The purpose of this conference paper is to provide a contextual and better understanding of the nexus between corruption and money laundering, in order to enhance the role of anti‐money laundering (AML) in combating corruption.Design/methodology/approach – This paper analyses the key elements of the linkage between AML and anti‐corruption, and provides Australia and China as examples, demonstrating the potential importance of using AML to combat corruption.Findings – It is found that apart from the main financial sectors, designated non‐financial sectors and high‐risk customers involved businesses are also vulnerable for money laundering, such as non‐financial designated business and professions, and politically exposed persons. In the meantime, these factors are regarded as the key points to combat corruption.Originality/value – This paper highlights the corruption risks hidden in designated non‐financial business and professionals, and the risks of laundering the proceeds of corruption by poli...
Computer Simulation Modeling
Computer simulation as a research methodology is presented as the intersection of modeling, simulation, and computer analysis. Five component parts of simulation models are identified: input variables, output variables, assumptions, algorithms, and parameters. Computer simulation (CSM) has two primary uses for those interested in the study of organizations or who work within them: theory development and policy planning. The advantages and disadvantages of CSM for each of these purposes are examined and recent examples for each are explored.