p.p1 was developed, which is an intergovernmental body whose

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The transaction from transactional corporations such as banks provide point of access and cash flow which in turn are capitalised by criminals in offshore financial centres, its vital to acknowledge that offshore financial centres have an essential role to the global economy. As illustrated in Fig 4. Half of all global trade passes though tax heavens, it is estimated that 33% of the worlds wealth resides there. However, “financial opacity undermines the rule of law and destroys trust in the market” which can lead to lack of confidence in democracy.
Micro-states such as the British Virgin Islands and several developed countries use their legislative power and sovereignty to create an environment that induces illicit transactions. This suggests that AML agencies and FATF regulation have not brought about change to the ethical conduct within the global financial system 
However, use of tax breaks is only one way of understanding the meaning of OFCs, this  diminishes the increasing role of corruption. In the fight against ML and corruption, the Financial Action Task Force (FATF) was developed, which is an intergovernmental body whose purpose is the development of policies at national and international levels, to combat ML. FATF focus is on the political will to bring about the necessary national legislative and regulatory reforms in order to combat the effect fo the criminal proceeds. This is evident in the establishment of the ‘Anti-Money Laundry Standards’ in 1990, with a total of 49 recommendations by 2003 on how to substantively create a framework for combating money laundry and terrorist activities. 
FATF Recommendation carry no legal consequence or sanction, however countries on the the FATF blacklist were under immense financial pressure to comply with AML regulations, this has proven effective. FATF publicly recognised the progress it had made in Cyprus and in 2009 FATF issued a statement which encouraged Turkestan, Uzbekistan, Iran, Pakistan and S?o Tomé and Principle to work together on AML standards, most have taken action in implementing the regulations . As a direct result by February 2011 just two countries where deemed to have substantial ML and terrorist financing links 

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Theoretical analysis

The trajectory of financial activities established various theories that established money laundering dated to the days of classical economies of The Wealth of the Nation by Adam Smith and the regulated regimes of Keynesian economic theory. This leads to the agency theory and the gradual development of transparency and accountability theory arising from the need for more governance.

Theories specific to money laundering from “Crying Wolf Theory”, the Game theory, System theory of Anti-Money Laundering (AML), and the theory of financial crime all explain the risk of economic failure arising from the activities of money laundering. This paper will focus on the theory of financial crime to explain the framework of criminal conduct and behaviour of the corporate institutions in perpetrating corruption and economic crimes using corporate entity to pass on dirty money.

Generally, a financial crime is used to refer to certain activities related to the financial market or to the handling of the proceeds of a crime. The activities or form of misconduct, including the misuse of information, involved can be characterised as dishonest or fraudulent. The IMF, however, has defined financial crimes as non-violent crimes the consequences of which entail loss. They embrace crimes such as money laundering and tax evasion. The concept of financial crime was first introduced by Edwin Sutherland in 1935 when he used it in association with white collar crimes. However, traces of financial crimes can be noted as far back as two thousand years ago during the eras of Byzantine and the Romans, both of which had encountered problems relating to forgeries and counterfeiting.

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The transaction from transactional corporations such as banks provide point of access and cash flow which in turn are capitalised by criminals in offshore financial centres, its vital to acknowledge that offshore financial centres have an essential role to the global economy. As illustrated in Fig 4. Half of all global trade passes though tax heavens, it is estimated that 33% of the worlds wealth resides there. However, “financial opacity undermines the rule of law and destroys trust in the market” which can lead to lack of confidence in democracy.
Micro-states such as the British Virgin Islands and several developed countries use their legislative power and sovereignty to create an environment that induces illicit transactions. This suggests that AML agencies and FATF regulation have not brought about change to the ethical conduct within the global financial system 
However, use of tax breaks is only one way of understanding the meaning of OFCs, this  diminishes the increasing role of corruption. In the fight against ML and corruption, the Financial Action Task Force (FATF) was developed, which is an intergovernmental body whose purpose is the development of policies at national and international levels, to combat ML. FATF focus is on the political will to bring about the necessary national legislative and regulatory reforms in order to combat the effect fo the criminal proceeds. This is evident in the establishment of the ‘Anti-Money Laundry Standards’ in 1990, with a total of 49 recommendations by 2003 on how to substantively create a framework for combating money laundry and terrorist activities. 
FATF Recommendation carry no legal consequence or sanction, however countries on the the FATF blacklist were under immense financial pressure to comply with AML regulations, this has proven effective. FATF publicly recognised the progress it had made in Cyprus and in 2009 FATF issued a statement which encouraged Turkestan, Uzbekistan, Iran, Pakistan and S?o Tomé and Principle to work together on AML standards, most have taken action in implementing the regulations . As a direct result by February 2011 just two countries where deemed to have substantial ML and terrorist financing links 

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For You For Only $13.90/page!


order now

 

Theoretical analysis

The trajectory of financial activities established various theories that established money laundering dated to the days of classical economies of The Wealth of the Nation by Adam Smith and the regulated regimes of Keynesian economic theory. This leads to the agency theory and the gradual development of transparency and accountability theory arising from the need for more governance.

Theories specific to money laundering from “Crying Wolf Theory”, the Game theory, System theory of Anti-Money Laundering (AML), and the theory of financial crime all explain the risk of economic failure arising from the activities of money laundering. This paper will focus on the theory of financial crime to explain the framework of criminal conduct and behaviour of the corporate institutions in perpetrating corruption and economic crimes using corporate entity to pass on dirty money.

Generally, a financial crime is used to refer to certain activities related to the financial market or to the handling of the proceeds of a crime. The activities or form of misconduct, including the misuse of information, involved can be characterised as dishonest or fraudulent. The IMF, however, has defined financial crimes as non-violent crimes the consequences of which entail loss. They embrace crimes such as money laundering and tax evasion. The concept of financial crime was first introduced by Edwin Sutherland in 1935 when he used it in association with white collar crimes. However, traces of financial crimes can be noted as far back as two thousand years ago during the eras of Byzantine and the Romans, both of which had encountered problems relating to forgeries and counterfeiting.

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