Trade-based money laundering and informal remittance services: implications on the sustainability of the balance of payments of a small open economy

PurposeThis study aims to discuss the consequences of trade-based money laundering (TBML) and informal remittance services on the sustainability of the position of balance of payments and net foreign assets of a small open economy.Design/methodology/approachThis paper uses a case study design using facts related to TBML and informal remittance services on the balance of payment and net foreign assets of Sri Lanka.FindingsThe contextual analysis reveals that the growth of the informal economy promotes informal remittance services in Sri Lanka. The policy decision to peg local currency to US dollars as a result of a shortage of foreign exchange had forced people to use informal channels for different purposes. The unclear and vague customer due diligence process of the anti-money laundering and countering the financing of terrorism (AML/CFT) regime also has forced people to use informal remittance services. Criminals especially drug traffickers have grabbed the promoted informal remittance services to transfer proceeds from Sri Lanka to overseas drug suppliers. On the other hand, systematic deficiencies in monitoring and regulation of movement of fund transfers and merchandise across borders provide opportunities for criminals to use different TBML techniques to transfer funds. These limitations force policymakers and regulators to think of developing a comprehensive payment ecosystem to prevent money laundering and terrorist financing. Therefore, the global initiative is required to move towards a payment ecosystem from a recommendation-based AML/CFT regime to reduce global crimes.Research limitations/implicationsThis study was designed to discuss the implications of TBML and informal remittance services on the balance of payments and net foreign assets in a small open economy. The structure and size of the economy, the strength of the overall economy and the AML/CFT regime will play an important role in controlling criminal activities and combating money laundering of an economy;hence, the impact of TBML and informal remittance services will vary accordingly across the countriesOriginality/valueThis paper is an original work done by the authors, which discusses the implications of TBML and informal remittance services on the balance of payments and net foreign assets of an emerging market context.

Post Pandemic Cyber Attacks Impacts and Countermeasures: A Systematic Review

COVID-19 is one of the deadliest pandemics of this century's that affected the whole world. As the COVID-19 spread the government had to impose lockdown that pushed the people to follow some new lifestyle like social distancing, work from home, hand washing, and the country have to shut down industries, businesses and public transport. At the same time, doctors were occupied in saving life's and on other side cyber criminals were busy taking this situation as advantage, which creates an another silent pandemic i.e. cyber-security pandemic. During this pandemic with overloaded ICT infrastructure, cyber space was gaining attention of more cyber attacker and number of attacks/threats increased exponentially. This is one of the rapidly growing global challenges for industry as well as for human life. In this paper a systematic surveys and review is done on recent trends of cyber security attacks during and post COVID-19 pandemic and their countermeasures. The relevant information has been collected from different trusted sources and impact landscape discussed with importance of cyber security education and future research challenges highlights. © 2023 IEEE.

Woe is the dark Web: the main challenges that governments of the Commonwealth Caribbean will face in combating dark Web-facilitated criminal activities

PurposeThis paper aims to investigate the potential challenges that governments in the Commonwealth Caribbean are likely to face combating crimes facilitated by the dark Web.Design/methodology/approachThe "lived experience” methodology guided by a contextual systematic literature review was used to ground the investigation of the research phenomena in the researchers' collective experiences working in, living in and engaging in research with governments in the Commonwealth Caribbean.FindingsThe two major findings emerging from the analysis are that jurisdictional and technical challenges are producing major hindrances to the creation of an efficient and authoritative legislative framework and the building of the capacity of governments in the Commonwealth Caribbean to confront the technicalities that affect systematic efforts to manage problems created by the dark Web.Practical implicationsThe findings indicate the urgency that authorities in the Caribbean region must place on reevaluating their administrative, legislative and investment priorities to emphasize cyber-risk management strategies that will enable their seamless and wholesome integration into this digital world.Originality/valueThe research aids in developing and extending theory and praxis related to the problematization of the dark Web for governments by situating the experiences of Small Island Developing States into the ongoing discourse.

Trade-based money laundering (TBML) empowers criminals to run free post-Brexit

Purpose>This paper aims to provide unique empirical findings exploring the impact of the UK’s post-Brexit Economic Strategy to boost trade with developing countries on the UK banking sector’s ability to manage trade-based money laundering risks.Design/methodology/approach>Exploratory research design that used structured literature review, followed by semi-structured interviews with key subject matter experts employed by large UK banks.Findings>Both banks and law enforcement struggle to prioritise trade-based money laundering (TBML) intelligence discovery due to deficient skills, resources, technology and lack of strong regulatory stimulus. The regulated sector calls for the UK anti-money laundering (AML) reform that would better incentivise TBML deterrence, yet the Government underestimates the money laundering risks while trading with high-risk jurisdictions post-Brexit.Research limitations/implications>The findings are based on a small sample of six semi-structured interviews with difficult to access population of key subject matter experts. Despite the small sample, participants provided well-articulated and informed insights.Practical implications>The UK’s post-Brexit Economic Strategy to boost trade with developing countries downplays the TBML risks it carries. The findings should alert UK banks, law enforcement and the Government who will collectively bear the responsibility to effectively manage TBML while enabling smooth trading.Originality/value>The research provides unique perceptions of UK banks’ senior subject matter experts on managing TBML threats from opportunistic criminals.