Purpose This paper aims to examine the key regulatory challenges impacting blockchains, innovative distributed technologies, in the European Union (EU) and the USA. Design/methodology/approach A qualitative perspective underpins the study. This paper relies on primary data from applicable statutes and secondary data from the public domain including relevant case study insights. Findings The smart regulatory hands-off approach adopted in the EU and the USA to a large extent bodes well for future innovative contributions of blockchains in the financial services and related sectors and toward enhanced financial inclusiveness. Practical implications The paper’s findings provide support for blockchain technology to advance with minimum regulatory brakes for greater value-adding and efficiency advancement, especially for financial services, thereby expanding accessibility and therefore financial inclusiveness. Originality/value This paper helps to draw greater attention to the technology underpinning virtual currencies. It also highlights other economic potentials flowing from blockchain advancement.

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to review inadequacies of anti-money laundering (AML) and whistleblowing laws particularly in the UK financial services sector and suggest various reforms initiatives. Design/methodology/approach -The article relies extensively on secondary data analysis including extensive literature review, analysis of applicable cases and evaluation of current whistleblowing and AML laws. Findings -The preponderance of defensive reporting particularly in the financial services sector appears to blunt the effectiveness of AML laws in the UK. Working adults generally are unaware or unfamiliar with whistleblowing laws, whereas the laws themselves are also deficient in some ways even though they have been adopted and adapted in various other jurisdictions because of its perceived comprehensiveness. Preliminary indications from money laundering scandals demonstrate how and why early disclosures of wrongdoings through whistleblowing might have helped to reduce the magnitude of the adverse consequences and hence the importance of whistleblowing in the fight against money laundering. Originality/value -This article provides the argument that while money laundering is perpetuated by hard-core criminals, it could be aided along by others motivated by profits in the financial system and that those closes to the process and in particular workers when encountering such activities should be encouraged to report these via appropriate channels. This together with further revamping of the suspicious activity reports procedures required under AML laws is argued to be able to contribute to the reduction of defensive reporting thereby enabling enforcement agencies to have more effective focus on remedial actions.

Purpose – The purpose of this paper was to investigate the motivation behind whistleblowing, the tussle between internal and external whistleblowing and the extent whistleblowing laws in the UK and the USA are able to provide protection to whistleblowers. While employees need to be protected against unfair retaliations for making legitimate disclosure, employers seek to prevent irreparable damage from abusive disclosure of sensitive corporate information. Design/methodology/approach – A mix of legal examination and case study analysis of recent whistleblowing cases in the financial services sector is used in this study. It ergo relies mainly on primary data from recent applicable legislations and secondary data available in the public domain, journal articles, media reports and related academic texts. Findings – The study’s findings and analysis suggest that whistleblowing law in the UK, namely, the Public Interest Disclosure Act 1998 appears unable to promote effective whistleblowing awareness among working adults and adequate protection to whistleblowers. The situation is broadly similar in the USA with reports of serious employer retaliations though bounty awards available there have brought some relief to whistleblowers. Consequently, whistleblowing to help safeguard public interest is not appropriately encouraged and protected, suggesting the need for further reform initiatives. Research limitations/implications – The research mitigates the limits of primary secondary data analysis through triangulation of different sources of data and from the use of different perspectives. This paper suggests that whistleblowing laws in the UK and the USA, while assuring protection for workers for reporting wrongdoings internally or externally to prescribed regulatory agencies, can in theory help the early detection of corporate wrongdoings like those witnessed in the 2007 global financial crisis as employees are likely to first witness such activities. In practice, because of fear of employer reprisals and other social and economic costs, whistleblowers frequently hesitated until way too late. The findings suggest that business corporations missed such occasions to beef up their internal controls and demonstration of their commitment to ethical governance; and ergo would need to address such issues more effectively. Originality/value – The paper contributes insights from a combined corporate management and legal analysis perspective. It suggests that this type of approach and analysis of whistleblowing would be helpful to employers, employees, policymakers and regulators, as whistleblowing is a complex process involving not just the law, but social, psychological and economic considerations. The paper, by providing further insights on the motivations behind whistleblowing including other considerations as well as the impact of current whistleblowing laws in the UK and the USA, supports earlier suggestions on the lack of whistleblowing contributions to various current financial scandals until way too late...

Peter Yeohis a law researcher and fi nancial law services lecturer. He holds multiple postgraduate degrees in economics, management and law from various UK universities. His research interests focus on corporate law, corporate governance and banking and fi nancial services law. Yeoh has published in several journals relating to fi nance and law. He has previous work experience at senior levels in the fi nancial services sector.ABSTRACT Sub-prime mortgages in the United States appear to have triggered the current global fi nancial crisis. The crisis appears to be the combined result of adverse macro-economic conditions, bad corporate governance and loose regulatory oversight. Consequently, current views of the crisis differ primarily on the emphasis they attach to each of these perspectives, and tend to include other insights as contributing causes. This article, however, supports the view that fl awed governance practices in both the public and private sector are largely responsible for the fi nancial catastrophe. It also argues that the current tendency to blame it on the United States is overplayed and that bad governance practices are a global phenomenon. The article relies on secondary data analysis and observations of relevant banking practices to support this contention.

Purpose This paper aims to provide insights as to why money laundering persists in banks and their weaknesses as gatekeepers. Design/methodology/approach This paper contextualizes the design and proliferation of anti-money laundering (AML) measures; investigates the different manners of conceptualizing them; and provides insights pertaining to probable limitations of these measures. The paper relies on primary data from statutes and secondary data from published sources. Findings The paper’s findings suggest that competitive pressures, shareholders return imperative, and lucrative misaligned incentives for management contributed to weaknesses in effective compliance in banks. Practical implications Insights drawn from this paper reinforces the notion that banks need to seriously review their business approaches, as well as their roles as gatekeepers. Social implications Given the slew of corporate scandals and other materially harmful misjudgments in money-laundering compliance, banks might need to seriously review their role and obligations in the economy. Originality/value Much has been said about money-laundering activities enabled by the banking sector. This paper contributed to insights as to why they persist despite AML rules, and what measures could be further taken to enhance compliance effectiveness.

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to assess the implications of The UK Bribery Act 2010 for businesses and in particular those with cross-border activities. Design/methodology/approach -This study relies on documentary research and using both primary and secondary data drawn from the public domain. Findings -The study suggests why UK businesses and in particular those conducting cross-country transactions should take the implications of this law seriously as the enforcement agency in the UK transforms to a more active mode. It also suggests why, despite some severe criticisms, the UK does not lag behind in the global fight against corruption. Research limitations/implications -This is an exploratory review paper to promote empirical research in a business sensitive theme. Practical implications -Insights from the study should prompt business leaders to give sufficient attention to those areas with high risks of falling within the ambit of the Act. Social implications -The study's findings reinforce the ethical dimensions of cross-border business practices. Originality/value -This study uses the implications of the new UK Act to draw attention to the business community that with the passing of the Act business cannot be as usual; that compliance to the Foreign Corrupt Practice Act would be insufficient; and that despite controversies over implementation delays, the UK does not lag behind in the fight against corruption worldwide.

PurposeThis purpose of this viewpoint is to address the intended good and unintended bad impacts of artificial intelligence (AI) applications in financial crime.Design/methodology/approachThe paper relied primarily on secondary data resources, business cases and relevant laws and regulations, and it used a legal-economics perspective.FindingsCurrent AI systems could function as antidotes or accelerator of financial crime, in particular cybercrime. Research suggests criminal law could be applied via three approaches to curb these cybercrimes. However, others considered this to be an inappropriate mechanism to hold AI agents accountable, as present AI systems were not deemed capable of making ethically informed choices. Instead, administrative sanctions would be considered more appropriate for now. While keeping vigilance against AI malicious acts, regulatory authorities in the USA and the UK have opted largely for the innovation-friendly, market-oriented, permissionless approach over the state-interventionist stance so as to maintain their global competitive edge in this domain.Originality/valueThe paper reinforced the growing arguments that AI applications should be deployed more as panacea for financial crimes rather than being abused as crime accelerators. There equally though is the need for both public and private sectors to be mindful of the unintended negative, harmful consequences to society, especially those connected to cybercrime. This implied the further need to beef up attention and resources to help mitigate these risks.

Purpose -The purpose of this paper is to discuss the quality of narrative reporting of listed UK companies particularly in terms of transparency under guidance from the operating and financial review (OFR). Design/methodology/approach -The approach taken is to rely on secondary data analysis with complementation from a limited case study of three listed UK companies. Findings -The analysis finds that narrative reporting in the UK is generally transparent other than some weaknesses in some reporting areas and some limited evidence of creative reporting.Research limitations/implications -Further investigation could be made on a larger sample of cases. Also, a comparative case analysis could be conducted between narrative reporting made before the current global financial crisis and shortly after the said crisis. Practical implications -The paper highlights the general usefulness, relevance, and limitations of narrative reporting not only for corporate decision makers but also general investors, suppliers, employees, the state, and various connected community stakeholder groups. Originality/value -This paper contributes to the enhanced understanding of narrative reporting practices for listed companies in the UK.