Consensus on the role of culture in restraining financial crime: a systematic literature review

Abstract

Purpose No country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture. Design/methodology/approach This study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database. Findings Bibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint. Originality/value This research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.

Donor Due Diligence, Education, Donor Statements, and Financial Report Transparency as a Prevention of Money Laundering in Islamic Philanthropy

“…Money laundering is also considered a threat to public security and welfare (Maulidiyah, 2023). This practice can trigger economic and social instability and endanger the integrity of financial institutions.…”

Cultural Values as Anti-Fraud Strategy: Lessons from Islamic Schools

“…Instances of fraud have been documented across diverse sectors, including public (Setiawan, 2023b), private (Dewi et al, 2023;, social finance (Arshad et al, 2015;Ohalehi, 2019;Setiawan, 2023a;Setiawan & Alim, 2022), digital and technological domains , and the educational sector (Ebaid, 2022;Sofyani et al, 2022;Sunaryo & Utami, 2021). The ramifications of fraud are multifaceted, encompassing financial loss, reputational damage, erosion of trust, psychological distress, and significant law enforcement expenditures (Maulidiyah, 2023). The Indonesian Fraud Survey of 2019 reported 239 detected cases of fraud, with an average loss per case amounting to IDR 7.2 billion (ACFE Indonesia Chapter, 2019).…”

“…Organizational culture can serve as an effective anti-fraud measure within an organization (Beaulieu & Reinstein, 2020;Chapple et al, 2020;Maulidiyah, 2023;Smaili, 2023;Suh & Shim, 2020). A strong and healthy organizational culture can deter fraud by influencing the behavior and actions of its members (Chapple et al, 2020).…”

“…When an organizational culture is founded on integrity, ethics, and transparency, it becomes more challenging for individuals or groups to engage in fraudulent conduct. A strong organizational culture that prioritizes these principles can effectively prevent fraud by encouraging members to act with honesty, report potential fraud, and foster an environment where fraud is less likely to take root (Maulidiyah, 2023). Schools, as educational institutions, play a critical role in instilling culture, particularly in terms of ethics and values (Sofyani et al, 2022).…”