Terrorist Financing, Money Laundering, and Tax Evasion

D’Souza, Jayesh

doi:10.1201/b11067

Cited by 5 publications

(13 citation statements)

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“…The expansion of tax havens and OFCs is owing to globalisation and increased market integration across borders, facilitated by rapid technological change [10], which is likely to affect a country’s capacity to collect taxes and distribute its tax burden (Tanzi, 2000; Braithwaite, 2005; Sikka, 2008). Evidence suggests that the operation of tax havens and OFCs has accelerated tax evasion, tax avoidance [11] and corruption (Gramlich and Wheeler, 2003; Campbell, 2004; Brittain-Catlin, 2005; Dasai et al , 2006; D’Souza, 2012), which have allowed the political and financial elite and MNCs to shield their wealth from national tax authorities (Christian Aid, 2005; Gallhofer and Haslam, 2006; Moore et al , 2018). At the centre of this most unfortunate development sit the offshore centres facilitating criminal, corrupt and commercial tax-evading financial flows, having their most damaging impact on the poor of the world (D’Souza, 2012; Schjelderup and Baker, 2015; Weeks-Brown, 2018).…”

Section: Overview Of the Related Literaturementioning

confidence: 99%

“…Evidence suggests that the operation of tax havens and OFCs has accelerated tax evasion, tax avoidance [11] and corruption (Gramlich and Wheeler, 2003; Campbell, 2004; Brittain-Catlin, 2005; Dasai et al , 2006; D’Souza, 2012), which have allowed the political and financial elite and MNCs to shield their wealth from national tax authorities (Christian Aid, 2005; Gallhofer and Haslam, 2006; Moore et al , 2018). At the centre of this most unfortunate development sit the offshore centres facilitating criminal, corrupt and commercial tax-evading financial flows, having their most damaging impact on the poor of the world (D’Souza, 2012; Schjelderup and Baker, 2015; Weeks-Brown, 2018). In fact, developing an OFC was a logical extension to the traditional tax haven as both are the product of, and benefit from avoidance (Palan et al , 2010; Moore et al , 2018).…”

Section: Overview Of the Related Literaturementioning

confidence: 99%

“…There are many obstacles to overcome in building an effective anti-corruption regime, and tax havens must count as amongst the most significant hurdles (Otusanya and Lauwo, 2012; Young, 2013; Mugarura, 2017). Financial criminals use banks to transfer funds through legitimate accounts, dormant accounts, telegraphic transfers and money service businesses (D’Souza, 2012; Young, 2013). It has been argued that tax havens have played a significant role in shaping the economies of developed countries.…”

Section: Introductionmentioning

confidence: 99%

“…A number of literature have described how money laundering, capital flight and corruption have become a burden on developing countries (Johnston, 2005; AAPPG, 2006; Sikka, 2008; Palan et al , 2010; D’Souza, 2012; Otusanya and Lauwo, 2012; Otusanya et al , 2012; Young, 2013; Moore et al , 2018; Otusanya and Lauwo, 2019). No credible estimates are available as to the volume of money laundering or its distribution across countries and activities (Reuter and Truman, 2004; Neu et al , 2013; Hendriyetty and Grewal, 2017).…”

Section: Introductionmentioning

confidence: 99%

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The dark side of tax havens in money laundering, capital flight and corruption in developing countries: some evidence from Nigeria

Otusanya

Adeyeye

2021

JFC

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Purpose This paper aims to assess the role of secrecy jurisdictions in providing supply-side stimulants for illicit financial flows from developing countries and how the tax havens structures shape the role of actors. Specifically focussing on decades of trade liberalisation and markets, and of increasingly rapid movement of people, capital and information across regions and around the globe, the paper draws on the political economy theory of globalisation to illuminate the connections between capital flight, money laundering and global offshore financial centres (OFCs). Design/methodology/approach The paper uses publicly available evidence to shed light on the role played by tax havens in facilitating money laundering, capital flight and corruption. The issues are illustrated with the aid of case studies. Findings The evidence shows that, in pursuit of organisational and personal interest, the tax havens create enabling structures that support illicit activities of the political and economic elites from developing countries. The paper further argues that the supply-side of corruption severely limits the possibilities of preventing corruption in developing countries. Research limitations/implications The paper uses publicly available evidence to illuminate the role played by OFCs in facilitating elite corruption and money laundering practices. Practical implications It is impossible to quantify the volume of money laundered, but it has been estimated that money laundering may account for as much as 5% of the world economy. Social implications The paper, therefore, suggests that unless this supply-side of corruption is tackled there is little prospect for an end to aid dependency and the creation of economically stable and democratic states in developing countries. Originality/value The paper examines predatory practices of the international financial industry in tax havens and OFCs in facilitating money laundering, corruption and capital flight and the challenges posed for the economic development of developing countries.

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Section: Overview Of the Related Literaturementioning

confidence: 99%

Section: Overview Of the Related Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The dark side of tax havens in money laundering, capital flight and corruption in developing countries: some evidence from Nigeria

Otusanya

Adeyeye

2021

JFC

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“…The fifth type if the operational tool is the credit rating report. Terrorists often use credit cards to meet their financing requirements (D’Souza, 2011). Credit rating report tool is mainly used to assess the worthiness of a person in subscribing to a credit card (Cash, 2019).…”

Section: The Operational Toolsmentioning

confidence: 99%

The existing financial intelligence tools and their limitations in early detection of terrorist financing activities

Gowhor

2021

JMLC

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Purpose This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities. Design/methodology/approach The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities. Findings It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities. Research limitations/implications The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools. Practical implications The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities. Social implications Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities. Originality/value The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.

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Untangling Eta’s Finance: An in-Depth Analysis of the Basque Terrorist's Economic Network and the Money It Handles

Buesa

Baumert

2013

Defence and Peace Economics

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Terrorist Financing, Money Laundering, and Tax Evasion

Cited by 5 publications

References 0 publications

The dark side of tax havens in money laundering, capital flight and corruption in developing countries: some evidence from Nigeria

The dark side of tax havens in money laundering, capital flight and corruption in developing countries: some evidence from Nigeria

The existing financial intelligence tools and their limitations in early detection of terrorist financing activities

Untangling Eta’s Finance: An in-Depth Analysis of the Basque Terrorist's Economic Network and the Money It Handles

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