The effects of public governance and national culture on money laundering: A structured equation modeling approach

Al-Qudah, Anas Ali; Bani‐Mustafa, Ahmed; Nimer, Khalil; Alqudah, Abdullah D.; AboElsoud, Mostafa E.

doi:10.1002/pa.2796

Cited by 7 publications

(2 citation statements)

References 56 publications

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“…AlQudah et al (2021) used a structural modeling approach to investigate the role of governance in mediating the effect of a culture of the country on ML. Results indicate that public governance mediates the relation between ML and culture.…”

Section: Literature Reviewmentioning

confidence: 99%

Foreign exploration of immature markets and incidence of money laundering

Hanif

Javaid²,

Arshed³

et al. 2023

JMLC

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Purpose Money laundering (ML) is the process used to convert the proceeds of crimes into lawful form. This global problem promotes social ills, corruption and organized crimes. Various instruments are used to counter individual illicit behavior. However, in low-income countries, these regulations are not common because of weak institutions, poor governance and a lack of awareness about the negative consequences of ML. In these countries, multinational corporations take advantage of poor law and order, lower environmental regulations and corruption and shift their domestic operations into foreign countries. Design/methodology/approach This study uses a multiple mediator model to investigate the link between foreign direct investment (FDI), environmental degradation measured as CO2 emissions (CE), exports and ML for 118 countries between 2008 to 2018. Findings Results indicate that FDI promotes exports and CE, leading to illicit financial flows. Originality/value Policymakers should enforce checks on foreign funds flow and adopt illicit flow mitigation measures to minimize ML globally.

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Section: Literature Reviewmentioning

confidence: 99%

Foreign exploration of immature markets and incidence of money laundering

Hanif

Javaid²,

Arshed³

et al. 2023

JMLC

View full text Add to dashboard Cite

show abstract

“…Deng et al , 2009; Zdanowicz, 2009; Salehi et al , 2017). It is also more generally referred to as a financial crime (Buchanan, 2004; AlQudah et al , 2022) that can put the financial sector stability and solvency at danger, especially in less developed nations with less advanced financial systems (Aluko and Bagheri, 2012; Ofoeda et al , 2022a; Durguti et al , 2023). It is perceived, moreover, as a potential hindrance to countries’ overall well-being (Dobrowolski and Sułkowski, 2019; Janjua and Khan, 2020; Ofoeda et al , 2022a).…”

Section: Introductionmentioning

confidence: 99%

Is money laundering a hurdle to achieving Sustainable Development Goals?

Gueddari

Saafi²,

Nouira

2023

JMLC

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Purpose The purpose of this study provide answers to the following research questions: Whether and to what extent money laundering affects the achievability and the trend of Sustainable Development Goals (SDGs)?; Does the influence of money laundering on the SDGs’ achievement differ from developing to developed countries?; How does the influence of money laundering vary among the 17 SDGs? Design/methodology/approach The paper’s analysis involves two key parts. In the first part, the authors perform a multivariate analysis to examine the influence of money laundering on the achievement of SDGs, and then in the second part, the authors make use of an ordered probit regression model to investigate the impact of money laundering on the trend of attaining each SDG. Findings Using a sample of 98 developed and developing countries, the regression results from multivariate analysis estimates show that money laundering has a strong inhibiting effect on the achievement of almost all the SDGs in the whole sample of countries and the sub-sample of developing countries, whereas no significant effect is observed for developed countries. However, for the SDG trends, the ordered probit estimates reveal that the harmful effect of money laundering occurs for all countries regardless their development level. In addition, perhaps surprisingly, the results from both the approaches yield also evidence advocating that money laundering activities might be associated with positive externalities on production and consumption. In fact, money laundering is found to have a significant positive influence on the achievement and the trend of SDG12 (Sustainable Consumption and Production). Overall, this study’s findings do have interesting policy implications, especially for developing countries. In these countries, prioritising the formulation and implementation of sound anti-money laundering policies is a necessary requirement for their progress towards achieving the SDGs. Originality/value The long-standing tradition of previous empirical studies examining the nexus between money laundering and sustainable development concentrates mainly on the economic dimension of sustainability (i.e. economic growth). However, little is known about the consequences of money laundering activities on the environment and the societies. Consequently, this study seeks to fill this gap by assessing the influence of money laundering on the achievement of the economic, environmental and social goals of sustainable development. To the best of the authors’ knowledge, this is the first integrated study to analyse the potential repercussions of money laundering on the SDGs’ achievement.

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The effects of auditing and reporting standards and country‐level governance on money laundering: A cross‐country analysis

Baccouri,

Talbi,

Hakimi

2024

Journal of Public Affairs

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This study explores how strength auditing and reporting standards (SARS) and country‐level governance interplay to reduce money laundering. The empirical study is based on a panel dataset of 109 countries, over the period 2012–2019. To test our hypotheses, relevant statistical techniques are used to enhance the robustness of the models. The empirical results reveal that the interaction between SARS and country‐level governance affect significantly and negatively money laundering. Additionally, through dynamic analysis we found that SARS and country‐level governance affect jointly Money laundering level, which confirm the complementarity between the two mechanisms. Money laundering is a worldwide phenomenon that threatens the stability of economies. Consequently, the regulatory bodies and international organization should improve auditing and reporting standards as well as governance practices at different levels (macro, micro, and mezzo).

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The effects of public governance and national culture on money laundering: A structured equation modeling approach

Cited by 7 publications

References 56 publications

Foreign exploration of immature markets and incidence of money laundering

Foreign exploration of immature markets and incidence of money laundering

Is money laundering a hurdle to achieving Sustainable Development Goals?

The effects of auditing and reporting standards and country‐level governance on money laundering: A cross‐country analysis

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