Money laundering regulation and the African PEP: case for tougher civil remedy options

Oke, Tayo

doi:10.1108/jmlc-01-2015-0001

Cited by 7 publications

(10 citation statements)

References 25 publications

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“…2. Review of literature Money laundering and its predicate crimes are tribulations that have been afflicting many countries in sub-Saharan Africa (SSA) for many years (Schlenther, 2013;Markovska and Adams, 2015;Oke, 2016;Kayuni, 2016;Akuey, 2018). A wide range of economic crimes committed in these countries and abroad generate funds that subsequently are laundered within and outside the SSA.…”

Section: Money Laundering In Tanzaniamentioning

confidence: 99%

Institutionalizing the fight against money laundering in Tanzania: the potential, limitations and challenges

Mniwasa

2021

JMLC

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Purpose This paper aims to examine the authorities tasked to fight against money laundering in Tanzania and appraise the efficacy of the country’s anti-money institutional framework to tackle the problem. Design/methodology/approach The paper draws on a qualitative research and data generated from the analysis of documentary materials. It surveys the anti-money laundering (AML) law in Tanzania to describe the legal and institutional frameworks for tackling money laundering. It explores law-related and non-law aspects to interrogate and appraise the efficacy of Tanzania’s AML law and authorities. The qualitative data were generated using the thematic content analysis technique. Findings The law in Tanzania establishes authorities and vests them with powers to combat money laundering. The authorities, which are part of Tanzania’s AML institutional framework, have been instrumental in combating money laundering. Nevertheless, several law-related and non-law factors emasculate the efficacy of the AML law and authorities in Tanzania. Some political and economic factors wear off the effectiveness of the country’s AML institutional framework. The transnational nature and complexity of money laundering overwhelm the capacity of the AML authorities in Tanzania. Practical implications The paper provides useful insights on money laundering and the legal regime to counteract the scourge in Tanzania which sets up the country’s AML institutional framework. It raises some issues for researchers, policymakers and law enforcers who can re-examine the problem and revisit the law and re-evaluate authorities and propose measures that will enable the government to reinforce the country’s AML regime. The paper makes a case for the government to implement the reforms of the country’s AML policy, legal and institutional frameworks. Originality/value The paper investigates issues relating to money laundering and its control in Tanzania beyond the legal perspective to uncover limitations and challenges that emasculate the efficacy of the AML authorities in the Tanzanian context. The issues examined in this paper are not unique to Tanzania and, hence, have relevance to other jurisdictions in sub-Saharan Africa.

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Section: Money Laundering In Tanzaniamentioning

confidence: 99%

Institutionalizing the fight against money laundering in Tanzania: the potential, limitations and challenges

Mniwasa

2021

JMLC

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“…The efficacy of these AML laws in these countries is undermined by inadequacies inherent in the laws and limitations of the institutions tasked to fight against money laundering and its predicate crimes (Madzima, 2009;Simwayi and Haseed, 2012;Gikonyo, 2018a). Moreover, some systemic problems, arising from political, economic and other factors prevailing in these countries, contribute to undermining the efficacy of the AML legal regimes in many of the SSA countries ( van Donge, 2009;Hübschle, 2011;Otusanya and Lauwo, 2012;Dusabe, 2016;Oke, 2016). Tanzania, like other SSA countries, is afflicted with money laundering and its predicate crimes.…”

Section: Review Of Literaturementioning

confidence: 99%

The anti-money laundering law in Tanzania: whither the ongoing “war” against economic crimes?

Mniwasa

2020

JMLC

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Purpose This paper aims to explore the evolution of the law for combating economic crimes including money laundering in Tanzania and explore the current developments in the anti-money laundering (AML) law and the ongoing fight against these crimes in Tanzania. Design/methodology/approach A desk-based review of documents on money laundering and its control in Tanzania was conducted. The paper presents qualitative data from the documentary sources. It applies the doctrinal legal research approach to examine, analyze and describe the AML law applicable in Tanzania. The paper uses the “law-in-context” research approach to explore some non-law aspects of money laundering in Tanzania and interrogate how the law addresses non-law dimensions of money laundering. Policy documents and media reports were analyzed. The thematic data analysis technique was applied, which involved identifying, describing and reporting issues according to the themes emerging from the data. Findings The AML law in Tanzania emerged from the law that was originally enacted to curb economic crimes. The law has evolved for some decades. Its evolution has been driven by domestic factors and foreign drivers which are political, economic and social in nature. The role of the AML law has been changing. Initially, the law was a tool for curbing economic crimes. Recently, the law has acquired a new role, namely, to facilitate the recovery of illicit funds and non-financial assets from offenders and enable the authorities in Tanzania to use those economic resources for developmental purposes. Research limitations/implications The paper underscores the need for the Government of Tanzania to re-consider the broader implications involved in its current efforts to tackle economic crimes and money laundering. The balance between the implementation of the measures to combat money laundering and economic crimes in Tanzania and the importance of protecting rights of persons indicted with those offences should be struck. The AML law should be applied in such a way not to infringe the rights of the accused persons and not to throttle economic activities including the flow of legitimate foreign investments into Tanzania. Originality/value This paper generates insightful information to policymakers, law enforcers, regulators and other stakeholders who undertake activities to tackle money laundering and its control in Tanzania and researchers who study these issues for purposes of providing understanding of the problem and facilitating policy and legal reforms. The paper raises issues that can be explored further in future and contribute to the discourse on money laundering and its control in Tanzania.

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“…They reveal how divisive a single universal definition of PEPs (or the development of national lists of PEPs) is, as well as the difficulties associated with the national and extraterritorial prosecution of corrupted officials. A few studies also address the difficulties financial institutions face in identifying when a client should be classified as a PEP (Oke, 2016; Gilligan, 2009; Geary, 2010; Choo, 2008, 2010; Serio (2008); China, 2017; Miltina et al , 2017; Cogman and Head, 2017). However, a common feature of published studies is to maintain a focus on the relationships with individuals instead of with associated legal entities.…”

Section: The Politically Exposed Person Conceptmentioning

confidence: 99%

“…14. FFIEC, (2014), p. 292; Financial Conduct Authority (FCA), 2017, see note 2 and Oke, (2016); Gilligan, (2009); Geary, (2010); Choo, (2008); Serio, (2008); Choo, (2010); China, (2017); Miltina et al (2017); Cogman and Head, (2017)…”

Section: Notesmentioning

confidence: 99%

Politically exposed entities: how to tailor PEP requirements to PEP owned legal entities

Canestri

2019

JMLC

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Purpose This paper aims to address the money laundering risk posed by politically exposed person’s (PEP’s) controlled legal entities. International standards and national legislation require enhanced due diligence of political office holders but no specific requirements exist on entities controlled by PEPs. While regulators expect the stringent AML risk mitigation regarding this type of entities, financial institutions have no guidelines to follow. This gap produces inconsistent due diligence measures applied to entities with significant PEPs’ connection. Design/methodology/approach The paper uses comparative analysis to identify discrepancies between legal requirements and their interpretation. Moreover, an empirical approach results in a standardised solution to address these discrepancies. Findings The paper defines the concept of politically exposed entities and the applicable due diligence framework. Anticipating legislative measures, it proposes to introduce this concept via best practices of financial institutions and private banking initiatives such as the Wolfsberg Group. Research limitations/implications The research addresses the topic from a legal point of view. However, the implementation of proposed ideas depends on decisions which are political by nature and are not within the scope of this paper. Practical implications The paper aims at stimulating a debate in both the private and public sector to form a consistent approach to AML due diligence of legal entities associated to PEPs. Originality/value This paper responds to an identified need to study how legal entities connected to PEPs should be defined and monitored.

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Money laundering regulation and the African PEP: case for tougher civil remedy options

Cited by 7 publications

References 25 publications

Institutionalizing the fight against money laundering in Tanzania: the potential, limitations and challenges

Institutionalizing the fight against money laundering in Tanzania: the potential, limitations and challenges

The anti-money laundering law in Tanzania: whither the ongoing “war” against economic crimes?

Politically exposed entities: how to tailor PEP requirements to PEP owned legal entities

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