Co‐designing compliance to the Anti‐Money Laundering Act within the small and medium enterprise sector

Emerald - Tập 21 Số 1 - Trang 84-101 - 2013
AmeyaKelkar1, AshaRao1
1School of Mathematical and Geospatial Sciences, RMIT University, Melbourne, Australia

Tóm tắt

PurposeMoney laundering is a financial crime that does not directly affect a business but poses a serious threat to a nation's stability and security. The Australian Anti‐money Laundering and Counter Terrorism Financing Act (AML/CTF Act – the Act) passed into law in 2006, but achieving compliance is proving a daunting task, especially within the small and medium enterprises (SME) sector. This paper aims to propose a co‐designed communication strategy, which if adopted by the Australian regulator, AUSTRAC, could improve communication and education about the Act within this sector.Design/methodology/approachA literature review is done to understand the complexities of the Act and its compliance regime, especially with regards to SME. By establishing the importance of SME to a country's economy, as well as the need for AUSTRAC to understand their limitations, this paper uses the concepts of design in communication, and the importance of involving stakeholders in designing solutions, to develop a communication strategy.FindingsIt is clear that the current compliance regime is not very successful, and a better communication strategy would achieve better education among the SME sector and could result in better compliance indices.Research limitations/implicationsThis paper is based on the available literature including journals, white papers and the AUSTRAC website and did not involve in‐person communication or contact with either the stakeholders or AUSTRAC.Originality/valueThis paper is first of its kind to propose the use of “design” in order to improve the AML/CTF compliance indices.

Từ khóa


Tài liệu tham khảo

ABS (2001), Small Business in Australia, Australian Bureau of Statistics, available at: www.abs.gov.au/Ausstats/[email protected]/0/97452f3932f44031ca256c5b00027f19? (accessed 10 August 2011).

Appiah‐Adu, K. and Singh, S. (1998), “Customer orientation and performance: a study of SMEs”, Management Decision, Vol. 36 No. 6, pp. 385‐94.

Araujo, R.A. (2010), “An evolutionary game theory approach to combat money laundering”, Journal of Money Laundering Control, Vol. 13 No. 1, pp. 70‐8.

Armbrust, M., Fox, A., Griffith, R., Joseph, A.D., Katz, R., Konwinski, A., Lee, G., Patterson, D., Rabkin, A., Stoica, I. and Zaharia, M. (2010), “A view of cloud computing”, Communications of the ACM, Vol. 53 No. 4, pp. 50‐8.

ARRB (2008), “Regulatory issues in the distributive trades”, Annual Review of Regulatory Burden, available at: www.pc.gov.au/data/assets/pdf_file/0003/83037/09‐chapter7.pdf (accessed 21 September, 2011).

ASIC (2005), ASIC Policy Statement [PS 185] Proposed Policy Statement for Non‐cash Payment Facilities Regulation Impact Statement (RIS) 2005, Australian Securities and Investments Commission, available at: www.watchdog.asic.gov.au/asic/pdflib.nsf/LookupByFileName/RIS_ps185.pdf/$file/RIS_ps185.pdf (accessed 10 August 2011).

AS/NZS ISO 31000 (2009), Risk Management – Principles and Guidelines, Standards Australia and Standards New Zealand, Sydney.

AUSTRAC (2006), Anti‐Money Laundering and Counter Terrorism Financing Act 2006, available at: www.austrac.gov.au/aml_ctf.html (accessed 10 July 2011).

AUSTRAC (2010a), Appendix D: Historical Developments in Australia's AML/CTF Environment, available at: www.austrac.gov.au/rg_app_d.html (accessed 15 July 2011).

AUSTRAC (2010b), Compliance Reports, available at: www.austrac.gov.au/rg_5.html (accessed 20 September 2011).

AUSTRAC (2010c), Compliance Risk Exposure Tool, available at: www.AUSTRAC.gov.au/crest.html (accessed 11 July 2011).

AUSTRAC (2010d), Designated Services, available at: www.austrac.gov.au/files/regguide_chp11.pdf (accessed 12 July 2011).

(The) Australian National Preventive Health Agency (2012), The Measure Up – Swap It, Don't Stop It Obesity Prevention Campaign, available at: www.swapit.gov.au/ (accessed 22 June).

Beckinsale, M., Levy, M. and Powell, P. (2006), “Exploring internet adoption drivers in SMEs”, Electronic Markets, Vol. 16 No. 4, pp. 361‐70.

Bourne, L. and Walker, D.H.T. (2006), “Using a visualising tool to study stakeholder influence – two Australian examples”, The Project Management Journal, Vol. 37 No. 1, pp. 5‐21.

Burger, R. and Hatt, S. (2006), “Are you the weakest link? The FSA's financial crime review”, Journal of Financial Regulation and Compliance, Vol. 14 No. 3, pp. 304‐10.

Chaikin, D. (2009), “How effective are suspicious transaction reporting systems?”, Journal of Money Laundering Control, Vol. 12 No. 3, pp. 238‐53.

Choo, K.‐K.R. (2008), Money Laundering Risks of Prepaid Stored Value Cards, available at: www.aic.gov.au/publications/tandi2/tandi363.pdf (accessed 7 March 2012).

Clarke, A.D. (2006), “SMEs and corporate governance: politics, resources and trickle‐down effects”, paper presented at Corporate Law Teacher's Association Conference, University of Queensland, Australia, 5‐7 February, available at: www.clta.edu.au/docs/pdf/2006‐conf‐papers/ADClarke.pdf (accessed 10 October 2012).

Contos, G., Eftekharzadeh, A., Guyton, J., Erard, B. and Stilmar, S. (2009), “Econometric simulation of the income tax compliance process for small businesses”, Winter Simulation Conference, December, pp. 2902‐14.

Demetis, D.S. (2009), “Data growth, the new order of information manipulation and consequences for the AML/ATF domains”, Journal of Money Laundering Control, Vol. 12 No. 4, pp. 353‐70.

Dickinson, G.P. (2008), “Company formation and regulation compliance for SMEs (Estonia)”, International Journal of Law and Management, Vol. 50 No. 3, pp. 136‐48.

Drummond, S. (2009), “Enforcing responsibility”, Risk Magazine, available at: www.riskmagazine.com.au/article/enforcing‐responsibility‐114715.aspx (accessed 18 October 2011).

Edelenbos, J. and Klijn, E.‐H. (2006), “Managing stakeholder involvement in decision making: a comparative analysis of six interactive processes in The Netherlands”, Journal of Public Administration Research Theory, Vol. 16 No. 3, pp. 417‐46.

Eppler, M.J. and Aeschimann, M. (2009), “A systematic framework for risk visualization in risk management and communication”, Risk Management – An International Journal, Vol. 11 No. 2, pp. 67‐89.

Ergas, H. and Orr, J. (2007), SME Trends and Achievements, Report prepared for Telstra Business, CRA International Project No: D10971‐01, available at: www.telstrabusiness.com/business/ShowDoc?nodePath=%2FBEA+Repository%2FResFResou%2FPress+Releases%2FPDF_SMETrendsAndAchievements//binary&versionId=1 (accessed 15 July 2011).

Eskil, M. and Sticklen, J. (2009), “Integrating vendors into cooperative design practices”, CoDesign: International Journal of CoCreation in Design and the Arts, Vol. 5 No. 3, pp. 175‐92.

Fan, Q. (2003), “Importance of SMEs and the role of public support in promoting SME development”, Creating A Conducive Legal and Regulatory Framework for Small and Medium Enterprise Development in Russia, A Policy Dialogue Workshop, available at: www.info.worldbank.org/etools/docs/library/49256/fan.pdf (accessed 11 August 2011).

FATF (2005), Third Mutual Evaluation Report on Anti‐money Laundering and Combating the Financing of Terrorism: Australia, Financial Action Task Force, available at: www.fatf‐gafi.org/dataoecd/60/33/35528955.pdf (accessed 28 July 2011).

Geary, J.M. (2009), “Light is the best antidote”, Journal of Money Laundering Control, Vol. 12 No. 3, pp. 215‐20.

Gurung, J., Wijaya, M. and Rao, A. (2010), “AMLCTF compliance and SMEs in Australia: a case study of the prepaid card industry”, Journal of Money Laundering Control, Vol. 13 No. 3, pp. 184‐201.

Hagenzieker, M., Bijleveld, F. and Davidse, R. (1997), “Effects of incentive programs to stimulate safety belt use: a meta‐analysis”, Accident Analysis & Prevention, Vol. 29 No. 6, pp. 759‐77.

Hahn, D., Shangraw, R., Keith, M. and Coursey, D. (2007), “Does visualization affect perceptions of ethically complex policy decisions: an experimental study”, 40th Annual Hawaii International Conference on System Sciences, January, p. 96b, available at: doi.ieeecomputersociety.org/10.1109/HICSS.2007.185.

IFAC (2004), Anti‐money Laundering. International Federation of Accountants, available at: www.apgml.org/issues/docs/23/Int%27l%20Federation%20of%20Accountants_AML%202nd%20Ed.pdf (accessed 22 September 2011).

IMF (2001), Financial System Abuse, Financial Crime and Money Laundering – Background Paper, International Monetary Fund, available at: www.imf.org/external/np/ml/2001/eng/021201.pdf (accessed 15 July 2011).

Johnson, J. (2000), “Will it make a difference to the global anti money laundering movement?”, Journal of Money Laundering Control, Vol. 6 No. 1, pp. 9‐16.

Khairuddin, M., Zhang, P. and Rao, A. (2008), “Risk mitigation strategies for the prepaid card issuer in Australia”, in Valli, C. and Woodward, A. (Eds), Proceedings of the Sixth Australian Information Security Management Conference, SECAU Security Research Centre, Edith Cowan University, Joondalup, pp. 101‐9.

Kim, C. and Blake, R. (2005), “Psychophysical magic: rendering the visible “invisible”, Trends in Cognitive Sciences, Vol. 9 No. 8, pp. 381‐8.

Kontio, J., Jokinen, J. and Rosendahl, E. (2004), “Visualizing and formalizing risk information: an experiment”, Proceedings of the 10th International Symposium on Software Metrics, IEEE, September, pp. 196‐206.

Kosara, R. (2007), “Visualization criticism – the missing link between information visualization and art”, Proceedings of the 11th International Conference on Information Visualization: IV'07, 4‐6 July, pp. 631‐6.

Liondis, G. (2008), “Frontline vital in fraud prevention”, Money Management, available at: www.moneymanagement.com.au/news/financial‐services/archive/frontline‐vital‐in‐fraud‐prevention (accessed 30 July 2011).

McDowell, J. and Novis, G. (2001), The Consequences of Money Laundering and Financial Crime, Bureau of International Narcotics and Law Enforcement Affairs, US Department of State, available at: www.apgml.org/issues/docs/30/Negative%20Effects%20of%20ML_Economic%20Perspectives%20May%202001.pdf (accessed 12 August 2011).

Mackay, W.E. (2004), “The interactive thread: exploring methods for multi‐disciplinary design”, Proceedings of the 5th Conference on Designing Interactive Systems: Processes, Practices, Methods, and Techniques (DIS'04), ACM, New York, NY, pp. 103‐12.

MLTA (2005), US Money Laundering Threat Assessment, available at: www.treasury.gov/resource‐center/terrorist‐illicit‐finance/Documents/mlta.pdf (accessed 21 September 2009).

Neff, A. (1990), “A new approach to business‐communication education: integrating business research methods and communication skills”, Journal of Business and Technical Communication, Vol. 4 No. 2, pp. 44‐67.

Phillips, R.O., Ulleberg, P. and Vaa, T. (2011), “Meta‐analysis of the effect of road safety campaigns on accidents”, Accident Analysis & Prevention, Vol. 43 No. 3, pp. 1204‐18.

Rao, A., Akama, Y., Gurung, J., Kelkar, A., Mendonca, H.D. and Muttupulle, R. (2010), “SME‐comply: design as a service, enabling SME to prevent money‐laundering”, Design Challenge Crime, 2010 Award Exhibition, Level 1, 10‐17 November, Melbourne's GPO, Melbourne.

Ross, S. and Hannan, M. (2007), “Australia's new anti‐money laundering strategy”, Current Issues in Criminal Justice, Vol. 19 No. 2, pp. 135‐50.

Rotorua District Council (2010), “Backseat passengers targeted in Rotorua seatbelt campaign”, available at: www.rdc.govt.nz/YourCouncil/Latest‐News/Backseat‐passengers‐targeted‐in‐Rotorua‐seatbelt‐campaign.aspx (accessed 17 December 2011).

Sametz, R. and Maydoney, A. (2003), “Storytelling through design”, Design Management Journal, Vol. 14 No. 4, pp. 18‐34.

Sanders, E. (1999), Post Design and Participatory Culture in Useful and Critical: The Position of Research in Design, Tuusula University, Helsinki.

Sathye, M. (2008), “Estimating the cost of compliance of AMLCTF for financial institutions in Australia”, Journal of Financial Crime, Vol. 15 No. 4, pp. 347‐63.

Sathye, M. and Islam, J. (2011), “Adopting a risk‐based approach to AMLCTF compliance: the Australian case”, Journal of Financial Crime, Vol. 18 No. 2, pp. 169‐82.

Stappers, P.J., van Rijn, H., Kistemaker, S.C., Hennink, A.E. and Sleeswijk Visser, F. (2009), “Designing for other people's strengths and motivations: three cases using context, visions, and experiential prototypes”, Advanced Engineering Informatics, Vol. 23 No. 2, pp. 174‐83.

Tham, J.C. (2007), “A risk‐based analysis of Australia's counterterrorism financing regime”, Social Justice, Vol. 37 No. 2, pp. 138‐52.

Thrasher, J., Huang, L., Pérez‐Hernández, R., Niederdeppe, J., Arillo‐Santillán, E. and Alday, J. (2011), “Evaluation of a social marketing campaign to support Mexico City's comprehensive smoke‐free law”, American Journal of Public Health, Vol. 101 No. 2, pp. 328‐35.

Thông tin
Thông tin xuất bản

Emerald

Tập 21 Số 1

84-101

Thông tin tác giả