Financial Crimes: Psychological, Technological, and Ethical Issues International Library of Ethics, Law, and the New Medicine

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Financial Crimes: Psychological, Technological, and Ethical Issues International Library of Ethics, Law, and the New Medicine International Library of Ethics, Law, and the New Medicine 68 Michel Dion David Weisstub Jean-Loup Richet Editors Financial Crimes: Psychological, Technological, and Ethical Issues International Library of Ethics, Law, and the New Medicine Volume 68 Series editors David N. Weisstub, University of Montreal Fac. Medicine Montreal, QC, Canada Dennis R. Cooley, North Dakota State University, History, Philosophy, and Religious Studies, Fargo, ND, USA The book series International Library of Ethics, Law and the New Medicine comprises volumes with an international and interdisciplinary focus. The aim of the Series is to publish books on foundational issues in (bio) ethics, law, international health care and medicine. The 28 volumes that have already appeared in this series address aspects of aging, mental health, AIDS, preventive medicine, bioethics and many other current topics. This Series was conceived against the background of increasing globalization and interdependency of the world’s cultures and govern- ments, with mutual influencing occurring throughout the world in all fields, most surely in health care and its delivery. By means of this Series we aim to contribute and cooperate to meet the challenge of our time: how to aim human technology to good human ends, how to deal with changed values in the areas of religion, society, culture and the self-definition of human persons, and how to formulate a new way of thinking, a new ethic. We welcome book proposals representing the broad interest of the interdisciplinary and international focus of the series. We especially welcome proposals that address aspects of ‘new medicine’, meaning advances in research and clinical health care, with an emphasis on those interventions and alterations that force us to re-examine foundational issues. More information about this series at http://www.springer.com/series/6224 Michel Dion • David Weisstub Jean-Loup Richet Editors Financial Crimes: Psychological, Technological, and Ethical Issues 123 Editors Michel Dion Jean-Loup Richet Chairholder of the CIBC Research Chair in ESSEC Financial Integrity, Faculté Institute for Strategic Innovation & Services d’administration Suresnes Université de Sherbrooke France Sherbrooke, QC Canada David Weisstub Faculté de Médicine Université de Montréal Montreal, QC Canada ISSN 1567-8008 ISSN 2351-955X (electronic) International Library of Ethics, Law, and the New Medicine ISBN 978-3-319-32418-0 ISBN 978-3-319-32419-7 (eBook) DOI 10.1007/978-3-319-32419-7 Library of Congress Control Number: 2016938655 © Springer International Publishing Switzerland 2016 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG Switzerland Contents Part I Financial Crimes, Its Determinants and Policy Implications 1 Anti-corruption Measures: The Panacea to a Financial Cliff ..... 3 Maria Krambia-Kapardis and Nestor Courakis 2 The Determinants of Tax Evasion: A Cross-Country Study ...... 33 Grant Richardson 3 What Determines Information Sharing for Income Tax Purposes: The Swedish Case .................................... 59 Jenny E. Ligthart, Barbara Maria Sadaba and Rene van Stralen 4 The Duty of Financial Institutions to Investigate and Report Suspicions of Fraud, Financial Crime, and Corruption ......... 83 F.N. Baldwin and Jeffrey A. Gadboys Part II Psychological and Psychiatric Aspects of Financial Crimes 5 Forensic Psychiatric Contributions to Understanding Financial Crime...................................... 107 Sara Brady, Erick Rabin, Daniel Wu, Omar Sultan Haque and Harold J. Bursztajn 6 Cognitive Factors to Financial Crime Victimization ............ 129 Stacey Wood, Yaniv Hanoch and George W. Woods 7 Personal and Situational Contributors to Fraud Victimization: Implications of a Four-Factor Model of Gullible Investing ....... 141 Stephen Greenspan and George W. Woods 8 Villains, Victims and Bystanders in Financial Crime ........... 167 Bruce Baer Arnold and Wendy Bonython v vi Contents Part III Bribery, Corporate Governance and Ethical Aspect of Financial Crime 9 Complicity in Organizational Deviance: The Role of Internal and External Unethical Pressures ......................... 201 Anne Sachet-Milliat 10 Corporate Governance and Bribery: Evidence from the World Business Environment Survey............................ 219 Xun Wu, Krishnan Chandramohan and Azad Singh Bali 11 Institutionalised Corruption and Integrity: A Theological-Ethical Clarification of a Complex Issue .......................... 235 Johan Verstraeten 12 Bribery and the Grey Areas of Morality .................... 249 Michel Dion Part IV Tax Evasion, Money Laundering and Technological Aspect of Financial Crime 13 Applying Evidence-Based Profiling to Disaggregated Fraud Offenders ..................................... 269 Andreas Kapardis and Maria Krambia-Kapardis 14 Globalization and the Challenge of Regulating Transnational Financial Crimes ..................................... 295 Nlerum S. Okogbule 15 The Transnational Organisation of the Drugs Trade ........... 309 Peter Enderwick 16 Money Laundering Compliance—The Challenges of Technology ....................................... 329 Louis de Koker 17 New Technologies and Money Laundering Vulnerabilities ....... 349 Jun Tang and Lishan Ai Concluding Remarks—Financial Crimes Research, Theoretical and Practical Implications ......................... 371 Contributors Lishan Ai School of Political and Social Inquiry, Monash University, Melbourne, Australia Bruce Baer Arnold Canberra Law School, University of Canberra, Canberra, Australia F.N. Baldwin Center for International Financial Crimes Studies, University of Florida, Gainesville, FL, USA Azad Singh Bali Division of Social Science & Division of Environment, Hong Kong University of Science and Technology, Hong Kong, China Wendy Bonython Canberra Law School, University of Canberra, Canberra, Australia Sara Brady Harvard Longwood Psychiatry Residency Training Program, Boston, USA Harold J. Bursztajn Clinical and Forensic Psychiatrist, Cambridge, USA Krishnan Chandramohan Division of Social Science & Division of Environment, Hong Kong University of Science and Technology, Hong Kong, China Nestor Courakis Faculty of Law, University of Athens, Athens, Greece Louis de Koker Deakin Law School, Centre for Cyber Security Research, Deakin University, Geelong, Australia Michel Dion Chairholder of the CIBC Research Chair in Financial Integrity, Faculté d’administration, Université de Sherbrooke, Sherbrooke, Québec, Canada Peter Enderwick Auckland University of Technology, Auckland, New Zealand Jeffrey A. Gadboys Centre for International Financial Crimes Studies, Levin College of Law, University of Florida, Gainesville, FL, USA vii viii Contributors Stephen Greenspan Health Science Center, University of Colorado, Boulder, CO, USA Yaniv Hanoch Plymouth University, Plymouth, UK Omar Sultan Haque Department of Psychology, Harvard University, Cambridge, USA; Program in Psychiatry and the Law, Harvard Medical School, Boston, USA Andreas Kapardis Department of Law, University of Cyprus, Nicosia, Cyprus Maria Krambia-Kapardis Cyprus University of Technology, Limassol, Cyprus Jenny E. Ligthart Tilburg University, Tilburg, Netherlands Nlerum S. Okogbule Rivers State University of Science and Technology, Port Harcourt, Nigeria Erick Rabin New York University School of Law, New York, USA Grant Richardson School of Accounting and Finance, The University of Adelaide, Adelaide, SA, Australia Anne Sachet-Milliat ISC Paris Business School, Paris, France Barbara Maria Sadaba Tilburg University, Tilburg, Netherlands Jun Tang School of Statistics and Mathematics, Zhongnan University of Economics and Law, Wuhan, Hubei, China Rene van Stralen Tilburg University, Tilburg, Netherlands Johan Verstraeten Catholic University of Leuven, Leuven, Belgium Stacey Wood Scripps College, Claremont, CA, USA George W. Woods Morehouse School of Medicine, Atlanta, GA, USA Daniel Wu Harvard University, Cambridge, USA Xun Wu Division of Social Science & Division of Environment, Hong Kong University of Science and Technology, Hong Kong, China Introduction Financial Crimes, Determinants, Policy Implications— Psychological and Psychiatric Aspects Because of the enormity of damages caused by financial crimes affecting both the physical and the mental health of individuals, families and organizations (indeed in many cases exceeding those
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