HARMONIZING INTERNATIONAL LAW FOR DECENTRALIZED AGE: ADDRESSING THE BITCOIN MONEY LAUNDERING THREAT

Corruption in Indonesia and in other countries has become a latent problem and is very difficult to eradicate. Various attempts have been made to eradicate this corruption: both at the country level itself and at the international level. In general, the eradication of corruption is carried out through the establishment of a corruption eradication agency or institution which is legalized through a law. Furthermore, the following presentation is a case study of Indonesia and South Korea on how to eradicate corruption.
 
 The practice of money laundering has often involved cross-border transactions, because by conducting such transactions between countries, it is very effective in eliminating traces of illegal flows of funds. With the increasing globalization of the international financial system, money laundering, as a criminal activity, is becoming more and more common, but in turn it greatly affects and damages the global social and financial system.
 
 In summary, it can be concluded that in the era of globalization the problem of corruption and money laundering is becoming increasingly widespread because the existence of this crime involves many factors that cross national boundaries. The problem of corruption and money laundering is the dark side of globalization. Handling corruption and money laundering cannot be resolved quickly and easily, but it takes time, commitment, political will, and support from all parties: national government, society, and multilateral cooperation. Learning from South Korea, Indonesia and the international community, for example, requires a more efficient structure-based bureaucratic reform by upholding the spirit of 'Good Governance' and 'Check and Balance' which is expected to encourage all elements of the nation to work together to solve corruption at a practical level.

The article is devoted to the issue of studying the impact of modern migration and globalization processes of the economy on the spread of transnational crime in the context of the crime of legalization (laundering) of the proceeds of crime. The article also analyses the subject matter of legalization (laundering) of the proceeds of crime, as well as the most common phases and stages of committing legalization (laundering) with such property as a type of transnational crime. In search of the essential content of the concept of the subject matter of legalization (laundering) of assets obtained by criminal means, the author analyses the proposed approaches to this issue by scholars and court opinions, and as a result, the author proposes to use the collective concept of "property", meaning any assets obtained in whole or in part, and also both directly and indirectly as a result of a crime. The author establishes that the offense of legalization (laundering) of the proceeds of crime is of an international nature, and recently it has acquired the characteristics of a transnational crime. This is facilitated by the unimpeded movement (transfer) of assets of criminal origin to any jurisdiction. Globalization processes, which create conditions for cross-border laundering of criminal proceeds, have a significant impact on the spread and proliferation of money laundering. Key words: migration; globalization; legalization; money laundering; object of crime; transnational money laundering

Corruption and Money Laundering as a Threat to Financial Stability: 'Lava Jato' Case Study

PurposeThe purpose of this paper is to examine the international standards for establishing national jurisdiction over the transnational crimes of money laundering and bribery and identify challenges to the adoption of those standards by different states in practice.Design/methodology/approachThis paper, first, defines transnational money laundering and transnational bribery; then, it examines the legal bases and principles on which a state can claim criminal jurisdiction over these offences. This paper also discusses the application of jurisdictional conditions in a transnational context and how to deal with the problems arising from national claim of jurisdiction over these offences, for example, jurisdictional concurrence.FindingsThis paper argues that when the jurisdictional concurrence occurs, the involved states should consult one another by taking into account a number of relevant factors and take the “centre of gravity” approach to deciding which state or forum should prosecute eventually. States less able to establish jurisdiction over the offences are often those which have a weak legal basis and/or insufficient resources.Originality/valueTo the authors’ knowledge, this article would be the good guidance on how a state could claim jurisdiction over the offences of transnational money laundering and transnational bribery.

The fight against money laundering (ML) remains a significant challenge for global financial systems. Traditional anti-money laundering (AML) measures often struggle with inefficiencies, high compliance costs, data fragmentation, and the increasing complexity of illicit financial activities. Blockchain technology, with its unique features of decentralization, transparency, and immutability, presents a next-generation solution to transform AML compliance and disrupt money laundering networks. By providing real-time transaction monitoring, transparent audit trails, and secure data sharing, blockchain enhances the ability to trace illicit funds across borders and financial systems, offering a level of visibility and accuracy previously unattainable. This explores how blockchain innovations can address the core limitations of existing AML frameworks. Blockchain’s immutable ledger allows for the secure tracking and verification of financial transactions, making it nearly impossible to manipulate or tamper with data. Additionally, smart contracts enable automated compliance checks, such as reporting suspicious activities or freezing assets when certain conditions are met, streamlining the compliance process and reducing human error. Furthermore, blockchain’s decentralized nature facilitates cross-border collaboration by allowing for the secure sharing of AML data between jurisdictions, fostering global cooperation without compromising privacy or security. Blockchain’s potential also extends to enhancing Know Your Customer (KYC) protocols, enabling secure, decentralized identity management systems that reduce fraud risks and redundancy. Despite its promising applications, the widespread adoption of blockchain for AML compliance faces challenges related to scalability, integration with legacy financial systems, and regulatory harmonization. Nevertheless, blockchain represents a powerful tool for disrupting money laundering networks and enhancing the efficiency and transparency of AML efforts in an increasingly digital financial ecosystem. This argues that blockchain will play a critical role in the evolution of AML strategies, offering a more secure and efficient solution to combat financial crime.

Purpose The purpose of this paper is to decipher the law relating to cybercrimes regulation and benchmarking best practices that could be adopted to address regulatory weaknesses in some countries. In many countries, cybercrimes regulation is undermined by a lack of robust regulatory regimes. The few regimes that are available are fragmented with no coherent global strategy to deal with these offences across countries and regions. There is a lot of scholarly literature to corroborate the fact that lack of requisite laws on cyber and financial crimes has rendered states lame ducks when faced with well-organized and resourced criminal organizations. Design/methodology/approach This paper articulates intricacies of regulating money laundering and cybercrimes using data from selected African countries and beyond. Generic issues on financial crimes, cybercrimes, case law and policy documents drawn from different jurisdictions have been examined based on the objectives of the study. Cybercrime activities and anti-money laundering (AML) regulatory models have been evaluated drawing on experiences of selected countries in Africa and other countries. Questions whether suspicious activity reports are appropriate as a model to counter incidences of cybercrime activities or whether other options should be considered were also examined. Most notably, the risk-based assessment model such as profiling of high-risk clients rather than reporting every transaction will be compared and possibly suggested as a suitable alternative in financial crimes regulation. The authors have evaluated the data and AML regulatory approaches and other policy measures to curtail the foregoing threats. There is a possibility that AML tools used by financial institutions and banking activities could be used to prevent the growing threat of cybercrimes. The paper has also been enriched by case studies of tenuous legal systems and fragmentation of laws on cybercrimes and financial crimes and how these gaps have been exploited to fuel incidences of illicit criminal activities around the globe. The paper has also used empirical data including visits to banks and financial institutions on the nexus between the threat of cybercrimes and money laundering prevention. The authors have been selective, evaluating cases from 2000s to date. This timeline was particularly important because of the increased incidences of computers and money laundering threats globally. After analysing the data, the authors were able to delineate that there is a close connection between the foregoing two crimes, how they operate in practice, differences and similarities in the counter-measures used to mitigate their negative effect globally. Thus, in the authors’ contention, this is a novel study that is likely to spur farther research on law and policy against cyber and AML crimes not only in Uganda but also in other jurisdictions. At the same time, the findings of the study could complement, and perhaps also complete, the work of scholars who have written papers on cybercrimes to advocate for regulatory changes fight against these offences. The study will also complement the work of other researchers who have challenged the segregation of cybercrimes and financial crimes in local and international regulatory discourses. This research aims to make a significant contribution to the study of cybercrimes and how they are regulated in international law. Findings The findings of the paper have confirmed that the high incidences of money laundering and cybercrimes today are partly fuelled by inherent weaknesses in the global regulatory system and partly fuelled by weaknesses at an individual state level. Many countries have enacted a raft of anti-cyber and AML legislation but this notwithstanding, these laws have not been used to stem cross-border crimes globally. This is partly explained by the fact that many enforcement institutions lack the requisite capacity to institute measures through which to implement engendered laws and policies easily. The regulatory capacity of many countries has been eviscerated by deficiencies in infrastructure and systems.

The rapid development and adoption of digital currencies are driving significant changes in the global financial system, with profound implications for national security and global power dynamics. State-backed digital currencies, such as Central Bank Digital Currencies (CBDCs), offer new opportunities and risks in terms of sovereignty, financial control, and data security. Countries may use digital currencies to reduce reliance on the U.S. dollar, potentially challenging its global dominance and weakening American geopolitical influence. At the same time, digital currencies raise concerns about money laundering, terrorism financing, and the ability of governments to monitor illicit financial flows, making them a critical issue for national and international security frameworks. Moreover, the use of digital currencies in cross-border transactions could allow countries to bypass traditional financial systems like SWIFT, reducing the effectiveness of economic sanctions as a tool of foreign policy. This is particularly relevant as nations such as China and Russia explore digital alternatives to protect their economies from Western financial pressure. The strategic implementation of CBDCs can also enhance state control over domestic economies, enabling real-time monitoring and regulation of financial activity, which can be both a strength and a potential threat to individual privacy and democratic norms. On a broader scale, the rise of digital currencies may lead to the emergence of new financial alliances and blocs, reshaping global economic hierarchies. Technological leadership in digital finance could become a key aspect of geopolitical competition, with countries investing heavily in blockchain infrastructure, cybersecurity, and digital payment ecosystems. Ultimately, digital currencies are not just financial instruments but tools of influence, control, and power projection in the evolving international order

The paper examines the institutional threats to Ukraine’s financial security, with a particular emphasis on their mechanisms of formation and the socio-economic consequences of their influence. The relevance of the study is underscored by the intensification of such threats, including corruption, shadow economy, tax evasion, money laundering, offshoreisation, financial pyramids, and cyber fraud, all of which significantly distort financial flows, erode state capacity, and deepen social inequality. The methodology combines institutional analysis with structural-functional and systemic approaches, enabling a comprehensive examination of both the genesis and dynamics of financial security vulnerabilities. The findings demonstrate that institutional threats manifest through the degradation of state regulatory capacity, decline in public trust, misallocation of resources, and marginalisation in the global financial system. Corruption is shown to be the most pervasive threat, producing cascading effects across fiscal and investment domains. Money laundering reinforces organised crime and destabilises financial systems, while the expansion of the shadow economy disrupts fiscal planning and fuels social polarisation. Offshoreisation exacerbates revenue losses and facilitates further illicit practices, whereas fraudulent schemes and cybercrime weaken the resilience of digital financial infrastructure. Collectively, these processes form a self-reinforcing cycle of institutional erosion, undermining financiВіal sovereignty and resilience. The study conceptualises institutional threats not merely as a systemic network of interrelated deformations. The results justify the urgent need to strengthen institutional capacity, enhance financial monitoring, improve fiscal transparency, and adopt modern anti-corruption instruments. Integration into international systems of anti-money laundering and financial fraud prevention is highlighted as an essential step for mitigating risks. The future research should focus on methodological approaches for assessing the impact of institutional threats in wartime and post-war recovery, and designing innovative countermeasures in terms of digitalisation and low financial literacy.

European and global financial institutions appear to be increasingly involved in and punished for facilitating money laundering. The need to respond to these cases effectively has been a priority for national, supranational and international organisations for many years now. Despite several attempts to harmonize enforcement in Europe, previous research indicates that the interpretation, implementation, and enforcement of AML/CTF regulation across EU Member States differ significantly. This essay maps similarities and differences in responses to money laundering cases against banks in Europe for 47 cases between January 2015 and January 2020. While most cases still result in regulatory sanctions, a trend towards a more stringent and aggressive enforcement paradigm is seen. Reflecting on implications for the effectiveness and legitimacy of anti-money laundering efforts in the global financial system, the essay argues to be mindful of the adverse effects of such an aggressive approach for the legitimacy of the global AML regime.

Financial crimes, including tax crimes, threaten the strategic, political and economic interests of both developed and developing countries and undermine confidence in the global financial system. In a world of limited resources and increasing complexity government authorities must work closely together in a “whole of government” approach to best address these challenges. This report uses survey data to analyse the levels of co-operation between the authorities combatting serious financial crimes such as tax crimes, bribery corruption, money laundering and terrorism financing. More specifically, it assesses various models for the sharing of Suspicious Transaction Reports (STRs) by the Financial Intelligence Unit (FIU) with the tax administration, both for criminal and civil purposes. It finds that there are significant potential benefits from greater co-operation, with each authority pooling their knowledge and skills. The report subsequently recommends that subject to the necessary safeguards, tax administrations should have the fullest possible access to the STRs received by the FIU in their jurisdiction.

This paper contributes to the finance literature by investigating the risk contagion and bailout effects in the global financial system. We use the bilateral exposure matrix to examine the impact of credit shocks and liquidity shocks on the global financial system when a Global Systemically Important Bank (G-SIB) is supposed to be in distress. The findings indicate that the global financial network is dominated by large and medium-sized financial institutions. Credit shocks does not play a significant role in risk contagion nor do they trigger the systemic risk in the global financial system. However, the global financial network is more vulnerable to liquidity shocks than to credit shocks. If a credit shock and liquidity shock overlaps with each other, the hybrid shock can exacerbate the risk contagion effects and lead to rapid propagation throughout the global financial network. If a regulator bails out the distressed institutions, the bailout efficiency increases with the number of rescued institutions. However, the improvement in of bailout efficiency decreases with the number of rescued institutions. If a regulator can promote financial institutions to raise the rollover ratio, the financial system will be more robust to shocks. This paper provides a ground view of systemic risks contagion and sheds light on directions for future research on systemic risk contagion in the global financial system. • The credit shock does not play a significant role in risk contagion in the global financial system. However, the liquidity shock has shown more substantial effects than that of the credit shock. • If the credit shock and liquidity shock overlaps with each other, the contagion effects are amplified. • If the regulator implements the bailout, the total rescue effects in the second round is better than that of other rounds. • If the financial institutions can raise the rollover ratio, the impact of systemic risk could be reduced significantly.

Form 8300: Reporting Domestic Currency Transactions

A SHIFT towards interest-driven, opportunity-based and more voluntary actions by combining bottom-up with top-down elements (Falkner, 2016).Interactive learning and experimentation at different levels of global governance have become highly important, and these complex global interactions are increasingly regarded not as obstacles but as opportunities for innovation and interactive learning (Sovacool, 2011).Global climate governance relates not only to the legal system of the climate regime but also to various public and private initiatives at different scales and across sectors.Scholars studying the complex multi-actor and multi-sector characteristics of the system have therefore begun to conceptualize global multi-level climate governance as an opportunity structure for the generation and diffusion of climate-related innovation.The topic of this special issues is climate governance within a multi-level and multi-sectoral global system.The work argues that global climate governance today aims essentially to activate the dynamic potential of each level of the global governance system, the level of world regions as well as the level of provinces and local communities.Horizontal peer-to-peer learning between countries, cities and regions, as well as vertical up-scaling of best practice, has created a dynamic of change.The cross-sectoral approach has become important as far as the mobilizing of economic interests (e.g. in the construction sector) and the use of co-benefits is concerned.This special issue intends to offer a better understanding of the nature and variety of, and linkages between, initiatives taken and governance functions delivered within the broader 'climate governance landscape ' (Betsill et al., 2015).It analyses various climate governance activities in the European Union (EU), India and China through a systemic perspective.The EU may be regarded as the strongest regional sub-system of the global system, although the BRICS countries of China and India play a comparable role, as countries both with a similar scope and with explicit multi-level climate policy activities.The systematic dimension of global climate governance is described in the introductory article 'Multi-level climate governance as a global system' by Martin Jnicke.The author analyses the potential of the global climate governance system, which is characterized by a multiplicity of access points and incentives for innovation and interactive learning.It is regarded as a 'multi-impulse-system', where the sum of even weak impulses from different parts of the system can play the role of a strong instrument.The global multi-level climate governance structure is also characterized by a specific global knowledge base and a global policy arena, allowing for climate-related agenda-setting and the mobilization of interests at each level.It is taken as an opportunity structure for ambitious innovation-based climate strategies based on interactive lesson-drawing from best practice.The lesson to be learned at all levels of the system is the potential for economic co-benefits related to the socio-technical system of clean-energy innovation and the global clean-energy market.The following article, 'The EU system of multi-level climate governance', by Martin Jnicke and Rainer Quitzow provides an overview of the regional structure of the global climate governance system.The authors understand the EU as a system where 'multi-level reinforcement' has been observed several times and which can be considered as a leader by example in global climate governance.They point to the fact that the EU has the world's highest share of green electricity and since 1990 has made the largest reduction to its greenhouse gas emissions.They attribute the EU's relatively successful performance in climate and energy governance to two main factors: (1) multi-level reinforcement and (2) the mobilization of economic interests at different levels of governance through low-carbon industrial policy.While the multi-impulse system has fostered

Anti-money laundering (AML) frameworks play a crucial role in global financial governance. They’re designed to protect national security by disrupting illegal financial activities while also promoting financial integrity. However, if these measures are not well-calibrated, they can inadvertently hinder financial inclusion, making it harder for individuals and sectors that are essential for economic resilience to access legitimate services. This review looks at the changing landscape of global AML compliance, how it intersects with national security needs, and its effects on financial inclusion. It delves into the risk-based approach as a way to strike a balance, evaluates how different regions and nations adapt, and examines technological innovations that can align security with inclusion goals. By drawing on authoritative policy reports, FATF guidance, peer-reviewed research, and recent enforcement cases, the review brings together evidence from various jurisdictions. It emphasizes real-world case studies, the specific impacts on different sectors, and regulatory innovations that show how AML effectiveness can go hand in hand with inclusive access. The review highlights three ongoing challenges: (I) over-compliance and de-risking that led to the exclusion of low-risk but underserved populations, (ii) privacy and interoperability issues that restrict cross-border information sharing, and (iii) regulatory fragmentation that weakens coordinated enforcement. On the flip side, sensible regulation, tiered KYC systems, digital identity integration, and privacy-friendly data-sharing platforms emerge as effective ways to achieve balanced compliance. Successful examples from places like Singapore, India, and Ghana demonstrate that it is possible to create inclusive AML frameworks without sacrificing national security goals. To create a sustainable approach to AML compliance, we need to weave inclusion into the fabric of AML/CTF policy design. This means boosting supervisory capabilities in lower-income areas, encouraging collaboration between the public and private sectors, and supporting technological solutions that work well together. It's important to understand that aligning security with inclusion isn't a compromise; rather, it's a goal that enhances both financial integrity and resilience.

The Global Fund: replenishment and future-proofing