Money laundering entails a highly rapid scheme of multiple transactions run-ning within seconds the course of the world. Due to the clandestine origin of money laundering, its estimation becomes highly complex and extremely time consuming, thus the existence of an accurate model is highly impossible. Moreover, factors such as technological advances, rapid development in financial information systems and the existence non-cooperative multinational banking entities that ensures anonymity and full disclosure to the customer makes such estimations even more impossible. Thus, in this working paper, a spherical model including macroeconomic, sociocultural, gov-ernance and corruption components has been implemented in order to capture every essence related to money laundering. By utilizing and modifying Jones’s model of earnings management and quality, we end up in a new set of approaches portraying the inclinations and red flags towards the presence of money laundering. An applica-tion in the European Union will be considered as to test and export crucial conclusions regarding the presence of money laundering in European Union.
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