2017-05-02T06:42:58Z

2017-05-02

Default License

Jone's Model

Corruption

Red flags of cash inflows: tracing money laundering in European Union

tracing money laundering in European Union

This study aims to capture the critical components and conditions enhancing money laundering by utilizing and modifying Jones’s model of earnings management and quality.

Accounting

Humanities

Money laundering investigation

free

School of Economics, Business Administration and Legal Studies, MSc in International Accounting, Auditing and Financial Management

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.

Bozos, Konstantinos

Sikalidis, Alexandros

IHU

49

Europe