IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/viiiy2015i2p22-31.html
   My bibliography  Save this article

Processes and Technologies for Identifying Illegal Financial Operations

Author

Listed:
  • Josef Budik
  • Otakar Schlossberger

Abstract

The aim of the paper is to discuss law requirements and computer technology related to the processes carried out at identifying clients of banks and other financial institutions. Customer identification is an essential element of an effective customer due diligence programme which banks need to put in place to guard against reputational, operational, legal and other risks. There are mentioned in the paper the law requires that identification must be carried out inside any financial institution which negotiates the new account with the client. The paper describes several approaches to identification. Various scientific and research results are available in printed information. It shows that the illegal operations of clients in these days usually identify bank employees. Communication technologies and computer equipment however has developed so much, and therefore computers could play a new role in money laundering. Illegal operations could currently be detected by a computer. Rapid development of banking technology has changed the way banking activities are dealt with. In conclusion, the present text identifies some problems that lie ahead of financial market in connection with a huge flow of money from black market economies. The paper has been prepared within the project "Current trends in development of financial markets", supported by the Institutional support for long-term strategic development of research organization University of Finance and Administration in 2016.

Suggested Citation

  • Josef Budik & Otakar Schlossberger, 2015. "Processes and Technologies for Identifying Illegal Financial Operations," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 22-31.
    • Handle: RePEc:ers:ijebaa:v:iii:y:2015:i:2:p:22-31
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/pijeba/15_2_p2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eleftherios Thalassinos & Konstantinos Liapis & John Thalassinos, 2014. "The Role of the Rating Companies in the Recent Financial Crisis in the Balkan and Black Sea Area," Contributions to Economics, in: Anastasios Karasavvoglou & Persefoni Polychronidou (ed.), Economic Crisis in Europe and the Balkans, edition 127, pages 79-115, Springer.
    2. Eleftherios I. Thalassinos & Bozhana Venediktova & Daniela Staneva-Petkova & Vicky Zampeta, 2013. "Way of Banking Development Abroad: Branches or Subsidiaries," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 69-78.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreev A.S. & Andreeva O.V. & Bondareva G.V. & Osyak V.V., 2018. "Understanding the Underground Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 814-822.
    2. E.A. Ivanova & M.M. Mackay & T.K. Platonova & N.V. Elagina, 2017. "Theoretical Basis for Composition of Economic Strategy for Industry Development," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 246-256.
    3. Eva Maria Lado Gonzalez & Domingo Calvo Dopico, 2017. "The Importance of Intangible Assets in the Strategic Management of the Firm: An Empirical Application for Banco Santander," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 177-196.
    4. S.A. Issakova & A.Sh. Moldabekova & M.T. Kenzhebayeva & V.N. Ð libekova & G.T. Tuleyeva, 2017. "Preparing Consolidated Financial Statements in Accordance with IFRS," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 458-469.
    5. Peter J Baldacchino & Rosalene Caruana & Simon Grima & Frank H. Bezzina, 2017. "Selected Behavioural Factors in Client-Initiated Auditor Changes: The Client-Auditor Perspectives," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 16-47.
    6. Anna Aleksandrovna Sysoeva & Natalia Vladimirovna Rezepova & Elina Ildarovna Abdyukova & Zohrab Mnatsakanovich Dokhoyan, 2017. "Assessment of Availability of Consumer Loans in the Regions of Russia," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 236-250.
    7. Sergey Mikhailovich Vasin & Leyla Ayvarovna Gamidullaeva & Tamara Kerimovna Rostovskaya, 2017. "The Challenge of Social Innovation: Approaches and Key Mechanisms of Development," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 25-45.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bilgehan Tekin, 2021. "Modeling the Relation of Financial Integration-Economic Growth with GMM and QR Methods," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 32-47.
    2. Viktor M. Zaernyuk & Zinaida M. Nazarova & Vadim A. Kosyanov & Nadezhda N. Filimonova & Olga V. Vershinina, 2016. "Solving the Problem of Credit Defaults in Retail Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 205-217.
    3. E.A. Posnaya & I.G. Vorobyova & S.V. Tarasenko, 2017. "Improving the Bank Reliability Evaluation Framework," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 138-147.
    4. Eleftherios Thalassinos & Theodore V. Stamatopoulos, 2015. "The Trilemma and the Eurozone: A Pre-announced Tragedy of the Hellenic Debt Crisis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 27-40.
    5. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    6. repec:ers:journl:v:volumexxi:y:2018:i:issue4:p:512-523 is not listed on IDEAS
    7. T.V. Shatkovskaya & N.G. Romanenko & Y.A. Naumenko & E.A. Parshina, 2017. "The Problem of Individualization of Legal Entities in Terms of Innovative Development of the Russian Federation and the European Union Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 162-171.
    8. Haytham Y.M. Ewaida, 2017. "The Impact of Sovereign Debt on Growth: An Empirical Study on GIIPS versus JUUSD Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 607-633.
    9. Ibrahim Krasniqi, 2019. "Strategic Management for Regional Economic Development and Business Sustainability: Countries in Transition," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 47-67.
    10. R.V. Shekhovtsov & S.N. Shchemlev, 2017. "State Investment Policy and Priorities of Macroeconomic Structure of Regional Economy Transformation," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 148-162.
    11. Elena G. Popkova & Elena Y. Zolochevskaya & Svetlana A. Litvinova & Yuliya S. Zima, 2017. "New Scenarios of Joint Crises Fighting in Socio-Economic Sphere of Russia and Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 49-55.
    12. K.S. Surnina & A.A. Andrutskaya & E.I. Drobyshevskaya & A.A. Yanovskaya, 2017. "Analytical Monitoring of Entity's Cash Flows as a Guarantee of Financial Security of the Region," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 163-171.
    13. L.Yu. Andreeva & O.Yu. Sviridov, 2017. "Experience of Greece on Recapitalization of Banks, Marketing Management and Personnel Retraining in Conditions of Economic Recession," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 390-409.
    14. E.Yu. Dogadaylo & O.I. Chepunov & S.I. Nosov & O.V. Shmaliy, 2017. "Economic Sovereignty of the Russian Federation under the Current Conditions," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 230-238.
    15. Irina Japparova & Ramona Rupeika-Apoga, 2017. "Banking Business Models of the Digital Future: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 846-860.
    16. N. N. Balashova & V. A. Melikhov & M.A. Ovchinnikov & E.M. Egorova & E.V. Tokareva, 2016. "Organizational and Methodological Approaches to Development of Accounting Policy for Formation of Integrated Accounting of Interrelated Agricultural Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 153-160.
    17. Ramona Rupeika-Apoga & Irina Solovjova, 2017. "Access to Finance for Latvian SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 57-68.
    18. Kirsneh Alemu Kebede, 2024. "The Effect of Availability of Foreign Exchange and Devaluation of BIRR on the Performance of Companies in Ethiopia (Instance of Sample Company)," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 99-117.
    19. N.A. Dimitriadi & O.N. Voronkova & S.S. Galazova, 2019. "Strategic Instruments to Choose Foreign Target Markets," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 100-107.
    20. Aleksey Vladimirovich Gribanov & Vladimir Vladimirovich Mitrokhin & Mariya Viktorovna Vilkova, 2017. "Innovation as the Main Factor for Sustainable Development of a Commercial Bank," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 408-416.
    21. Evgeny V. Frank & Oksana V. Mashevskaya & Lilia V. Ermolina, 2016. "Innovational Mechanism of Implementation of Cluster Initiatives in Business," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 179-188.

    More about this item

    Keywords

    crime; illegal behavior; banks; checking; risk;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:iii:y:2015:i:2:p:22-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.