In 2015, the Vienna University of Economics and Business (WU) and the African Tax Institute at the University of Pretoria launched a project to identify the links between corruption, money laundering and tax crimes in Africa. The project promotes the concepts of good tax governance and the importance to economic development of a tax system that is transparent and free of corruption. The project explores how law enforcement agencies and tax authorities can best cooperate to counter corruption and bribery. The project was initially aimed at three focus countries, namely, Ghana, Nigeria and South Africa, but soon was extended to other African countries. This is a joint initiative with the United Nations Office on Drugs and Crime (UNODC) and is also supported by the World Bank. This book brings together a series of background papers prepared for the Conference on Inter-Agency Co-operation and Good Tax Governance in Africa held at the University of Pretoria in July 2016. After a rigorous double peer-review process, the papers were revised by the authors. We express our gratitude to and acknowledge the services of the following peer reviewers: Tom Balco; Carika Fritz; Leon Gerber; Willem Jacobs; Benjamin Kujinga; Thabo Legwaila; Annet Oguttu; Dirk Scholtz; David Solomon; and Xeniya Yeroshenko. Finally, we express our sincere gratitude to all the research and administrative assistants who contributed to the Good Tax Governance in Africa Project. This book pays tribute to their efforts. Jeffrey Owens, Rick McDonell, Riël Franzsen and Jude Amos (Vienna and Pretoria, November 2017)

Magister Legum - LLM / The law relating to money laundering is not a new branch of law although it seems to be just emerging in this modern era of advanced technology and organised crime. It evolved in the 18th century with the case of Rex v William Kidd et al1 from the so-called golden age of piracy. With the increase in the sophistication of the world economy, the techniques of money laundering have become correspondingly complex, leading to incoherent and uneven prosecutorial policies with regard to crimes related to money laundering. This is specially so in developing African countries like Zambia, where the legal system is still evolving on this terrain. Inevitably, a lot of pertinent legal issues and impediments remain unresolved, particularly when prosecuting highcalibred white collar perpetrators such as former heads of state.

Doctor Legum - LLD / This thesis investigates the legislative measures employed in South Africa to combat the implication of lawyers in money laundering schemes. Criminals make use of sophisticated technological means to transfer money and launderers routinely approach lawyers to assist them in their illegal endeavours. The legal profession is almost tailor-made for abuse by launderers, because lawyers work with huge amounts of money, clients are entitled to legal professional privilege and the right to legal representation is guaranteed constitutionally. The South African anti-money laundering regime, for the most part, is contained in two statutes, the Financial Intelligence Centre Act (FICA) and the Prevention of Organised Crime Act (POCA). Whilst FICA and POCA require the legal profession to be vigilant and accountable in the fight against money laundering, unfortunately they also infringe on hard-won rights, such as legal professional privilege, the right to legal representation and attorney-client confidentiality. The study considers South Africa’s efforts to fulfil its international anti-money laundering obligations whilst upholding the criminal procedural rights guaranteed in the Constitution. It is suggested that certain sections of FICA and POCA fail to find the required balance between protecting citizens from the harms of money laundering and protecting the fundamental rights of attorneys and their clients. Lawyers are in a unique position of trust and in some instances have access to information that may incriminate their clients. Unfortunately, in its quest to combat money laundering, Parliament did not consider seriously enough the position of lawyers and took the easy option of criminalising fees paid with tainted funds, as well as the non-submission of suspicious transaction reports (STRs) and cash transaction reports (CTRs). As a result, the South African legal profession is saddled with unacceptable constraints.

Magister Legum - LLM / Money laundering is a global problem that has adverse effects on both the developed and developing countries. If unchecked, it accelerates crime and criminal activities, affects the economy, undermines the integrity of financial markets, undermines the legitimate private sector, causes loss of revenue, poses security threats to privatisation efforts and brings about reputational risks as well as social costs.1 Given the transnational and cross-border nature of money laundering, the fight against it is global. This is why in 1989 the G72 countries decided to set up the FATF3 as a global standard-setting body for Anti-Money Laundering (AML) and combating of terrorist financing (CFT). The FATF has since developed standards for countries across the globe to adopt so as to facilitate this global fight. The standards are in the form of recommendations, and so far there are Forty Recommendations on money laundering (hereafter referred so as the Recommendations), Eight Special Recommendations on CFT, and a Ninth Special Recommendation on cash-couriers. In order to enhance its work and the adoption of its Recommendations, the FATF has also facilitated the establishment of FATF- styled regional bodies (hereinafter referred to as FSRBs) across the world. One such group is ESAAMLG, which was established in 1999. Its mandate is to coordinate and guide its member countries in the implementation of the Recommendations and guidelines. Currently, it has 15 member countries.8 Over the first ten years of its existence, among other things, ESAAMLG has through its members, achieved the following in its mandate: all members except Uganda have enacted AML legislation and some have set up structures that are essential for the implementation of the Recommendations Despite the above-mentioned achievements, the overall implementation of the Recommendations has been generally slow and low. Most of the member countries have not yet enforced their enacted AML legislation as evidenced by low rate of money laundering prosecutions in the region. Some have not yet established financial intelligence Units (FIUs) nor ratified or domesticated important AML related international legal instruments, let alone train personnel adequately. The international instruments comprise the 2000 United Nations Convention against Transnational Organised Crime (Palermo Convention) and the1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Vienna Convention). There are also inordinate delays in the passing of AML legislation as well as the amendment of other domestic legislation, which is necessary in order to harmonise such laws with the AML standards. This gives rise to unevenness, disconnectedness and time variability in the implementation of the Recommendations among the member countries. The main question this paper seeks to answer is this: Are there obstacles to the implementation of the Recommendations in Eastern and Southern Africa?

The thesis discusses some issues on the topic of money velocity. Its goal is to summarise theroretical contributions in this area, which are followed by a practical application through the monetary analysis of the Slovak Republic from 1993 to 2000. The theoretical part involves the first approaches to money velocity, explanation of the quantity theory of money and monetarism and their critique. It also describes the monerary transmission mechanism. The practical application part evaluates the impact of the stability of money velocity on the decision of the National Bank of Slovakia to abandon monetary targeting. It also focuses on the other variables that influenced monetary policy execution. The last chapter is devoted to the importance of money velocity if the central bank uses inflation targeting as its policy.

Bakgrund: Enligt den makroekonomiska kvantitetsteorin påverkar penningmängdstillväxten prisnivån i en ekonomi. Mer specifikt säger kvantitetsteorin att ett positivt samband finns mellan tillväxten av penningmängden och prisnivån. I detta arbete undersöks om penningmängdstillväxten i penningmängdsdefintionen M3 har en påverkan på tillgångspriser i form av aktiepriser. Syfte: Studiens syfte är att undersöka om penningmängdstillväxten har en påverkan på aktiepriser.Metod Studien är kvantitativ. För att besvara studiens syfte användes statistisk analys i form av tidsserieregression. Resultat: I tre regressionsmodeller visade sig penningmängdstillväxten vara en signifikant variabel. Hypotesprövningar indikerade också på att ett samband föreligger mellan penningmängdstillväxt och prisnivån på OMXS30. Slutsats: Den sammantagna slutsatsen är att det inte kan uteslutas att penningmängdstillväxten har en påverkan på aktiepriser. / Background: According to the macroeconomic quantity theory of money, the growth in money affects the price level in an economy. More precisely, the quantity theory of money suggests that there is a positive relationship between the growth of money and price level. This study examines whether the money growth has an impact on asset prices in the form of stock prices.  Purpose: The purpose of this study is to examine if money growth has an impact on stock prices.Method The study is quantitative. To answer the purpose of the study, statistical analysis in the form av time series regression wasused.  Results: The variable for money growth was determined to be significant in three different regression models. Hypothesis tests also indicated that a relationship between money growth and the price level of OMXS30 was present.  Conclusion: The general conclusion is that the notion of money growth’s impact on stock prices cannot be ruled out.

The low financial literacy among young adults affects individuals’ financial decisions, which impact their well-being and societal welfare. To understand what influences young adults’ financial decisions, it is essential to develop knowledge in elements that give existence to financial literacy. Known factors which influence financial literacy are attitudes about money and socialization sources. The purpose of this thesis is to explore socialization sources’ influence on attitudes towards money and in which way attitudes about money influence young adults’ financial literacy. A theoretical framework regarding these constructs was developed. Based on the Money Attitude Scale (MAS) and socialization source theories, 12 semi-structured interviews were conducted, which were thematically analyzed by developing codes and themes connected to the research questions. The findings from the collected data indicate that young adults are influenced in childhood by how they were raised, their environmental values, and the society and its values that they were brought up in. Findings also indicate that young adults are influenced by trends, media, friends, and their own experiences later in life. The collected data also showed that young adults become more financially literate because of their distrust of banks, the desire to be successful and the best version of themselves, and fear of ending up in challenging financial situations. Some findings pointed to why young adults had low financial literacy, which was connected to fear of being judged, low interest in the subject and still being financially dependent on their parents. This study suggests that policymakers need to develop financial education programs that are directed to socialization sources that influence young adults’ attitudes towards money. Policymakers should also develop trends that actively influence young adults to become more financially literate. / Den låga finansiella läskunnigheten hos unga vuxna påverkar deras finansiella beslut vilket i sin tur har en påverkan på deras välmående samt välfärden i hela samhället. För att förstå vad som influerar unga vuxnas finansiella beslutsagande är det viktigt att få förståelse för faktorer som skapar finansiell läskunnighet. Attityder till pengar samt socialiserings-källor är identifierade faktorer som influerar finansiell läskunnighet. Syftet med denna avhandling är att utforska hur socialiserings-källors influerar attityder till pengar och på vilket sätt dessa attityder till pengar influerar unga vuxna att bli finansiellt läskunniga. Ett teoretiskt ramverk baserat på tidigare teorier inom forskningsområdet var framtaget. Baserat på MAS samt teorier för socialiserings-källor, utfördes 12 semistrukturerade intervjuer, vilka var tematiskt analyserade genom att utveckla koder och teman kopplade till frågeställningarna. Resultatet från insamlad data indikerade att unga vuxna är influerade från barndomen baserat på hur de var uppfostrade, omgivningens värderingar samt värderingar baserade på samhället de växt upp i. Det pekade också på att de unga vuxna blev influerade av trender, media, deras vänner samt deras egna erfarenheter senare i livet. Resultatet från insamlad data indikerar att unga vuxna blev influerade att bli mer finansiellt läskunniga för att de misstrodde banker, hade mål att vara framgångsrika, att bli den bästa versionen av dem själva samt i rädsla för att hamna i svåra situationer. Resultat förklarade också varför de unga vuxna inte är finansiellt läskunniga, vilket var sammanlänkat till rädsla att bli dömd, lågt intresse av ämnet samt att de unga vuxna fortfarande var beroende av sina föräldrar. Baserat på resultatet har denna studie dragit slutsatsen att politiska beslutfattare bör ta fram utbildningar som är riktade till socialiseringskällorna som influerar unga vuxna. Politiska beslutfattare bör också skapa trender som influerar unga vuxna att aktivt bli mer finansiellt läskunniga.

Milton Friedman’s article on the optimum quantity of money has motivated much research since its publication. While most of the research has been on deterministic frameworks, a few models (e.g. Bewley 1983, Taub 1989) have extended the analysis to stochastic environments. The first two essays of the dissertation address the issue in two types of stochastic economies. In both the models, quadratic utility and linear constraints have been used to facilitate the use of Whiteman’s techniques (1985). The third essay introduces capital and derives the optimal rate of monetary policy in the presence of financial intermediaries. In the first essay a pure exchange model in which infinitely lived agents face stochastically varying endowments in each period is considered. In this model individuals can delay payment for purchases into the future with a credit card. It shows that the optimal rate of inflation is the same in a world where individuals are required to pay for their purchases immediately as in a world where they can delay payment with a credit card. Moreover, the optimal inflation rate may be positive or negative depending on the parameters of the model. Therefore, Bewley’s (1983) conjecture that deflation should proceed at a rate greater than the rate of time preference in a world of uncertainty is not generally true. The second essay derives the optimum quantity of money in a stochastic production economy. The optimum quantity of money literature largely ignores the effect of labor supply on money’s optimal rate of return. This paper examines the issue in an economy that is subject to stochastic shocks each period. It shows that incorporating production affects the optimal return on money in important ways. If there are individual specific shocks to preferences, then the optimal policy is highly inflationary. When individual preferences are subject to economy wide shocks, however, it is possible for either inflation or deflation to be optimal. The optimal policy depends on the weight individuals attach to the disutility of work and the weight individuals attach to the utility from holding money. Optimal policy responds positively to increases in the disutility from work and negatively to increases in the weight on consumption in the utility function. The paper therefore shows the sensitivity of the optimal policy on the way labor supply is modeled. Since such considerations do not arise in endowment economies, the optimal policy will generally change as one moves from endowment to production economies. In the third essay the Tobin effect and optimal monetary policy are analyzed when financial intermediaries develop endogenously. Providing a justification for the development of intermediaries similar to those found in the recent financial intermediation literature, we show that financial intermediation significantly affects investment decisions and monetary policy. In particular, the cost to intermediaries of providing substitutes of outside money play a critical role. Whether a decrease in the return on outside money will increase investment or not is found to depend on how the cost of providing alternative means of payment is affected. It is found that at low and moderate rates of inflation the Tobin effect remains valid. At high rates of inflation, however, the Tobin effect gets reversed. Further, since borrowers have private information regarding the outcome of the investment projects financed by the lenders, credit rationing may occur in equilibrium. We also derive the rate of return on money that maximizes social welfare. This optimal rate of return is not only dependent on the cost of the alternative means of payment, it also depends critically on whether credit is rationed in equilibrium or not. Finally, the paper highlights some of the distributional issues raised by a change in the rate of return on money. / Ph. D.

The prevalence of the money laundering crime has prompted the introduction of customer due diligence (CDD) measures. CDD measures facilitate the prevention of money laundering and promote the introduction of certain detective skills. Several international institutions champion the introduction of the detective skills in general and the performing of CDD measures in particular. These institutions acknowledge the cumbersome (administrative and financial) effects of introducing the detective skills and the performing of CDD measures. However, these institutions concedes that the aforementioned burden can be alleviated or lessened if the institutions that are responsible for performing CDD measures, i.e. Accountable Institutions (AIs), can exchange and rely on third parties’ (CDD) data. The exchange and reliance on third parties’ data must however consider the divergent threats or risks that might be associated with the data or third parties. The view regarding the exchanging and relying on third parties’ data is shared by, amongst others, the FATF and the UK. However, South Africa appears to be lagging behind in this respect. In other words, the South African FICA and FICA Regulations omit to encapsulate express and lucid provisions permitting the exchanging and relying on third parties’ data for purposes of performing CDD measures. The aforementioned omission, it is argued, creates a legal vacuum in the South African scheme of anti-money laundering. In other words, the aforesaid vacuum lives the South African AIs in a state of doubt regarding the manner and extent of exchanging and relying on third parties’ data. However, the aforesaid vacuum, this study concedes, can be rectified by introduction provisions that are line with the draft Regulation 5A and 5B that are proposed in chapter seven of this study. / Jurisprudence / LL. M.

The work includes a theoretical definition, ways and methods of money laundering, Czech and International anti money laundering (AML) law. The second part is devoted to the fight against money laundering. It describes the main AML organizations. And as an example is given the program of one banking institution.