The money laundering risk posed by low-risk financial products in South Africa : findings and guidelines

Purpose – The purpose of this paper is to investigate the level and nature of criminal abuse of financial products that are classified as posing a low anti-money laundering/combating of financing of terrorists (AML/CFT) risk in South Africa to determine the effectiveness of the simplified due diligence measures that apply to these products.

Design/methodology/approach – The paper presents empirical research on the views of bank officials and law enforcement officials regarding the criminal abuse of South African financial products that are subject to simplified customer due diligence controls.

Findings – South Africa's AML/CFT laws allow certain deposit-taking institutions and money remitters to implement simplified customer due diligence measures in relation to specific low-risk products that are mainly designed to allow previously unbanked persons to access financial services. The paper finds that the products have been abused by criminals but that the incidence of such abuse and the amounts involved are low. The paper investigates possible weaknesses in the current system that allow limited criminal abuse to occur. It concludes with a number of guidelines that emerge from the study and are of value to regulators that wish to implement a similar system.

Originality/value – The South African AML/CFT scheme in relation to low-risk products is of interest to many international regulators that are grappling with the interplay between effective AML/CFT controls and the impact of strict controls on the ability of socially and economically excluded persons to access appropriate financial services. This paper provides evidence that appropriately designed controls can facilitate financial inclusion while limiting the risk of criminal abuse.

The role of trust in nurturing compliance : a study of accused tax avoiders

Why an institution’s rules and regulations are obeyed or disobeyed is an important question for regulatory agencies. This paper discusses the findings of an empirical study that shows that the use of threat and legal coercion as a regulatory tool—in addition to being more expensive to implement — can sometimes be ineffective in gaining compliance. Using survey data collected from 2,292 taxpayers accused of tax avoidance, it will be demonstrated that variables such as trust need to be considered when managing noncompliance. If regulators are seen to be acting fairly, people will trust the motives of that authority, and will defer to their decisions voluntarily. This paper therefore argues that to shape desired behavior, regulators will need to move beyond motivation linked purely to deterrence. Strategies directed at reducing levels of distrust between the two sides may prove particularly effective in gaining voluntary compliance with an organization’s rules and regulations.

Model for fostering trust and building relationships in China's construction industry

Trust is an underlying psychological condition that can cause cooperation or risk-taking. Trust is considered as a predominant feature and a central mechanism in business transactions, especially among Chinese. Trust-based relationships create advantages in conducting business such as lowering cost, shortening duration, and improving performance. Indispensable conditions for trust to arise are relationships and risks. Different risks surface as a result of different levels of relationships. Sustained trust is therefore fostered by various means to counterbalance those risks. In order to assess the links between distinct trust-related features, a model is constructed and tested through a questionnaire survey in China. The findings generally support the model in terms of explaining the dominant relationships, inherent risks, and trust-fostering tools. It is recommended that firms adopt the refined model and utilize successful practices verified in this paper to foster trust and relationships and in turn secure project success.

Constructing a framework for building relationships and trust in project organisations : two case studies of building projects in China

A framework is constructed that can be used to foster trust and build relationships in construction project organizations in China. The research method was based on in-depth study of two building projects in China and data were collected via face-to-face interviews. The results show that as the project progresses, the dominant relationship within each stage deepens. The deepening relationship gives rise to different types of inherent risks such as a partner's self-interest seeking behaviour and opportunistic actions. To counterbalance these risks, trust fostering tools must be employed such as careful selection and effective management of partners. The framework for fostering trust and building relationship developed in the study suggests that (1) relationship deepens from shallow dependence to deep interdependence as the project progresses; (2) different relationships bring about distinct inherent risks; and (3) different trust-fostering tools counterbalance specific inherent risks. This framework could aid in reducing adversarial relationships by suggesting ways to foster trustworthy relationships.

Risk and trust in cross-sector R & D projects

The Cooperative Research Centres are hybrid organizations at the leading edge of change in Australia's research culture and are key elements in the new knowledge infrastructure contributing to technological innovation. The paper presents findings from a qualitative study of CRC managers' perceptions and management of downside risk in commercially-focused R&D projects. CRC managers deal with both performance risks (arising from uncertainties about achieving goals) and relational risks (arising from collaborative relationships). They do so through formalisation, the selection of people with desirable characteristics, and the building of relationships. Underlying these risk mitigation strategies is the formation of trust (a willingness to rely on a partner in whom one has confidence), and this occurs at both interorganizational and project levels.

Economic evaluation of a skin cancer prevention program in Australia : past achievements and future prospects

Objectives
Australia has the highest incidence of skin cancer in the world. Skin cancer prevention campaigns have been implemented in Australia for over two decades. The most notable is under the brand name, SunSmart. The aim of the current study is to assess the cost-effectiveness of SunSmart in the past and the potential cost-effectiveness of an ongoing national SunSmart program with optimal investment in the future.

Methods
An economic evaluation from a health sector perspective was conducted using the reduction in skin cancer incidence attributable to the SunSmart program modelled as the primary end-point. Historical SunSmart program expenditures were obtained from three representative states in three latitude zones, covering different levels of UVR exposure. Melanoma incidence rates from the three representative state cancer registers were used to model the health outcomes. Program effectiveness was assessed by the comparison between the well-resourced SunSmart state (Victoria) and the under-invested states (New South Wales and Queensland). Non-Melanoma Skin Cancer (NMSC) was modelled based on national survey results. 2003 was chosen as the reference year and future costs/outcomes over a 20 year time horizon were discounted at 3%.
The future level of investment in a national SunSmart was chosen to strengthen current practice by increasing current investment to a realistic and achievable level. This conservative increase in investment (expressed as ‘$ per capita’) reflected the investment level that has been achieved in Victoria over sustained periods. To model the potential cost-effectiveness of an upgraded national SunSmart program, a conservative approach was taken, whereby the same magnitude of effectiveness from 1988 to 2003 was applied to future skin cancer incidence.

Results
SunSmart in Victoria has saved 22,300 life-years, averted 27,900 disability-adjusted life-years(DALYs)(discounted) since its introduction in 1988 and achieved an incremental cost-effectiveness ratio (ICER) of $AUD 680 per life-year saved (LYS) and $AUD 540 per DALY averted. When the cost-offset from the estimated reduction in skin cancer treatment costs were taken into account, SunSmart achieved ‘dominance’. The net cost of SunSmart in the past was an estimated saving of $AUD 93 million. An upgraded national SunSmart for the next 20 years would save 91,000 life-years and avert 122,000 DALYs (discounted), involving an increased investment level from the current $AUD 0.07 per capita to the historical average of $AUD 0.28 per capita. The ICER for the upgraded SunSmart program was estimated at $AUD 940 per LYS and $AUD 700 per DALY averted. When the cost-offset is included, the program achieves dominance with a cost saving of $AUD 115 million – an estimated $AUD 2.32 return for every dollar invested between 2003 and 2022.

Conclusions
This study demonstrates that a sustained modest investment in skin cancer control is likely to be excellent value-for-money. While the available data base is certainly not prefect, key parameters would have to change dramatically for this conclusion to be challenged.

Project team trust in leadership and leader values

This international research showed that when senior leaders' values and behaviours were perceived as being congruent by project teams, there was enrichment of interpersonal relationships and a reinforcement of relational trust. Conversely, when leaders' values and behaviours were perceived as not congruent, they were considered to lack integrity and trustworthiness.

Emergence of trust in interorganisational networks

The conditions under which trust emerges as a governance mechanism in interorganisational networks was examined. The findings indicate that interorganisational trust is fostered when network members identify with common goals, when there is high interpersonal trust between key individuals in the networks, and when norms favouring reciprocity and cooperation develop.

Power relationships in a residential facility for disabled people : a critical ethnographic account

This study comprises an ethnography and exlores caring, as expressed through inter-relationships, coalitions and conflicts between nurses, residents and others within a bureaucratic setting. Observation, reflection on practice, and professional journalling were used to identify unexamined beliefs which lay hidden in day-to-day practices. An action research project was developed to introduce a small change in practice. It was found that the bureaucratic need for predictability and stability militated against this change.

From the barracks to the burrup : The National Trust in Western Australia

Published to celebrate the fiftieth anniversary of the National Trust in Western Australia, this beautifully designed book contains never-before-published images and draws from a new oral history archive with testimonies from many of the founders, staff and volunteers of the organisation. Heritage battles for the Barracks Arch, the Palace Hotel, the Swan River and the Swan Brewery are covered, as well as the integral role played by grassroots heritage groups. Relations between the Trust, developers and the State Government and changing practices of interpretation and conservation are also discussed. What emerges is not only a history of the National Trust in Western Australia but also the people that shaped it. It is also a history of the ways in which heritage has been understood and practised across Australia.--Publisher description