Legitimate Business Research Articles

The effect of Kenya’s immigration policy on regional integration in the East African Community

The purpose of this study is to examine the effect of Kenya’s immigration policy on regional integration within the EAC. Although Kenya’s immigration policy aligns with the East Africa Community Map (EACMP), as detailed in the 2010 Kenyan Constitutional and the Kenyan Citizenship and Immigration Act of 2011. Obstacles persist that prevent the free movement of people, labour, establishment rights, and residence rights despite East African Community (EAC) foreign citizens being exempt from visa and work permit requirements. The Kenyan government, however, insists on demanding these documents. The study employed a mixed methods approach with a convergent parallel research design. Quantitative data was analysed using inferential statistics in SPSS version 25, while qualitative data was analysed through content analysis. A sample size of 400 respondents was used. The findings show that Kenya’s immigration policy has successfully encouraged the free movement of labour, people, establishment rights, and residence rights within the EAC. In conclusion, Kenya’s immigration policy has significantly contributed to advancing regional integration within the EAC. It is suggested that the Kenyan government simplify the permit procedures for EAC investors aiming to establish legitimate businesses in Kenya. The immigration policymakers in Kenya should ensure that the rights and benefits available for EAC foreign nationals wishing to reside in Kenya are covered by the policy in accordance with EACMP.

Threat of violence as a way to commit «Counteraction to legitimate economic activity»

The article is devoted to one of the ways of committing a criminal offense under Article 206 of the Criminal Code of Ukraine “Counteraction to legitimate economic activity”. In particular, the author examines the concept of threats of violence against the victim or persons close to the victim in the course of counteracting legitimate economic activity. It is determined that the method of committing a criminal offense in the form of a threat of violence against the victim or persons close to him/her is present both in Article 206 of the Criminal Code of Ukraine “Counteraction to Legitimate Economic Activity” and in some other corpus delicti of criminal offenses. The author establishes that in the Criminal Code of Ukraine “threat of violence” appears either as a separate criminal offense or as a method of committing a criminal offense. The study reveals the content of the terms “threat” and “threat of violence” used in the disposition of Article 206 of the Criminal Code of Ukraine. Based on the results of the analysis, the author suggests that a threat of violence should be understood as actions of a person aimed at intimidation without physical contact with the victim, which are intended to influence the psycho-emotional state of the victim with a view to achieving the desired criminal result. For the purpose of recognizing a threat as a method of counteracting legitimate business activity, it does not matter whether the perpetrator actually intended and was actually able to carry out the threat. From the moment the demand combined with the threat is made, this criminal offense is complete. It has been determined that, within the meaning of Article 206 of the Criminal Code of Ukraine, close persons are understood to mean close relatives - parents (foster parents), children (foster children), grandparents and grandchildren. Family members are parents (foster parents), children (foster children), brothers, sisters and their spouses who live together, as well as a spouse who lives together but is not married, and the spouses’ parents. The closeness of persons who are family members is based primarily on marriage (husband, wife) and consanguinity (children, parents, other relatives), and may also arise on other grounds (friendship, love, etc.).

Criminal organizations exhibit hysteresis, resilience, and robustness by balancing security and efficiency

The interplay between (criminal) organizations and (law enforcement) disruption strategies is critical in criminology and social network analysis. Like legitimate businesses, criminal enterprises thrive by fulfilling specific demands and navigating their unique challenges, including balancing operational visibility and security. This study aims at comprehending criminal networks’ internal dynamics, resilience to law enforcement interventions, and robustness to changes in external conditions. Using a model based on evolutionary game theory, we analyze these networks as collaborative assemblies of roles, considering expected costs, potential benefits, and the certainty of expected outcomes. Here, we show that criminal organizations exhibit strong hysteresis effects, with increased resilience and robustness once established, challenging the effectiveness of traditional law enforcement strategies focused on deterrence through increased punishment. The hysteresis effect defines optimal thresholds for the formation or dissolution of criminal organisation. Our findings indicate that interventions of similar magnitude can lead to vastly different outcomes depending on the existing state of criminality. This result suggests that the relationship between stricter punishment and its deterrent effect on organized crime is complex and sometimes non-linear. Furthermore, we demonstrate that network structure, specifically interconnectedness (link density) and assortativity of specialized skills, significantly influences the formation and stability of criminal organizations, underscoring the importance of considering social connections and the accessibility of roles in combating organized crime. These insights contribute to a deeper understanding of the systemic nature of criminal behavior from an evolutionary perspective and highlight the need for adaptive, strategic approaches in policy-making and law enforcement to disrupt criminal networks effectively.

“Pecunia Olet” (Sometimes): A comparative analysis of Italian and UK legislations on combating the infiltration of organised crime into the economy

This article conducts a comparative analysis of Italian and UK legislations concerning the infiltration of organised crime into the economy. Considering (among other things) the concerns about allegedly weakened cooperation between judicial authorities of Italy and the UK in a post-Brexit era, the study evaluates the alignment of legal frameworks of the compared systems in combating the integration of organised crime and economic crime. The analysis is conducted on four levels: direct criminalisation of organised crime, the use of (also) anti-terrorism legislation to tackle organised crime, measures against wealth accumulation through crime, and provisions for corporate liability. By comparing the legal systems of Italy and the UK, which represent civil and common law traditions respectively, this study aims to identify convergences and divergences in legal approaches. The findings could inform strategies for enhancing mutual trust and fostering more effective international cooperation in combating the infiltration of organised crime into legitimate businesses, particularly in the post-Brexit context.

THE CONSTRUCTION OF CORPORATE FAULT RELATED TO CORPORATE CRIMINAL ACTS IN THE NEW CRIMINAL CODE: IMPLICATIONS AND FORMULATIONS

<table border="0" cellspacing="0" cellpadding="0"><tbody><tr><td valign="top" width="388"><p class="TableParagraph"><em>In the development of modern criminal law, corporate crime has become a primary concern because corporations, as separate legal entities from the individuals within them, are increasingly involved in various widespread legal violations. Therefore, discussions regarding the construction of "corporate fault" in the new Draft Criminal Code (RKUHP) have become crucial to provide legal certainty and justice in handling criminal acts committed by corporations. This research aims to formulate the appropriate formulation in constructing "corporate fault" related to corporate criminal acts in the new Draft Criminal Code (RKUHP), considering the legal, economic, and business implications that may arise. This research uses a normative legal research method with legislative and conceptual approaches. The results of the analysis will be presented in descriptive-analytical form. The research findings indicate that the appropriate formulation in constructing "corporate fault" related to corporate criminal acts in the new RKUHP is by adopting the concept of corporate criminal liability that allows corporations to be held accountable for the actions or omissions of individuals acting on behalf of or for the benefit of the corporation. However, the new RKUHP needs to clearly define the definition of a corporation, criteria and conditions under which a corporation can be held accountable, types of criminal acts and applicable sanctions, as well as a proportional accountability mechanism while still adhering to criminal law principles, best practices from other countries, human rights protection, legal certainty, investment climate, and practical aspects of law enforcement. This formulation should be comprehensive and balanced to provide legal certainty, justice, and support national economic growth by considering legal implications, appropriate law enforcement mechanisms and evidence, legal certainty aspects, investment climate, corporate compliance and risk management, as well as legitimate business continuity.</em><em></em></p></td></tr></tbody></table>

Understanding the Crime of Money Laundering in the Concept of Criminal Law in Indonesia

<em><span lang="EN-US">Nowadays, the patterns and behaviors of Money Laundering constitute efforts to conceal or disguise the origin of money or wealth resulting from criminal activities through various financial transactions, making the money or wealth appear as if it comes from legal activities. Several common or frequent actions are taken in the process of committing money laundering to "cleanse" the proceeds of crime. Firstly, the money generated from criminal activities is transformed into a form that arouses little or no suspicion through placement into the financial system using various methods. The second step involves engaging in complex, layered, and anonymous financial transactions with the aim of separating the proceeds of crime from their source into various accounts, making it difficult to trace the origin of the funds, essentially hiding or disguising the origin of the wealth resulting from criminal activities (layering). The final step is where the perpetrator reintroduces the funds that have been obscured in their origin into legitimate wealth, whether to be enjoyed directly, invested in various forms of material or financial wealth, used to finance legitimate business activities, or to fund further criminal activities (integration).</span></em>

Multi Level Marketing From A Sharia Economic Perspective

Multi-level marketing (MLM) is a business model in which a company sells products through a network of independent distributors. From a sharia economic perspective, MLM often causes debate because some of its practices can be questioned from a sharia compliance perspective. First of all, MLM emphasizes the aspect of buying and selling products, which is in line with sharia economic principles which encourage legitimate business activities and avoid usurious or speculative transactions. However, many MLMs face criticism because they tend to focus more on recruiting new members than actual product sales. This is contrary to sharia principles which emphasize justice and honesty in business. Second, in MLM, there is an element of profit sharing which is usually disproportionate between the company, distributors and network members. In sharia economics, the distribution of profits must be fair and balanced, and practices that cause injustice in the distribution of profits must be avoided.

Links between terrorism financing and organised crime in Nigeria

Purpose This study aims to assess terrorism activities to identify measures required to mitigate the rise of terrorism activities and their metamorphosis into organised criminal activity through the prevention, disruption and dismantling of sources of financing terrorism. Design/methodology/approach A qualitative methodology was adopted for this study using descriptive synthesis from recent publications and reports of reputable organisations, i.e. relevant grey literature, key informant interview and a focus group discussion. This triangulation approach was used to cross-validate the findings. Findings The findings revealed that terrorism financing is most likely linked to organised crime for generating revenues and is further used to finance the activities of terrorists. Practical implications Terrorists operate from places with little or no presence of governance and, better still, ungovernable spaces for carrying out legitimate businesses, raising internally generated revenues from protection fees, ransoms and taxes. This space further allows domestic collaboration with local criminal gangs to exploit natural mineral resources. If the market for these resources is across borders, international or transnational criminal groups collaborate with terrorists to move the goods and assist with financial services for the generated proceeds. Originality/value This study assessed the emerging links between terrorism financing and organised crime in Nigeria.

Occupation, Organisation, Opportunity, and Oversight: Law Firm Client Accounts and (Anti-)Money Laundering

The misuse of law firm pooled client accounts has been identified as one of the primary areas of money laundering and terrorist financing risk for the legal profession. This article demonstrates the varied role that client accounts can play in money laundering, through both purposeful exploitation (by the predicate offender, the lawyer/law firm, or both) of the client account or of other legitimate business processes in which the client account inevitably plays a role, and/or a failure to fulfil regulatory requirements. It examines how the nature of law firm pooled client accounts in the UK creates and shapes an ‘opportunity structure’ for money laundering, and the occupational and organisational context of this opportunity structure. The article argues that examining the opportunity structures created by client accounts is a more useful approach than categorising them as inherently low, medium or high risk, as is seen in many national risk assessments and reports. Identifying the factors that create opportunities for money laundering through law firm client accounts can direct policymakers striving to prevent money laundering in the legal profession towards more targeted oversight mechanisms.

Entrepreneurship For Sustainable Development in Nigeria

The study observes that entrepreneurship in Nigeria is constrained by the challenges inherent in the business environment, thereby impacting negatively on the sustainable development of the country. These challenges range from limited access to capital or credit and inadequate or epileptic power (electricity) supply among others to adequately run businesses. Entrepreneurship as it were is the greatest potential to contribute significantly to the sustainable development of any nation, and most especially Nigeria. It is the contention of this study on the one hand that entrepreneurs themselves should operate within the legitimate business environment that is guided by rules and regulations, while the government on the other hand, should provide a conducive business environment through appropriate policies and regulations for businesses to thrive. By this, we believe entrepreneurship will be a catalyst for the sustainable development of the country.

Tax Debts Pose a Significant Challenge for Tax Institutions

In 2020, the Tax Administration of Kosovo implemented a tax debt collection reform with three main objectives. 1) Consolidation of personnel from 10 regional offices into a centralized facility; 2) Equitable allocation of work responsibilities; 3) Enhancement of debt collection efficiency. During the period from 2020 to 2022, the implementation of the reform resulted in a substantial improvement in debt collection efficiency, exceeding 100% compared to the pre-reform years. Currently, tax officers handle debt collection cases with well-defined responsibilities and tasks, and the distribution of duty is more fair. This study investigates the involvement of top management and staff in the development and reform of the Kosovo Tax Administration's debt collection function. It also compares its participation with that of other Balkan countries. Tax authorities in developed nations have constructed their tax systems around the concepts of taxpayer self-assessment and voluntary tax compliance. Consequently, each tax revenue agency must establish an environment that facilitates taxpayers in declaring and remitting taxes while also implementing measures to combat informal economic activities and promote legitimate business operations. These efforts are crucial for achieving optimal levels of voluntary compliance and fostering public confidence in the tax administration.

Entrepreneurship and organised crime: a systematic review and research agenda based on three decades of scholarship

PurposeScholarly interest in the business effects of organised crime (OC) has recently increased. This study aims to conduct a systematic literature review (SLR) on the conditions under which OC could pose a threat to or take control of firms within a particular context.Design/methodology/approachWe use narrative synthesis and thematic analysis, with a sample of 46 theoretical and empirical studies published over the past 30 years on the relationship between OC and firms within the disciplines of Business, Management and Accounting (BMA).FindingsSLR and thematic analysis show that scholarly interest has focused on four key domains: OC as a firm, the impact of OC on firms, firms’ efforts to counter OC’s influence and governmental interventions. Using medical metaphors, we also develop a diagram depicting the interplay between OC and firms within the BMA literature.Originality/valueThis study contributes to the literature shaping an agenda to steer future research towards these four key themes. The effectiveness of anti-OC tools and measures depends on a thorough understanding of local norms, behaviours and business practices. In addition to measurement and methodological challenges, several grey areas remain, including the distinction between criminal enterprises and legitimate businesses. Ambiguities also surround the circumstances under which the OC preys upon firms or employs them to establish dominance over a territory.

Monetary Smurfing Analytics Model using ML

The act of taking money obtained from illegal operations, such as drug trafficking, and disguising it as profits from a legitimate business venture is known as money laundering. The money obtained through illegal action is regarded as dirty, and to make it appear clean, it is "laundered." Money laundering is a major concern to the country these days, as well as financial institutions. The sophistication of this illegal activity is growing; it appears to have beyond the tired old trope of drug trafficking to include financing terrorism and, of course, personal benefit. Research on anti-money laundering is crucial since money laundering is a global issue that seriously jeopardizes international security and financial stability. Furthermore, it's estimated that the banking system seizes only 0.2% of the money that has been laundered. The crime itself is growing more sophisticated and intricate, and banks are becoming more vulnerable as a result of its ongoing volume amplification. Considering the role that banking institutions play in the money-laundering industry, practitioners and researchers are becoming more interested in creative ways to solve problems and enhance anti-money-laundering efforts. Researchers are starting to look into the viability of artificial intelligence methods in this setting. A systematic knowledge deficit concerning a thorough study that meticulously examines and combines artificial intelligence methods for countering money laundering in the banking industry was discovered, though. To combat investment fraud, the majority of global financial institutions have been putting anti-money laundering measures into place. Data mining tools have emerged recently and are thought to be effective methods for identifying instances of money laundering.

ПОДАТКОВЕ ПЛАНУВАННЯ У СИСТЕМІ ФІНАНСОВОГО МЕНЕДЖМЕНТУ

The article examines in detail the importance of tax planning at the micro level. The main focus is on the analysis of the concept of tax planning, as well as a comprehensive study of the tactics and tools used in tax planning. It has been established that the tax strategy of the enterprise in the modern paradigm should be determined not only by calculating tax liabilities, but also by carefully studying the possibilities of their optimization. It has been proven that the effective use of tax incentives and the ability to avoid excessive tax burdens make it possible to significantly improve the financial position of business entities. One of the most common methods of reducing the tax burden is strategically oriented tax planning. There are other methods of tax optimization, but not all of them are legally acceptable. In the context of domestic law-making, where tax laws are often contradictory and interpretations can vary, the line between legal and illegal methods of taxation can be blurred and ambiguous. Under such conditions, it is important to clearly distinguish between concepts such as tax evasion, tax avoidance and legitimate tax planning. The tax planning process involves close cooperation between the manager, the accounting (financial) service and the lawyer. These specialists work on the development of appropriate innovative approaches and strategies, which include a thorough study of legislation, specialized literature, and also study successful practices in the field of taxation of other enterprises and organizations. Effective tax planning, involving the involvement of qualified specialists in this field, careful compliance with current legislation, systematic consultations with fiscal authorities and maximum optimization of the tax burden, is a key factor in creating a highly profitable, legitimate and stable business. These measures not only increase the financial efficiency of the enterprise, but also ensure compliance of its activities with legal requirements, thereby strengthening its position on the market.

The Illicit Trade in Cultural Objects in Tanzania: An Investigative Report

Investigators are an important apparatus in tackling highly organized crimes committed in a state of high confidentiality. In Africa, surveillance techniques are commonly used to expose many crimes including serious offences against individuals or a society. However, ethnographic objects and other cultural remains have received less investigative attention, and as the result they have been illegally exported out of the continent for economic benefits. Ethnographic objects refer to objects made, modified or used by humans that collectively represent cultural references and they are protected by law, rules, or customs. Cultural remains refer to tangible movable objects made, shaped, painted, sculptured, inscribed, and produced or modified by human agency. In Tanzania, like in many other African countries, relics and ethnographic objects have been plundered and illegally traded in underground economy across the world. People engaged in trading of ethnographic objects use souvenir markets as decoys and shipping passage to send goods abroad. This article presents the results from a recent investigation conducted at one of the souvenir markets in Mwenge, Dar es Salaam, Tanzania, where cultural relics and ethnographic objects from Tanzania and other African countries have been brought together and shipped abroad for commercial interests. A joint team of undercover intelligence agents and key informants participated in a confidential work to investigate the process by which ethnographic objects are collected, marketed and distributed to local and foreign markets. Mwenge is one of the largest and most popular souvenir centers with large and unique artefacts shops operating as tourism attractions. During this investigation, which spanned six months, our team identified 530 ethnographic objects which were on the market, ready to be sold and exported, despite their legal status under Tanzanian law, according to which their sale and export are unlawful. This study revealed that people who are engaged in the illicit trading activities of relics and ethnographic objects are knowledgeable, use legitimate business license, collection- and export permits to conceal their illicit trade of ethnographic objects. Furthermore, they are aware of the poor monitoring institutions and the illiteracy among security officials at ports of exits. This article discloses some of the techniques used to conceal the trafficking of cultural objects in Tanzania and proposes suitable measures to counter the problem.

Neutral Business Assistance and the Limits of Complicity Under International Criminal Law

Business transactions between corporations and actors involved in grave human rights violations present significant challenges for the assessment of corporate criminal liability. This is particularly evident in cases of “neutral business assistance,” which refer to business conduct that appears legitimate on the surface and falls within day-to-day business operations but nonetheless contributes to the crime. An example of neutral business assistance is selling generic goods (for example, computer technology) legally at market rates, without the explicit intent to aid criminal activity, that increases the perpetrator’s capacity to carry out human rights violations. In such cases, discerning the point at which a legitimate business transaction becomes a wrongful act of complicity remains a complex and unresolved issue in international criminal law. The doctrinal requirement for the wrongful act of complicity is that the assistance provided must have a “substantial effect” on the commission of the crime. Traditionally, this assessment has been grounded in a narrow factual analysis that primarily emphasizes the gravity of harm resulting from aiding and abetting. This one-dimensional approach to wrongfulness, however, oversimplifies the ethical complexities of criminal liability. It overlooks broader normative considerations and the positive societal impact of human cooperation. This article challenges the prevailing harm-based paradigm and introduces a more nuanced methodology to assess the wrongfulness of aiding and abetting across various contexts. To do so, the article embraces a broader perspective on the “substantial effect” criterion, one that takes into account the crucial normative dimension of balancing the harmful effects of aiding and abetting with their corresponding social benefits. As a result, the article outlines a refined theory of the actus reus of complicity that enables a more holistic evaluation of accomplices’ conduct.

The Protection of Confidential Information in Restraint of Trade Agreements

This article examines the balance between protecting an employer’s confidential information and the enforceability of restraint of trade agreements. Central to the discourse is the principle that while employers legitimately seek to safeguard their proprietary information and trade secrets, such measures must align with public policy considerations to avoid unduly curtailing employees’ employment opportunities. Restraint of trade clauses are not inherently invalid but must be scrutinised for their reasonableness, necessity in protecting legitimate business interests and compliance with public policy. Focusing on confidential information as a key protectable interest, the article delineates the conditions under which such information qualifies for protection and how its misuse by former employees poses a legitimate concern for employers. The article underscores a growing tendency to prioritise the safeguarding of employers’ interests, particularly concerning proprietary information. This focus has led to foundational contractual principles being overlooked. The article argues for a nuanced understanding that considers the confidentiality undertaking, location and timing. It underscores the need for the judicious drafting and enforcement of restraint of trade clauses and confidentiality undertakings, guided by clear legal principles that safeguard both employers’ proprietary interests and the public interest in fair competition and employment mobility.

The Protection of Confidential Information in Restraint of Trade Agreements

This article examines the balance between protecting an employer’s confidential information and the enforceability of restraint of trade agreements. Central to the discourse is the principle that while employers legitimately seek to safeguard their proprietary information and trade secrets, such measures must align with public policy considerations to avoid unduly curtailing employees’ employment opportunities. Restraint of trade clauses are not inherently invalid but must be scrutinised for their reasonableness, necessity in protecting legitimate business interests and compliance with public policy. Focusing on confidential information as a key protectable interest, the article delineates the conditions under which such information qualifies for protection and how its misuse by former employees poses a legitimate concern for employers. The article underscores a growing tendency to prioritise the safeguarding of employers’ interests, particularly concerning proprietary information. This focus has led to foundational contractual principles being overlooked. The article argues for a nuanced understanding that considers the confidentiality undertaking, location and timing. It underscores the need for the judicious drafting and enforcement of restraint of trade clauses and confidentiality undertakings, guided by clear legal principles that safeguard both employers’ proprietary interests and the public interest in fair competition and employment mobility.

Precisely Coordination‐Modulated Ultralong Organic Phosphorescence Enables Biomimetic Fluorescence‐Afterglow Dual‐Modal Information Encryption

AbstractInformation leakage and counterfeiting are serious worldwide issues that tremendously impact legitimate businesses and human life. Inspired by the Noctiluca scintillans, a new fluorescence‐afterglow dual‐modal information encryption enabled by precisely coordination‐modulated ultralong organic phosphorescence (UOP) is presented. Strikingly, the optical properties including fluorescence, lifetime and intensity of UOP can be precisely modulated on‐demand through energy transfer by lanthanide (LnIII) coordination, which enables information camouflage by similar LnIII luminescence to provide misleading information along with data decryption in the form of mutual afterglow. Moreover, the important data can be encrypted in a spatial‐time‐resolved way by programmatically coding information with afterglow gradients, yielding greatly improved security for verifying the authenticity. This study provides a new avenue to precisely modulate the optical properties of UOP materials and broadens the scope of optical materials for innovative information encryption and anticounterfeiting applications.

Informality as a choice to do legitimate business: evidence from Peruvian women in times of COVID-19

PropósitoNos países em desenvolvimento, as mulheres microempreendedoras caracterizam-se por serem informais, criando um desafio para a sustentabilidade dos seus negócios. A presente investigação analisou diferentes negócios que adotam essa forma de operação com o argumento de que a formalidade não é necessária por serem negócios legítimos (razão institucional); além disso, foi incorporado o papel do gênero na gestão empresarial e se validou a consistência dos resultados num contexto de COVID-19.Desenho/metodologia/abordagemSe utilizaram dados da Pesquisa Nacional de Domicílios do Peru para desenvolver uma análise comparativa entre o período 2018–2019 (pré-COVID-19), composto por uma amostra de 14.077 observações, e o período 2020–2021 (COVID-19), com 7.922 observações. A unidade de análise é a microempresa informal com mais de três anos de operação e os dados são analisados através de um modelo logístico.DescobertasResulta maior a probabilidade de adoção da informalidade por motivos institucionais no caso das proprietárias em contraste com os proprietários, quando se trata de um negócio pertencente ao setor do comércio e que funciona numa casa com serviços básicos, enquanto esta probabilidade diminui se o negócio não tem local fixo. Estes resultados são consistentes em tempos pré-COVID-19 e COVID-19.Originalidade/valorA pesquisa tem como objetivo contribuir no fechamento de brechas na geração de evidências que ajude a compreender o comportamento dos microempreendedores informais nos países em desenvolvimento, permitindo uma melhor abordagem desta problemática para o desenho e implementação de políticas públicas adequadas. Tudo isto contribuirá para o cumprimento dos Objetivos de Desenvolvimento Sustentável.