Internal control, corruption and money laundering

Authors

  • Luminiţa IONESCU Assoc. Prof. Ph.D. Spiru Haret University
  • Mary POWER American International School of Bucharest

Keywords:

Internal control, corruption, money laundering

Abstract

The global financial crises created a different context for the economic growth and globalization. In the last few years, five risks have been designated as “risks to watch”, as survey respondents assessed them with high levels of variance and low levels of confidence while experts[1] consider they may have severe, unexpected or underappreciated consequences: cyber-security, demographic challenges, resource security, retrenchment from globalization, weapons of mass destruction. Strongly connected to these risks others are important to analyze: corruption, illegal trade and money laundering. There is a strong relation between corruption and money laundering. During the economic crunch the level of corruption and fraud had scientifically increased.Internal control could be a good instrument to reduce corruption and to stop the illegal trade and money laundering. Internal control is a dynamic integral process that is continuously adapting to the changes an organization is facing[1] www.weforum.org – The Global Risks Report 2010-2011.

References

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. Ionescu, L(2008), “Internal Control, Public Accountancy and Organization Culture”, Denbridge Press, New York, 2008.

. INTOSAI, Guidelines for Internal Control Standards for the Public Sector, p. 6.

. KPMG, Internal Control: A Practical Guide, Service Point, October 1999, p. 15.

. Olsen, W. P. (2010), “The Anti-Corruption Handbook. How to Protect Your Business in the Global Market Place”, John Wiley & Sons, Inc., Hoboken, New Jersey

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p. 207-230.

. Treisman, D(2000), “The Causes of Corruption: a cross-national study”, Journal of Public Economic 76(2000) p. 399-457.

. www.weforum.org – The Global Risks Report 2010-2011.

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Published

2011-09-30

How to Cite

IONESCU, L., & POWER, M. (2011). Internal control, corruption and money laundering. Annals of Spiru Haret University. Economic Series, 11(3), 89–95. Retrieved from https://anale.spiruharet.ro/economics/article/view/1138

Issue

Section

ACADEMIA PAPERS