Purpose – The purpose of this paper is to approach the issue of fraud prevention by using the theory of incentives to design a mechanism that makes employees to reveal their true type, that is, their willingness or ability to combat corruption. Based on this information, the manager may...

Presents a basic model by which a representative agent chooses how to allocate his savings optimally between money of legal origin and dirty money; he holds the laundered dirty money, from which the money laundering process generates a positive transaction cost. Analyses the welfare of such an...

Purpose – The purpose of this paper is to study the impact of terrorist actions and money laundering on capital accumulation and consumption. Design/methodology/approach – The paper builds a general equilibrium model that considers the existence of two representative agents: a terrorist and...

Purpose – To assess the efficiency of the anti‐money laundering regulation by using an incentive‐based approach. Design/methodology/approach – It is designed a mechanism in which competent authority is the principal and the financial institutions are the agents. Findings – The analysis...

Purpose – The purpose of this paper is to show that an evolutionary approach to combat money laundering can shed new lights on this matter. Design/methodology/approach – An evolutionary game between financial institutions and employees is assumed in which the decisions of the banks and...