Institute for Financial Integrity’s Post

More very useful, interesting stuff from Christopher P. Williams from our recent webinar! Check it out!

This week, the Federal Government released updated fraud and corruption regulations for Commonwealth entities, which will come into effect on 1 July 2024. These significant new corruption clauses focus on emphasising governance structures, internal oversight and periodic evaluation of effectiveness. They represent a crucial stride towards bolstering integrity within organisations.    Explore further details about the fraud and corruption rules for Commonwealth entities https://lnkd.in/gxr6tkzc . #FraudPrevention #CorruptionPrevention #CorporateGovernance

The new Commonwealth Fraud and Corruption Control Framework, effective from July 1, 2024, is aimed at preventing, detecting, and addressing fraud and corruption within Commonwealth entities. Additionally, if you are a Commonwealth entity engaging 3rd party contractors, your processes, procedures, and policies must align with this new framework, which now encompasses incidents of fraud and corruption committed by contractors. Dishonest conduct by contractors, such as obtaining a benefit or engaging in corrupt behaviour, needs to be reported and may result in legal action, financial penalties, and contract termination. Explore further details about the fraud and corruption rules for Commonwealth entities here. #FraudPrevention #CorruptionPrevention #CorporateGovernance 

On 1Feb24 Australia released the New Commonwealth Fraud and Corruption Control Framework, which will come into effect on 1 July 2024 for all corporates, non corporate Commonwealth entities & accountable authorities. It includes a revised provision for entities to take active steps to prevent, detect and respond to corruption and fraud. https://lnkd.in/eAEayGJV #fraud #corruption #fincrime #regulation

🚨 Horizontal Review of Gatekeepers’ Technical Compliance Related to Corruption 🚨 This Monday, 8 July 2024, the Financial Action Task Force (FATF) published an important new report titled Horizontal Review of Gatekeepers’ Technical Compliance Related to Corruption. The report highlights the critical role non-financial professionals play in preventing money laundering and corruption, as well as areas where improvements are urgently needed. 📍 A Few Conclusions: • Gatekeeper Vulnerabilities: The report emphasises how lawyers, accountants, trust and company service providers, and real estate agents can be exploited to facilitate money laundering and corruption if not adequately regulated. • FATF Standards: For over 20 years, the FATF has required countries to implement anti-money laundering (AML) and counter-terrorist financing (CFT) measures for these gatekeepers. However, compliance varies significantly among member countries. • Current Compliance: While more than half of FATF members scored over 80% in technical compliance, seven jurisdictions, representing over half of the world’s GDP, scored below 50%, indicating substantial room for improvement. • Sector Comparison: Contrary to common perception, the legal profession does not have significantly lower AML/CFT compliance than other sectors. The review found similar levels of compliance across all four gatekeeper sectors. • Cornerstone Obligations: Some fundamental FATF Recommendations, such as customer due diligence, internal controls, and risk-based supervision, are less well-implemented than others, posing significant risks. For your convenience, we have attached the full report to this post. We encourage all stakeholders to review the findings and recommendations to help strengthen global efforts against corruption and money laundering. #AML #CFT #FATF #Corruption #Compliance #FinancialCrime #RiskManagement #Gatekeepers #Lawyers #Accountants #TrustServices

FATF Reviews Gatekeeper Compliance to Combat Corruption In a recent review, the Financial Action Task Force (FATF) evaluated the effectiveness of gatekeepers – lawyers, accountants, real estate agents, and trust and company service providers – in curbing money laundering and corruption within the financial system. The FATF's Horizontal Review focused on how these professionals comply with AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) standards. Key findings show that although over half of FATF members scored above 80%, some major economies scored below 50%, which is concerning given their significant share in global GDP. This review asserts that despite common perceptions, legal professionals are not less regulated than other gatekeeper sectors. All sectors demonstrated similar compliance levels with the FATF Recommendations, which emphasize the importance of customer due diligence, implementing internal controls, and empowering supervisors for effective risk-based supervision. The review calls for urgent improvements in jurisdictions lagging behind, to better equip gatekeepers in detecting and preventing the financial maneuvers of corrupt actors. 

These are important tools for financial crime professionals; many might think it is not perfect, but it is a critical (and one of many) tool in our anti-financial crime toolbox.

Corruption is pervasive, affecting numerous institutions, often going unnoticed due to clandestine actions. To combat this, the imperative practice of "Corruption Monitoring" emerges, serving as a deterrent against corruption and money laundering. Implementing effective indicators for monitoring corruption not only prevents illicit activities but also ensures organizational integrity and compliance. AML Watcher's blog looks into the significance and effectiveness of corruption monitoring services for organizations. For more on this blog, refer to this link: https://lnkd.in/dY7VVYfY #AML #FinCrime #MoneyLaundering #Compliance #AMLWatcher

Imagine you're a compliance officer tasked with ensuring your organization doesn't engage in corrupt practices. The corruption screening process involves understanding corruption risks, gathering information about your customers or business partners, and screening this information against corruption databases. If you find a potential match, further investigation is necessary to determine the legitimacy of the match. If confirmed, appropriate action must be taken, such as terminating the business relationship or reporting the matter to authorities. Ongoing monitoring and record-keeping are essential for compliance. AML Watcher can help you streamline your corruption screening process and stay compliant with anti-corruption laws. Visit us to learn more: https://amlwatcher.com/. #AML #Compliance #AMLWatcher #CorruptionScreening #AntiCorruption

.#covidcorruptioncommissioner This is good news on the face of it. However, if we had a sensible structure for combating public sector fraud and corruption, like Singapore, it would not be necessary. There is a risk that this adds one more layer to the UK's already incredibly chaotic fraud investigation structures. The Commissioner must have the necessary powers and a team with the capability to investigate - and not rely on other agencies. It is essential that the team is able to follow the money - has the necessary powers to do so. Furthermore, it must be able to fully investigate former ministers and political advisers. That is where the heart of corruption and fraud lies - more with them than with the suppliers. .#covidcorruptioncommissioner