The conditions around the COVID-19 pandemic—economic uncertainty and lack of internal controls in a new digital workplace—have created the perfect ecosystem for financial crime. Leaders who fail to take the right precautions and preventions now could find themselves and their organisations in an irremediable situation.
In this paper, BDO Forensics Partners delve into the murky world of financial crime—what's driving it today, the impact of the pandemic, and how executives, directors and boards can protect themselves and their organisations. They also share key strategies to prevent, detect and respond to these risks in the post-COVID-19 world.
What is financial crime?
When we think of financial crime, white-collar crimes such as executive-level fraud and corruption are the top things that come to mind. And that's not surprising given some of the more notable historical United States cases such as Enron, WorldCom and, more recently, Theranos in the United States and Australian Wheat Board and Securency in Australia.
Yet, as the world continues to change, the idea of what constitutes 'financial crime' has broadened. Many people are familiar with financial crimes relating to the above mentioned examples—fraud, corruption, ponzi schemes and insider trading. However, financial crime also includes money laundering, terrorism financing, modern slavery, breach of whistleblowing laws, tax evasion, phoenix, workplace misconduct, competition/anti-trust activity and certain electronic/cybercrimes, which are on the rise with cryptocurrencies becoming the tool of choice of cybercriminals.