22Mar
An interesting article in TheLocal.de on a study by Prof. Friedrich Schneider of Johannes Kepler University in Linz, Austria.
The study estimates the loss to the German economy due to corruption to be € 250 billion in 2012, up from a previous estimate of € 220 billion in 2005, when corruption in Germany was at a historic low-point.
That is a whopping €250 billion that could have been invested in genuine economic activity and grown the German economy, but was wasted by corruption and bribery. Given the importance of the German economy for the Euro-zone, this figure should be a concern of all European countries.
Also considering that Germany is ranked 14th on the TI list of least corrupt countries, so the relative problem of corruption loss as percentage of GDP may be even worse in other countries.
Something to think about when considering the stagnant or even declining economic growth in Europe.
Tags: Bribery, Corruption, Economic Crime, TI, Transparency International
22Mar
Or maybe not, considering the impact the current crisis has on Greek society.
In his post, Luke Balleny explains the impact corruption has had on Greek society and now on the crisis facing Greece.
The 2012 Greek chapter of the Transparency International report on National Integrity System Assessment suggests that the Greek government “acceptance” of corrupt practices has contributed to the current crisis in Greece.
TI’s Assessment of National System Integrity on Greece can be found here: TI – NIS
Considering the impact on the lives of many if not most Greeks, and the contribution to the current crisis of the corruption in Greece, we must conclude that corruption is in fact not a victim-less crime. The consequences may not be immediate or clear to most, but as this case teaches us, there almost always are consequences to be paid.
Fighting corruption, both by preventative measures and controls and by investigating and exposing corruption post-fact, is crucial to the smooth operation of the economy as a whole. And if you need more convincing of the real-world impact, just look at Greece today and the draconian budget measures that they have to implement.
Tags: Corruption, Economic Crime, Forensics, Fraud prevention, TI, Transparency International
09Mar
What does the recent US$ 22.2 million settlement of Smith & Nephew means for the Medical Devices industry?
On February 06, 2012, U.K. based medical devices maker Smith & Nephew Plc. agreed to pay $22.2 million to settle Foreign Corrupt Practices Act offenses committed by its U.S. (Smith & Nephew Inc.) and German (Smith & Nephew Orthopaedics GmbH) subsidiaries. [Refer SEC’s Litigation Release 22252 / February 6, 2012 on the following link http://www.sec.gov/litigation/litreleases/2012/lr22252.htm (Accessed on February 9, 2012)]
This is a significant order for more than one reason. The biggest reason is that this order is one in a series of previous prosecutions that has included key players in the medical devices industry. Another reason is that this order highlights why companies that are operating in medical devices segment need to go that extra mile to ensure that the transactions entered into by third parties (agents, distributors etc.) on their behalf adhere to their policies. In this alert, we outline salient points of this case and then outline what companies in this segment can do in future to avoid such actions.
Continue reading »
Tags: Client Alert, Compliance, FCPA, Fraud prevention, UK Bribery Act
22Feb
We published an article in the November 2011 edition of the newsletter of the Association of International Arbitration .
The Association for International Arbitration (AIA) works towards the promotion of alternative dispute resolution (ADR). AIA focuses on arbitration as a means of dispute resolution and strives to bring together the global community in this field, including judges, lawyers, arbitrators, mediators and academics as well research scholars and students.
Our article provides a short summary of our global expertise in the field of arbitration, alternative dispute resolution and dispute resolution support.
You can find the November 2011 issue of the newsletter here.
Tags: AIA, Arbitration, Dispute Analysis & Investigations
03Feb
With the 2012 World Economic Forum in Davos just behind us, Transparency International reflect on some of the evolutions in the global corporate community in terms of transparency, corruption, bribery and perception of people around the world.
TI sees the need for companies to consider new approaches and new business models in light of the persistent global economic woes and ever growing public dis-trust in corporations around the world.
Well worth the read: TI – Corporate Transparency: Old Problems and New Ideas
Tags: Compliance, Corruption, Economic Crime, Fraud, Fraud prevention, Prevention, TI, transparency, Transparency International
05Jan
Interesting publication from the UK Serious Fraud Office providing comments on the impact of anti-fraud and anti-corruption legislation. It provides insights into current international legislation and related implications. Additionally it provides hands-on information regarding the management of forensic investigations and the implementation of preventive measures.
Serious Economic Crime: A boardroom guide to prevention and compliance
Tags: Compliance, compliance audit, Economic Crime, Fraud prevention, Prevention, Risk Management, UK Bribery Act
30Nov
Belgian businesses are increasingly falling victim to cyber-crime. The trend is revealed by PwC’s ‘Global Economic Crime Survey 2011’. This bi-annual study, now in its sixth edition, in which 3,877 organisations have taken part worldwide, investigates fraud occurring within businesses and other organisations as committed both by staff and by customers and suppliers.
In Belgium, 84 undertakings, including 36 listed companies, participated in the survey. Of the Belgian organisations faced with economic fraud in the past year, no fewer than 44% (23% globally) said that they’d fallen victim to cyber-crime. Misappropriation of assets continues to be the most common form of economic crime here just like elsewhere in the world.
A further striking conclusion from the survey is the great divide between perception and reality: businesses under-estimate their vulnerability and fall victim to economic fraud more often than they imagine. It continues therefore to pose a stubborn problem, and not a single sector is spared. Which is why businesses have to protect themselves better, given that the economic damage being done is enormous. For 1 in 10 companies (worldwide) that were faced with cases of economic fraud in the last 12 months, the losses topped five million dollars.
Please click the following links to see the different reports:
Tags: computer crime, cyber crime, Economic Crime, Fraud, GECS2011, Global Economic Crime Survey, Risk Management
16Oct
With information in mountain stacks of paper files coupled with financial records, electronic media, instant messaging, tweets and blogs are you able to locate specific information to support an inquiry?
Is the greater challenge in finding it or in missing it all together?
Tags: Dispute Analysis & Investigations, e-Disclosure, e-Discovery, Forensics, legal technology, Risk
02Oct
Granted, an audit is usually not perceived as a pleasant thing, but it doesn’t have to be a painful experience either.
Let’s imagine, for a moment, that you feel you have a rough idea what software is being used in your company. You have a robust security policy and more or less good guidelines on how software should be installed and used. But, you haven’t actually ever counted and verified against the contracts. Should you worry?
I am afraid the answer will be yes. Users often easily install software on corporate machines without giving it much thought. The company, however, can be held liable for this. But, the larger issues often lie within the server environment rather than the pc-environment. Due to the very nature of the software contracts and the rapid developments in IT, you can become heavily out of compliance by simple actions such as upgrading or changing a processor. As a result, a potential compliance audit by a software publisher may cause more disruption than desired and the findings may cause a small financial hangover. And if it doesn’t, you could worry that perhaps you have been spending too much on software.
For readers that just want to avoid worrying all together, maybe you want to think about a software asset management function. I will pick that up next time.
Cheers,
Sally
Tags: compliance audit, licence compliance audits, Risk, Risk Management, SAM, Software Asset Management, Software licence audits
24Sep
Good risk management at UBS, you say?
The Harvard Business Review seems to thinks not…
HBR: UBS Systems Failed the “Too Big to Fail” Bank
An eye-opening piece on risk management systems at UBS, which permitted this massive fraudulent trading to take place, without ever being detected.
Despite a recent and large scale overhaul and improvement.
Sort of makes you think, doesn’t it?
Tags: Fraud, Fraud prevention, Risk, Risk Management
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