5 Tips for Preventing & Detecting Expense Fraud

It’s one of the most common forms of occupational fraud: employees fudging on their expense accounts. In June, 2020, Lookers (London-listed company) warned investors they might be unable to buy and sell its shares from the beginning of July because of potential fraud on its books – confirming £19m charge to correct books after fraud inquiry. Whether through fictitious charges, fake receipts or invoices, or other improper use of expense funds, an expense account is sometimes seen as a low-risk, high-reward area for committing fraud. It shouldn’t be. If your company takes the proper steps to review expense activity and protect itself from fraud, expense accounts will no longer be a vulnerable area of your finances.

The experts at CRI® Group offer the following tips for bolstering your protection against expense account fraud:

1. Provide strict guidelines for credit card use

Often, expense account fraud is committed with the use of a credit card, with the employee seeking illegitimate reimbursement for various expenses. Detail how personal cards are allowed to be used, and require and review all receipts for claimed expenses. Also require supporting documentation (such as an airline boarding pass, for example) to ensure the purchase was used as intended.

2. Check company credit card statements carefully

In some cases, employees will use a company credit card to make a purchase, but then claim similar or duplicate expenses for reimbursement on their expense report. This is easy to catch if you carefully review company card statements and check them against reimbursements.

3. Ask questions

If a purchase seems odd or unrelated to business use, catching it early is the best way to resolve the issue. After too much time has passed, an employee might claim to have a difficult time remembering exactly what the questionable expense was for. If in doubt about a claim, ask for supporting documentation and a clear explanation of how the expense was used for a business purpose.

4. Implement a Code of Ethics for all employees

By including anti-fraud language in your Code of Ethics, which should communicate a strong anti-fraud stance and be signed by all employees, it will be clear that expense account fraud is not tolerated. Reinforce this with regular communications to employees reminding them that the company does not tolerate fraud in any form and offenders will be prosecuted.

5. Set a Tone at the Top

If the company has rules in place but senior staff aren’t following them, lower-level employees will follow by example and flout the rules, as well. All staff should follow the rules to the letter. Especially while on business trips with lower level employees, senior staff should set a positive example and make a point to follow the rules for business expenses.

Expense account fraud is a persistent problem in business, but it doesn’t have to be a crisis at your company. By using a common sense approach and some key prevention strategies, you can help ensure that your employees know the rules and are less likely to try to take advantage of company expense funds. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Let’s Talk!

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS102000:2013 and BS7858:2019 Certifications is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. Contact ABAC® for more on ISO Certification and training.

MEET THE CEO

Zafar I. Anjum is Group Chief Executive Officer of CRI® Group (www.crigroup.com), a global supplier of investigative, forensic accounting, business due to diligence and employee background screening services for some of the world’s leading business organizations. Headquartered in London (with a significant presence throughout the region) and licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center – QFC, and the Abu Dhabi Global Market-ADGM, CRI® Group safeguard businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI® Group maintains offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China, the USA, and the United Kingdom.

Contact CRI® Group to learn more about its 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous risks posed by third-party partnerships.

CONTACT INFORMATION

Zafar Anjum, MSc, MS, CFE, CII, MICA, Int. Dip. (Fin. Crime) | CRI® Group Chief Executive Officer

37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA United Kingdom

t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

Filed under: Anti-Bribery Anti-Corruption Solution, Background Investigation, Business Intelligence, Compliance Solution, Insurance Fraud Investigation, Pakistan, Islamabad, Pakistan, Karachi, Resources by admin
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Ethical code of conduct: What should be covered?

Business leaders are usually quick to communicate their expectations to employees, especially when it comes to financial goals or tasks that they want to be accomplished. However, what is often lacking is a clear, concise explanation of what the organisation expects in terms of ethical behaviour. The recent article “Puffery or Not? Courts Examine Corporate Codes of Conduct” explains that although a number of federal courts have found code of conduct statements to be non-actionable puffery, given the uncertainty in the face of the novel CODIV19 pandemic, public companies are ought to review their codes of conduct and revise them if necessary to mitigate litigation risk. Ethical code of conduct:

Does your organisation have an ethical code of conduct? If not, you might be making assumptions that your employees know to conduct themselves in an ethical manner, when, in fact, this expectation only exists in a grey area in their minds – if at all. In fact, some employees who have engaged in fraud, corruption or other unethical situations have claimed that while they knew their behaviour was wrong, they thought it was implicitly accepted by their bosses and, in some cases, their company overall.

Rather than assume that ethical rules “go without saying,” every organisation should spell out what they expect of their employees when it comes to ethical behaviour. At CRI Group, we counsel business leaders on the principle that every organisation should have a written, carefully considered ethical code of conduct as part of their fraud prevention strategy. CRI’s Certification program through the ABAC Center of Excellence includes developing an ethical code of conduct as part of the training and development phase for clients.

What should be covered?

An ethical code of conduct should be tailored to your company and your organisation – no two will be the same. What are the risks inherent in your organisation? What about in your industry? A pharmaceutical company will have some different risk areas than a retail store, for example. A nonprofit organisation might have concerns that relate to fundraising, a government agency might be focused on preventing bribery or collusion.

The goal of an ethical code of conduct is to help all employees understand the expectation that they always behave in a legal and ethical manner, and that the organisation has zero tolerance for unethical behaviour. It should include the following focal points:

1. Business values

This can include your organisation’s mission and vision and should help set the tone for how the organisation relates to its clients, partners, its own employees and the public at large.

2. Guiding principles

The principles that guide your company include customer satisfaction, financial success and profitability, improvement and growth. Your company might also follow policies of corporate responsibility, such as respect for social and environmental issues, and support of the community and/or nonprofit efforts.

3. Role of leadership

This section of the code of conduct should state that management has clearly endorsed the code and that employees can approach any manager or executive with ethical concerns or complaints.

4. Regulatory and compliance

This section should communicate the organisation’s commitment to meeting all compliance requirements, from OSHA and EPA to Sarbanes-Oxley and Dodd-Frank. This reinforces leadership’s expectation that employees must act diligently and ethically to uphold those standards, as well.

5. Employee responsibility

Every employee, from top to bottom, shares the responsibility toward upholding the ethical standard defined in the code. Contractors and volunteers are also expected to follow the standard of behaviour.  Furthermore, the code should make clear that if the unethical behaviour is detected, turning a blind eye or deciding “it’s not my problem” is unacceptable. That is a breach of the ethical code.

CRI Group can help your organisation with the finer points of drafting and implementing an ethical code of conduct. ABAC Center of Excellence includes this critical piece as a part of any robust fraud, bribery and corruption prevention program.

After the ethical code of conduct is approved by company leadership, it should be read and signed by all employees (with the signed copies kept on file by the organisation). And it should be displayed prominently in the office. Unethical behaviour, including fraud and other corruption, is everyone’s problem, and it must be prevented, detected and reduced. Staying one step ahead of any critical risk to your organisation is part of being an effective business leader.

ISO 37001:2016 Anti-Bribery Management System certification is offered under CRI Group’s ABAC® Centre of Excellence, an independent certification body established for Anti-Bribery Management System training and certification, ISO 37301 Compliance Management Systems and Risk Management System certification. The program will be tailored to your organisation’s needs and requirements. For assistance in developing and implementing a fraud prevention strategy, contact ABAC today or get a FREE QUOTE now!

Who is CRI® Group?

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Filed under: Automotive, Aviation, Background Investigation, Compliance Solution, COVID-19 Insights, Due Diligence, Employee Background Check, Finance & Professional services Industry, Insurance, IT & Telecommunications, Oil, Gas & Energy, Pakistan, Karachi, Pharmaceutical & Healthcare, Property, Resources, Third-Party Risk Management, United Kingdom, London by admin
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Education and Employment Verification Trends in the APAC Region

Background screening is an essential process for achieving hiring success – finding the right person for the right job at the right time. The biggest investment today that a business can make is in their new employees, as with each new hiring, they invest time, training, and resources. Background screening is important because it protects the company’s reputation, brand, and biggest asset – its people. The trend of background screening is rising over the last few years in the APAC region, with an increased number of check types and a subsequent increase in discrepancy rates. Generally, there are six fundamental checks conducted by an employer for their employees, and according to ASD reports on Asia Pacific Employment Screening Services Market Forecast 2019-2027, the employment screening services market is promulgating at a CAGR- Compound Annual Growth Rate of 9.37% from 2019-2027.

Among many other background check types, education and employment checks continue to be preferred and are increasingly gaining importance.

Education Verification

Education Verification can be defined as verification, through authorized agents at educational institutes, of the stated education program(s) and educational history of the subject. Verification incudes:

• Name of candidate while enrolled
• Registration number
• Level of degree/ program/ diploma attained
• Major courses/ subject
• Dates of attendance and degree awarded

The check may also confirm whether the candidate did not complete a course, if the qualification was obtained from an unaccredited institution, or if the degree is bogus/fake.

Employment Verification

Employment Verification can be defined as verification of the candidate’s stated employment history. Verification incudes:

• Dates of employment
• Position held
• Employment type (permanent/ contractual)
• Reason for leaving
• Whether a subject could be rehired
• Authentic experience letter
• Any remarks

The reason for not rehiring reveals whether there is any misappropriation or fraud conducted by the subject. According to First Advantage Employment Screening Trends Report: Asia Pacific, one in 11 employment verifications uncover a discrepancy in the subject’s last job designation, and one in 14 has revealed that the subject mentioned an incorrect reason for leaving their previous job.

According to HR.com, among 10 shocking HR statistics is that 53% of job applications contain inaccurate information. Resumes include exaggerated salaries, job titles, misrepresentation of dates and incorrect education credentials. Moreover, Brad Smart mentions in book Topgrading 201 – How to Avoid Costly Mis-Hiresthat the average cost of a mis-hire is higher than 15 times the annual salary of vice presidents. Therefore, employers run background checks on the candidates to avoid such risks associated with incompetent hiring.

In the First Advantage Background Screening Trends Report, the Asia Pacific graphs show results for overall and search-by-type discrepancies:

• Overall discrepancy: 17.93%
• Criminal: 3.01%
• Education: 21.36%
• Employment: 53.65%
• Database: 19.33%
• Financial Related: 2.64%

The data shows that the highest level of discrepancies found in the APAC region involve employment checks, and the second highest involve education checks.

APAC region Challenges of Education and Employment Verification

Despite the increasing trend of education and employment checks in the APAC region, there are many challenges faced by employment screening service providers in the region.

Some of the common challenges are mentioned as follows:

• Difficulty in locating institutes attended by the candidates, or the organizations where candidates worked.
• Difficulty in establishing contact with previous employers.
• Employers are reluctant to share their previous employee’s information with third parties.
• The complicated education verification processes of the institutes/ universities, as sometimes it takes several months to verify one degree.

Sometimes, the employers are reluctant to run background checks on their employees due to the lengthy and time-consuming process of verifications, which may lead to non-competent hiring. Education institutes and employers must cooperate with background screening service providers to verify education and employment credentials in order to make it easy for employers to make the right hiring decisions at the right time.

More importantly, background screening is not just a one-time process. If an employee passed the pre-employment screening test and has been hired, that does not mean that risk for the employer from employee has been eradicated. An employee’s criminal record, for example, could change at any time during their employment. Therefore, background screening should be conducted periodically, mitigating internal risks.

Let’s talk!

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. Contact us today to get started on implementing a robust program that will serve you well for years to come. Get your FREE QUOTE now!

Learn more about how EmploySmart™ can help your company stay protected during these strange and uncertain times. Contact CRI Group today.

Source list:

1. Asdreports
2. First Advantage Employment Screening Trends Report
3. Who Are You Really Hiring? 10 Shocking HR Statistics
4. Topgrading 201 – How To Avoid Costly Mis-Hires by Brad Smart 
5. First Advantage Background Screening Trends Report 2015: Asia Pacific

Filed under: Background Investigation, Employee Background Check, Resources by admin
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Fight Fraud with ABMS Certification

Fraud, bribery and corruption cause serious harm to business. They can have a major financial impact, damage an organization’s hard-earned reputation and destroy company culture. That’s why at CRI® group we focus on helping organizations address these risks – as a team effort. All fraud, bribery and corruption (collectively referred to as economic crime) is unacceptable and should not be tolerated by any organization. It affects the ability of any business to thrive and it can cost them billions. A good example is NHS.

The NHSCFA 2018/19 Business Plan estimates that £1.29 billion could be lost to economic crime from the NHS in England on an annual basis. This estimate includes losses across NHS Providers and CCGs, as well as NHS England and further detail is provided in the NHSCFA Strategic Intelligence Assessment (SIA).

According to the Association of Certified Fraud Examiners (ACFE), “Tone at the Top” – the ethical atmosphere that is created at an organization or in a workplace by the attitudes and behaviors of an organization’s leadership – is a major factor in determining whether fraud, bribery or corruption is likely to take place. That’s because employees lead by example. If their leaders show a strong, zero-tolerance approach to fraud, those who report to them are likely to follow. In fact, the ACFE’s research shows that the most common determinants of ethical behavior in the workplace are the following:

• Behavior of superiors
• Behavior of peers
• Industry ethical practices
• Society’s moral climate
• Formal organizational policy

There is also evidence that a company’s own employees are its best protection against fraud. Statistics show that most fraud is detected by internal tips, even more than audits and other methods. That means that employees are recognizing fraud, understanding that it’s wrong and not acceptable at their workplace, and reporting it.

So it stands to reason that the more trained and educated a workforce is about fraud, bribery and corruption, the better that organization will operate as a team in preventing and detecting those behaviors.

CRI® Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® Center of Excellence uses this approach as a focal point in providing the training and knowledge your organization needs to prevent fraud, bribery and corruption. Our experts tailor a program to your organization’s needs, accommodating every level of your organization to ensure that certification is a team effort among your employees.

Certification addresses Tone at the Top by ensuring that an organization’s governing body and top management are exercising appropriate oversight and meeting all legal requirements. But it also does so much more. The ISO 37001:2016 Anti-Bribery Management System certification empowers you with the ability to safeguard and maintain the integrity of your company by:

• Guaranteeing that all workers and agents are devoted to the latest anti-bribery practice.
• Regularly validating compliance to appropriate legislation like the FCPA and UK Bribery Act 2010
• Jointly cooperating with stakeholders to observe and reduce the risks throughout your supply chain
• Externally scrutinizing your company, testing the effectiveness of your anti-bribery policies and processes
• Ensuring compliance in action

Most of all, ABAC® certification will help your organization come together, united in efforts to prevent fraud, bribery and corruption. When financial losses begin to reverse and the organization shows improved financial health, each employee will understand how their individual effort and attitude has helped make a positive difference in the fortunes of the company.

The ABAC® teaches that. It also increases employee pride and morale. Most of all, it demonstrates to staff that leadership supports them and will have their backs when it is time to do the right thing.

Nobody wants to feel they are on an island. Don’t delay on getting your organization started on the path to certification today.  ISO 37001:2016 Anti-Bribery Management System certification is offered under CRI® Group’s ABAC® Centre of Excellence, an independent certification body established for Anti-Bribery Management System training and certification, ISO 37301 Compliance Management Systems and Risk Management System certification. The program will be tailored to your organization’s needs and requirements. For assistance in developing and implementing a fraud prevention strategy, contact ABAC® today or get a FREE QUOTE now!

About us…

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS102000:2013 and BS7858:2019 Certifications is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organizations. Contact ABAC® for more on ISO Certification and training.

MEET THE CEO

Zafar I. Anjum is Group Chief Executive Officer of CRI® Group (www.crigroup.com), a global supplier of investigative, forensic accounting, business due to diligence and employee background screening services for some of the world’s leading business organizations. Headquartered in London (with a significant presence throughout the region) and licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center – QFC, and the Abu Dhabi Global Market-ADGM, CRI® Group safeguard businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI® Group maintains offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China, the USA, and the United Kingdom.

Contact CRI® Group to learn more about its 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous risks posed by third-party partnerships.

CONTACT INFORMATION

Zafar Anjum, MSc, MS, CFE, CII, MICA, Int. Dip. (Fin. Crime) | CRI® Group Chief Executive Officer

37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA United Kingdom

t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, ISO 37001, Resources by admin
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Newly published whitepapers examine corruption laws and fraud

Fraud and corruption are always evolving. Changes in methods, technology and other factors make it critically important those trying to prevent and detect it to evolve, as well. Part of that process is to analyse fraud, corruption, bribery, money laundering and other crimes through the lense of research and casework. When experts share their findings and their knowledge into the numerous laws and regulations that address fraud, everyone benefits – especially vulnerable businesses and other organisations. CRI Group has recently published three new whitepapers that provide insightful looks into issues at the forefront of fraud and corruption today. They range from deep dives into the U.S., U.K. and other anti-fraud and anti-corruption laws around the world, to close examinations of actual fraud cases that hold lessons for all of us. We invite you to download these whitepapers and increase your knowledge of fraud, corruption, proper compliance, risk assessments, due diligence and more.

 1. “The Catalysts for Economic Crime: An Investigative Study Into Causal Factors of the Perpetration of Transnational Financial Crimes”

This whitepaper provides an in-depth study of transnational financial crimes and the national laws and regulations that govern them. Laws in the U.S. and the U.K, in particular, are compared and examined in terms of effectiveness in preventing financial crimes.

The comparative study focuses on corporate fraud. “The Catalysts for Economic Crime” pursues the question as to how weaknesses in national laws can be considered “a core causal factor in the perpetration of transnational financial crimes.” Readers will learn about the need to strengthen such laws or risk continued and increased criminal activity.

Different types of financial crimes are examined, including money laundering, due to its prominence as a form of transnational financial crime. The research provides a detailed discussion of the inadequacies in current national laws, and proposes solutions through increased accountability, compliance-focused on self-governance and heightened monitoring for violations, among other important considerations. Download the whitepaper for free.

2. “Countering Bribery & Corruption in the Public & Private Sectors: Anti-Corruption Culture, Risk Assessment, Auditing & Compliance”

This publication provides an insightful look at the responsibility of corporations to monitor and mitigate risks. This whitepaper examines two high profile corruption cases, Airbus and Rolls-Royce, to provide a deeper understanding of how bribery and other financial crimes can take root at organisations without proper prevention procedures and inadequate controls.

The global nature of the enterprise that makes corruption even more prevalent in modern times also makes prevention more difficult. When it comes to putting procedures in place to prevent bribery and corruption, “the concept of ‘adequate procedures’ is “vulnerable to interpretation depending upon national or industrial jurisdiction … and many enforcement agencies and government authorities have failed to provide guidance regarding the definition of ‘adequate procedures’ as it shapes both Anti-Corruption guidelines and legal defence.

Case studies often provide an extremely effective way of demonstrating the effect of inadequate controls and procedures when it comes to corruption. In the cases of Airbus and Rolls-Royce, the financial crimes and their ramifications were significant. Airbus committed to financial penalties of $4 billion; a system of “intermediary leverage” involved hundreds of its agents in 16 countries “to encourage national and airline purchase of the company’s civilian aircraft and satellites.” In the case of Rolls-Royce, a four-year investigation uncovered corruption, false accounting and failure to prevent bribery, leading to fines in excess of ?497.2 million – which accounted for approximately 3.4% of Rolls-Royce’s revenues for 2016. Find out what can be learned from these cases and how proper controls could have prevented them. Download the whitepaper for free.

3. “Organised Catastrophe of Pakistan International Airlines: Major Critical Risk Elements – Mismanagement – Corruption”

This whitepaper provides another case study, this one a close examination of Pakistan International Airlines (PIA) which has been embroiled in a scandal. The cases of professional fraud involve fake degrees and fraudulent licenses, and there have been cases of air accidents with loss of lives. This white paper investigates how the PIA case is not a coincidence, but rather an “organised failure of institutional management, state, and internal controls.”

In fact, the PIA investigation comes at a time when fraud and corruption among state-owned enterprises in Pakistan and elsewhere is rising at an alarming rate. This has links to fraud in governmental institutions, and PIA is just a high-profile example of what can result when such corruption goes unchecked.

This whitepaper analyses two major risk elements at PIA, in terms of mismanagement, and corruption in the form of kickbacks. This research paper also proposes solutions for dealing with such systemic, organizational crimes, the foundation of which is to implement a business-based risk management framework. Download the whitepaper for free.

Let’s talk!

If you have any further questions or interest anti-corruption solutions, please contact us.

CRI Group has safeguarded businesses from any risks, providing investigations (i.e. insurance fraud), employee background screening, investigative due diligence, business intelligence,  third-party risk management, forensic accounting, compliance and other professional investigative research services. In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, Due Diligence, ISO 37001, Resources, Third-Party Risk Management by admin
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Top notch candidate! Too bad its a lie.

The hiring process can be an exciting time for both the candidate and the employer, especially if is due to a growing business. However, it presents a degree of risk, as well. Organisations that bring new employees into their fold and entrust them with their business, processes and assets are playing with fire if they do conduct proper due diligence first. Employee Screening

One of CRI Group’s clients was recently hiring for a critical management level position. After finding what appeared to be an exemplary candidate, the client engaged CRI Group’s EmploySmart services, which provide thorough pre-employment background screening. CRI Group’s agents began right away in working to confirm the applicant’s credentials.

The candidate claimed to be a holder of a university degree. But when CRI Group conducted its local education verification process, the university named by the candidate reported that the applicant’s degree was ‘fake and forged’. That wasn’t all that ended up being fake.

The applicant also provided a reference letter, apparently signed by the university’s Deputy Controller of Examination (Dy COE) — apparently confirming his education record and asking to re-check his record with the university. However, further investigations showed that the reference letter was also fake, and the signatory was not, nor had ever been, the Dy COE of the university. Another fake and forged degree was revealed when CRI Group investigated the applicant’s BBA — as there was no conferment of the said degree.

In short, there was nothing legitimate about the candidate’s educational background, nor, as such, his candidacy. The client declined to offer him the position, and dodged a very real bullet by not hiring someone who was unqualified and untrustworthy.

At CRI Group, our EmploySmart pre-employment background screening process analyses a job candidate’s claims and credentials, and digs beyond the surface to make sure the facts match up. Our experts conduct extensive checks that examine all of the following details of a potential employee:

• Verification of address
• Verify name and date-of-birth
• National ID number
• Credit checks
• Previous employment verification
• Credentials verification
• Bankruptcy checks
• Civil litigation checks
• Criminal history
• Record checks
• Professional qualifications and memberships
• Criminal background checks
• … and more.

Don’t take unnecessary risks with your business, assets, investments and reputation. Whenever you are hiring new employees, use  EmploySmart pre- and post-employment background screening. Our investigative due diligence is second to none in the industry, and we will uncover those facts that potential new hires might not want you to know. Learn more about EmploySmart today or get a FREE QUOTE now!

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Filed under: Employee Background Check, Resources by admin
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Is your Third-Party Risk Management (TPRM) strategy efficient?

Third-Party Risk Management Strategy

A business owner knows that one cannot produce a complete set of products and services to offer to their customers. Still, the need exists for having as many complementary products, or services, besides the main thing your company provides, to keep a client satisfied. Today, people will look for that particular company that can provide them with as many services and products they need in one place and the one with the best price for all of these. Thus, to make that happen, a business manager must find business partners to collaborate with for enriching the offer and attracting more customers. But there is a serious risk of doing so. If your business partners use unreliable materials, they do not respect terms or are dishonest when doing business. Then it may cost your company a great deal of money and customers. 

Yes, today’s business environment is tough, and you should always be on the lookout to avoid situations that might be detrimental to your company and reputation. The consequences of dealing with the wrong business partner can even be devastating in some cases. If you never had to deal with such partners until now, then you are in luck. But never go on the premise that this can’t happen to you. There are many out there looking to make money, but without offering or guaranteeing quality services and products. Here is what can happen if you are the victim of a failed partnership:

• You can lose large sums of money, in a concise period, in case your collaborator disrespects terms;
• Along with the money, you will also start losing customers, disappointed by delays, poor quality, and unreliability, making your reputation suffer as well;
• The entire supply chain will face severe unbalances if one of the third-party providers fails to respect his duty. And getting it back on track can consume a lot of time and resources because, in the absence of an emergency plan, things will not be solved rapidly;
• Data can leak from your network because the security that is intended to prevent these things from happening is poor and not managed correctly;
• And there are always the litigation risks, corruption, and malpractices that come up in poor business practices.

Now, as a business manager, are you ready to tackle these mentioned risks? 

Can you imagine the sums of money that these risks will cost your company? And just like a game of domino, if any of the previous threats take place, other adjacent consequences, which will be impossible to manage or stop, like a drop in sales and profit, customer boycott, and others, will also occur. You should never disregard these risks and live by chance. An effective risk management program will determine the weak spots and prepare you upfront for managing an unwanted situation. You will know when and where intervention might be needed and, based on a risk assessment, the best solution will also be easy to find.

CRI® Group noticed the need to develop an effective risk management strategy, observing how the market changes from one year to another. Having extensive years of activity in the business environment, CRI® Group noticed many cases in which companies had to suffer a great deal because of making deals with unsuitable partners. Thus, from the desire to offer a method to keep your business safe, together with your employees, and maintain the number of your customers, won by hard work and dedication, CRI® Group managed to come up with a comprehensive risk management method. It covers the most sensitive aspects that may take place when collaborating with third parties.

Everything from the basics of service and delivery to financial processing and other crucial aspects when managing a business will be under close observation. The goal is to identify risks with an increased potential for causing damages to be controlled, and prevention methods have taken before they even occur. Thus, your business will always stay on the safe side and risks minimised to a level from where they cannot harm.

Read more on “How Risk Management and Due Diligence Interlock?”

Probably the highest risks may appear in the case where you decide to work with a partner outside your country. The offer may be the best available and suit your needs, perfectly understandable. But such a relationship is also the most difficult to handle, especially when things go wrong. Still, it doesn’t mean you should not collaborate with anyone you like if the conditions of the collaborations suit your requirements. In these situations, a risk assessment is more than necessary to ensure that you won’t spend more money than needed to cover losses.

With the help of CRI® Group’s team of skilled public record researchers, analysts, forensic services specialists and Certified Fraud Examiners, you will know, before signing any agreement, if your future partners are the right ones to do business with. The examiners have access to information covering five continents, going wherever it takes to make a detailed investigation. You will have all the data you need to know about the partners you intend to collaborate with and the risks involved in such a partnership. So, you will be able to make the best-informed decisions for your company.

Concerning risks, you probably would like to know what the cost-benefit aspects connected to a particular third-party collaboration are. Well, CRI® Group has everything included in its third-party risk assessment. Everything will be placed on the spot and verified to function as needed so that when a risk intends to occur, it can be seen and solved in an efficient and timely manner. Based on the evaluation results, we will also advise you what staff members are suitable to keep an eye on a certain aspect and will ensure a close-range control for mitigating key risks. Also, if any gaps are detected in the system, which may endanger the efficiency of managing risk, these shortcomings will be addressed during the assessment period, not allowing it to go any further.

A TPRM customised solution that best suits your needs

With the third party risk management offered by CRI® Group, you will benefit from external protection. The offer you will receive on the paper from a potential partner can differ very much in reality. With the ability to access international databases, courts, public records, and even contact local advisors, each foreign partner will be checked accordingly. To prevent any unwanted event from happening, it is best to do this assessment right from the start, so you will know with whom you are dealing.

Instead of spending your money useless by purchasing products without knowing for sure if they will respect the promised quality details and losing more money to cover the disaster in case you receive something else than you expected, it is wiser to invest just a little in a risk assessment. CRI® Group holds all the knowledge and experience needed to keep you safe from situations like this, keeping your money and reputation safe and helping you close reliable partnerships.

It is not worth gambling your company’s assets when effective TPRM is available. CRI® Group helped more than 3,800 corporate clients across the globe to keep their businesses and reputations safe and sound. It is time to join the group of companies that enjoy the protection and can unroll successful business activities because they are always aware and prepared to tackle any potential risks. You worked so hard and sacrificed so much time to get here; it is just not worth ignoring the reality, where risks lurk at each move and decision you make. 

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Business Interruption and Brand Damage. Enjoy great prices and products offered by providers from anywhere globally because CRI® Group’s TPRM 3PRM-Certified™ safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. You will be sure that whoever wishes to become your affiliate is a reliable and honest person, 3PRM™ is a solution, and a proactive risk-based approach to mitigating the risks involved with third-party affiliations protects the organisation from liability.

Your partnership will be efficient from a cost point of view, and a backup plan is made, just in case you need to take action when something does not work according to plan. Everything is taken care of, to the smallest detail. As a manager, you don’t even have to know or bother with what a risk assessment means because the CRI® Group professionals will do that for you.

You will need to know the final risks and how the situation presents itself. You will be briefed, and all aspects will be brought to your knowledge, together with pieces of advice on how you can manage a situation to diminish any potential losses for your company. Doing business has never been safer.

We have more than 30 years of experience in the field, so it has everything it takes to advise you in the best way possible. See your business thrive because all the partnerships you will conclude will be fruitful from now on. Staying one step ahead of any risk to your organisation is part of being an effective business leader. Contact us today to get started on implementing a robust program that will serve you well for years to come.

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Risk Management goes beyond TPRM.

CRI® Group provides the knowledge required to navigate unfamiliar markets and mitigate third-party risk by assessing the backgrounds, integrity, and character of those you do business with. Our 3PRM-Certified™ program is key for managing an organisation’s third party risk levels. However, this is only one of the several vital steps towards a robust risk management strategy implementation.

Risk management is the identification, evaluation, and prioritisation of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimise, monitor, and control the probability or impact of unfortunate events to maximise the realisation of opportunities. Risks can come from various sources, including your employees.

Getting Started with ISO 31000 Risk Management?

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About CRI® Group

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

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When is due diligence most critical?

Importance of due diligence

Importance of due diligence, when it is most critical? Due diligence means taking reasonable steps to satisfy legal requirements in the conduct of business relations. However, the reality of proper due diligence means so much more: it allows you to reduce risks, including risks arising from the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, to make informed decisions and pursue takeovers or mergers with more confidence.

Unlike other kinds of control (audits, market analysis, etc.), integrity due diligence should be completely independent and thereby rely as little as possible upon information provided by the researched subject. In short, due diligence is an essential function of any successful business model, and having the proper procedures in place will help protect your organisation from the threat of the unknown. 

Due diligence on business partners: What you don’t know can hurt you.

The importance of due diligence regarding potential business partners is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity due diligence investigations provides the critical information you need to make sound decisions regarding mergers and acquisitions, strategic partnerships, and the selection of vendors and suppliers.

The level of investigation will ensure that working with a potential trade partner will ultimately achieve your organisation’s strategic and financial goals. Integrity due diligence includes essential types of checks that can help uncover such facts include the following:

• Vendor due diligence and M&A due diligence on new commercial relationships, JV partners, acquisition targets, agents & distributors
• Compliance due diligence – e.g., FCPA compliance, UK Bribery Act compliance and other international counter-bribery legislation
• Due diligence investigation on third-party suppliers, agents or distributors
• In-depth investigations ahead of mergers, acquisitions & joint venture formation
• Pre-IP background checks
• Research into recipients of proposed equity investments or loans
• Enhanced due diligence during the client on-boarding process
• Help with document review, risk rating, & programme audit
• Training for in-house due diligence staff

How it works

DueDiligence360™ services provide the specialised intelligence needed by any financial institution and multinational corporation to guarantee complete compliance with international regulations and legislation involving trans-national implications.

These types of reports help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations or provide the information you need before a merger, acquisition, or joint venture.

You can also use them for third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures. The types of parties that your organisation should consider for integrity due to diligence checks could be found here.

Identify key risk issues clearly and concisely using accurate information in a well-structured and transparent report format. Our comprehensive range of reports includes specialised reports that support specific compliance requirements.

Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

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Global coverage that makes the difference

Within the global network, CRI Group works with companies across the Americas, Europe, Africa, and the Asia Pacific as one-stop international risk management, background screening and DueDiligence360™ solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. CRI Group’s global team of assets have unrivalled experience across local geographies.

They can navigate the automated and transparent developed world systems and the mostly off-line processes required in many emerging markets. As a result, we work both directly for clients and as a discreet white-labelled supplier to some of the world’s largest risk management consultancies.

Wherever your candidates, employees, or suppliers are in the world, we’ve got them covered. Don’t leave risk management to chance. Take a proactive stance with the highest level of DueDiligence360™ as a part of your essential business strategy. Contact us today to learn more about our full range of services to help your organisation stay protected.

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Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be.

CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

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What are the guidelines and qualifications for ISO 37001:2016?

To many bribery cases are in the headlines, but all of these provide lessons for business leaders around the world. As reported in the Industry resource, Alere Inc., a global manufacturer of rapid point-of-care diagnostic tests, will pay more than $13 million to settle charges that it bribed foreign officials and committed accounting fraud to meet revenue targets. What are the guidelines and qualifications for ISO 37001:2016?

The U.S. Securities & Exchange Commission imposed the order, based on the fact that “Alere subsidiaries in India and Colombia ‘obtained or retained business’ by using distributors or consultants to make improper payments to officials of government agencies or entities under government control,” Industry resource reported.

The article states:

“In Colombia, improper payments of about $275,000 helped Alere win business from a government-linked customer. In India, the Alere unit through a distributor paid local governmental officials a four percent commission to increase orders for medical testing kits from 200,000 to 1 million units.”

The company allegedly netted millions for its efforts. It’s against this backdrop that it becomes clear that training and certification to prevent bribery and corruption is crucial for organisations today. For anyone doing business across international borders, it is critically important to be in full compliance and proactive in prevention and detection. But what are some of the requirements and guidelines for pursuing ISO 37001:2016 certification? Here, we address the most pertinent questions:

What are the training and certification guidelines set up by ICA?

ICA provides knowledge about anti-corruption as whole and bribery as a subset. It defines how bribery/corruption takes place and affect an organisation.

Which regulations does the ISO training specifically address?

ISO 37001:2016 training addresses the Foreign Corrupt Practices Act (FCPA) UK Bribery Act, among others.

How long is the certification valid?

How often you should update if needed? The certificate is valid for three years. It should be updated, however, if there is a change in the standard that would require additional training.

Why is it necessary to be certified by an accredited body like CRI Group’s ABAC Center of Excellence?

Certification through a qualified and endorsed firm of experts like CRI Group adds a distinct level of credibility to the organisation’s management systems, and ensures that the organisation is implementing a viable anti-bribery management program utilising widely accepted controls and systems.

It also provides assurance to management, investors, business associates, personnel and other stakeholders that the organisation is actively pursuing internationally recognised and accepted processes to prevent bribery and corruption. Most importantly, training and certification through a third-party like CRI Group protects your organisation, its assets, shareholders and directors from the effects of bribery. And, if needed, it provides acceptable evidence to prosecutors or courts that the organisation has taken reasonable steps to prevent bribery and corruption.

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

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ISO 37001: Applying Anti-Bribery Framework to Third Parties

In 2016, responding to the need for a global standard to help organisations prevent and detect bribery and corruption, the International Organization for Standardization (ISO) introduced ISO 37001: Anti-Bribery Management Systems. This certification provides the anti-bribery framework for organisations of any size or industry to implement practical solutions against bribery. Perhaps overlooked, however, is the fact that ISO 37001’s framework isn’t designed only for an organisation’s own internal systems. It can also be applied to existing or potential third-party partners. This adds a crucial layer of third-party due diligence and risk management in today’s world of international business.

The ISO 37001 Framework

Corporations, agencies, and even small companies don’t exist in a bubble. The reality of international trade and the interconnectedness of business make the potential for bribery and corruption a serious and continuous concern. While there are laws that govern business conduct along these lines, such as the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act 2010, prior to 2016 organisations lacked a unified standard to help them implement proper controls for prevention and detection. This was a critical vulnerability, considering new laws in various jurisdictions were prescribing heavier penalties, and governments were, by and large, pursuing more enforcement actions.

Recognising this need, ISO unveiled 37001 with a twofold approach: Provide a practical, measurable system that organisations can implement to prevent and protect fraud; while keeping the system flexible and adaptable to fit any industry or jurisdiction. ISO was uniquely positioned to develop such anti-bribery framework with its reputation, having been in the standards business since 1947; and its global reach, which includes 164 member countries. Click here to read the full article.

Don’t let corruption thrive. Take a proactive stance with the highest level of compliance as a part of your essential business strategy. Contact us today to learn more about our full range of services to help your organisation stay protected. Get a FREE QUOTE

About CRI Group!

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.[/accordion_son][/accordion_father][/vc_column][/vc_row]

Filed under: Anti-Bribery Anti-Corruption Solution, ISO 37001, Resources, Third-Party Risk Management by admin
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