Middle East corruption: how can ISO 37001 help?

Political and governmental unrest can affect a region’s economy and the integrity of business transactions. The current state of the Middle East exemplifies this phenomenon. While governments in the region are making efforts to curb corruption, political instability and regime changes often undermine these measures. Bad actors understand how to take advantage of such vulnerabilities, leading to increased bribery and corruption across international borders. Recent cases and statistics show that the problem persists in most countries in the region. Against this backdrop, most government officials and private sector business leaders view it as a high priority to reduce bribery and corruption. One of the problems, however, is that some dishonest politicians use supposed anti-corruption efforts as a tool against political enemies. This makes clear that the best approach is for government agencies and businesses themselves to lead from the front. By adopting an internationally recognised set of anti-bribery anti-corruption standards, increased business integrity will result. Organisations that are committed this effort are adopting the ISO 37001 – Anti-Bribery Management Systems standard as a comprehensive approach to mitigating bribery and corruption risk. ISO 37001 and its elements can be tailored to any type of organisation, of any size. The key elements include adopting an anti-bribery policy, appointing a person to oversee anti-bribery compliance, training, risk assessments and due diligence on projects and business associates. ISO 37001 also calls for implementing financial and commercial controls, and instituting reporting and investigation procedures.

Corruption a Major Challenge in the Middle East

The Middle East lags behind several other regions when it comes to bribery and corruption. Even as these elements are on a slight decrease globally, the Transparency International Corruption Perceptions Index shows the troubled state of the Middle East and North Africa. “The Corruption Perceptions Index 2018 presents a grim reality in the Middle East and Northern Africa where, despite some incremental progress by a select few, most countries are failing in the fight against corruption”. Syria, Yemen and Libya are at the bottom (worst) end of the list. There are some bright spots, though. United Arab Emirates (UAE) and Qatar, both countries that have taken strong stances on fraud and corruption, score the highest for the Middle East. Morocco and Egypt showed some improvement. Overall, however, the political instability in the region has created a tumultuous business environment. According to the article: “In many Arab governments, powerful individuals have actively influenced government policies and diverted public funds and state assets for their own self-interest and enrichment at the expense of citizens. This reduces anti-corruption efforts to merely ink on paper, where laws pass, but are rarely enforced or implemented.”

This is underscored by limits and obstacles that corruption throws up in the way of those looking to enact real change. “Across much of the developing world, the corruption of courts and other government institutions threatens the free flow of goods and capital that promotes economic growth. Left unaddressed, such threats can lead to heightened tensions among nations and even outright trade wars. Diplomats operate under constraints that limit how much they can call out international bad actors who violate the rule of law. That’s why the role of outside watchdogs is so important in promoting the Rule of Law and holding nations to the standards of fairness and impartiality they claim to meet,” writes National Review.

Iran: Power Structures Hamper Progress

One country that exemplifies the Middle East difficulties with corruption is Iran. The problem is described by one analyst as “deeply rooted,” and even recognised by the country’s conservative rulers. In such a political structure as Iran’s, a campaign to combat “systemic corruption” is often seen as the lens of political reprisals against rivals. “In autocratic systems, every now and then, a campaign emerges under the banner of fighting corruption. The main reason is to buy legitimacy for the system. During the last years of the rule of the former Shah of Iran, in an attempt to tame the revolution, such a campaign led to the arrest of several prominent political figures, including Amir-Abbas Hoveyda, who served for 13 years as prime minister”.

“While the same impetus could be behind the current move by Raisi, there is strong speculation in Iran that the move also, and more importantly, aims to shape a consensus within the country to accept Raisi’s giant leap towards assuming the leadership of the country after Khamenei’s death”.

While there has been some concern that the corruption crackdown is a cover for prosecuting reformers, some disagree – positing that it depends more on which party is leading the effort. “Corruption in Iran is linked to political power. Therefore, whichever of Iran’s two main political factions—fundamentalist or moderate-reformist—takes over the executive branch, corruption among the members of that faction increases. At the end of former President Mahmoud Ahmadinejad’s term in office, for instance, his first vice president, Mohammad-Reza Rahimi, and his Vice President for Executive Affairs, Hamid Baghaei, were imprisoned for economic corruption and embezzlement. Such corruption reached an all-time high during his tenure in office”. In any case, it’s clear that most observers aren’t convinced that the country’s anti-corruption campaign is to be taken at face-value – yet.

Bribery Cases Exposed in UAE

Two bribery cases demonstrate some common characteristics among such schemes. While both of these instances were uncovered (and prosecuted) in the UAE, they are likely typical for the Middle East region and beyond.

In 2018, an Emirates Post revenue officer was sentenced to prison after being convicted of attempted bribery. The officer solicited a Dh100,000 bribe from a corporate customer. He was in a unique position to attempt the crime, as his duties included collecting and auditing profits for the Emirates Post office in Dubai. The Jordanian revenue officer, 28, collected and audited profits, among other duties, on behalf of Emirates Post office in Dubai. The offender perpetrated the scheme by leveraging fines on a shipping company based in India for supposed postal fee violations. The alleged fine, according to the revenue officer, totaled Dh2.4 million, and he attempted to negotiate a scheme with the client to have the fine reduced to Dh400,000 – in exchange for the Dh100,000 bribe. Instead of paying, the client wisely contacted the police. In a sting operation, the client was fitted with a listening device, and met and paid the bribe – under coordination of the police. As a result, the revenue officer was arrested, and subsequently convicted.

In another case, two Asian residents of UAE were sentenced to three years and one year in jail for giving and accepting a bribe. They were also fined Dh5,000. One of the perpetrators was a government officer. The first defendant, a trader, offered a bribe of Dh900 to the government officer, who works as a customs clearance staff member with the Saqr Port in Ras Al Khaimah. The goal was to ship two containers full of scrap iron out of the UAE without paying taxes or undergoing an inspection. When they were caught, the trader who gave the bribe claimed that it was just a loan, and that he had already paid “over DH50,000 in taxes and charges”. The other defendant (the customs officer) agreed, but the court did not accept their explanation. Both defendants will be deported to their home countries after serving their prison sentences. These types of cases are typical among positions of access, and can happen in any jurisdiction. They exemplify the problem that government agencies and companies alike are trying to reduce and prevent.

‘Relationship Building’ v. Bribery

To some degree, the same problems that plague the Middle East are endemic around the world. Among them, the dilemma of misunderstanding in terms of what constitutes bribery. In nearly all cultures, relationship building is considered an essential part of doing business. Often, business associates consist of numerous friends or even family members. When that is the case, there can be a slippery scale in terms of what is merely a favor or a gift, versus what constitutes bribery or corruption. The Foreign Corrupt Practices Act (FCPA) can provide some guidelines here. A case involving Bank of New York Mellon is instructive. “On 18 August 2015, Bank of New York Mellon (“BNYM”) consented to a Securities and Exchange Commission (“SEC”) Order requiring BNYM to pay $14.8 million to settle charges that it violated the FCPA by providing student internships to family members of foreign government officials affiliated with a Middle Eastern Sovereign Wealth Fund (“SWF”). All parties involved, except BNYM, have been anonymised in the Order so that the nationality of the foreign public officials and the SWF is publicly unknown beyond being described as ‘Middle Eastern’.

“The BNYM internships were given to three people: the son and nephew of one key figure of the SWF and the son of another. The internships were given despite the facts that the interns did not meet the rigorous selection criteria usually applied by BNYM and did not go through the standard (or any) recruitment process before being awarded the internships. In addition, these internships were found by the SEC to be more valuable than those offered to the regular applicants, who had endured the competitive admissions process against strict entry requirements. For example, rotation between business units was arranged, which is not an opportunity afforded to regular interns.”

“Emails between BNYM employees clearly demonstrate that the motivation behind the favour to the foreign officials was to influence the latter’s decision-making in the interests of BNYM. There can be no doubt that this was bribery in action – the BNYM employees expected to retain and gain business from the foreign officials in return for offering their relatives valuable internships to which they would not otherwise have had access”.

The case clearly describes what could be considered a “gray area” compared to some of the more extreme realities of bribery and corruption. One study of the Middle East and North Africa in 2016 suggested that people felt the need to bribe officials for basic services. “About 30 percent of those polled said that they had to access basic public services by bribing officials. If that figure holds across the entire MENA region, that would mean that about 50 million people, the majority of whom are poor, feel they must pay bribes in order to have access to basic public services. In five countries, the rich reported being far less likely to have to pay a bribe: 63 percent of poor Sudanese citizens versus 38 percent of wealthy ones, for example, and 23 percent versus 12 percent, respectively, in Algeria”.

ISO 37001:2016 to Combat Bribery & Corruption

Corruption certainly isn’t exclusively a Middle Eastern problem. Organisations around the world are taking action to reduce risk. They’ve found the structure and process they need in ISO 37001. ISO 37001 was issued by the International Organization for Standardization (ISO) in 2016 to help organisations worldwide increase and measure their efforts against bribery and corruption. Through ISO 37001 ABMS, organisations can implement standards at every level. These measures include adopting an anti-bribery policy and appointing a person to oversee anti-bribery compliance, training, risk assessments and due diligence on projects and business associates. It’s also critical that the organisation implement financial and commercial controls, along with reporting procedures and investigation processes.

CRI Group founded ABAC® (Anti-Bribery and Anti-Corruption) Center of Excellence to help organisations of all types and industries implement ISO 37001 certification and/or training. ABAC® has a team of experts around the world that include certified ethics and compliance professionals, financial and corporate investigators, forensic analysts, certified fraud examiners, qualified auditors, and accountants. They are trained and experienced in the implementation of ISO 37001’s key elements, helping clients more effectively prevent bribery and corruption. ABAC Certification is an accredited provider of ISO 37001 ABMS, and it provides certification and training for organisations of various types and industries.

There are requirements and guidance that the ISO 37001 standard prescribes for a comprehensive anti-bribery management system. The following bribery elements are addressed by ISO 37001 in relation to the organisation’s business processes and activities:

• Bribery in the public, private and not-for-profit sectors
• Bribery by the organisation
• Bribery by the organisation’s personnel acting on the organisation’s behalf or for its benefit
• Bribery by the organisation’s business associates acting on the organisation’s behalf or for its benefit
• Bribery of the organisation
• Bribery of the organisation’s personnel in relation to the organisation’s activities
• Bribery of the organisation’s business associates in relation to the organisation’s activities
• Direct and indirect bribery (e.g. a bribe offered or accepted through or by a third party)

Government organisations and companies can reduce the risk of bribery through ISO 37001’s best practices for anti-bribery and anti-corruption. The following are just a few of the ways ISO 37001 helps accomplish this goal:

• Provide needed tools to prevent bribery and mitigate related risks
• Help an organisation create new and better business partnerships with entities that recognise ISO 37001 certified status, including supply chain manufacturing, joint ventures, pending acquisitions and co-marketing alliances
• Potentially reduce corporate insurance premiums
• Provide customers, stakeholders, employees and partners with confidence in the entity’s business operations and ethics
• Provide a competitive edge over non-certified organisations the organisation’s industry or niche
• Provide acceptable evidence to prosecutors or courts that the organisation has taken reasonable steps to prevent bribery and corruption

It is important to note that “Conformity with (ISO 37001) cannot provide assurance that no bribery has occurred or will occur in relation to the organisation, as it is not possible to completely eliminate the risk of bribery”, according to ISO.  The certification is potentially an important piece of evidence, however, that shows regulators, prosecutors, and the courts that the organisation has taken meaningful action to prevent bribery and corruption.

Conclusion

All is not lost. Some Middle Eastern countries, like the United Arab Emirates, have made a commitment and continue to demonstrate positive strides toward combating corruption. UAE has expanded its laws, broadened the definitions of what is considered bribery and corruption, and increased punishments. But the country is largely an outlier in a region that is struggling under the weight of instability and corruption.

In this type of environment, both government organisations and the businesses they serve (and regulate) need ISO 37001. The sooner organisations implement the comprehensive measures prescribed by ISO 37001, the calmer the seas will be for international trade, business agreements and mergers, acquisitions and other positive elements of economic growth.

An established standard like ISO 37001 ABMS can help organisations address bribery and corruption through implementing best practices in a program of training and certification. While following the curriculum, the training process can easily be tailored to the organisation based on its size, type, industry or risk level. Bribery and corruption are pervasive problems that won’t be solved overnight. It will take a concerted effort by all major players in the region to make positive strides and reduce risk factors. ISO 37001 provides a blueprint for making those changes. Twenty or thirty years ago, organisations were mostly on their own went it came to developing an anti-corruption strategy. Today, there is a tried-and-true path forward. Committing to it is the first step toward making real progress in the Middle East.

Sources

1. “Middle East & North Africa: Corruption Continues As Institutions And Political Rights Weaken,” Transparency International, 29 Jan. 2019,

< https://www.transparency.org/news/feature/regional-analysis-MENA> (accessed 25 Oct. 2019)

2. John Fund, “Cleaning Up Corruption Is a Key to Middle East Stability,” National Review, 23 October 2019,

<https://www.nationalreview.com/corner/cleaning-up-corruption-is-a-key-to-middle-east-stability/> (accessed 25 Oct. 2019)  OECD, The rationale for fighting corruption. 2014

3. Shahir Shahidsaless, “Iran’s conservatives are saying it: Corruption is ‘systemic’”, Middle East Eye, 7 Oct. 2019,

<https://www.middleeasteye.net/opinion/whats-behind-irans-crackdown-corruption> (accessed 25 Oct. 2019)

4. Jalil Bayat, “Iran’s Goals In The Fight Against Economic Corruption,” Lobe Log, 18 Oct. 2019,

<https://lobelog.com/irans-goals-in-the-fight-against-economic-corruption/> (accessed 25 Oct. 2019)

5. Salam Al Amir, “Emirates Post worker jailed for seeking Dh100k bribe from customer”, The National, 31 Oct. 2018,

< https://www.thenational.ae/uae/emirates-post-worker-jailed-for-seeking-dh100k-bribe-from-customer-1.786526> (accessed 10 Nov. 2019)

6. Ahmed Sheeban, “Government officer jailed for accepting Dh900 bribe in UAE”, Khaleej Times, 13 April 2019,

< https://www.khaleejtimes.com/nation/ras-al-khaimah/government-officer-jailed-for-accepting-dh900-bribe-in-uae> (accessed 10 Nov. 2019)

7. Andrew Hudson, “Middle East meets West: Where is the line between relationship-building and bribery?,” Al Tamimi 7 Co., September 2015,

< https://www.tamimi.com/law-update-articles/middle-east-meets-west-where-is-the-line-between-relationship-building-and-bribery/> (accessed 25 Oct. 2019)

8. Ben Thompson, “Bribery worsening in the Middle East and North Africa, citizens say,” CSM, 3 May 2016,

< https://www.csmonitor.com/World/Global-News/2016/0503/Bribery-worsening-in-the-Middle-East-and-North-Africa-citizens-say> (accessed 25 Oct. 2019)

9. “ISO 37001:2016 ANTI-BRIBERY MANAGEMENT SYSTEMS — REQUIREMENTS WITH GUIDANCE FOR USE”, www.ISO.org,

< https://www.iso.org/standard/65034.html > (accessed 5 Aug. 2019)

10. Adam Vause, Zara Merali, “The UAE’s fight against bribery and corruption,” DLA Piper, 16 July 2019,

< https://www.dlapiper.com/en/dubai/insights/publications/2019/07/the-uaes-fight-against-bribery-and-corruption/> (accessed 25 Oct. 2019)

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25 Benefits of ISO 37001:2016 ABMS Certification

How to fight bribery and corruption?

Bribery and corruption are a dent on the image of any company. It is an unwanted and unsightly reflection that can be not only be mitigated but prevented in the organisation. The negative representation might result in a loss of trust among customers, affiliates and business patrons. In addition, the lack of internal anti-bribery controls and procedures has been one of the key reasons for deficiency in productivity inside global organisations. ISO 37001 ABMS

To combat these adverse effects, a strong standard is needed where governance, risk management and compliance (GRC) procedures are at the heart of the system. ISO launched ISO 37001:2016 ABMS standard – a global benchmark in the Anti-Bribery Management System (ABMS) which detects, protects and addresses the issues of bribery and corruption in the corporation. It is an assurance of employing the highest ethical standards and harnessing transparency even in the most complex business activities.

What is ISO 37001:2016 ABMS certification?

ISO 37001:2016 ABMS certification demonstrates organisation’s commitment to upholding the best practices in the corporate world. Being a framework that measures, identifies and controls the level of transparent commercial performance combined with international guidelines, it is applicable for all kinds, sizes and natures of organisations By adopting the ISO 37001:2016 ABMS certification, companies, subsidiaries and other affiliates are able to shield themselves from the dent that can tarnish their reputation and decrease their proficiency in the industry.

Through the implementation of ISO 37001:2016 certification, your organisation can cultivate a better anti-bribery and ethics culture along with the trust within the establishment. By adopting the ISO 37001:2016 certification, organisations will be able to combine the GRC strategies with the ISO system across all departmental units in a transparent and operative manner. Built with a set of globally accepted requirements, the ISO 37001:2016 certification is compliant with global, regional and local anti-bribery regulations worldwide, which increases the multi-level integrity of the association.

What are the benefits of ISO 37001:2016 ABMS Certification?

ISO 37001:2016 ABMS certification includes audit assessment procedures, to utilise the application and maintenance of a robust anti-bribery program. Being an all-encompassing standard that is integrated with other management systems, the ISO 37001:2016 ABMS certification provides several benefits:

• Competitive advantage over other organisations
• Greater awareness on the output of bribery
• Enhanced aptitude for the prevention of corruption
• Expansion of business opportunities
• Continual improvement of services and products
• Enhancement of the organisation’s reputation
• Facilitation of efficient management operations
• Apt demonstration of legal compliance and assurance
• Reduction in structural and miscellaneous costs
• Escalation of organisational assets
• Better implementation of compliance programs
• Precise execution of significant measures
• Increase in business efficiency and effectivity
• Superior trust and transparency
• Reduction of malpractice and other hazards
• Protection of resources and other capitals
• Easy integration to existing management systems
• Appropriate utilisation as a due diligence evidence
• Accurate evaluation of organisation’s position
• Recognition and deterrence of immediate threats
• Placement of adequate procedures to combat risks
• Timely observation and development of controls
• Execution of feasible anti-bribery procedures
• Practice of internationally recognised processes
• Establishment of ethical global practices

How can your organisation attain ISO 37001: 2016 ABMS certification?

With the list of returns that ISO 37001:2016 ABMS certification holds, its value is undeniable. The cost and benefits of not adopting a viable Anti-Bribery Management System are far greater than the cost of its implementation. Dedicate your time, energy and capital towards your organisation’s growth and progress. By engaging with a qualified, trained and independent third-party certification body, your company is securing its future against losses and gaining a surplus of rewards. The Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence is looking forward to connecting with you and steering your organisation towards the espousal of ISO 37001:2016 ABMS certification. Provide your company with the credibility to go beyond and reach its envisioned destination. For more information, please feel free to contact our team and visit our website www.ABACgroup.com.

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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Corruption: An Impending Doom on Investments

Bribery and corruption are a form of abuse to the progress of the economy. It has far-reaching consequences that hinder the development of individuals, businesses and the nation. The impact of corruption and bribery go beyond discernment and can lead to financial losses, withdrawal of investors, dissuasion of shareholders, perpetuation of fraud, reputational damages, business inefficiency and numerous other factors that deter economic growth.

Business leaders have been constantly aspiring to bring their businesses to greater heights. A resilient foundation needs to be created in which every aspect of their work is accounted for, each part of their operations is monitored, and all kinds of procedures and processes are rationalised. If the corporation, community or country is not protected by the policies against bribery and corruption, then the evolution of the nation is deferred. This kind of negligence breeds bribery and corruption and corrodes the substance of the organisation. It decreases the fuel of the economy which is not only its people but the investments that improve the standard of living in the country.

It is true when they say that ‘beauty is in the eyes of the beholder.’ Corrupt countries are always viewed as less attractive to investors compared to nations that practice more transparency. Due to ambiguous government activities, investors enter the market through joint ventures with a local or existing company that understands regional rules and regulations and is able to assist them in the acquisition of local licenses and permits. Through the partnership, the local establishment prepares the foreign company to pass through the bureaucratic maze with ease and at a lesser cost in order to adapt to the local conditions of the nation.

The bureaucratic maze is a puzzle filled with many twists and turns. The size, employees, nature of business and economic circumstances affect the growth of the conglomerate. If not protected by secure laws, the company falls into the trap of defeat where the heads might give in to unreasonable demands which may be detrimental to the advancement of the establishment. The demand may be in the form of bribe or corrupt activity which poses a risk and is against the company’s vision. Thus, bribery and corruption have a negative impact on investments in the country which are distinguished by its kind, form, level and quality.

In short, foreign companies lack confidence in doing business in a new country or in a state where bribery and corruption are common. If the firm does not find a reliable local partner, stable resource or suitable support system, they are likely to pull out their investment and look for other partners or countries that will comply with their requirements. Hence, the local companies need to create a strong international ethical standard to boost the confidence of their potential partners for future business affiliations.

No individual, enterprise or economy is immune to bribery and corruption. Appropriate risk management measures need to be created that are on par with the demand of the global economy. The ISO 37001:2016 is an internationally recognised standard for the execution of an Anti-Bribery Management System (ABMS) that helps to combat illegal activities and prevent its repeated occurrence. It is a structural tool that is specifically formulated to strengthen organisation’s anti-bribery policies and procedures. An investment in the ISO 37001:2016 is equal to an investment in the organisation’s betterment which is one of the prime building blocks of the nation.

In the United Arab Emirates, CRI Group’s Anti-Bribery and Anti-Corruption (ABAC®) Center of Excellence is the only independent accredited certification body established for ISO 37001:2016 Anti-Bribery Management System, providing training and accredited certification.

Through the principles of detection, prevention and protection, ABAC Center of Excellence advocates stringent methods and rigorous initiatives to ensure the cooperation of top-level leaders and their affiliates. Having a global network of audit teams and subject specialists with training in risk management, financial controls, due diligence, investigative analysis and other assessment areas, ABAC Center of Excellence provides the best compliance framework to distinct organisations in any part of the world to sustain the future of the global economy.

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 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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Meet Soraia Antunes, Chief Marketing Officer

Soraia is a technically and commercially astute professional with over a decade of B2B and B2C experience across various industries and cultures on a global scale. Who loves challenges and believes in enhancing customer loyalty via high impact marketing and communication strategies combined with engaging visual identities. She is passionate about creative excellence and driving innovation while influencing key stakeholders.

Track record in significantly enhancing a company’s brand market performance/effectiveness and profitability by improving name recognition, building credibility and inspiring employees. 

Feel free to reach out.

LET’S TALK!

e: soraia.antunes@crigroup.com | LinkedIn

Reach out for any marketing related questions
Languages spoken: English, Portuguese

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How Risk Management and Due Diligence Interlock?

RISK MANAGEMENT AND DUE DILIGENCE: HOW DO BOTH INTERLOCK?

Risk management and due diligence: How both interlock? These are challenging and complex times. COVID-19 is forcing organisations to adapt quickly and change their business model in the process. In an era of compliance, with many regulations and regional “interpretations”, leaders and organisations need to be careful about how they conduct business, who conducts business in their name and with whom. This demands extraordinary attention to the means and mechanisms used by the organisation.

Due diligence, in legal terms, entails taking reasonable steps to satisfy any legal or regulatory requirement, regardless of the size or type of business conducted. Businesses also need to take several mandated steps to ensure that the organisation remains safe from any unwanted or unauthorised action taken on their behalf. For example, when making an investment such as a merger or an acquisition, the organisation needs to take the appropriate action on the proper due diligence necessary to make the most informed decision possible.

Being casual about the due diligence process is a failure to execute the proper level of investigation regarding the assets being purchased or financed or the management team being backed and vetted.

Where does Risk Management Come into Play?

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 or to maximise the realisation of opportunities.

A formal business discipline that relies on the forecasting and evaluation of any risks, along with identification and (where feasible or warranted) implementation of procedures to avoid or minimise their impact. Using ISO 31000 can help organisations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.

DOWNLOAD ISO 31000 PLAYBOOK

Risks can come from various sources including your employees. From a risk management perspective, the penalties on conducting business that can result from unwanted or unauthorised third-party relationships or any employee unethical business action are exceedingly high making it imperative to perform due diligence when trying to protect your business and brand.

Inadequate due diligence can easily take down an organisation; from damaged reputation to brand devaluation, from regulatory violations to fines and jail terms for directors, the risks are exceedingly high.

The risks from losses of such potential magnitude should not be ignored. At such cost, implementing the most stringent and effective controls and protections in place even at a cost still makes absolute financial sense. And the only way to fully protect a corporation’s assets, therefore, is through a strong and viable 360 due diligence program.

Learn more about due diligence from this article. When is due diligence most critical?

Managing risk and due diligence should begin with a policy and a plan. Here we will focus on the human element of risk management, specifically background investigations. Organisations need to perform due diligence to make sure that their business is conducted by their employees and through their partners and vendors. Such insurance invariably includes regular security audits, ISO certification, pre-employment background checks, TPRM, etc.

There are several incentives to practice due diligence and perform risk management to ensure you conduct business appropriately and comply with all applicable laws and regulations. Anything less is just asking for trouble and losses!

What Can and Should Organisations and Risk Professionals Do?

The very first step to mitigating risks and exposures starts with a risk assessment. There are plenty of risk assessment checklists and tools available. If you want to dive deeper into how to start a risk assessment, just read our Risk assessment breakdown: Identification, Analysis, Evaluation to learn more. Once risk professionals get a handle on their due diligence processes and other compliance regimes, it’s time to start the entry process into the regulatory life cycle:

1. Prioritisation and planning
2. Implementation of a response
3. Integration of related tools, technologies, audits, processes and procedures to integrate compliance into normal operations

The first steps toward achieving compliances are usually big ones and may require substantial time and effort. But after that, it’s just a matter of sticking to a routine to maintain compliance, meet reporting requirements and keep up with changes to governing regulations and day-to-day tools and operations.

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 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000 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.

Prove that your business is ethical with our free Gap Analysis

Evaluation of Corporate Compliance Programs – Highest Ethical Business Assessment: Evaluating Adequate Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Framework

Prove that your business is ethical. Complete our free Highest Ethical Business Assessment (HEBA) and evaluate your current Corporate Compliance Program. Find out if your organisation’s compliance program is in the line with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks. Let ABAC™ experts prepare a complimentary gap analysis of your compliance program to evaluate if it meets “adequate procedures” requirements under the UK Bribery Act, DOJ’s Evaluation of Corporate Compliance Programs Guidance and Malaysian Anti-Corruption Commission.

The HEBA survey is designed to evaluate your compliance with adequate procedures to prevent bribery and corruption across the organisation. This survey is monitored and evaluated by qualified ABAC™ professionals with Business Ethics, Legal and Compliance backgrounds. The questions are open-ended to encourage a qualitative analysis of your Compliance Program and to facilitate the gap analysis process.

The survey takes around 10 minutes to complete.

TAKE THE SURVEY NOW!

Filed under: All Industries, All Regions, Due Diligence, Resources, Third-Party Risk Management by admin
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Importance of leadership and culture for ABMS

There are many reasons why companies engage in corrupt practices; to win contracts, to speed up service delivery, to gain or retain political influence and so on. Nevertheless, all corrupt practices, in the end, are about gaining more money and more power. When justice is served the opposite happens. Share prices plunge, and leaders lose their power. Top 10 Bribery & Corruption Stories of 2020 (so far) or even last year’s Top 10 Bribery and Corruption 2019 Cases

Case Study: Samsung and laundering horses

Samsung Group’s third-generation leader, Jay Y. Lee has been accused of bribing Choi Soon-sil, a friend of former President Park Geun-Hye. Following Lee Kun-hee’s (Jay Y. Lee’s father), heart attack in 2014 it has been calculated that Jay Y. Lee would need to pay $6 billion in tax bills to be able to inherit his father’s shares and maintain control of Samsung. The company’s leaders have a standing history of tax aviation but up to now, the white-collar crimes have been pardoned by Park Geun-Hye and other South Korean’s Presidents. The easier option was to pay a bribe to orchestrate the merger of two divisions: Samsung C&T Corp., which is dedicated to construction and trading, and Cheil Industries Inc., which owned several entertainment properties. Upon completion, the merger would have given the Lee family more power over the entire Samsung Group.

Now that the plan was looking very promising, Jay Y. Lee used a living bribe to execute it. “The form of the alleged bribe was Vitana V, an $800,000 thoroughbred show horse, plus $17 million in donations to foundations affiliated with the friend, whose daughter was hoping to qualify for the 2020 Olympics as an equestrienne.” (Bloomberg, 2017).

Following the investigation, the situation took a significant downturn and Jay Y. Lee was sentenced to 5 years in prison. Chung Sun-sup, Chief Executive of research firm Chaebul.com said “The five-year sentence was low given that he was found guilty of all the charges. I think the court gave him a lighter sentence, taking into account Samsung’s importance to the economy.” It is, however, one of the longest given to South Korean business leaders. As for stock prices, they fell more than 1% the day after Jay Y. Lee was arrested and then a similar amount after the verdict. Samsung Group’s profit was not hurt but South Korea’s new liberal president, Moon Jae-in, has pledged to rein in the chaebols, empower minority shareholders and end the practice of pardoning tycoons convicted of a white-collar crime.

Case Study: Rolls-Royce and the $35 million in bribes

Another example of a company where corruption could equal to company culture is (or was – more on that later) Rolls-Royce plc. Between 2000 and 2013, the company conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes through the third party to foreign officials to secure contracts. The Department of Justice (DOJ) reported that in Thailand, Rolls admitted to using intermediaries to pay approximately $11 million in bribes to officials at Thai state-owned and state-controlled oil and gas companies that awarded 7 contracts to Rolls-Royce during the same period. The way business was conducted in Kazakhstan, Azerbaijan, Angola, and Iraq did not differ. The corrupt practices were spread globally.

An event that coincides with the above is the appointment of Sir John Rose as Chief Executive of Rolls-Royce (1996 – 2011). In 2003 and before the company’s criminal activities came to the light, Rose was knighted. After the engineering giant admitted in a deal with US prosecutor that it had made corrupt payments, Labour is calling for Rose to lose his knighthood. Sir John Rose insists that he did not know of the corrupt practices. Let’s say that is the truth, did he not fail as a leader simply because of that?

> Learn more about the Rolls-Royce case study including how a full risk assessment would have mitigated the risk of corruption. Read more HERE or just DOWNLOAD NOW your FREE “Ethics, compliance & Rolls-Royce: Lessons Learned”

As a result of the scandal in 2016 Rolls-Royce has suffered the biggest financial loss in its history. Other factors include Brexit and drop of pound value, but the £671 charge for the penalties the company paid to settle bribery and corruption charges with Serious Fraud Office (SFO), the DOJ, and Brazilian authorities left a hole is Rolls’ accounts. Since then the company has a new management, and if their praised cooperation with SFO is an indication of the company’s culture shift, Rolls should not be in the news due to corruption scandals.

The answer to avoid failed leadership

Failed leadership is the obvious reason for the above bribery cases. ISO 37001:2016 Clause 5 Leadership outlines what is required from the top management in order be obtain ISO 37001:2016 Anti-Bribery Management System Certification. Information in ISO 37001:2016 standard is divided by verbal forms use; unsurprisingly shall indicate a requirement, should a recommendation, may a permission and can a possibility or capacity. Leadership is crucial for an anti-bribery management system to be effective and all points under Clause 5 Leadership are ‘shall’ requirements.

As illustrated in the standard: “For a compliance management system to be effective the governing body and top management need to lead by example, by adhering to and actively supporting compliance and the compliance management system.” Management has a number of other responsibilities which are outlined in the standard. There are responsibilities which are more obvious than others such as “ensuring that the anti-bribery management system, including policy and objectives, is established, implemented, maintained and reviewed to adequately address the organisation’s bribery risk” (5.1.2. a) and “deploying an accurate and appropriate resources for the effective operation of the anti-bribery management system” (5.1.2. c). There are also requirements which are not so obvious but just as important; “promoting an appropriate anti-bribery culture within the organisation” (5.1.2. h) and “promoting continual improvement” (5.1.2. i). These requirements highlight that obtaining ISO 37001:2016 certification is not just a box ticking exercise (contrary to what critics like to say). In order to obtain the certificate, a company needs to illustrate that compliance to anti-bribery is integrated within their business model and crucially, their culture. In practical terms that means that the tone at the top needs to align with ABMS and the message needs to be understood from the boardroom to the factory floor.

Leadership is one of the core seven elements of ISO 37001:2016. The remaining elements; the context of the organisation, planning, support, operation, performance evaluation and lastly improvement, will be discussed in the future. Watch this space.

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, 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.[/vc_column_text][accordion_father caption_url=””][accordion_son title=”Take a Gap Analysis of Highest Ethical Business (FREE)” clr=”#ffffff” bgclr=”#1e73be”]

1. We Welcome You To Have Free Gap Analysis of Highest Ethical Business Survey: prove that your business is ethical. Complete our FREE Highest Ethical Business Assessment (HEBA) and evaluate your current Corporate Compliance Program.TAKE THE GAP ANALYSIS NOW!

   Find out if your organisation’s compliance program is in the line with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks. Let ABAC® experts prepare a complimentary gap analysis of your compliance program to evaluate if it meets “adequate procedures” requirements under UK Bribery Act, DOJ’s Evaluation of Corporate Compliance Programs Guidance and Malaysian Anti-Corruption Commission.

   The HEBA survey is designed to evaluate your compliance with the adequate procedures to prevent bribery and corruption across the organisation. This survey is monitored and evaluated by qualified ABAC® professionals with Business Ethics, Legal and Compliance background. The questions are open-ended to encourage a qualitative analysis of your Compliance Program and to facilitate the gap analysis process.

   TAKE THE GAP ANALYSIS NOW!

   The survey takes around 10 minutes to complete. ABAC® is powered by CRI Group – this GAP analysis will be performed by ABAC®

[/accordion_son][accordion_son title=”Sources & Credits” clr=”#ffffff” bgclr=”#1e73be”]

1. Bloomberg (2017) https://www.bloomberg.com/news/features/2017-07-27/summer-of-samsung-a-corruption-scandal-a-political-firestorm-and-a-record-profit
2. Chaebul (2016) http://chaebul.com/chaebul/eng/engnews/eng_news_list.jsp?section=0000000106
3. Financial Times (2017) https://www.ft.com/content/1b62c007-e846-3feb-b23f-2eae5f180fd7
4. Reuters (2017) https://www.reuters.com/article/us-samsung-lee/samsung-leader-jay-y-lee-given-five-year-jail-sentence-for-bribery-idUSKCN1B41VC
5. Web archive (2016) https://web.archive.org/web/20091224225422/http://www.rolls-royce.com/about/who_are/management/board/rose.jsp
6. US Department of Justice (2017) https://www.justice.gov/opa/pr/rolls-royce-plc-agrees-pay-170-million-criminal-penalty-resolve-foreign-corrupt-practices-act

[/accordion_son][accordion_son title=”About CRI Group” clr=”#ffffff” bgclr=”#1e73be”]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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Filed under: Anti-Bribery Anti-Corruption Solution, ISO 37001, Leadership Insights, Resources by admin
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Background screening: 10 things you should know

Hiring new employees is an essential part of operating, and growing, a successful business. It also presents an inherent risk to any organisation. According to popular employment site CareerBuilder.com, “58% of hiring managers said they’ve caught a lie on a resume; one-third (33% of these employers have seen an increase in resume embellishments post-recession.” Background screening

Here’s another statistic: according to a survey conducted by CRI™, more than 75% of organisations conduct some sort of background checks. That’s good news. But it also means that nearly a quarter of companies don’t do any pre-employment screening, which is concerning. Screening employees means having a safer, more secure work environment. Here are 10 important things every organisation should know about the hiring process, and the need to conduct thorough pre-employment background screening.

1. Some job candidates will actually fabricate a new identity.

This is especially true if they have something to hide, such as a criminal background. Proper screening can verify names, addresses, phone numbers, national ID numbers and other identifying information to confirm that they are who they claim to be.

2. Credit and financial history should be reviewed.

Fraud statistics have shown financial distress to be a key red flag for fraudulent behaviour. Has the candidate claimed bankruptcy? Have they dissolved prior companies or are they faced with debtor filings? An individual’s financial history should be checked to the degree that is permissible by local laws.

3. Previous employment needs to be confirmed.

Background checks will verify past employers, locations of past employment, dates employed, salary levels, reasons for leaving, position titles, gaps in employment history and pertinent contact information.

4. Stretching employment dates is a major problem.

Speaking of previous employment, CRI Group™’s survey found that the top form of résumé fraud is stretching employment dates. This can cover gaps in employment, or make it seem they have more experience in certain positions than they actually do.

5. Some candidates present fake education credentials.

Verification is needed to confirm school grades, degrees and professional qualifications. Claiming a degree that was never earned is one of the most common fabrications. Certifications, assessments, awards – all of these can be fabricated or fraudulently claimed by a candidate in an effort to make themselves look more qualified for a position than they actually are.

6. International criminal records searches are critically important.

Criminal background checks should include any convictions for the applicant in the requested jurisdictions. Hiding a criminal background is one of the most serious omissions. Depending on their history, your business and employees could be at risk from a bad actor who intentionally hides their criminal past.

7. Checking (and verifying) references is important.

A job seeker might provide an employment reference that gives a shining recommendation – but the contact turns out to be their close friend. This type of deception can hide the true nature and work record of the candidate.

8. Formalise your background screening policy.

What is your company’s current, written policy for hiring new employees? How does it address background checks, due diligence, and other issues? Is the process followed in every case? Having the process detailed in writing will help make it a regular part of your business practice.

9. Make sure someone owns the background screening process.

Ultimately, who has the responsibility of vetting new hires? Is it ownership? Human resources? Individual managers? It might be a collaborative process. All of those who are involved in hiring should also be involved in the implementation of a due diligence solution that includes background checks.

10. Don’t skip post-employment background screening.

Proper due diligence doesn’t just apply to prospective new hires. It should also be used to periodically evaluate your current workforce. Examine the various roles and personnel at your organisation, and consider a policy that addresses risk areas with background checks. For example, CRI Group’s survey found that nearly half of business leaders see financial services, investments and banking positions as “high risk.”

It’s important to have a formal, written policy for background screening. It’s also important to know that comprehensive background checks are best performed by industry experts who understand where to find and confirm employee information. This ranges from criminal, education and employment history records checks to verification of credentials, training and certifications. CRI Group™’s professional background screening services engage international resources in geographic regions not serviced or accessible by typical “out-of-the-box” screening services.

EMPLOYEE BACKGROUND CHECKS

EmploySmart™ is a CRI™ employee background checks service. It is a robust new pre-employment background screening service certified for BS7858,  to avoid negligent hiring liabilities. Ensure a safe work environment for all – EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company. We are a leading worldwide provider, specialised in local and international employee background checks, including pre-employment and post-employment background checks.

CRI™ Employee Background Checks are essentially an investigation into a person’s character – inside and outside their professional lives. Some checks you probably already carry out in-house, such as candidate’s qualifications (documents provided), work history (with a reference check), right to work in the country and even a quick social media presence scan. However, we provide a full in-depth background screening service for candidates and employees at all levels – from senior executives through to shop-floor employees:

VIEW EMPLOYSMART™ BROCHURE

GET A FREE QUOTE

CRI™ is duly certified by British Standard Institute BSI for the scope of BS 7858:2019 Screening of individuals working in a secure environment, Code of practice (the only BS 7858 certified background screening services provider in the UAE and across the Middle East); and BS 102000:2018 Code of practice for the provision of investigative services.

Ensure a safe work environment for all in this difficult time – EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your company.

ABOUT CRI GROUP™

Since 1990, Corporate Research and Investigations Limited (CRI Group™) has been safeguarding businesses from fraud, bribery and corruption. Globally, we are a leading Compliance and Risk Management company licensed and incorporated entity of the Dubai International Financial Center (DIFC) and Qatar Financial Center (QFC). CRI™ protects businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. Based in London, United Kingdom, CRI™ is a global company with experts and resources located in key regional marketplaces across the Asia Pacific, South Asia, the Middle East, North Africa, Europe, North and South America. Our global team can support your organisation anywhere in the world.

In 2016, the company launched the Anti-Bribery Anti-Corruption (ABAC™) Center of Excellence – an independent certification body that helps organisations mitigate internal and external risks by providing a complete suite of Anti-Bribery, Compliance and Risk Management programs.

OUR MISSION AND VISION

• CRI™ mission is to safeguard the corporate world by detecting and exposing those elements that can cause irreparable harm to a business
• Stand up against the outside forces that, through corruption, collusion, coercion and fraud, can cause financial, organisational, reputational and legal harm to our global clients
• Stand out as the preeminent provider of specialised investigative services that enable our clients to exhibit the highest standards of business integrity, ethics and behaviour

VIEW SOLUTIONS BROCHURE

LET’S TALK

Filed under: Background Investigation, Employee Background Check, Investigative Solution, Resources by admin
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South Asia and CRI Group™ United for Against Bribery and Corruption

We recently launched a FREE publication “South Asia grapples with anti-bribery compliance”, which overviews anti-bribery, anti-corruption and ISO 37001 solutions in Malaysia and entire in South Asia. South Asia has a troubled record when it comes to preventing bribery and corruption, as well as enforcing compliance. Recent cases and statistics show that the problem persists in most countries in the region. Both government officials and private sector business leaders are struggling to adopt policies, control methods and best practices to help reduce bribery and corruption on their watch. High profile cases such as the 1MDB scandal in Malaysia and, more recently, the alleged Meikarta township case in Indonesia underscore this point. The investigations that were triggered by these cases demonstrate, however, that regulators are serious about addressing the threat of bribery and corruption as more than just a legal issue, but as a societal one, as well. In response, organizations that are committed to being in compliance are adopting the ISO 37001 – Anti-Bribery Management Systems standard as a comprehensive approach to mitigating risk.

To raise awareness on these issues, CRI Group™ is proudly supporting and encouraging anti-bribery and anti-corruption activities in Malaysia and worldwide. Last Tuesday, our ABAC™ Center of Excellence participated at a briefing session and discussed ‘The Importance of ISO 37001 ABMS’ at the Malaysia German Chamber of Commerce and Industry. ABAC™ shared insights on how to demonstrate resilience with ISO 37001:2016 ABMS Accredited Certification and its importance for organizations.

On Thursday of the same week, ABAC™ proudly supported at Malaysia Anti-corruption forum, themed ‘Understanding and Addressing the World’s Biggest Problem”, organized by International Strategy Institute (ISI).

As stated by ISI, “Corruption has undoubtedly been one of the most deep-rooted, pervasive problems that have crippled economies around the world. Even in advanced economies, authorities have not been able to quell corruption completely. The Corruption Perception Index (CPI) has last year ranked Malaysia number 61st out of 180 countries. Though this is way above notoriously corrupt countries in the Middle East, Africa, and some of its ASEAN neighbors, recent corruption cases have nonetheless propelled Malaysia into the global spotlight. With the establishment of the Malaysian Anti-Corruption Commission (MACC) and the newly launched National Anti-Corruption Plan (NACP), Malaysia is committed to tackle this problem head on.”

The speakers include International Strategy Institute professionals Fazil Irwan Som (Executive Director), Cheah Chyuan Yong (Chairman), YB Datuk Seri Saifuddin Nasution Ismail (Minister of Domestic Trade and Consumer Affairs Malaysia), and YB Dato’ Seri Anwar bin Ibrahim (President, Parti Keadilan Rakyat). The forum brought together all “concerned Malaysian citizens, government authorities, the media and the private sector to discuss, exchange ideas, and formulate key proposals” to tackle corruption.

Earlier this year, ABAC™ and CRI Group™ CEO Mr. Zafar Anjum spoke at MACC Seminar Benchmark on Governance, Integrity & Anti-Corruption, where he presented “Anti-Bribery Management System (ABMS 37001) Case Study and Implementation – UK Experience.” He provided an overview of ABMS 37001 Accreditation & Certification as an effective and “adequate procedure” for organisations.

During his speech, Anjum mentioned ABAC™ Certification as a tool for organisations of all types and industries to prevent bribery and corruption. ABAC™ serves as a global network of certified ethics, compliance professionals, qualified auditors, financial and corporate investigators, certified fraud examiners, forensic analysts and accountants to educate, equip and support the world’s leading business organisations with the latest best in practice due diligence processes and procedures.

Anti-bribery and anti-corruption efforts are top priorities in Malaysia. That’s why  ABAC™ partnered with MACC, Transparency International Malaysia (TI-M), the Malaysian Anti-Corruption Foundation and the Malaysian Youth Council for “United Against Corruption” on International Anti-Corruption Day last year. The campaign raised awareness throughout Malaysia and beyond about risk factors facing businesses today.

The latest seminars provided a further means to disseminate critical information about ISO 37001 ABMS in Malaysia and the latest best practices for preventing and detecting bribery and corruption worldwide and in Malaysia.

Do you have the right processes and procedures in place to protect your organisation from bribery and corruption? Learn more about ABAC™ Solutions today.

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.

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, ISO 37001, Resources by admin
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ISO 37001:2016 Standard: Who should get certified?

There is a new standard for preventing bribery in business: ISO 37001:2016 Anti-Bribery Management System standard was created by the International Organization for Standardization (ISO) to help companies worldwide increase and measure their efforts against bribery and corruption. This important new standard mirrors numerous steps contained in:

• The U.S. Foreign Corrupt Practices Act (FCPA)
• Good Practice Guidance on Internal Controls, Ethics and Compliance (OECD)
• Anti-Corruption Ethics and Compliance Handbook for Business (OECD)
• UK Bribery Act 2010
• The British Ministry of Justice’s Adequate Procedures document

ISO 37001:2016 certifies that your organisation has implemented reasonable and proportionate measures to prevent bribery. These measures involve top-level leadership, training, bribery risk assessment, due diligence adequacy, financial and commercial controls, reporting, audit and investigation. But which types of organisations need this new standard? Read on to find out.

Corporate/private sector

In the present era of globalisation, anti-corruption compliance plays a vital role for companies with high ethical values trying to expand business across borders and attract potential investors and business partners for the long term. Such companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be. Evidence of this comes from high-profile prosecutions of multi-national firms that are not only subject to significant fines but also risk loss of share value and reputation.

To meet these needs, the standard ISO 37001:2016 is designed to apply to all organisations (or parts of an organisation) regardless of type, size and nature of business activity. The program is tailored to the needs and requirements of the organisation.

Public sector organisations

Public sector organisations play critical roles, often interacting directly with the public they serve; they include utility service providers, license issuing authorities and other regulatory bodies. These are vulnerable areas where authority is concentrated with weak financial positions that must fulfil the needs of both the service provider and its users. Such public sector organisations can benefit from implementation of ISO 37001:2016 to control bribery and corruption for enhancement of their productivity level and play an improved role in the socio-economic development of their country.

Government departments

The government is a major stakeholder in socio-economic development of a country, hence it makes laws, regulations, and establishes departments to check and control bribery and corruption. Bribery damages economic growth and creates social problems, including depression, a sense of injustice and deprivation. However, in many developing countries, anti-corruption laws and regulations are either weak or implemented unevenly, providing no results. And government-led steps or campaigns to fight corruption remain ineffective, while bribes continue to be accepted as part of doing business. However, the menace of bribery and corruption can be mitigated through implementing ISO 37001:2016 standard, which provides safeguards within a management system, rather than temporary measures or mere slogans.

Get started today

In 2016, CRI Group launched ABAC® Center of Excellence (ABACGroup.com) – an independent certification body established for ISO 37001:2016 ABMS. The Center provides ISO 37001 training, and its certification services are accredited by the Emirates International Accreditation Center (EIAC).

Learn more about ISO 37001:2016 training and certification services with the ABAC Center of Excellence at ABACGroup.com.[/vc_column_text][accordion_father caption_url=””][accordion_son title=”About CRI Group” clr=”#ffffff” bgclr=”#1e73be”]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, Compliance Solution, ISO 37001, Resources by admin
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The Importance of Background Checks

The Importance of Background Checks: A Case Study

The world is changing. Borders are opening up. Workforces are crossing international boundaries. Barriers to global competition are lifting and technology is simplifying communication and allowing virtually anyone to enter the global job market. The only constant that remains in today’s hiring equation is people. Resume fraud is a widespread problem for employers in every industry and at any size company. It’s persistent and sometimes even careful examination of a resume won’t immediately reveal red flags or problems. The only way to properly vet job candidates is to screen them with a thorough pre-employment background checking process.

The result of not comprehensive background screening checks was recently described on CNBC, 2018, titled: “HR Confidential: I hired him without performing a background check. Then he stole his colleagues’ identities”. Let’s have a look at the case study.

“I was a senior HR manager at a foreign banking company. An employee came to my office and informed me that someone had stolen his identity and applied for credit cards in his name. I took down a report but didn’t think anything of it because I oversaw payroll and other sensitive information. It wasn’t out of the ordinary for employees to notify me about changes to their banking information or if their bank account had been compromised. That way, I could make sure there were no issues with their deposits. But a week later, another employee came to me with the same problem and my red flag went up. By the third employee, I knew something was happening. I realised we had an internal problem because it’s too coincidental for three employees to have identity theft within a three-week span. My staff and I tried to figure out what was going on but we were getting nowhere.

The solution

After a few weeks, we hired an investigative company that specialises in fraud. They came to my office and requested the name, photo and address of everyone who has ever touched our employee files and I gave them a list of 15 to 20 people. One week later, they came back with the postmaster general and postal police officers who were armed with guns. They sat down, placed the list in front of me, pointed to a name and asked, “Who’s this person?” I responded, “Oh, he’s a temp in our file room.” They said, “Bring him in.” I brought him into my office and the guy’s in handcuffs in less than five minutes. I couldn’t believe it. I was in shock. The guy was a temp employee who we had hired through an outside agency to work in our file room. When you have 3,000 employees, their personal files quickly pile up so we hired him to clean up each person’s file, add information to them and put them away. However, he was going into these files, taking people’s social security numbers and stealing all of their information. The post office already had the guy under investigation for other credit card fraud that was linked to a particular address. Therefore, when they saw his name on our list, they were able to easily nail him. When he came into my office, he initially denied that he was the culprit. However, he eventually admitted that his friend talked him into stealing his colleagues’ information. He and his friend were stupid enough to fraudulently sign up for credit cards and got them sent to their home address. That address was the one that the postmaster spotted on our list. For the employees who had their identity stolen, this was such a nightmare. It took some of them more than a year to get this solved. I also felt somewhat responsible because I’m the one who hired the temp and this happened under my watch. I did the best I could in providing support.

As a company, we did feel obligated to offer help and paid the service fees to help them clean up their records. I felt terrible. This went on for months for them. Luckily, they didn’t sue us or anything but it was a mess.

The lesson

The first lesson here is this: Quickly determine when something is outside of your element and know when it’s time to get help. Doing an investigation of employee theft was outside of my staff’s expertise. Even though it cost us about $5,000 to hire the investigative company, it saved us time that would otherwise have been wasted. You need to know when you’ve reached your limit and when to outsource things.

The second lesson is to always perform background checks for temp employees (just like you would for a full-time employee), especially if the person is handling sensitive information.”

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:

• Employment History References
• Credit and Bankruptcies Checks
• Academic and Professional Qualifications
• Prior Work Experience and Business Success/Failure Searches
• Regulatory Registers, Compliance Databases and Regional Supplemental Searches
• Sanction List and Criminal Record Searches
• Identity and Good Conduct Certificate Validation
• Directorship Search
• Media and Social Network Search

Can you afford to let degrees and credentials go unchecked? Contact us today.

Source: CNBC, 2018, titled: “HR Confidential: I hired him without performing a background check. Then he stole his colleagues’ identities”, https://www.cnbc.com/2018/04/05/hr-confidential-i-hired-him-then-he-stole-his-colleagues-identities.html

Filed under: Background Investigation, Employee Background Check, Publication, Resources by admin
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