ISO 37001 Solutions for All Industries (Part 3)

In part 1, we discussed how ISO 37001 ABMS can help companies across a wide range of industries, including automotive, aviation and insurance. In part 2, we looked at how pharma and healthcare, property, IT and telecommunications organisations can benefit from Anti-Bribery solutions as well. In this final part, we will explore some aspects of how companies from the financial, oil and energy industries could implement ABAC solutions.

Finance

Bribery and corruption are among the top fraud concerns for all financial organisations. These include banks & financial institutions, real estate lenders, business credit and finance companies, commercial investment corporations, asset-based lenders, debt financing firms, acquisition capital firms and others. Having safeguarding processes in place is required both from a legal and compliance standpoint and from the position of being a trusted, secure financial institution. The financial sector includes new Anti-Money Laundering (AML) rules and legislation, and these regulations are strict and increasingly enforced. As such, remaining in compliance through implementing proper prevention controls is a must.

In one high-profile case, between 2006 and 2013, JPMorgan Chase and its subsidiary, JP Morgan Securities (Asia Pacific) Limited (JPM-APAC) took on about 100 Chinese interns and full-time employees who ended up at the centre of a bribery case spread over two continents and worth hundreds of millions of dollars. In order to win business from members of the Chinese government and state-owned companies, JPM-APAC allegedly targeted their children, offering them high-ranking and well-paid positions in the business in order to curry favour with their parents. JP Morgan fell into trouble for allegedly violating the Foreign Corrupt Practices Act (FCPA), and the DoJ called the scheme ‘bribery by any other name’ – alleging that it had threatened national security. In November 2016, the bank was ordered to pay $264 million to settle the claims against it – $130m to the SEC for violations of the FCPA, $72m to the US Justice Department and $61.9m to the Federal Reserve Board of Governors.

CRI Group™ investigates: Pharma corruption case included CFO

ISO 37001 in Oil, Gas and Energy Industries

The oil and energy sector is a massive portion of the world’s economy, dealing mainly in petroleum – including upstream (exploration, development and production of crude oil or natural gas) and downstream (oil tankers, refiners, retailers and consumers) pipeline. The need to prospect, discover, and realise oil and energy production in various (and often far-flung) locations lends to the vulnerability to fraud – but geographic considerations aren’t the only risk factors.  Perhaps even more impactful is the complexity of business relationships required to operate in the industry – relationships with governments, contractors, regulators, investors/venture partners, equipment suppliers and other parties. Every such interaction and dealing can be considered susceptible to bribery and corruption where cutting corners may be considered profitable or even perceived to be “business as usual.”

An infamous example is the case of Petrobras. In December 2017, the world’s largest builder of offshore rigs agreed to pay $422 million in penalties after entering a guilty plea for bribery charges connected with the Petroleo Brasileiro (Petrobras) scandal. Keppel Offshore & Marine Ltd. made illicit payments to both Petrobras officials and government representatives for more than a decade, between 2001 and 2014 (Reuters, 2017). The sweeping multimillion-dollar bribery scandal that rocked Petrobras led to numerous investor lawsuits and the downfall of disgraced government officials. It also served as the embodiment of the huge risk of bribery and corruption that confronts the entire oil and energy sector. See “Oil and Energy Companies Look to ISO 37001.”

Long-lasting Benefits of Certification of ISO 37001

ISO 37001 provides a strong framework for addressing and isolating risk factors in all industries. The benefits of certification are far-reaching, impacting not just the primary organisation but also influencing contractors, clients, and raising the profile of the company as an ethical entity that is a good trading partner. Even more effective, ABAC™ tailors IS0 37001 to the specific needs of the client.

By achieving ISO 37001:2016 certification, an organisation will ensure that it is implementing a viable anti-bribery management system utilising widely accepted controls and systems. It will also assure management, investors, business associates, personnel and other stakeholders that the organisation is actively pursuing internationally recognised and accepted processes to prevent bribery and corruption. Today, companies cannot afford to be reactive to threats of bribery and corruption. By achieving ISO 37001 Anti-Bribery Management System certification today, an organisation will remain in compliance and better positioned to address risks head-on.

Stay updated 

Stay tuned for Part 2 or follow us on LinkedIn, Facebook or Twitter for more industry news and insights.

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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, 

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What are the Stages of ISO 37001 Certification?

The ISO 37001:2016 Certification is an Anti-Bribery Management System Certification critical for organisations in the public, private and non-profit sectors. After all, consider the benefits: Certification adds a distinct level of credibility to the organisation’s management systems and ensures that the organisation implements a viable anti-bribery management program utilising widely accepted controls and systems. It assures management, investors, business associates, personnel and other stakeholders that the organisation is actively pursuing internationally recognised and accepted processes to prevent bribery and corruption. ISO 37001:2016 certification also protects the organisation, its assets, shareholders and directors from the effects of bribery. But what, exactly, is the process for getting ISO 37001:2016 certified by CRI Group? Once your organisation has submitted questionnaire information and completed the approval and contract stage, the certification cycle is ready to begin.

A Breakdown of the Stages of ISO 37001:2016 Certification

Step 1: Audit Confirmation

An audit plan will be developed with your organisation and confirmed to the Certification’s Body Assessment Team at least three months before the organisation’s first audit.

Step 2: Pre-assessment Audit (optional)

The organisation can opt to perform a pre-assessment audit to identify any possible gaps between its current management system and the standard requirements. This audit is optional and helps the organisation check its preparedness for the stage 1 and 2 assessments by identifying any major non-conformities that have not been addressed.

Step 3: Stage 1 Audit

Review the results of the audit, including:

• General observations
• Non-conformities (major or minor, see below)

Minor Non-conformities: 

These are not seen as serious. The organisation must complete an internal Corrective Action Plan (CAP) before Stage 2. CAP is not required to be sent to the Assessment Team at Stage 1.

Major Non-conformities: 

These are more serious. The organisation will need to submit a CAP within ten days of receiving the audit report, with all actions scheduled to be completed before Stage 2. The CAP should be sent to the Assessment Team. The major non-conformities raised during Stage 1 will be re-assessed during Stage 2 Audit.

Step 4: Stage 2 Audit

This is an on-site audit and takes place after the organisation has successfully completed Stage 1 and corrected any major non-conformities identified during the Stage 1 audit. Stage 2 confirms that the organisation’s management system is fully aligned to the standard. The evaluation is of management system implementation and its effectiveness.

Outcome: The audit report will detail the following:

• Any positive observations
• Opportunities for improvement – suggestions for improvement and any findings that could lead to potential non-conformities.
• Non-conformities (Major or Minor)
• Recommendation for Certification

Minor non-conformities: The organisation must complete an internal Corrective Action Plan (CAP) and submit this to the Assessment Team within 45 working days of receiving the audit report. The Assessment Team will review the CAP; it must detail the non-conformity, the cause, the proposed corrective action, who is responsible and the date the action will be implemented. Based on the evaluation of CAP, the recommendation for certification will be made.

For minor non-conformities, if an organisation has a corrective action procedure, this will not delay the certificate.

Major non-conformities: The organisation must complete an internal Corrective Action Plan (CAP) and submit it within 90 days (or 180 days depending on the number and risk of major non-conformities) of receiving the audit report be sent to the auditor.

What Comes Next?

Stay tuned for more on ISO 37001:2016: sign up for our newsletter HERE! 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,

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ISO 37001 Solutions for all industries (Part 2)

In part 1, we discussed how ISO 37001 ABMS can help companies across a wide range of industries, including automotive, aviation and insurance. In this part, we look at how pharma and healthcare, property, IT and telecommunications, financial, oil and energy organisations can benefit from Anti-Bribery solutions as well.

Pharma and Healthcare

Corruption involving pharmaceutical companies and healthcare providers is a major concern around the world. With varied layers and a complicated supply change, corruption can easily gain a foothold even among the most well-meaning healthcare providers and their companies, especially with the industry overburdened with inflating costs and increasing fraud schemes. The World Health Organisation (WHO) estimates that, where losses have been measured and the types of health expenditure have been covered, the average annual cost of fraud totals 7.29 per cent of healthcare budgets (Gee and Button, 2014). For fraudsters, big pharma and healthcare represent a target-rich environment.

Take global pharmaceutical giant GlaxoSmithKline. The company was accused in China of a large-scale bribery scandal, charged with systematically paying bribes and “gratuities” to doctors and hospitals in return for favourable product use and promotion. China was in the midst of an emerging anti-graft campaign and imposed tough penalties against GSK and its executives: In the end, various company leaders were arrested and eventually given suspended prison sentences; GSK was fined $490 million; and the corporation published a statement of apology to the Chinese government and its citizens (BBC, 2014). Read more about pharma and healthcare fraud in “Pharma and Healthcare Companies can Benefit from ISO 37001.”[/vc_column_text][vc_hoverbox image=”8517″ primary_title=”” hover_title=”Pharma and Healthcare Companies can Benefit from ISO 37001″ hover_btn_title=”TAKE ME TO CASE STUDY” hover_add_button=”true” hover_btn_link=”url:https%3A%2F%2Fcrigroup.com%2Fokatsukr%2F2020%2F09%2Febook_Pharma-case-studies-uncovered-due-diligence-lessons-learned.pdf||target:%20_blank|”]CRI Group investigates: Pharma corruption case included CFO[/vc_hoverbox][vc_empty_space height=”45px”]

Property

Property and real estate provide ample opportunity for bribery and corruption, unfortunately. Every step of the process, from zoning and permits to construction and sale or resale represent vulnerabilities and risk. Unfortunately, for as long as there has been a market for buying and selling land, property and resources, there have been schemes that aim to defraud.

Property fraud can be difficult to detect and prevent. Fraudsters often produce fake or forged documents, and there is likely to be collusion involved. For example, a crooked investor might provide kickbacks to an appraiser in return for inflating the value of a property, or he/she may sell a property to a “straw buyer” at an inflated price, with the straw buyer intentionally going into default (and splitting the proceeds of the loan with the fraudulent investor). There are “handshake deals” and “facilitation payments” ready to be made, many in direct contradiction to ethics and the law.

IT and Telecommunications

Internet technology (IT) and telecommunications providers are the engines that help power commerce on a global scale. This massive industry includes companies that provide the infrastructure for communication across multiple countries and continents, including phone and internet providers. Given their role and the technology on which they (and all of us) depend, these services must always be on guard for vulnerabilities to fraud. There is a high risk, however, for bribery and corruption in such a massive market.

In one example, Sweden-based telecommunications provider Telia Company AB agreed to pay $965 million in a global settlement with the Securities and Exchange Commission, U.S. Department of Justice, and Dutch and Swedish law enforcement to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. According to the SEC’s order, Telia entered the Uzbek telecommunications market by offering and paying at least $330 million in bribes to a shell company under the guise of payments for lobbying and consulting services that never actually occurred. In another case, Cinergy Telecommunications (based in Miami) pleaded guilty to violating the FCPA after admitting to a role in a bribery scheme aimed at locking down a contract with the state-owned telecommunications company in Haiti. The case included large fines and criminal prison sentences for the key players.[/vc_column_text][vc_empty_space height=”45px”]

Food and beverage

This industry is one of the fastest-moving industry in regards to changes. Consumer tastes, preferences, packaging, manufacturing, storage
and transportation is constantly changing and challenging the industry. It has been years since the news of the horsemeat scandal first broke and rocked
the industry. It is not immune to bribery and corruption either. In recent years, the food and beverage industry was shaken by the scandal, when British confectionary company Cadbury Limited and its owner, Mondelez International, Inc., agreed to pay $13 million to settle charges of violating the internal controls and books-and-records provisions of the FCPA. According to the order from the SEC, the FCPA violations arose from payments their subsidiary in India made to a consultant to obtain government licenses and approvals for a chocolate factory in Baddi, India.

An SEC investigation found that in February 2010, Mondelez, formerly known as Kraft Foods, Inc., acquired Cadbury and its subsidiaries, including Cadbury India Limited, which manufactures and sells chocolate products in India. Cadbury India retained and made payments to an agent to interact with Indian government officials to obtain licenses and approvals for a chocolate factory in Baddi, India. Cadbury India failed to conduct appropriate due diligence on, and monitor the activities of, the agent.

To find out more, click below to read our e-book on how ISO 37001 provides solutions to British companies exposed by Brexit challenges:[/vc_column_text][vc_hoverbox image=”7902″ primary_title=”” hover_title=”Brexit poses bribery challenges but ISO 37001 provides solutions” hover_btn_title=”TAKE ME TO CASE STUDY” hover_add_button=”true” hover_btn_link=”url:https%3A%2F%2Fcrigroup.com%2Fcase-study%2Fbrexit-poses-new-bribery-challenges%2F||target:%20_blank|”]With Brexit posing challenges through new, untested trade deals in various markets, organisations need ISO 37001 – Anti-Bribery Management Systems standard as a comprehensive approach to mitigating risk.[/vc_hoverbox]

Stay updated 

Stay tuned for Part 2 or follow us on LinkedIn, Facebook or Twitter for more industry news and insights.

[/vc_column_text][/vc_column][/vc_row][vc_cta h2=”Subscribe to our monthly newsletter now!”]Sign up for risk management, compliance, corporate and background investigations, business intelligence and due diligence related news, solutions, events and publications.[/vc_cta][/vc_column][/vc_row][accordion_father][accordion_son title=”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, 

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]

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ISO 37001 Solutions for all industries (Part 1)

Organisations of all industries, from financial institutions to international energy companies, can gain distinct benefits from ABAC® Certification for ISO 37001:2016 Anti-Bribery Management System standard. The fact is, any company is potentially susceptible to bribery and corruption. Some industries face increased risk – which is why CRI Group’s ABAC® tailors ISO 37001 for companies across a wide range of industries, including automotive, aviation, insurance, pharma/healthcare, property, IT/telecommunications, financial, oil and energy, and others. In today’s business climate, no organisation can afford the risk of being non-compliant and unprotected. The following are some of the issues facing companies in different industries.

Automotive

The automotive industry is a huge worldwide business, and corruption and “pay-to-play” schemes make the headlines on a regular basis. Considering the markets involved include steel, labour, shipping, and others, it stands to reason that the industry can be a target for bribery and corruption problems.

One example is Rolls-Royce Motor Cars, which was punished to the tune of an $800 million (U.S.) global settlement that included a deferred prosecution with the UK’s Serious Fraud Office (SFO), the U.S. Justice Department and Brazilian authorities. The company was found to have engaged in systemic bribery spanning 13 years and 22 countries.  There were multiple schemes in various countries and locations, including Indonesia, Thailand, India, Nigeria, China, and Russia. Learn more in detail about the Rolls-Royce investigation in CRI Group’s case study, “Ethics, Compliance and Rolls-Royce”.

Aviation

The aviation industry is facing a series of pressures that challenge each airline’s profitability and growth. Over the course of the next 20 years, the global commercial aircraft fleet is expected to double to approximately 45,000 aircraft, driven by increased air travel due to an expanding middle class in emerging economies. Risk of bribery and corruption is ramped up, however, by the fact that the supply chain struggles to keep up with demand due to the ramp-up in production, volatility in the geopolitical and economic environment is increasing, and a growing labour shortage is lurking in the background.

Look at major cases like Pakistan International Airlines (PIA), which has been embroiled in a scandal. The allegations involve “organised failure of institutional management, state, and internal controls,” in some cases connected to air accidents with loss of lives. PIA is just a high-profile example of what can result when such corruption goes unchecked, with mismanagement, corruption and kickbacks causing irreparable harm. Read more about the PIA case in the CRI Group white paper, “Organised Catastrophe of Pakistan International Airlines: Major Critical Risk Elements – Mismanagement – Corruption”.

Insurance

While every type of insurance is ripe for fraud, did you know that bribery and corruption are among those schemes in the insurance industry? Fraudsters are opportunists who look for an opening, and that can involve collusion, such as between claimants and adjusters, for example; or bribing officials to provide false reports or otherwise fabricate evidence in support of an insurance claim.  In fact, there are well-known cases of highly organised criminal gangs who have built money-making enterprises on insurance fraud.

With the enormous liability presented by insurance fraud, every organisation should address their risk with proper control systems in place. This includes vigorous anti-bribery anti-corruption measures such as those implemented in ISO 37001. Successful risk mitigation includes conducting regular risk assessments, staying in compliance with all major laws and regulations, and regularly measuring and evaluating results.

Stay updated 

Stay tuned for Part 2 or follow us on LinkedIn, Facebook or Twitter for more industry news and insights.

Subscribe to our monthly newsletter now

Sign up for risk management, compliance, corporate and background investigations, business intelligence and due diligence related news, solutions, events and publications.

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, 

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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Responsible Management and CEOs

As of 13 August 2020, COVID-19 has affected more than million people globally, including 744,385 deaths, reported to WHO. The virus has also had severe economic implications, leaving organizations facing a unique set of new challenges that can only be summed up in one word: uncertainty. And the only way to navigate these uncertain times is through leadership. This is critical right now, as COVID-19 has magnified societal vulnerabilities. Good leaders can and should lead society into a new “normal”. However when Harvard economist Greg Mankiw argued in a New York Times opinion piece that CEOs are qualified to make profits, not lead society this is somewhat inadequate to the times we live in now. Furthermore, Doug Sundheim, contributor at Forbes, has argued in his article “CEOs Have A Responsibility To Help Lead Society” that Greg’sc arguments just simply do not fit today’s business models. This “shareholder-first business model” originated from 1970, however 50 years on a lot has changed and at a time when over 70% of the largest entities on earth are corporations, not nations, Mankiw’s view is troubling. 

The sheer number of corporations around the world should make us understand that business impacts societies on a global scale; therefore, business leaders have the responsibility to at least consider those societies and how they impact them. The singular management goal of CEOs is no longer about maximizing returns to shareholders, but to support society as business has grown more interconnected and complex. Today, business and society are weaved together in an intricate way, both depending on the other for stability and success. 

The COVID-19 pandemic has also changed businesses and created a surge in the number of positive collaborations between companies, institutions and governments. Our article “COVID-19 prompted innovative leadership” reflects how Mankiw fails to grasp the world in which CEOs are now in fact leading communities and helping societies.

Mankiw asks the reader to imagine having to make an executive decision and how effective and simplier it is when your only priority is profits, and not the wider set of stakeholders – i.e., employees, suppliers, communities, and shareholders. Mankiw defends the idea that corporate management’s mandate should be the narrow self-interest of achieving greater profits for shareholders, not broad social welfare. He goes on to list several additional hypothetical questions. A social-driven leader would have to consider:

• How do you weigh those losses against the gains to the would-be workers at the new plant?
• How much will the closure of the old plant hurt its workers and their community?
• Does it matter whether the new plant is in South Carolina, providing jobs for American workers, or in Mexico, providing jobs for Mexican workers?
• How should you weigh the benefit of electric cars in mitigating climate change? 
• How should you balance these concerns against the interests of shareholders, who entrusted you to invest their savings?

However, the above questions are now part of the many new demands from consumers, talent and governments. 

Consumers have changed; they are no longer only interested in the end product. Consumers are demanding more from companies for their buy-in. And every corporate leader has to include some version of the above questions in their considerations if they want to succeed. Top CEOs say social responsibility should be prioritised over profits proving that social responsibility planning; it’s officially basic business planning. Last year the bosses of 181 Leading US’s biggest companies dropped the shareholder-first principle – they changed the official definition of “the purpose of a corporation” (from making the most money possible for shareholders) to “improving our society.”

Most successful CEOs and corporate leaders have profit in mind, and they always will; but they are also considering the needs of a variety of stakeholders, including the communities they impact. In this day and age, CEOs and corporate leaders are rising up to social expectations and are balancing the demands of multiple stakeholders.

Mankiw questioned CEOs’ and corporate leaders’ ability to be broadly competent social planners.  Paul Polman (former Unilever CEO) talks about creating collective courage. He rightly argues that it’s difficult for one industry player to impact an issue like reducing greenhouse gases because of the loss of competitiveness. However, if 20% of industry players come together, they can begin tipping the scales.  It’s starting to happen. In this way, by unifying their efforts, corporations, governmental agencies, and NGOs can partner to lead society.

CEOs and other leaders now find themselves in a changed world … they can and should play a variety of leadership roles that move beyond narrow profit maximization. This is a social responsibility, not broad social planning. Short-term earnings no longer feature in the top of the mission statement for most successful companies. We’re starting to find our way back to a more balanced view, and we need CEOs’ leadership in the process.

Mankiw admits that the world needs people to look out for the broad well-being of society – elected leaders who are competent and trustworthy – but those people are not CEOs. However, Mankiw fails to acknowledge just how much influence CEOs and corporate leaders have over our elected officials and the legislative process. Today, large corporations and their associations outspend labour and public interest groups 34 to 1 on lobbying efforts in the US.

In today’s high-risk environment, businesses have to pay attention to their social and environmental roles not only due to demand, but out of responsibility for the damage they (can) cause. For example, companies that contribute to, but then deny, climate change – the attorneys general of several American states launched investigations into ExxonMobil and whether they had committed fraud by sowing doubts about climate change – even as its own scientists knew it was taking place to firms involved in botched Grenfell Tower revamp refusing to accept responsibility for tragedy. Then there is Chamath Palihapitiya, former Facebook executive, who expressed regret for his part in building tools that destroy ‘the social fabric of how society works’. Companies are responsible for causing great damage on a human scale. We have to hold companies, CEOs and brands accountable for their destructive impact in today’s society; while they have a responsibility to support and help lead society.

CEOs and corporate leaders are exerting immense influence behind the scenes; therefore, qualified CEOs and corporate leaders should step up and help lead on the thorny economic issues of the day. However, with great power comes great social responsibility. Not all of the corporate leaders are equipped to lead societies; therefore, they should take a significant weight off the scale. Contrary to what Mankiw and others of his mindset might think, we must continue to demand more from our corporations, their boards, and their CEOs and leaders. Corporate leaders can make a unique and lasting positive impact, too.

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, 

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: Background Investigation, Compliance Solution, COVID-19 Insights,

Fraud Advisory Panel deep dives into the HBOS scandal

On 30 January 2017, following a four-month trial, former HBOS employees Scourfield and Mark Dobson involved in HBOS scandal were convicted of fraud and corruption involving a scheme that cost the bank £245m. Scourfield pleaded guilty to six counts including corruption, and Dobson was found guilty of counts including bribery, fraud and money laundering.

The HBOS (Halifax Bank of Scotland) fraud trial was highly unusual in that senior bankers were convicted of crimes, including fraud and hiding the proceeds of crime, in the boom of irresponsible lending ahead of the 2008 crash. As Lloyds reopens compensation claims over HBOS fraud and almost a decade after the HBOS fraud victims will hopefully be finally compensated. Loyds damning review found that victims were not all treated equally after fraudsters plundered £1bn to fund sex parties, superyachts and lavish holidays. The victims were the taxpayer, small business customers of the bank, and HBOS shareholders.

Fraud Advisory Panel

Fraud Advisory Panel discusses the HBOS scandal in an executive breakfast briefing. Which will take a deep dive into the case and take stock of the significant challenges faced by counter-fraud professionals to ensure fair access to justice for those affected by fraud and financial crime, especially SMEs. The agenda is comprised of the following:

• The impact of the HBOS fraud on its victims.
• The practical challenges faced by law enforcement and prosecutors in large corporate frauds.
• The work of the APPG on Fair Business Banking to support SME victims.
• The key lessons that can be learnt from HBOS and how these can be used to inform proactive action to support victims.

Guest speakers

• Nick Gould, Aria Grace Law
• Brian O’Neill QC, 2 Hare Court
• Anthony Stansfeld, Police Crime Commissioner, Thames Valley
• Kevin Hollinrake MP Thirsk and Malton, Co-chair,  All Party Parliamentary Group on Fair Business Banking

In the chair

• Rachel Sexton, director, Fraud Advisory Panel

Registration Expired!

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Fraud Advisory Panel UK counter fraud 2019 report is out!

Fraud poses a major threat to the UK and the world. The slow progress in fighting fraud in 2019 was evident to all of us with the never-ending stream of news stories documenting bribery and corruption cases around the world in 2019. We documented each with our article on Top 10 Bribery and Corruption Cases of 2019  where we count down the stories:

• Juniper Networks
• Alstom
• Microsoft
• KPMG
• Samsung Heavy Industries
• Fresenius Medical
• Walmart
• TechnipFMC
• Ericsson
• Unaoil

But these cases helped some of the welcome signs that government and law enforcement were beginning to ratchet-up their interest in fraud with new regulatory updates. 2020 was looking promising to all fraud fighters around the world. Unfortunately COVID-19 pandemic has turned the tide in the fraudsters’ favour – creating the current environment of fear, confusion and economic uncertainty in which fraudsters thrive.

The latest Fraud Advisory Panel’s report, The calm before the storm UK counter fraud in 2019 highlights all of these and more. According to the report the SFO continued to conclude
successful deferred prosecution agreements (though still without converting any of them into individual prosecutions):

• 53% conviction rate (17 defendants out of 32)
• 11 criminal investigations opened
• 8 defendants charged (investigations closed without charge – 14)
• 16 defendants awaiting trial
• £3.9m funds recovered
• 11 new confiscation orders (combined value £4.1m)
• £1.5m for the first Account Forfeiture Order
• 70 total caseload

And all of the stories help illustrate the need for organisations to have proper controls in place to prevent bribery and corruption. A certification such as ISO 37001 – Anti-Bribery Management Systems standard can provide a comprehensive approach to mitigating bribery and corruption risk. Organisations of all sizes and industries should take steps now to ensure that they don’t end up on a future list of top bribery and corruption scandals. Only a well resourced, cross-sector, intelligence-led response can tackle fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights,

Fraud Advisory Panel have set up a COVID-19 fraud watch group

The Fraud Advisory Panel have set up a COVID-19 fraud watch group.  A cross-sector and cross-industry coalition of trusted partners (including the Cabinet Office and City of London Police) who meet weekly to share information on emerging fraud threats and trends affecting business. The panel aims to act as a conduit to warn the public, private and third sectors about COVID-19 fraud risks. In addition to supply  preventative actions that can be taken.

Measures announced over recent months to deal with COVID-19 have seen our day-to-day life drastically changed forcing us to spend more time at home and online. Unfortunately, criminals are using every opportunity they can to scam innocent people and businesses. GOV.UK has also released advice and guidance on how to protect yourself and your business from fraud and cyber crime. This guidance explains simple steps you can take to protect yourself and your business against fraud and cyber crime and where to get help. The National Cyber Security Centre has also published advice on how to spot COVID-19 scams and keep remote working safe.

If you think you’ve been scammed or you’ve found something which looks like fraud or a scam, contact Action Fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Have you read?

• Brexit poses new bribery challenges, ISO 37001 provides solutions
• Bribery and corruption plague Middle East, how can ISO 37001 help?
• As South Asia Grapples with anti-bribery compliance, ISO 37001 provides solutions
• Whitepaper: Organised catastrophe of international Pakistan airlines
• Rolls-Royce Case study: Ethics & Compliance
• ISO 37001 FAQ
• Are you ready for ISO 37001?
• Don’t have an ethical code of conduct? Your organisation needs one

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights,

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, 

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,