Investigation reveals employee embezzlement
What does an embezzler spend their money on? In the case of a New York man’s alleged fraud, just about everything, apparently. A recent investigation reveals comptroller’s spending spree. Recent news articles report that Mark Cina, a comptroller at two companies in Poughkeepsie, New York, is accused of embezzling $2.5 million over six years (2009-2015). In case you are wondering if he stashed the money away somewhere for safe keeping, the answer would seem to be no, according to the feds.
Instead, he spent it gambling, paying his rent, dining out and plenty of other expenses. In fact, the Poughkeepsie Journal provides an extended list of alleged expenses in an article published Saturday, “Feds: Dutchess man embezzled millions, spent $457,000 at mini-mart.” Here’s the eye-opening laundry list:
- $457,000 at a mini-mart
- $180,000 at a gas station
- $25,000 for rent
- $125,000 for personal credit card bills
- $599,000 in non-payroll checks, payable to Cina
- $282,000 in checks payable to cash
- $825,000 in cash withdrawals
As if that’s not enough, the Journal adds: “Cina also allegedly spent money at pharmacies, medical and dental facilities and a rental car company.” Cina is being investigated by the U.S. Postal Inspection Service, Internal Revenue Service and Dutchess County District Attorney’s Office. He could face up to 20 years in prison if convicted.
How can this happen? Aside from the staggering amount of the fraud, it’s important to know that employee embezzlement is not rare. Anyone with opportunity and access to an organisation’s funds could potentially steal – sometimes over and over again, for years. It’s often a matter of a trusted employee having too much control over the organisation’s finances, with no checks on that control and no proper fraud prevention measures in place.
At CRI Group, we know that fraudsters, cyber attacks, third-party risks, disrupted supply chains and other unforeseen, uncontrollable factors can pose serious harm to your business and cause major concern. Today, smart business owners and executives are asking hard questions, especially before conducting business on a global level:
- How do we manage the risks to digital and physical assets?
- Does the organisation have the appropriate controls and contingency plans in place to protect our business?
- How quickly can we respond to a serious business crisis?
- Can the organisation rely on our third-party business partners to maintain appropriate levels of control?
The team at CRI Group can help you road map these risks and have sufficient action plans in place to deal with unforeseen threats to your business. Some risk factors cannot be completely avoided. But with the proper response plans in place, we can help bolster your corporate security and resilience, ensuring that your company will overcome such challenges and protect your future success.
Don’t let your organisation become a cash cow for someone else’s gambling expenses, dinner tabs or rent payments. CRI Group’s experts are trained to work with your organisation to find vulnerabilities to fraud, and eliminate or mitigate your risk factors.
Following a thorough fraud risk assessment, we tailor a fraud prevention strategy that’s the perfect fit for your organisation to detect and prevent fraud and corruption. With the proper controls in place, you can avoid unforeseen crises like the one in Poughkeepsie, New York.
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.
CRI® meets with HR managers at SHRM17
The SHRM17 Annual Conference & Exposition was a huge success, and CRI® Group was proud to be on hand at the event in New Orleans to meet with human resources managers and specialists to talk about their challenges, best practices and how EmploySmart can help make their jobs easier and more effective. The Society for Human Resource Management (SHRM) holds the annual event to gather the top HR professionals from around the world. CRI® Group knows that HR is in a critical role when it comes to helping organizations prevent fraud.
CRI® Group has participated in the SHRM17 Annual Conference & Exposition in New Orleans (June 18-21). SHRM and their world-renowned annual conference is a must-attend event for HR pros. Human resources managers and specialists are in a unique position when it comes to helping their organizations prevent fraud. An HR team that conducts thorough background screening in the employment process, for example, can help keep potential fraudsters out before they have a chance to damage a company from within.
CRI® Group’s agents discussed how thorough background screening for new and existing staff can help detect red flags, potentially saving companies millions in future losses from fraud and corruption. Using EmploySmart, CRI® Group analyses a job candidate’s claims and credentials, and can complement HR efforts with a “boots on the ground” approach to extensive background checking. With EmploySmart, CRI® Group examines all of the details provided by a potential employee including their identity, criminal background, education credentials, job history, employment references, and financial and credit checks (as permitted by law); among many other details.
If you missed getting a chance to meet with CRI® Group’s experts at the conference, or if you are an HR professional who would like to know more about how EmploySmart can help you, please contact us today! We are always eager to chat about how we can help complement your efforts and make you a hero in fraud prevention at your organization. With EmploySmart, you can make sure your prospective (and current) employees are who they say they are, and that you only hire the best.
Are you ready to EmploySmart?
Let’s Talk!
Don’t leave hiring to chance. Take a proactive stance with the highest level of background screening as a part of your essential corporate strategy. Contact us today to learn more about our full range of services to help your organization stay protected.
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 that provides education and certification services for individuals and organizations on a wide range of disciplines and ISO standards, including ISO 31000:2018 Risk Management- Guidelines; ISO 37000:2021 Governance of Organisations; ISO 37002:2021 Whistleblowing Management System; ISO 37301:2021 (formerly ISO 19600) Compliance Management system (CMS); Anti-Money Laundering (AML); and ISO 37001:2016 Anti-Bribery Management Systems ABMS. ABAC® offers a complete suite of solutions designed to help organizations mitigate the internal and external risks associated with operating in multi-jurisdiction and multi-cultural environments while assisting in developing frameworks for strategic compliance programs. 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
COVID-19: 5 ways is changing business
COVID-19 has significantly changed the business landscape. With budgets slashed, events cancelled, and consumer behavior shifting, businesses are having to change too. PwC’s 2020 Global Consumer Insights survey shows a shift in the consumer’s priority with 69% saying that they are caring more about their mental health and physical fitness and 63% want to eat healthier as a direct result of the COVID-19 pandemic. Filip Lozie, Partner at PwC Belgium, says: “While certain trends have been on the upswing for quite some time, our research shows that the pandemic has sharpened consumers’ desire for transparency, sustainability and convenience. Consumers now expect their health and safety to be prioritized. In our 11 years of surveying consumers around the globe, we have never documented such a clear convergence of themes around transparency, sustainability, and social consciousness. At such a pivotal moment, the need for consumer-facing companies to establish trust with potential customers could not be any clearer.”
Here are six ways the COVID-19 is changing business as we know it.
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New ways of working
More than 1.54 million people are currently working from home (WFH). With 60% of the UK’s adult population WFH during the lockdown, each of these workers will save £44.78 (on average) by cutting out things like commuting and buying lunch out. Adding to this, many people are also currently working on reduced pay or furloughed. This period has given people the opportunity to reflect and access their priorities and old habits. With 92% of workers believing that they are well equipped to WFH and four in 10 London buyers already considering moving to the countryside, employees are sold on the benefits of WFH.
With two-thirds of employers reporting increased productivity for remote workers compared to in-office workers, businesses are also discovering the benefits of a remote and flexible workforce. From a recruitment perspective, when hiring and keeping top talent, be able to offer a flexible working culture will become a crucial factor, whilst from a revenue perspective, flexible working means less office space and more money saved. From a productivity perspective and with 83% of employees feeling that they do not need an office to be productive and 65% feeling more productive at home, businesses seem to be sold on WFH.
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Going digital
Being a digital-first brand isn’t a new concept, but with people no longer be able to pop to the shops, it’s now critically important to any business. COVID-19 has automatically put digital-first businesses ahead of the competition. Since the COVID-19 pandemic, online purchases via smartphones have increased by 45%, and sales via laptop have increased with 41% so being digital-first is key to getting people talking, reaching new audiences, and continuing to grow.
On top of their existing digital offerings, some brands are even taking a step further by creating immersive experiences, entirely online. From the National Theatre streaming live critically acclaimed performances to Joe Wicks’ PE workouts, even Carlsberg, Budweiser and Rémy Martin have partnered with e-commerce giant JD.com to provide online clubbing.
In fact, 86% of consumers say they’ve changed their behaviour as a direct result of Covid-19. Now that in-person events have been cancelled to no date for a come back; the only way businesses can survive is taking a digital-first approach.
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Increased demand for direct-to-consumer brands
Over the past few years, Direct to Consumer (DTC) brands have exploded. Forbes reported in their article (2019) DTC Brands Are Getting A Lot Of Attention And Growing Fast that DTC advertising increased 50% in the past year. Cutting out the middleman empowers businesses to build stronger customer relationships by offering more competitive prices. DTC brands ability to adapt has seen DTC businesses thrive during COVID-19.
While many traditional businesses are (still) struggling to manage the complexity of international supply chains, DTC brands have modified theirs to continue running smoothly. For example, Bloom & Wild stopped relying on growers from the continent and are now outsourcing entirely from the UK.
As more consumers discover the benefits of going direct, DTC brands from beauty to biotech will continue to gain prominence post-COVID-19. With time passing and brand loyalty, sinking in demand is likely to continue post-COVID-19. Retailers with extensive supply chains need to review and refine their models in order to compete in today’s environment and tomorrow post-COVID-19.
As Cheryl Calverley, chief marketing officer of e-commerce retailer Eve Sleep, told The Drum: “The reason we sell directly to consumers online is that it is the most efficient way, and it is never to be gimmicky. Brands that don’t do it properly will get found out.”
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Sustainable growth
With one third (36%) of worldwide consumers spending less because of the COVID-19 outbreak, many businesses have seen their budgets disappear, and they have had to rethink their strategies, customer acquisition and retention strategies. There’s more scrutiny than ever on ROI – for many businesses, untraceable campaigns no longer are viable options. Instead, brands are turning to less traditional channel but more measurably effective ways, such as referral programmes.
Prior to COVID-19, 44% of businesses focused primarily on new customer acquisition, despite it being five times more expensive than focusing on existing customers. The current climate is prompting more leaders to realise the untapped value of their existing customers. Businesses are focusing on brand-building and customer retention strategies that engage with happy existing customers for long-term results.
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Living brand values
Brands have got away with simply saying the right things. However, COVID-19 has changed what consumers expect. Companies that helped during the COVID-19 crisis are getting far more attention in the press and on social media than any clever or expensive business strategy stunt could achieve. Equally, those falling short are being called out – i.e. Virgin Atlantic and Victoria Beckham.
The importance of brand values is reiterated by how supporting the public has been towards local businesses. COVID-19 has shifted consumers loyalties to support the small business more than ever. Small acts such as ordering food from a family-run restaurant or following a Zoom workout from a local instructor have a lasting impact, and brands should quickly understand that if they want to success post-COVID-19.
In April, the importance of brand-building in the current climate was evident with an increase of almost 40% on spending at local off-licences, greengrocers and convenience stores.
Preparing for the times ahead
It takes 21 days to form a habit, and after six months of COVID-19 lockdowns, quarantines and self-isolations, consumer buying habits are certainly different from where they were before the pandemic hit. COVID-19 has forced businesses to rethink their offerings, strategies and brand. As we emerge from this crisis, effective long-term strategies will be key to any business success in the post-COVID-19 competitive landscape. With most companies believing they could be ready to restart business as normal with just three weeks’ notice, the key to success is to reactivate their customer acquisition and retention strategies 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,
In 2016, the CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
Happening now: CRI® at SHRM17 in New Orleans
The 2017 SHRM Annual Conference & Exposition kicked off yesterday in New Orleans, and CRI® is proud to be participating as an exhibitor and telling top human resource managers about EmploySmart.
SHRM is the Society for Human Resource Management, and their world-renowned annual conference is a must-attend event for HR managers and specialists. Those professionals, by the way, are in a unique position when it comes to helping their organisations prevent fraud.
By conducting thorough background screening for new hires, for example, HR can help keep fraudsters out of a company before they can do damage from within.
At SHRM17, CRI® Group’s agents are meeting with attendees to tell them all about EmploySmart, our pre-employment background screening process.
EmploySmart analyses a job candidate’s claims and credentials, and can complement HR efforts with a “boots on the ground” approach to extensive background checking. With EmploySmart, CRI® Group examines all of the details provided by a potential employee including their identity, criminal background, education credentials, job history, employment references, and financial and credit checks (as permitted by law); among many other details.
If you are attending SHRM17 (which runs through Wednesday, June 21), please come by and visit with us in the exposition. CRI® Group would love to talk about your goals and challenges in helping your company stay better protected from fraud and corruption.
Every successful business owner knows that your greatest resources are your employees. Make sure they are who they say they are, and that you only hire the best.
Are you ready to EmploySmart?
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 the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body that provides education and certification services for individuals and organisations on a wide range of disciplines and ISO standards, including ISO 31000:2018 Risk Management- Guidelines; ISO 37000:2021 Governance of Organisations; ISO 37002:2021 Whistleblowing Management System; ISO 37301:2021 (formerly ISO 19600) Compliance Management system (CMS); Anti-Money Laundering (AML); and ISO 37001:2016 Anti-Bribery Management Systems ABMS. ABAC® offers a complete suite of solutions designed to help organisations mitigate the internal and external risks associated with operating in multi-jurisdiction and multi-cultural environments while assisting in developing frameworks for strategic compliance programs. Contact ABAC® for more on ISO Certification and training.
CRI® Group invites you to schedule a quick appointment with us to discuss in more detail how our risk management solutions can help you and your organisation.
European regulators face-off with Facebook
Facebook is discovering, along with other companies, that Europe is serious about data protection and privacy rules. The massive social media corporation is being fined by France, and is under investigation in several other European countries, for how it handles individuals’ information. Facebook European regulators face-off
At the heart of the issue is how it tracks both users and non-users, and how it uses data for advertising purposes. According to an article in the Guardian, “Facebook facing privacy actions across Europe as France fines firm €150k,” the company is being investigated in Belgium, the Netherlands, Germany and Spain. It stands to reason that additional probes could be on the way.
Facebook is arguing that the Irish data protection authority should be the superseding authority since the company’s European headquarters are located in Dublin. This defence is not likely to fly among regulators in various EU countries that are enacting stricter data and privacy protections on behalf of their citizens.
Data protection and information security is a huge issue right now in Europe and around the world. Major breaches have caused loss of trust and subsequent financial loss among large corporations. The failure to protect consumers’ data can cause serious reputational harm to any company, not to mention lead to legal liability and possible fines.
The Facebook case exemplifies another angle to the privacy issue: What happens when a company’s own policies run counter to what regulators have determined are fair and reasonable privacy protections? Essentially, investigators in France and elsewhere allege that Facebook’s practices exploit their own users’ information and violate their right to privacy.
As the Guardian article states:
From data privacy to heavy criticism over how the social network takes down objectionable and extremist content, Facebook has found itself in the centre of a EU-US storm that is likely to rage for the next few years.
The storm won’t settle down anytime soon. The fine in France is arguably just a pittance for a corporation like Facebook. But fines could increase dramatically if new legislation takes effect:
A new EU data protection law is set to enter into force in 2018 that could fine companies up to 4% of their global turnover. Countries including France also want to give domestic data regulators more teeth through increased maximum fines.
Companies of any size should pay attention, especially if they conduct business in Europe or across international borders in general. Data protection and privacy will continue to drive new debate and likely evolving rules on what is fair play, and what constitutes a violation.
There will also continue to be an intense focus on what companies are doing to protect their users’ information from security breaches. Experts at CRI Group can help any organisation evaluate their current system and help implement robust protections that meet compliance standards and instil confidence among their consumers. Customers expect the highest level of protection, and companies must deliver on that promise.
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.
Protecting Data: Businesses Needs GDPR
The General Data Protection Regulation (GDPR) will come into force in Europe in just over a year. This sea change in data privacy aims to improve protections for individuals within the European Union, providing them with more control over how their personal data is used.
It will also clarify and standardise how businesses are expected to operate regarding data protection from a legal standpoint. With this in mind, smart business owners and directors are already preparing for its implementation.
There is much work to be done, however. According to a whitepaper from the DMA, a membership-based network of more than 1,000 companies, over a quarter (26 per cent) of marketers feel their business is unprepared for the GDPR.
That’s a problem. But there is time for organisations to take steps now and ensure they are ready for the GDPR when it took effect on May 25, 2018.
First, they should understand what the GDPR will require. According to “GDPR compliance: what organisations need to know” from the information age, the following are requirements of the new regulation:
- Extended jurisdiction: Regulations will apply to any company collecting and/or processing EU citizen’s personal data regardless of where the company’s physical offices are located.
- Consent: Companies will be required to obtain individual’s consent to store and use their data and explain how it is used.”
- Mandatory breach notification: Companies will now be required to notify the supervisory authority within 72 hours of discovering a security breach unless it is unlikely to “result in a risk to the rights and freedom of individuals.
- Right to access: Companies must be able to provide electronic copies of private records to individuals requesting what personal data the organisation is processing, where their data is stored and for what purpose.
- Right to be forgotten: EU citizens will be able to request the controller to delete their personal data and stop sharing it with third parties – who are then also obligated to stop processing it.
- Data portability: The new regulation gives individuals the right to transmit their data from one controller to another. As a result, upon request, organisations must be able to provide an individual’s personal data in a ‘commonly used and machine-readable format.
- Privacy by design: Security must be built into products and processes from day one.
- Data protection officers (DPO): Both data controllers and data processors are now required to appoint a DPO.
On a disturbing note, several reports indicate that some companies in the UK have stopped preparing for GDPR due to Brexit. According to MarketingTech’s “24% of UK businesses have stopped preparations for EU Data Protection Regulations,” fully 44 per cent of respondents to a survey believed – likely in error – that they will not fall under its jurisdiction. This is a dangerous assumption, as the article notes:
‘Firstly, it is likely to be in place before any Brexit,’ said director of information management at Crown Records, John Culkin. ‘Secondly, although an independent Britain would no longer be a signatory, it will still apply to all businesses that handle European citizens’ personal information. The fines associated with EU GDPR are significant. They can be as high as €20 million or 4% of global turnover.” Looking ahead at the GDPR, it is far better to be safe than sorry. In this case, that means being prepared – or risk serious consequences.
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 the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body that provides education and certification services for individuals and organisations on a wide range of disciplines and ISO standards, including ISO 31000:2018 Risk Management- Guidelines; ISO 37000:2021 Governance of Organisations; ISO 37002:2021 Whistleblowing Management System; ISO 37301:2021 (formerly ISO 19600) Compliance Management system (CMS); Anti-Money Laundering (AML); and ISO 37001:2016 Anti-Bribery Management Systems ABMS. ABAC® offers a complete suite of solutions designed to help organisations mitigate the internal and external risks associated with operating in multi-jurisdiction and multi-cultural environments while assisting in developing frameworks for strategic compliance programs. Contact ABAC® for more on ISO Certification and training.
Brexit Could Damage UK’s Fight Against Corruption, Says OECD
From the Guardian brexit corruption
Brexit could damage the UK’s efforts to tackle corruption and give multinationals leverage over the British government in bribery cases, the Organisation for Economic Co-operation and Development has warned.
Business pressure to weaken bribery laws and an inability by the government to focus on non-Brexit issues are both risks associated with leaving the European Union, according to a new report by the group.
[/vc_column_text][/vc_column][/vc_row][accordion_father caption_url=””][accordion_son title=”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,
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_empty_space][/vc_column][/vc_row]
Ethics and Compliance Hotline: your frequently asked questions answered…
Ethics hotlines are growing in popularity. In 2017 the South Africa Home Affairs Minister Malusi Gigaba announced over 3,000 officials were found guilty of misconduct related to cases reported via the National Anti-Corruption Hotline (NACH). “The closure rate underscores a commitment by government departments to investigate allegations of corruption as reported through the NACH.” Ethics and compliance hotlines work! Organizations must have an ethics and compliance hotline to help promote the organization’s code of conduct and nurture a culture of honesty and accountability.
Don’t opt out of an ethics hotline
The 2019 Global Business Ethics Survey found that more reports of misconduct were made to direct supervisors (a median of 51 per cent) compared to hotlines (6 per cent). However, it is still crucial to have an Ethics and Compliance Hotline. Why? Having an ethics and compliance hotline shows employees that the business leaders genuinely want to hear from them, making it a great employee relations tool.
The ethics and compliance hotline is an anonymous reporting mechanism. So when the normal channels of communication fail, a hotline can facilitate any flagging. They provide an accessible way for employees to report potential wrongdoing, possibly illegal, unethical, or improper. A company can better protect itself from fraud, learn of employee misconduct and proactively mitigate any corruption-related risk. Despite industry or size, any organisation should be 110% committed to having an open dialogue on ethical dilemmas regardless.
CRI® Group encourages everyone to report any wrongdoing. We believe that everyone should have a voice and protect themselves, colleagues and the organizations that they work for. Everyone must seek to maintain transparency to comply with the code of conduct and compliance regulations. If your organization considers an ethics and compliance hotline, here are some must-knows.
Who can report? And what can you report?
All individuals – employees, clients, contractors, vendors and others in a business relationship with you or your organization – have a duty and responsibility to report any known or suspected noncompliant behavior or violations of any regulatory mandates and/or local policies, including but not limited to:
- Ethical standards violations;
- Violation of laws and company policy and internal control;
- Risk and safety;
- Theft, embezzlement or misappropriate of assets and fraud;
- Bribery and corruption;
- Employee rights, employee relations, work environment;
- Privacy laws or security of personal information;
- Discrimination;
- A dispute related to a supervisor, HR and other departments;
- Physical and verbal harassment in the workplace;
- Issues related to job responsibilities;
- The report related to a suspicious activity being a witness; and/or
- Unfair dismissals.
How to report?
You can report your concern using the Ethics and Compliance hotlines at any time, 24/7. And an effective Ethics & Compliance Hotline should allow reporting via phone, email, web-based compliant forms and even walk-ins.
How does it work?
This will depend on your organization structure; however, if you allow reporting directly by telephone, the caller should speak with the Compliance Department directly. The caller can remain anonymous or may want follow-up, in which case(s) he will give contact details. If the individual submits a report online, the system should guide the individual through the reporting process, and a PIN number will be generated automatically once they complete the report. The compliance department specialist who receives the tip is then in charge of validating it. This compliance officer typically receives special training on gathering enough information to ensure the complaint is credible. The tip is then routed to the right department within the organisation, such as audit, legal, or human resources.
What is the process of the investigation?
The Compliance Department or Committee should then review the report and conduct an investigation. The investigation may include an interview with relevant witnesses review of records, computers, telephones and other equipment per relevant personal data regulations. The reported individual will be able to follow the status of the case and communicate with the Compliance by giving their case number. However, no party can contact the individual directly if you have chosen to remain anonymous. The investigation conclusions and recommendations are reported to Management.
Can we generate anonymous reporting?
Yes, if the individual wishes to remain anonymous when reporting their concern, they can. However, you should encourage the individual to identify themselves where/when possible, enabling your organization to investigate the report more effectively. If they provide their names, your compliance department should protect their confidentiality to the greatest extent possible during the investigation. The organization should have a Non-Retaliation and Whistleblower Policy to help ease the process.
What is a Non-Retaliation Policy?
While on the surface, hotlines may seem a convenient option to receive employee complaints, tips or concerns, often, it’s the process that surrounds the hotline which can determine whether it ultimately succeeds or fails. Areas such as employee relations are particularly challenging for anonymous tips. An organisation needs to have a whistleblower process in place – this is a critical component of any compliance monitoring system. It enables companies to identify and mitigate potential risks early before they impact operations, reputation and ultimately, financial performance.
How can we make sure they deliver a credible report?
When reporting an issue, encourage individuals to ensure that they provide as much relevant information as possible, for example, the names of persons involved in the alleged conduct, potential witnesses, appropriate documentation or data, visual evidence etc. Provide them with forms that allow them to understand what they need to submit a credible report, with the appropriate questions and empty spaces for further feedback, including the ability to upload any initial profs. This will allow your Compliance to effectively follow up on the case.
What makes a successful implementation?
- A strong and clear message is delivered to employees and stakeholders by a senior individual who champions the overall programme.
- A clear understanding of how best to engage with your employees at all levels and in all countries. Remember to take into account country and cultural differences.
- A robust internal process to deal with reported issues as laid out in your code of conduct policy or ethics programme.
Are you addressing corporate Compliance?
Prove that your business is ethical. Find out if your organisation’s compliance program aligns with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks. Complete our FREE Highest Ethical Business Assessment (HEBA) and evaluate your current Corporate Compliance Program. Let our 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.
Find out what’s a Gap Analysis and why do you need it?
Report with CRI® Group!
If you find yourself in an ethical dilemma or suspect inappropriate or illegal conduct, feel uncomfortable reporting through normal channels of communication, or wish to raise the issue anonymously, use the reporting process in this Code of Conduct, including the Compliance Hotline. The Compliance Hotline is a secure and confidential reporting channel managed by an independent provider. When reporting a concern in good faith, you will be protected by the CRI® Group Non-Retaliation Policy.
CRI® will not accept any retaliation or discrimination against any employee or external stakeholder who uses our Compliance Hotline in good faith or participates in an investigation. Any employee who breaches the policy will be subject to disciplinary actions. If you wish to learn more just have a look at our article on Ethical code of conduct: What should be covered?
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,
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 organisations. 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
GDPR: Everything You Need to Know
From eMarketer
The European Union’s General Data Protection Regulation (GDPR) was put in place to standardise existing laws that call for transparency in how companies collect and store personal data about EU citizens. eMarketer’s Sean Creamer spoke with Scott Meyer, CEO and co-founder of Evidon, and Todd Ruback, the compliance services company’s chief privacy officer and vice president of legal, about what the GDPR will mean for marketers from outside the EU when it goes into effect on May 25, 2018.
Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. Contact us today to get started on implementing a robust program that will serve you well for years to come. Get your FREE QUOTE now!
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.
Corruption Lessons From Samsung and South Korea
From UPI
South Korea’s scandal-plagued president, Park Geun-hye has been forced from office. Park was impeached by the country’s constitutional court over accusations that she helped a friend win bribes from Samsung and other South Korean conglomerates. Samsung Corruption Lessons
The impeachment follows swiftly on from the arrest of Lee Jae-yong, the de-facto head of Samsung, the country’s biggest conglomerate. He is on trial for a string of corruption charges, including bribery and embezzlement, linked to Park’s impeachment. He has denied any wrongdoing. Samsung Corruption Lessons
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
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المقر الرئيسي: +44 7588 454959
المحلي: +971 800 274552
:البريد الإلكتروني info@crigroup.com
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المحلي: 274552 800 971
:البريد الإلكتروني info@crigroup.com
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