Money laundering is a global menace, with most countries being equally susceptible to it. Our earlier blogposts focused on understanding trade-based money laundering (TBML), its evolution as a major roadblock on the anti-money laundering front (AML), the need to improve overall AML governance frameworks and varying dynamics witnessed from a macro standpoint.
Today, the automotive industry has become significantly more global in scope, and a company’s supply and distribution relationships are likely to have a much broader global reach than ever. These inter-relationships that extend across borders, time zones, and continents could also compound the opportunities for fraudulent and corrupt activity due to differences in culture, business … More Is fraud taking you for a ride? It is time for automotive companies to fasten their compliance seatbelt.
An increase in the number of commercial disputes, rising importance of technology and delays in the litigation system are some of the reasons for a substantial increase in cases of arbitration. Today, India is not only a preferred hub for investments but also the third-largest foreign investment beneficiary in the world, thus making easy access … More Changing mind-set driving improvement in arbitration in India
James*, a Regional Manager with an Indian multinational firm was elated, having just received his offer letter for an internal transfer overseas. The opportunity not only gave him a sizeable hike from his current salary, but also included perks such as fare for the flight, food and accommodation in his new city. After settling in, … More Uncovering the reality of modern slavery
Steven*, a working professional, approached a Registrar and Transfer Agent (RTA), Philip*, for transmission of shares bought by his father who passed away six years ago. He was alarmed when informed by Philip that the shares held by his father were dematerialised (converted from physical shares into electronic format) and had been sold through the stock … More Registrar and Transfer Agent Frauds – failure of governance over outsourced activities?
With an aim of making India a global talent hub, companies across the board are making unswerving efforts to attract and retain talent. One of the most prolific methods that most organizations adopt is the concept of employee referrals. Besides being a more cost-effective recruitment tool, it also motivates and encourages current employees to contribute … More Is your company suffering from viral referrals?
The concept of outsourcing has taken the business world by storm. Although, it has been woven to become one of the most used buzzwords in corporate jargon, there is still scope of it being misconstrued from a governance perspective.
We are thrilled to collaborate with global anti-fraud community – Association of Certified Fraud Examiners (ACFE) Western Region Chapter, and launch the first Forensic Trailblazer Award. This award will be presented to an individual who showcases superior talent in this niche yet diverse domain of forensic investigations. The platform is designed to assess participants on a variety of … More Launching the first Forensic Trailblazer Award in India
On account of a firm’s rather average financial performance, Alex*, a manager there was supposed to sensitize his team about the probability of increments for the year being lower than the expected ratio. Considering that the top performer from his team, Alan* would not take well to the proposition, Alex advised him, in confidence, that he … More The dark side of recruitment – a deceptive proposition
In the recent past, India has witnessed a scenario where several oil and gas contracts were involved in litigation or arbitration matters, primarily because of issues around interpretation of contractual terms or cost sharing. In many cases it has been seen that the resolution of such disputes requires significant involvement of experts such as drilling … More Managing disputes in the oil and gas industry
Any brand that has gone through the peril of having counterfeit products circulated understands that addressing this issue is no mean feat. With the company’s reputation at stake, the task to identify and address this spurious supply can be exhaustive, time-consuming and complex. Counterfeiting can be considered a nightmare for any company, as it has … More On World Anti-Counterfeiting Day 2016 – counterattack counterfeiting
In our earlier blogpost, we discussed how trade-based money laundering (TBML) is emerging as the new hurdle on the anti-money laundering front, although financial institutions have striven to improve their overall anti-money laundering (AML) governance framework. Today, this issue is more than a local concern – it is a key global financial issue, which Governments, … More Trade-based money laundering – a macro view of the changing dynamics
The evolution of ‘money’ has progressed from exchanging cattle, to coins, cash and most recently crypto currency. But the question to be considered in this digital era is – can you completely discard traditional forms to work with just an all-electronic currency? Satoshi Nakamoto’s vision was that it is possible, and in 2008, he proposed … More Bitcoins – the future or the past?
The auto industry relies heavily upon its dealership community to amplify reach within the market. More often than not, it is the car dealer who is the face of the brand for the customer. These dealerships comprise third parties which operate as ‘middlemen’ and cater to the retail consumer base, based on a dealership contract … More Transformers: the need for the auto industry to administer effective scheme policing
Today, the global business environment is clamouring for enhanced transparency at a time of increased geopolitical tensions and heightened volatility in financial markets. The escalating threats of cybercrime, terrorist financing and, more recently, the revelations regarding widespread possible misuse of offshore jurisdictions, have increased pressure on Governments to act and companies to identify and mitigate … More Augmenting individual accountability could deter future fraud, bribery and corruption risks
Trade-based transactions have gained considerable flak over the years due to the complexities involved. Traditionally, trade finance has always been viewed as a high risk area, particularly related to fraud. This perception has transformed recently, and regulators and international bodies have increasingly started viewing trade finance as a ‘high risk’ area of business for money laundering, … More Trade-based money laundering – a growing dilemma for the banking industry
Bangladesh’s economic scorecard showcases significant growth as compared with other developing countries. The current Gross Domestic Product (GDP) of the country stands 6.9 percent and has been consistently above six percent over the last three years. This progress is backed by strong private investments, substantial export figures and large remittances in infrastructure and services sectors. … More Bangladesh: rife with corruption vs. ripe with opportunity
‘Discovery’ is a fact-finding process in litigation which occurs after a lawsuit is filed, to encourage exchange of information between both parties involved and help uncover the truth. Prior to the digital age, non-testimonial evidence primarily comprised paper documents, photographs and other physical evidence. With the prolific use of computers across industries, accepting digital evidence … More eDiscovery – the new frontier for evidence in India
Our last infographic on the transpiring corruption atmosphere within BRICS nations (Brazil, Russia, India, China and South Africa) highlighted how each of these regions stack up on Transparency International’s – Corruption Perception Index. It also highlighted the risk areas and regulatory measures that their standing could possibly be attributed to. In this post, we will take a more … More Powering through corruption in BRICS nations
Gender parity is a subject of much discussion in these times, with the World Economic Forum estimating that it will take about 117 years to achieve this feat globally, according to its Global Gender Gap Report 2015. On the occasion of International Women’s Day, we thought it ideal to evaluate the transition of the industry … More Preventing sexual harassment of women at work – an important factor on the path to gender parity
Countries everywhere are facing a grueling task of fighting corruption. BRICS nations, which are Brazil, Russia, India, China and South Africa are no different. As emerging economies, their approach to achieve high growth can be marred by endemic risks such as fraud, bribery, corruption and cybercrime. However, they need to leverage their strengths, seize opportunities as they focus on … More What lies beneath – a take on corruption in BRICS nations
*Gaurav, a finance manager in a multinational company, rose to attention one Monday morning as he received an email from *Shephali, the company’s chief financial officer (CFO). The email directed him to urgently make a payment of $10,476 toward an attached invoice to a Cyprus-based vendor. Gaurav instantly initiated the process, bypassing some of the … More Social media, cloud and phishing: Evolving trends in cybercrime
Privacy, a term that we seldom take enough cognizance of, is gradually changing form. In this technologically infused age, where virtual identities have now taken precedence in our personal and professional lives, the concept of data privacy has become inevitably important. The celebration of Data Privacy Day on 28 January each year that was initiated in … More Data Privacy Day – why it should matter to you…
In today’s digital world, there are rapidly expanding opportunities for innovation and growth. Unfortunately, these new opportunities have also brought new fraud risks in the forms of cybercrime and internal threat. Our Global Forensic Data Analytics Survey 2016, Shifting into high gear: mitigating risks and demonstrating returns, revealed that risks such as such as internal fraud, … More Cybercrime threats leading to increased investment in forensic data analytics
In this day and age, everyone is troubled by the menace of computer malware — unwanted and malicious software code that hacks computer systems, causing malfunction, data theft and loss of business. Typically, malware tends to rapidly spread to targeted and non-targeted individuals and businesses, making it one of the major threats in today’s digital … More Ransomware malware: a rising threat to businesses
Economic growth, regulatory reforms and enhanced investor confidence took the Indian business environment by storm in 2015. Companies steadily turned toward a more effective and ethical way to do business and attempted to tighten the noose on unethical practices. While there has been a gradual shift in mind-set as well as execution, companies need to … More A peek into India Inc.’s forensic outlook 2016
Growth and profitability have been at the crux of the corporate agenda and defined the way businesses function. Companies have nevertheless encountered challenges while trying to achieve these goals, which have inevitably required them to sometimes ‘work around the way of the land’. For instance, it is a common concern that in certain regions or … More Profitability or integrity? Why not both?
Would you randomly hand out the key to your home? Or maybe the user ID to your personal laptop or bank account? The answer is a definitive no. Then why do individuals not pay heed to maintaining the confidentiality of access credentials at their workplace? It is a well-known fact in this digital era that … More ‘Fraud buster’ series – Divulging the golden code
India has seen a spurt of corporate scams and cases of corporate espionage. This has resulted in an urgent need for a strong corporate compliance function. Bribery and corruption continue to pose significant challenges in India. The 2014 Transparency International Corruption Perceptions and Bribe Payers Indices (2011) rank India 85th (out of 174) and 19th (out … More India catching up on international trends on compliance
Sustainable profitability is vital in today’s highly competitive business environment. This factor has therefore prompted companies to devise strategies that are in sync with this aim. While profitability has essentially always been a focus, ensuring its existence for the long term is a goal which requires a heightened level of efficiency. This can only be … More Fraud: it is costing you!
The Indian pharmaceutical sector has seen immense flux in recent times in the form of stricter regulations, price control, contract manufacturing, mergers and acquisitions and foreign investments among others. Regulators around the globe, such as United States Food and Drug Administration (US FDA), the United Kingdom Medicines and Healthcare Products Regulatory Agency (UK MHRA), World … More Weathering the trials of quality and data integrity compliance in the Indian pharmaceutical sector
“Corruption affects the growth of a nation, reduces the Government’s income and creates inequalities in distribution of income and wealth. It is a major factor hindering development”, was the Indian Prime Minister’s stance on the ongoing ‘Vigilance Awareness Week’. He further went on to elaborate that corruption needs to be treated like a ‘disease’ and … More Prevention better than cure: the ‘Vigilance Awareness Week’ mantra
In our last segment of EYPerspecTV with Mr. Vinod Rai, former Chairman of United Nations Panel of External Auditors and 11th Comptroller and Auditor General (CAG) of India, we talked about how private companies in India could improve their corporate governance structures and ensure compliance in more than just substance. In the third and final segment of this series, Mr. … More EYPerspecTV – Interview with Vinod Rai (Part 3)
A brand is much more than an organisation. It is a perception that has thrived on ethics and earned the trust of the public. Building a successful and reputed brand requires much more than monetary investment. Companies have taken years to build brands and garnered the trust of customers through their untiring effort. Trust is … More Companies face battle on multiple fronts in defending brand value
The banking and financial services sector has weathered many storms since the global slowdown. But recent news around increasing stressed assets and instances of bribery and corruption has highlighted the risks faced by the sector in India. To understand its impact, our team conducted a survey to decode the reasons and challenges around the rising Non Performing … More Unmasking India’s NPA issues – can the banking sector overcome this phase?
Sparked by innovative ideas and led by entrepreneurial talent, the Indian start-up ecosystem has seen skyrocketing growth over the last few years. But every burgeoning business is faced with its own set of challenges. The Indian software products space has shown immense promise; but it has also become vulnerable to compliance related issues.
India has emerged as one of the most preferred destinations for investments and trade. Sectors such as infrastructure, real estate, e-commerce, and information technology have witnessed increased collaboration and entry of foreign investors. However, as per the World Bank report on Ease of doing business rankings, India is still ranked at just 142. In August, … More Proposed amendments in Arbitration Act for faster resolution of commercial disputes
Our business and social lives have become closely intertwined. With new platforms, applications and technologies being discovered almost on a daily basis, social networks are being embraced rapidly by individuals and corporations. While some companies use internet for businesses (e-commerce), others use social media channels as part of their branding strategies to build a resolute … More Social media presents inevitable risks – how safe are you?
In our last segment of EYPerspecTV with Mr. Vinod Rai, former Chairman of United Nations Panel of External Auditors and 11th Comptroller and Auditor General (CAG) of India, we discussed the new Companies Act 2013 and debated on the role of whistle-blowing in India. In the second segment of this three part series, Mr. Rai gives guidance to private … More EYPerspecTV – Interview with Vinod Rai (Part 2)
Being the Chief Executive Officer of a disruptive business venture sounds thrilling and exciting, more so when you are below 30 years of age. It is then not surprising to see young and dynamic individuals at the helm of businesses, raring to take the world by storm
In our first segment of EYPerspecTV, Mr. Vinod Rai, former Chairman of United Nations Panel of External Auditors and 11th Comptroller and Auditor General (CAG) of India shares his thoughts on various topics impacting today’s business environment. The first of the three part series of videos, Mr. Rai discusses his views on compliance and whistle-blowing with us.
One of the key aspects discussed in the earlier blogpost, ‘Fraud buster’ series – Dealing with employee frauds, was that organizations can address employee frauds through job rotation and mandatory vacation policies, along with other internal controls. Taking a cue from that, it may be practical to consider the tenure of an individual in a certain … More ‘Fraud buster’ series – Can job rotation help diminish fraud risks?
In July 2001, Counterpane Internet Security, a new start-up firm released their free monthly newsletter covering various topics related to computer security and cryptography. The primary focus of that edition was “Monitoring First” and the articles laid emphasis on the need to monitor networks and systems before anything else. It recommended that companies need to … More Strengthening network security through proactive monitoring
Businesses are operating in a challenging environment today and management is under increased pressure to find new ways to grow ventures and augment revenues. It may not be uncommon to see that individuals take unnecessary risks and resort to fast track means in order to accelerate growth.
India has been at the centre of conversations across the globe, and the new Government seems to have brought in a noticeable change in terms of regulatory dynamics. In the quest to truly redefine India’s appeal factor and make it an attractive investment destination, the Government has been treading a path of reform. The objective … More Confronting corruption – the changing dynamics
The dependency on third parties to enable easy functioning of business is immense. Companies engage the services of various third parties for multiple reasons – it could vary from getting a factory license, securing permission to even obtaining contracts. But the risks associated with such sub-contracting are not given enough importance.
Our last post on ‘Fraud buster series – Dealing with employee frauds’ covered some of the reasons for employees to be involved in fraudulent activities. In continuation with the same theme, the focus will now be on how companies are increasingly getting exposed to such fraud risks. If you think that an employee is a … More ‘Fraud buster’ series – Managing the complexities of employee frauds
With fraud, waste and abuse becoming common issues in capital projects, organizations are now re-examining and sequencing their plans to mitigate these threats. They are contemplating various methodic approaches to address risk areas individually through various combinations of advanced technologies.
In today’s day and age, fraudsters’ methods have become sophisticated. They are able to influence other individuals into supporting, executing or ignoring these dubious activities or transactions. There have been cases where fraudsters deposit a large amount of funds into different accounts in the names of their relatives, friends, employees, etc. This money is then … More Unravelling the money trail through Asset tracing