Economic crime is impacting all aspects of society – citizens, governments and businesses. Fraud, money laundering, bribery and corruption and terrorist financing expose the most vulnerable in society to exploitation by organised criminal gangs, through crimes such as people trafficking, modern slavery, and child sexual exploitation.
Whilst the public and private sectors have invested heavily to combat the threat, with many high-profile successes, tackling criminal activity continues to be a challenge for the ‘system’ – government, law enforcement, regulators, corporates and financial institutions – as organised gangs operate with a level of speed and sophistication which is difficult to counter.
Delivering a step-change requires a coordinated ‘whole system’ response. Deloitte works across the system to enhance its ability to Prevent economic crime, Disrupt sophisticated corporate frauds and the flows of illicit finance which underpin the activity of organised crime groups, and Illuminate the complex networks of criminality.
Government and law enforcement need to work closely together with each other, and with the private sector, to deliver effective policies and solutions. Solutions that make best use of data, technology and international collaboration. This is where we can help.
Economic crime has risen sharply up the political agenda in recent years. Press interest in money laundering, partly fuelled by major data leaks such as the Panama Papers, has never been higher, and cases of fraud have rocketed to the point where it is the number one crime by volume. There is real pressure on the government in general, and law enforcement in particular, to make a step-change in its response.
Historically, public and private sectors have largely tackled the threat of economic crime independently. Although there have been some excellent examples of partnership working, strategic system-wide collaboration has been absent. However, only by working collectively – operating as a single, coordinated system - can we effectively fight economic crime.
The publication of the Government’s Economic Crime Plan in July 2019 has come as a timely and valuable platform from which to initiate such a joined-up approach. A springboard for a much-needed radical rethink about how we tackle the threat.
Ethical misconduct and crimes such as fraud, money laundering, sanctions, bribery and corruption can have devastating consequences on society. We help financial institutions protect, monitor and respond against the threats of economic crime.
In the wake of past scrutiny and enforcement action, regulators’ expectations regarding firms’ anti-financial crime controls are on the rise. There has never been a greater need for management to demonstrate effective, risk-based anti-financial crime systems and controls.
The financial services industry invests huge amounts of resources to tackle financial crime, however the scale and impact of the problem are immense, with criminals continually evolving their capabilities to exploit the existing anti-money laundering (AML) framework.
There is growing consensus that the current global framework for fighting financial crime is not as effective as it could be. More needs to be done at the international, regional and national levels to help identify and stem the flow of illicit finance. Long term systemic reform will require a combination of regulatory reform, international cooperation and an increasingly intelligence-led approach.
Corporates have a key role in the prevention of economic crime, for example through fraud prevention and helping to prevent trade based money laundering. We help corporates build a risk and control framework that helps combat the everyday struggle to tackle economic crime.
The threat of economic crime impacting the corporate sector continues to rise, bringing with it heightened scrutiny from policymakers, regulators and the public and an increased expectation that executives will take action.
Fraud is a significant and growing risk. The COVID-19 pandemic increased financial pressures and disrupted operating models and processes, whilst technology and digitisation are facilitating sophisticated techniques. Bribery and corruption, and sanctions violations continue to arise as organisations operate across extended, global networks of suppliers and customers.
Deloitte understands these threats facing our clients, and the legislative and regulatory frameworks in which they operate. We have a breadth of expertise from risk management, fraud investigations and asset recovery, to data and analytical capabilities to help organisations protect, monitor and respond to the risk of economic crime.
The corporate sector needs to join forces with the public sector in a whole system response – to share skills and expertise, data and intelligence – Deloitte are working across sectors and with government to help drive this collaboration and help shape the role corporates can play in the wider “eco-system”.