The damage and inefficiency caused by corruption, in either financial or social terms, should not be underestimated. The World Bank has estimated that more that US$ 1 Trillion is paid in bribes annually. See World Bank, “The Costs of Corruption” (8 April 2004). An Ernst & Young survey of executives indicated that almost half of [...]
Archive | November, 2008
UK’s Law Commission on Reforming Bribery
The United Kingdom’s Law Commission has published its recommendations in a new report on reforming the bribery laws in the United Kingdom. The LC Report 313 on reforming bribery (.pdf) states: Bribery has been contrary to the law at least since Magna Carta declared, “We will sell to no man…either justice or right”. Most people [...]
Top Ten Ways to Prevent Employee Theft
From Tracy Coenen of the Fraud Files Blog, Top Ten Ways to Prevent Employee Theft: 1. Education . If employees are aware of fraud and how it happens, they will be your best on-the-job sleuths. 2. Surprise Audits . . . 3. Hotlines . A mechanism for anonymous reporting of fraud encourages employees to look [...]
Fraud Detected More Often At Bankrupt Companies
Bankrupt companies are three times more likely to have been cited for fraud by U.S. regulators, according to a study released on Monday from Deloitte Financial Advisory Services LLP. The study also showed that fraud incidents were much more likely to land a company in bankruptcy court. Sheila Smith, head of reorganization services at Deloitte [...]
Famous Financial Felons
AOL’s Money and Finance Section put together a slideshow of 18 famous financial criminals, with their crimes and what they are doing now: Financial Felons: Where Are They Now?
Effective Date for FINSA and CFIUS Regulations
The final regulations were published in the Federal Register on November 21 and will become effective on December 22, 2008.
Implementation of Foreign Investment and National Security Act
Davis Polk & Wardwell attorneys Margaret M. Ayres and Jeanine P. McGuinness prepared a memorandum entitled FINSA Final Regulations (.pdf) discussing the final regulations issued by the U.S. Department of the Treasury to implement the Foreign Investment and National Security Act of 2007. That law amended the 1988 “Exon-Florio” statute and made significant changes to [...]
Leading Corporate Integrity: Defining the Role of the Chief Ethics and Compliance Officer
Fellows of the Ethics Resource Center, Business Roundtable Institute for Corporate Ethics, the Ethics and Compliance Officer Association, the Open Compliance and Ethics Group (OCEG), and the Society of Corporate Compliance & Ethics put together Leading Corporate Integrity: Defining the Role of the Chief Ethics and Compliance Officer (pdf). Senior corporate executives are under great [...]
Specially Designated Nationals and Blocked Persons List Updated
Here are the new bad guys on the OFAC’s Specially Designated Nationals list: AW-MOHAMED, Ahmed Abdi (a.k.a. ABUZUBAIR, Muktar Abdulrahim; a.k.a. AW MOHAMMED, Ahmed Abdi; a.k.a. “ABU ZUBEYR”; a.k.a. “GODANE”; a.k.a. “GODANI”; a.k.a. “SHAYKH MUKHTAR”); DOB 10 Jul 1977; POB Hargeysa, Somalia; nationality Somalia (individual) [SDGT] EL HABHAB, Redouane (a.k.a. “ABDELRAHMAN”), Iltisstrasse 58, Kiel 24143, [...]
Violation Reporting under the Federal Acquisition Regulations
Government contractors have new reporting requirements under the Federal Acquisition Regulations. Beginning December 12, 2008, contractors and subcontractors performing federal contracts—irrespective of monetary value or duration—will be legally obligated to disclose to the relevant federal agency’s Office of Inspector General credible evidence of federal criminal law violations involving fraud, conflict of interest, bribery or gratuities; [...]
