We come across this statement or the like in everyday news. A great slogan used by business professionals and politicians, equally. Yet, how easy is it to prevent corruption and embezzlement? How feasible is enforcing laws and regulations when corruption occurs? Is implementing prevention measures to deter corrupt acts and illicit practises easier than enforcing laws after corruption had occurred?
It has been argued that enforcement of corruption laws after the corruption act has taken place is far easier than corruption prevention. Enforcement is understood to be easily quantified. For instance, if a fraudulent person siphoned an entity`s funds away from the originally intended purpose, the effect of such act can be quantified and the fraudulent person can be arbitrated accordingly.
Fraud prevention, however, is a more complicated process. How many scenarios should an entity consider to ensure adherence to a zero tolerance fraud risk policy?
Quantifying the extent to which a corporate policy would go to prevent fraud no matter the degree of innovation and effort put to refine such policies could be limitless. Thus, any fraud prevention agenda should be inclusive of Integrity Due Diligence (IDD) checks. IDD can be viewed as a tool to apply scrutiny and in-depth investigations to identify, verify and better know your client, supplier, business partner or even employment candidates. It not only helps uncover the reported involvement of a Subject or its Principals in a pre-agreed set of specific issues including bribery and corruption, but also helps tracing Ultimate Beneficial Owners (UBOs). IDD will proactively help you in assessing your business risks at early stages.
At Cedar Rose, we offer various IDD services. Our clients have always been drawn to our comprehensive coverage, information reliability, quick delivery times as well as the source and intelligence evaluation through our internally developed 4x4 Grading System. Our IDD services are available via our website and through Application Programming Interface (API). The scalability of our services is attainable thanks to our large team of competent local language researchers, analysts and investigators who are experienced in handling large volumes of IDD cases.
Corruption remains deadly if precautionary measures are not taken. With Cedar Rose, preventive action is made more reachable.
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Written By Lamia Massaad, Head of Due Diligence
Sourced Image: Pixabay
*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***