Categorie: Financial Crime Risk Management

The COVID-19 Pandemic still continues to grow with increased impact on the Dutch economy triggering business continuity and crisis management responses across organizations of all sectors and sizes. At the same time, the financial services industry faces new unique threats from fraud perpetrators and continued expectations from regulators that Anti-Money Laundering (AML) Investigations and Compliance services must be maintained despite the disruption to business-as-usual. Praetor Forensic Auditing provides the services required to help private and public organizations identity the nature and extent of financial crime and deliver appropriate remedies: Fraud Risk Assessment, Fraud Risk Management, Fraud Investigations, Compliance Assistance, Integrity Due Diligence, Forensic Business Intelligence, Litigation, Negotiation, Reputation Management, Forensic Technology and Discovery Services and Legal Department Operations.

Financial Crime Risk Management (FCRM) in private and public organizations has undergone big changes due to paradigm shifts in business dynamics, emerging threats, regulatory climate and technological advancements. However, in the last few months, the world has been experiencing something unprecedented that has made all other changes somewhat secondary: The Coronavirus (COVID-19). This once-in-a-lifetime phenomenon will change the face of Financial Crime Risk Management (FCRM), compliance and sanctions forever. In this article, I will examine the far-reaching impacts of COVID-19 on financial crime and how private and public organizations can address them.

Email fraud (“Phishing”) involves fraud perpetrators making contact by email and can take a number of forms. The email may appear to be from a reputable company however when one clicks on the email or attachment or link within the email, malicious software (malware) is downloaded onto the PC or other device allowing the fraud perpetrator to track online activity and identify personal or financial information for fraudulent purposes. Both individuals and companies can be victims of this type of crime.

Telephone fraud involves criminals contacting you by phone (vishing) or by text (Smishing) pretending to be your bank, credit card issuer, utility company or often a computer company. During the conversation they will try and trick you into giving personal, banking or security information. Fraud perpetrators may also convince you to make a money transfer to them or inform you that you have won a prize and need to send money to release it. Their intention is to use this information to commit fraud against you or other parties in your name.

Business Email Compromise (BEC) Fraud (or CEO Fraud) is similar to Invoice Redirection Fraud however in this case junior employees in the finance department of a company receive an email from a fraud perpetrator purporting to be the Chief Executive Officer stating that an important deal or some other urgent matter is pending and that a substantial payment needs to be processed immediately.

Invoice Redirection fraud (or Mandate Fraud) occurs when your company receives a request to change a direct debit, standing order or bank transfer mandate, from someone purporting to be from another organisation to which regular payments are made, for example a business supplier. It generally takes place when a criminal impersonates your company and deceives the customer into making payment of the company’s genuine invoices to a fraudulent third party account instead.

Van Leeuwen Forensic Auditing provides holistic services related to customer due diligence, sanctions screening, and transaction monitoring technology solutions at a variety of financial institutions- from global, industry-leading banks- to small, regionally focused institutions.

Corruption and Bribery have serious consequences for companies operating in an international business environment. In such an environment, businesses are operating under serious pressure, competition is stiff and margins are tight. This, in conjunction with trying to adapt to unfamiliar legal systems, conventions and specific political circumstances, can make doing business in an international environment very difficult. There is therefore much depending on whether your company can win a contract, obtain a licence or market a product in good time.