4.Create Awarness of Ethical Issues regarding Financial Risk
The most frequently occurring ethical violations in finance relate to insider trading, stakeholder interest versus stockholder interest, investment management, and campaign financing.
Scam
Bribery( Anti-bribery rules and procedures)
Money Laundry
Protect yourself
Be alert to the fact that scams exist.
Know who you're dealing with.
Do not open suspicious texts, pop-up windows or click on links or attachments in emails – delete them.
Don't respond to phone calls about your computer asking for remote access – hang up.
Keep your mobile devices and computers secure.
Beware of any requests for your details or money.
How to spot a fake
Proportionate Procedures
Procedures for preventing bribery should be in place which are proportionate to the size of the company
Clues for spotting a fake document.
A whistleblowing helpline – this should be available to all employees and they should be encouraged to use it if need be.
Receipts being demanded for all payments made.
Not accepting cash payments
Pooling gifts.
Clues for spotting a fake email
Staff, agents, and contractors being given training on anti-bribery measures and procedures.
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a fake dating profile
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Where to get help
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Contact people you know
Contact your financial institution
Recover your stolen identity
Report scams to the authorities
Get help from Australian agencies
Report scams to Facebook services
Change your online passwords
- Holding Period
- Criminalization
Many governments, financial institutions, and businesses impose controls to prevent money laundering. The first is criminalization by the government. The United Nations Convention Against Transnational Organized Crime has set forth guidelines that help governments to prosecute individuals involved in money laundering schemes.
- Know Your Customers
Financial institutions must also have “know your customer” policies in place to help prevent money laundering. This involves monitoring the activity of clients and understanding the types of transactions that should raise red flags. Financial institutions are required to report suspicious activity to a financial investigation unit.
- Record Management and Software Filtering
- New Technology
Definition- illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.
Financial institutions and businesses also keep detailed records of transactions and implement software that can flag suspicious activity. Customer data can be classified based on varying levels of suspicion, and transactions denied if they meet certain criteria.
Many banks require deposits to remain in an account for a designated number of days (usually around five). This holding period helps manage risk associated with money being moved through banks to launder money.
The technology used to identify suspicious activity linked to money laundering continues to evolve and become more accurate. Technologies, such as AI and Big Data software, allow these systems to become more sophisticated.