Understanding BS7858 Standard

The British Standards Institution (BSI) has recently revised the British Standard for Security Screening of Security Personnel (BS7858:2004). The new code of practice BS7858:2019 came into effect at the end of September 2020, substituting the revoked BS7858:2012 revised standard, which was rescinded on the 31st  March 2020. The BS7858 standard has become progressively more crucial when it comes to the protection of individuals, goods & services, estate, and personal data. The BS7858 safeguards such elements by guaranteeing that the veracity of the person authorised to access such sensitive data is certified and retains as such.

There is a lot of misrepresentation circulating regarding the changes to BS7858 Standard which CRI Group, as the only company in the Middle East and Asian region with an implemented BS 7858:2019 standard and BS 102000:2018 code of practice for investigative services and ISO27001 (Information Security Management System) certification, want to help clean up.

Why is BS7858 so important? 

It is no secret that confidence is key when it comes to the mass of decision ruling. Instilling confidence in its personnel is critical for all organisations and their triumph, particularly when said personnel oversees susceptible individuals, valuable resources or data protection. Organisations have to be able to guarantee that their security personnel have been subordinate to the best meticulous screening process. This ensures pleased clients, as well as pleased personnel as the foundation to a fortunate and reliable organisation, begins from within. The BS7585 aids organisations to avoid scandals such as:

The revised BS7858 has been made clear that the responsibility and accountability for the security and effectiveness of the vetting process rest with the organisation itself and leading management. The BS7858:2019 connects with the move we have seen worldwide to corporate social responsibility and compliance and follows that trend. Other occurrences of the movement consist of instances such as the GDPR (April 2016) and the FCA (Dec 2020) which both expect leading management to be practical in their approach to compliance.

As a significant volume of data requires authentication in a screening process, several organisations may find executing an employee screening and vetting process to be highly complex. Additionally, the degree of evaluation of the applicant’s provisional data must be carried out effectively as well as promptly and include specific checks, such as credit checks or checks against the Financial Services Register.

BSI brought the BS7858 Standard to 2021 with the inclusion of:

Right to Work checks in line with Disclosure and Barring Service (DBS) identity requirements:

In antithesis to common acceptance, the BS7858-compliant vetting checks do not need to include DBS checks. This is due to the fact that the Security Industry Authority (SIA) oversees these criminal record checks as part of an individual’s registration process. Nevertheless, they do continue to be a measure of best practice, and the revised Standard firmly contends in its favour. See 7.3.2 (c) and 7.7. (j) in the 7858 Standard. Organisations can also refer to the SIA’s ‘Get Licensed’ handbook which asserts that when an operative is in connection with children or susceptible adults, the Standard or an alternate heightened degree of admission should be deemed essential.

Global watchlist checks during the application process

7.4 (c) of the BS7858 Standard comprises the compulsory requirement to examine a variety of international watchlists, sanctions and fraud databases. Hitherto to this, the Standard simply asked the examining of the HMG sanctions list. 

Social media checks as an advised best practice for pre-and post-employment

Personnel social media posts could generate problems for organisations that are operational in protected and regulated conditions; BSI has updated the BS7858 Standard to consider this matter. The BS7858:2019 Standard urges organisations to complete social media screening pre and post-employment.

Searching for supplementary data utilizing best practice social media and additional open-source internet checks can support your organisation with superior perceptions and decrease your employee risk.

For extra assistance on social media and further knowledge on the perils of social media within your organisation, please see our article and free playbook on “Risks of Cybercrime & Social Media“. A complete Guide on How to Protect Your Organisation and Team!

Other significant changes of the BS7858 Standard:

  • Removal of character references
  • Approval to passing on pre-employment screening records from vocation to vocation.
  • Conditional Offer: Formerly, there were two steps an employer was obliged to follow before making an offer of conditional employment; fulfilling the stipulated preliminary checks and adequately fulfilling limited screening on the subject. The new standard initiated the third element on top of the other two conditions – to commence a risk review and confirm that “the degree of risk in the envisioned employment has been evaluated and is deemed to be acceptable and documented” and consequently, the organisation is happy to extend the offer based on their evaluation and the candidate’s risk profile.
  • Preservation of candidates’ background screening records during their employment. Ineffective applicants records can be retained for 12 months while for ex-employees, particular records can be kept for an additional seven years after the employment ended.
  • All groups involved in carrying out BS7858 vetting should be prepared for envisioned obligations.

It is clear to see that the BS7858 standard is crucial for employment in not only the security region but each region of employment; pre-employment screening expending the updated BS7858 standards promises that each member of the public, from manual labourers to office workers, can maintain life in a safe environment.

If the new standard still feels a little daunting to you, why not consider booking a free 30-minute consultation with one of our experts here at CRI Group? Our specialists have years of experience and are qualified to offer your organisation personalised guidance to fit your professional requirements. Don’t hesitate, get in touch today and stay on ahead of the vetting rules and regulations.

Get in Touch

Author bio

Zafar I. Anjum, is Group CEO of CRI Group (www.crigroup.com), a global supplier of investigative, forensic accounting, integrity due diligence and employee background screening services for some of the world’s leading business organisations. Headquartered in London, with offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China and USA, CRI is licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center-QFC, and the Abu Dhabi Global Market-ADGM.

Contact Details

Zafar Anjum, MSc, MS, LLM, CFE, CII, MABI, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC)
CRI Group Chief Executive Officer
37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA, United Kingdom
t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

 

More on BS 7858 and employment background screening…

 

The British Standards Institution (BSI) has recently revised the British Standard for Security Screening of Security Personnel (BS7858:2004). The new code of practice BS7858:2019 came into effect at the end of September 2020, substituting the revoked BS7858:2012 revised standard, which was rescinded on the 31st  March 2020. The BS7858 standard has become progressively more crucial when it comes to the protection of individuals, goods & services, estate, and personal data. The BS7858 safeguards such elements by guaranteeing that the veracity of the person authorised to access such sensitive data is certified and retains as such.

There is a lot of misrepresentation circulating regarding the changes to BS7858 Standard which CRI Group, as the only company in the Middle East and Asian region with an implemented BS 7858:2019 standard and BS 102000:2018 code of practice for investigative services and ISO27001 (Information Security Management System) certification, want to help clean up.

Why is BS7858 so important? 

It is no secret that confidence is key when it comes to the mass of decision ruling. Instilling confidence in its personnel is critical for all organisations and their triumph, particularly when said personnel oversees susceptible individuals, valuable resources or data protection. Organisations have to be able to guarantee that their security personnel have been subordinate to the best meticulous screening process. This ensures pleased clients, as well as pleased personnel as the foundation to a fortunate and reliable organisation, begins from within. The BS7585 aids organisations to avoid scandals such as:

The revised BS7858 has been made clear that the responsibility and accountability for the security and effectiveness of the vetting process rest with the organisation itself and leading management. The BS7858:2019 connects with the move we have seen worldwide to corporate social responsibility and compliance and follows that trend. Other occurrences of the movement consist of instances such as the GDPR (April 2016) and the FCA (Dec 2020) which both expect leading management to be practical in their approach to compliance.

As a significant volume of data requires authentication in a screening process, several organisations may find executing an employee screening and vetting process to be highly complex. Additionally, the degree of evaluation of the applicant’s provisional data must be carried out effectively as well as promptly and include specific checks, such as credit checks or checks against the Financial Services Register.

BSI brought the BS7858 Standard to 2021 with the inclusion of:

Right to Work checks in line with Disclosure and Barring Service (DBS) identity requirements:

In antithesis to common acceptance, the BS7858-compliant vetting checks do not need to include DBS checks. This is due to the fact that the Security Industry Authority (SIA) oversees these criminal record checks as part of an individual’s registration process. Nevertheless, they do continue to be a measure of best practice, and the revised Standard firmly contends in its favour. See 7.3.2 (c) and 7.7. (j) in the 7858 Standard. Organisations can also refer to the SIA’s ‘Get Licensed’ handbook which asserts that when an operative is in connection with children or susceptible adults, the Standard or an alternate heightened degree of admission should be deemed essential.

Global watchlist checks during the application process

7.4 (c) of the BS7858 Standard comprises the compulsory requirement to examine a variety of international watchlists, sanctions and fraud databases. Hitherto to this, the Standard simply asked the examining of the HMG sanctions list. 

Social media checks as an advised best practice for pre-and post-employment

Personnel social media posts could generate problems for organisations that are operational in protected and regulated conditions; BSI has updated the BS7858 Standard to consider this matter. The BS7858:2019 Standard urges organisations to complete social media screening pre and post-employment.

Searching for supplementary data utilizing best practice social media and additional open-source internet checks can support your organisation with superior perceptions and decrease your employee risk.

For extra assistance on social media and further knowledge on the perils of social media within your organisation, please see our article and free playbook on “Risks of Cybercrime & Social Media“. A complete Guide on How to Protect Your Organisation and Team!

Other significant changes of the BS7858 Standard:

  • Removal of character references
  • Approval to passing on pre-employment screening records from vocation to vocation.
  • Conditional Offer: Formerly, there were two steps an employer was obliged to follow before making an offer of conditional employment; fulfilling the stipulated preliminary checks and adequately fulfilling limited screening on the subject. The new standard initiated the third element on top of the other two conditions – to commence a risk review and confirm that “the degree of risk in the envisioned employment has been evaluated and is deemed to be acceptable and documented” and consequently, the organisation is happy to extend the offer based on their evaluation and the candidate’s risk profile.
  • Preservation of candidates’ background screening records during their employment. Ineffective applicants records can be retained for 12 months while for ex-employees, particular records can be kept for an additional seven years after the employment ended.
  • All groups involved in carrying out BS7858 vetting should be prepared for envisioned obligations.

It is clear to see that the BS7858 standard is crucial for employment in not only the security region but each region of employment; pre-employment screening expending the updated BS7858 standards promises that each member of the public, from manual labourers to office workers, can maintain life in a safe environment.

If the new standard still feels a little daunting to you, why not consider booking a free 30-minute consultation with one of our experts here at CRI Group? Our specialists have years of experience and are qualified to offer your organisation personalised guidance to fit your professional requirements. Don’t hesitate, get in touch today and stay on ahead of the vetting rules and regulations.

Get in Touch

Author bio

Zafar I. Anjum, is Group CEO of CRI Group (www.crigroup.com), a global supplier of investigative, forensic accounting, integrity due diligence and employee background screening services for some of the world’s leading business organisations. Headquartered in London, with offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China and USA, CRI is licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center-QFC, and the Abu Dhabi Global Market-ADGM.

Contact Details

Zafar Anjum, MSc, MS, LLM, CFE, CII, MABI, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC)
CRI Group Chief Executive Officer
37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA, United Kingdom
t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

 

More on BS 7858 and employment background screening…

 

The British Standards Institution (BSI) has recently revised the British Standard for Security Screening of Security Personnel (BS7858:2004). The new code of practice BS7858:2019 came into effect at the end of September 2020, substituting the revoked BS7858:2012 revised standard, which was rescinded on the 31st  March 2020. The BS7858 standard has become progressively more crucial when it comes to the protection of individuals, goods & services, estate, and personal data. The BS7858 safeguards such elements by guaranteeing that the veracity of the person authorised to access such sensitive data is certified and retains as such.

There is a lot of misrepresentation circulating regarding the changes to BS7858 Standard which CRI Group, as the only company in the Middle East and Asian region with an implemented BS 7858:2019 standard and BS 102000:2018 code of practice for investigative services and ISO27001 (Information Security Management System) certification, want to help clean up.

Why is BS7858 so important? 

It is no secret that confidence is key when it comes to the mass of decision ruling. Instilling confidence in its personnel is critical for all organisations and their triumph, particularly when said personnel oversees susceptible individuals, valuable resources or data protection. Organisations have to be able to guarantee that their security personnel have been subordinate to the best meticulous screening process. This ensures pleased clients, as well as pleased personnel as the foundation to a fortunate and reliable organisation, begins from within. The BS7585 aids organisations to avoid scandals such as:

The revised BS7858 has been made clear that the responsibility and accountability for the security and effectiveness of the vetting process rest with the organisation itself and leading management. The BS7858:2019 connects with the move we have seen worldwide to corporate social responsibility and compliance and follows that trend. Other occurrences of the movement consist of instances such as the GDPR (April 2016) and the FCA (Dec 2020) which both expect leading management to be practical in their approach to compliance.

As a significant volume of data requires authentication in a screening process, several organisations may find executing an employee screening and vetting process to be highly complex. Additionally, the degree of evaluation of the applicant’s provisional data must be carried out effectively as well as promptly and include specific checks, such as credit checks or checks against the Financial Services Register.

BSI brought the BS7858 Standard to 2021 with the inclusion of:

Right to Work checks in line with Disclosure and Barring Service (DBS) identity requirements:

In antithesis to common acceptance, the BS7858-compliant vetting checks do not need to include DBS checks. This is due to the fact that the Security Industry Authority (SIA) oversees these criminal record checks as part of an individual’s registration process. Nevertheless, they do continue to be a measure of best practice, and the revised Standard firmly contends in its favour. See 7.3.2 (c) and 7.7. (j) in the 7858 Standard. Organisations can also refer to the SIA’s ‘Get Licensed’ handbook which asserts that when an operative is in connection with children or susceptible adults, the Standard or an alternate heightened degree of admission should be deemed essential.

Global watchlist checks during the application process

7.4 (c) of the BS7858 Standard comprises the compulsory requirement to examine a variety of international watchlists, sanctions and fraud databases. Hitherto to this, the Standard simply asked the examining of the HMG sanctions list. 

Social media checks as an advised best practice for pre-and post-employment

Personnel social media posts could generate problems for organisations that are operational in protected and regulated conditions; BSI has updated the BS7858 Standard to consider this matter. The BS7858:2019 Standard urges organisations to complete social media screening pre and post-employment.

Searching for supplementary data utilizing best practice social media and additional open-source internet checks can support your organisation with superior perceptions and decrease your employee risk.

For extra assistance on social media and further knowledge on the perils of social media within your organisation, please see our article and free playbook on “Risks of Cybercrime & Social Media“. A complete Guide on How to Protect Your Organisation and Team!

Other significant changes of the BS7858 Standard:

  • Removal of character references
  • Approval to passing on pre-employment screening records from vocation to vocation.
  • Conditional Offer: Formerly, there were two steps an employer was obliged to follow before making an offer of conditional employment; fulfilling the stipulated preliminary checks and adequately fulfilling limited screening on the subject. The new standard initiated the third element on top of the other two conditions – to commence a risk review and confirm that “the degree of risk in the envisioned employment has been evaluated and is deemed to be acceptable and documented” and consequently, the organisation is happy to extend the offer based on their evaluation and the candidate’s risk profile.
  • Preservation of candidates’ background screening records during their employment. Ineffective applicants records can be retained for 12 months while for ex-employees, particular records can be kept for an additional seven years after the employment ended.
  • All groups involved in carrying out BS7858 vetting should be prepared for envisioned obligations.

It is clear to see that the BS7858 standard is crucial for employment in not only the security region but each region of employment; pre-employment screening expending the updated BS7858 standards promises that each member of the public, from manual labourers to office workers, can maintain life in a safe environment.

If the new standard still feels a little daunting to you, why not consider booking a free 30-minute consultation with one of our experts here at CRI Group? Our specialists have years of experience and are qualified to offer your organisation personalised guidance to fit your professional requirements. Don’t hesitate, get in touch today and stay on ahead of the vetting rules and regulations.

Get in Touch

Author bio

Zafar I. Anjum, is Group CEO of CRI Group (www.crigroup.com), a global supplier of investigative, forensic accounting, integrity due diligence and employee background screening services for some of the world’s leading business organisations. Headquartered in London, with offices in UAE, Pakistan, Qatar, Singapore, Malaysia, Brazil, China and USA, CRI is licensed by the Dubai International Financial Centre-DIFC, the Qatar Financial Center-QFC, and the Abu Dhabi Global Market-ADGM.

Contact Details

Zafar Anjum, MSc, MS, LLM, CFE, CII, MABI, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC)
CRI Group Chief Executive Officer
37th Floor, 1 Canada Square, Canary Wharf, London, E14 5AA, United Kingdom
t: +44 207 8681415 | m: +44 7588 454959 | e: zanjum@crigroup.com

 

More on BS 7858 and employment background screening…

 

Common Fraud in the Pharmaceutical Industry reported by whistleblowers

Pharmaceutical Fraud

Pharmaceutical fraud involves activities that result in false claims to insurers or programs such as Medicare in the US or equivalent state programs for financial gain to a pharmaceutical company. Several different schemes are used to defraud the health care system, which is particular to the pharmaceutical industry. These include:

  • Good Manufacturing Practice (GMP) Violations,
  • Off Label Marketing,
  • Best Price Fraud,
  • CME Fraud,
  • Medicaid Price Reporting, and
  • Manufactured Compound Drugs.

The pharmaceutical industry is regularly found to be engaging in fraud of many types, and it appears as though each year, the number of pharmaceutical fraud is on the rise. Each year big pharma giants end up spending billions of dollars in paying for fraud, misrepresentation of data and other such corruption allegations levelled out against them. In the last years, global pharma giants have paid fines to the tune of $11 billion for criminal wrongdoing, including withholding safety data and promoting drugs for use, beyond any licensed condition; GlaxoSmithKline paid a $3 billion settlement, Pfizer $2.3 billion settlement, and Merck $650 million settlement. Damages from fraud can be recovered using the False Claims Act, most commonly under the qui tam provisions, which rewards an individual for being a “whistleblower” or relator (law).

July of 2021 saw Bolton pharmacist David “Jason” Rutland pleading guilty to conspiracy to solicit and pay kickbacks and bribes in a $182.5m fraud case in which Rutland himself pocketed $13.3m. This conspiracy is noted as the state’s largest health care/pharmaceutical fraud to date. It is estimated that more than $515 million in fraudulent prescription billings were made to TRICARE, Medicare, Medicaid, and private health care benefit providers in Mississippi.

In the US, whistleblowers are uniquely positioned to report this fraud to the government under the False Claims Act.

Common Fraud in the Pharmaceutical Industry Includes:

  • Unlawful Kickbacks
  • Clinical trials manipulation/fraud against the Food and Drug Administration (FDA)
  • Off-label marketing/Food Drug and Cosmetic Act (FDCA) violation
  • Failure to comply with Current Good Manufacturing Practices (CGMP) requirements
  • Compounded drug fraud
  • Illegal drug-switching
  • Misuse of the 340B drug discount program
  • Medicaid best price fraud
  • Medicare Part D Fraud
  • Fraud by Pharmacy Benefit Managers (PBMs)

Understanding the most common types of pharmaceutical industry fraud reported by whistleblowers

Unlawful Kickbacks

The pharmaceutical industry influences doctors’ prescribing habits, especially in the US. Drug manufacturers and distributors may pay unlawful kickbacks to physicians or others in the form of sham “consulting fees,” luxury vacations, and expensive meals in exchange for increased prescriptions of the company’s drugs.

Clinical trials manipulation/fraud against the Food and Drug Administration (FDA)

Drug manufacturers must obtain FDA approval before marketing a new drug. The FDA approves new drugs proven safe, effective, and properly labelled following extensive preclinical and clinical testing and analysis, which results in a wealth of data regarding the drug’s safety, efficacy, pharmacology and toxicology. The FDA relies on the accuracy of the data that drug manufacturers submit in New Drug Applications (NDAs). Pharmaceutical companies that make false statements to the FDA, omit relevant data in NDAs, or otherwise misrepresent the safety or efficacy of drugs in clinical trials can be subject to False Claims Act (FCA) liability. The same is true of drug companies that pay researchers to falsify clinical trial data.

Off-label marketing/Food Drug and Cosmetic Act (FDCA) violation

Pharmaceutical companies may not promote their drugs for uses, doses, or populations not specifically approved by the FDA as safe and effective. Such “off-label” marketing and promotion violates the FCA. This could include, for example, if a drug is approved for use in treating severe psychiatric disorders, and the drug company’s sales representatives promote it for widespread use in calming elderly patients in nursing homes.

Failure to comply with Current Good Manufacturing Practices (CGMP) requirements

Drug and medical device manufacturers are subject to strict FDA manufacturing rules known as the Current Good Manufacturing Practice (CGMP) regulations. The CGMP exists to ensure manufactured drugs’ identity, strength, quality, and purity and protect consumers from tainted, ineffective, and harmful drugs. Government-funded healthcare programs pay for prescription drugs on the premise that CGMP regulations have manufactured the drugs. If they are not, it can be a violation of the False Claims Act. This could include, for example, a pharmaceutical company’s manufacturing facility using dirty equipment to make drugs, or using equipment that does not accurately measure the type or amount of the active ingredients incorporated into a drug, and then selling these tainted drugs to patients covered by Government-funded health care programs.

Compounded drug fraud

Compounding pharmacies prepare medications tailored to meet the needs of individual patients by mixing drugs or changing the route of administration. Compounding pharmacies can violate the FCA by making large batches of drugs—known as mass-compounding—rather than providing the required individualised service, “compounding” drugs that are already commercially available, or inflating the number of particular medications used in the mixture to increase the cost. Compounded drugs are primarily regulated by the states, meaning efficacy and safety need not be proven to the FDA.

Illegal drug-switching

As a general rule, pharmacies must fill patients’ prescriptions as written by the ordering physician. Putting aside situations where a generic drug may be substituted for a name-brand drug, pharmacists may not simply replace one drug for another or dispense a liquid form of a drug when a pill or tablet was prescribed. Billing government insurers for medications that have been so manipulated can violate the False Claims Act.

Misuse of the 340B drug discount program

The federally mandated 340B drug discount program requires most drug companies to provide hefty discounts — typically 20 to 50 per cent — to hospitals and clinics that treat low-income and uninsured patients. Pharmaceutical companies are required to cap outpatient drug prices at a statutorily defined “ceiling price” equal to the Average Manufacturer Price (AMP) reduced by the rebate percentage or Unit Rebate Amount (URA). Manufacturers submit both the AMP and URA to the Centers for Medicare and Medicaid Services (CMS) quarterly and can defraud the government by misrepresenting these figures, overcharging 340B entities, and/or not providing rebates to which 340B entities are entitled.

Medicaid best price fraud

To obtain Medicaid coverage of their drugs, pharmaceutical companies generally must promise to give state Medicaid programs the lowest price made available to almost any buyer of the drug. To provide this price, pharmaceutical companies report their “best price” on a drug—often calculated based on the drug’s “average wholesale price” or “average manufacturer price”—and payback to Medicaid in rebates any amount the programs paid more than this price. Pharmaceutical companies can defraud Medicaid and violate the False Claims Act by manipulating their “best price” to reduce the amount of money they must return to state Medicaid programs.

Medicare Part D Fraud

Implemented in 2006, Medicare Part D, also referred to as the Medicare Prescription Drug Program, provides drug coverage for tens of millions of elderly and disabled Americans. Under the program, private insurance companies—referred to as Part D Sponsors—offer prescription drugs to eligible beneficiaries directly or through pharmacy benefit managers (so-called “PBMs”) and then submit claims to Medicare for the drugs’ cost. Fraud can occur under Medicare Part D in many ways, including:

Some of the more common types of fraud occurring under the Medicare Part D program include:

  • Billing for drugs not provided.
  • Billing for drugs not covered by Medicare.
  • Billing for brand name drugs when generic drugs are provided instead.
  • Billing for drugs—especially opioids and other controlled substances—diverted for illegitimate purposes.
  • Billing for expired drugs.
  • Billing for drugs dispensed without a prescription or with a falsified prescription.
  • Billing for drugs dispensed with prescriptions from unauthorized, excluded, or non-existent healthcare providers.
  • Billing for drugs provided in quantities that exceed approved limits.

Fraud by Pharmacy Benefit Managers (PBMs)

PBMs are an increasingly common target of fraud investigations. PBMs are third-party administrators of prescription drug programs for, among others, Medicare Part D plans. PBMs contract with health plans to provide pharmaceuticals at low prices, which PBMs keep low through negotiation, generic substitution, manufacturer rebates, cost-sharing, formularies, and other methods. PBMs commit fraud by failing to pass savings from rebate arrangements and subsidies to clients, developing forms that favour more expensive drugs, and improperly switching drugs to generic or different brand name drugs instead of prescribed drugs. Drug manufacturers commit fraud by, for example, providing price concessions on certain drugs in exchange for a PBM’s favourable coverage of the manufacturer’s drug.

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001 Anti-Bribery Management SystemsISO 37301 Compliance Management Systems and ISO 31000 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

 

 

How Risky is Non-Compliance to your Business?

How risky is non-compliance to your business?

How risky is non-compliance to your business? Last year we saw our fair share of AML (anti-money laundering) failures and violations, resulting in eye-watering FCA and HMRC fines. According to Ponemon Institute and security company GlobalScape recent report, the annual cost of non-compliance to businesses now runs an average of $14.8 million, a 45 per cent increase since 2011.

Meanwhile, the range can be anywhere from $2.2 million to $39.2 million. On the other hand, the cost of compliance was found to average $5.5 million, up 43 per cent from 2011. In recent years, adhering to the laws and standards and monitoring the compliance of business processes has evolved as a major concern for business owners.

Staying compliant with ever-evolving regulations has become an ‘obvious’ business imperative, and failing to adhere to these regulations can put organisations in a fix. Before we dive into the risks of falling into the ‘non-compliant dungeon, let’s understand what corporate compliance is. Operating in a multiplicity of countries inevitably also means having to comply with any local regulations.

VIEW RISK MANAGEMENT BROCHURE

 

What is Corporate Compliance?

Compliance at the corporate level involves adhering to a wide range of rules, regulations, laws, and standards designed to protect every aspect of your business. Right from obeying safety guidelines to following the standards for paying wages, an organisation must comply with all the local, state, and federal laws at all times.

Monitoring not only refers to continuously observing possible compliance violations but also includes predicting their occurrence. Since the concept of business process compliance is vast, approaches related to process monitoring are hard to identify. Monitoring the compliance of business processes with relevant regulations, constraints, and rules during runtime has evolved as a major concern in practice.

The cost of non-compliance and monetary fines have been continuously increasing in the past few years. However, business owners are becoming impatient, as these consequences would affect the organisation in many ways. Increased complexity, enforced business changes, and individuals being held personally accountable are all set to continue because of continuous compliance failures.

Why is Compliance crucial?

The following are six fundamental reasons why an organisation should implement statutory compliance.

  • Reason No. 1: is required by Law – All registered companies are mandatorily obligated by the law to follow statutory regulations and comply with them.
  • Reason No. 2: surprise audits – Non-compliance also invites unnecessary inspection and audits, leading to a waste of time and money.
  • Reason No. 3: the financial penalties are high – Failing to adhere to statutory compliance will lead to hefty fines and indirect losses to organisations.
  • Reason No.4: potential imprisonment for everyone involved – Severe cases of non-compliance could result in imprisonment of the organisation’s CEO/Directors/Board members.
  • Reason No.5: Brand Value and Market Reputation – Payment of fines and imprisonment can destroy a company’s brand name in the market it thrives in.
  • Reason No.6: the organisation can be forced to a shutdown – In cases that exhibit perilous non-compliance, authorities can even order companies to cease operations.

Several examples in the global business environment show the repercussions of non-compliance. Look at the following cases:

  • Amazon found guilty of breaching Dangerous Goods Regulations
  • Thames Water was ordered to pay record £20 million for river pollution
  • Google Is Fined $57 Million Under Europe’s Data Privacy Law
  • Westpac accused of 23 million breaches by money-laundering watchdog
  • Italy’s civil aviation authority ENAC threatens to ban Ryanair over alleged non-compliance

The biggest fine so far was the £102m imposed on Standard Chartered for “poor AML controls”, which saw “breaches in two higher risk areas of its business.” This is the second-largest financial penalty for AML failures ever imposed by the FCA.

Improve Your Compliance

A comprehensive compliance solution:

  • Reduces business risks
  • Helps to expedite global expansion
  • Enhances control and visibility
  • Enables the elimination of business risks

After all, when it comes to non-compliance issues, ignorance of the law is no defence. As they say – “Being Compliance is not a choice, but a mandate” the regulatory environment is only going to get fiercer day by day, and companies that miss staying abreast of the global legal amendments might regret big-time.

The UAE, for example, has cracked down on their Ultimate Beneficial Owner compliance requirements – a requirement that costs roughly DH15  but results in a penalty of Dh15,000 up to Dh100,000 if businesses fail to comply.  The Ultimate Beneficial Owner requirement was set up to prevent illicit activities such as money laundering or financing of terrorism.

The requirement reveals anyone who has direct or indirect control of an organisation and requires all such information to set up or renew business licenses to the UAE Government. It’s great to see so many new procedures being put in place that can help you safeguard your business. Are you interested to know how your organisation can excel in global compliance?

Topic: how risky non-compliance to business

 

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001 Anti-Bribery Management SystemsISO 37301 Compliance Management Systems and ISO 31000 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

 

 

Inadequate due diligence hit Space-transport SPAC Momentus $8 million SEC fine

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Inadequate due diligence hit SPAC Momentus $8 million SEC fine

Inadequate due diligence hit SPAC Momentus $8 million SEC fine after misleading investors. The Securities and Exchange Commission (SEC) has charged the Momentus particular purpose acquisition company (SPAC), its sponsor SRC-NI, the sponsor’s CEO Brian Kabot, the company, and founder Mikhail Kokorich – which involved in a $1.2 billion space-transport SPAC for defrauding investors and obscuring the CEO’s status as a US national security risk.

The Fraud Claimed

The SPAC, Stable Road Acquisition Corp, had sought to merge with Momentus, a private start-up, to take it public. Momentus’s key offering was a “microwave electro-thermal water plasma thruster,” a way of zapping water vapour to propel a spacecraft, intending to transport satellites into space.

But Momentus’s propulsion tech failed to show results, according to SEC filings. A test mission fell well short of the company’s benchmarks, and a former Momentus employee said that the test yielded “no data to suggest that that thruster would deliver an impulse of any commercial significance.”

According to the SEC’s settled order, Kokorich and Momentus, an early-stage space transportation company, repeatedly told investors that it had “successfully tested” its propulsion technology in space when, in fact, the company’s only in-space test had failed to achieve its primary mission objectives or demonstrate the technology’s commercial viability.

The order finds that Momentus and Kokorich also misrepresented the extent to which national security concerns involving Kokorich undermined Momentus’s ability to secure required governmental licenses essential to its operations.

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The compliance issue: Inadequate due diligence

The SEC’s settled order finds that Stable Road repeated Momentus’s misleading statements in public filings associated with the proposed merger and failed its due diligence obligations to investors.

According to the order, while Stable Road claimed to have conducted extensive due diligence of Momentus, it never reviewed Momentus’s in-space test results or received sufficient documents relevant to assessing the national security risks posed by Kokorich.

The order finds that Kabot participated in Stable Road’s inadequate due diligence and filed its inaccurate registration statements and proxy solicitations. The SEC’s complaint against Kokorich includes factual allegations that are consistent with the findings in the order.

“This case illustrates risks inherent to SPAC transactions, as those who stand to earn significant profits from a SPAC merger may conduct inadequate due diligence and mislead investors. Stable Road, a SPAC, and its merger target, Momentus, both misled the investing public. The fact that Momentus lied to Stable Road does not absolve Stable Road of its failure to undertake adequate due diligence to protect shareholders. Today’s actions will prevent the wrongdoers from benefitting at the expense of investors and help to better align the incentives of parties to a SPAC transaction with those of investors relying on truthful information to make investment decisions.

SEC Chair Gary Gensler

The litigation against Momentus, Stable Road, and Kabot

Associate Director of the SEC’s Division of Enforcement, Anita B, mentioned in her statement that Momentus’s former CEO alleged to have engaged in fraud by misrepresenting the viability of the company’s technology and his status as a national security threat, inducing shareholders to approve a merger in which he stood to obtain shares worth upwards of $200 million.

The SEC’s order finds that Momentus violated scienter-based antifraud provisions of the federal securities laws and caused sure of Stable Road’s violations. It also considers that Stable Road violated negligence-based antifraud provisions of the US federal securities laws as well as specific reporting and proxy solicitation provisions.

The order finds that Kabot violated provisions of the federal securities laws related to proxy solicitations. Kabot and SRC-NI caused Stable Road’s violation of Section 17(a)(3) of the Securities Act of 1933. Without admitting or denying the SEC’s findings, Momentus, Stable Road, Kabot, and SRC-NI consented to an order requiring them to cease from future violations. Momentus, Stable Road, and Kabot will pay civil penalties of $7 million, $1 million, and $40,000, respectively.

Inadequate due diligence hit SPAC Momentus $8 million SEC fine. Source: US Securities and Exchange Commission 

What do you actually know about the integrity of the 3rd party and their way of doing business? Do they adhere to (inter)national regulations on anti-bribery and anti-corruption? Is it possible that there is a liability risk?

Due diligence on potential business partners when adding a new vendor or even hiring a new employee is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity DueDiligence360TM investigations provide your business with the critical information it needs in making sound decisions regarding mergers and acquisitions, strategic partnerships, and the selection of vendors, suppliers, and employees. It will ensure that working with an, i.e. potential trade partner will ultimately achieve your organisation’s strategic and financial goals.

At CRI Group, we specialise in Integrity Due Diligence, working as trusted partners to businesses and institutions worldwide. Our people work with energy, insight and care to ensure we provide a positive experience to everyone involved – clients, reference providers and candidates. CRI’s unique identity and vision evolved from our fundamental desire to support our clients and their candidates. Safeguard your business and its integrity with DueDiligence360™.

Our DueDiligence360™ expose vulnerabilities and threats that can cause serious damage to your organisation and can significantly reduce business. CRI Group is trusted by the world’s largest corporations and consultancies – outsource your due diligence to an experienced provider, and you will only ever have to look forward, never back.

CRI Group investigators employ a proven, multi-faceted research approach that involves a global array of databases, courts and public record searches, local contacts, industry and media resources, and in-depth web-based research. Our resources include:

  • International business verification
  • Individual business interest search
  • Personal profile on individual subjects
  • Company profile on corporate entities
  • Historical ownership analysis
  • Identification of subsidiaries & connected parties
  • Global/national criminality & regulatory records checks
  • Politically Exposed Person database
  • International digital media research
  • Company background analysis
  • Industry reputational assessment
  • FCPA, UK Anti-Bribery & corruption risk databases
  • Global terrorism checks
  • Global financial regulatory authorities checks
  • Money laundering risk database
  • Financial reports
  • Asset tracing
  • Country-specific databases that include litigation checks, law enforcement agencies & capital market, regulators

Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

DueDiligence360™ from CRI Group

WHAT DO YOU ACTUALLY KNOW ABOUT THE INTEGRITY OF THE PARTY & THEIR WAY OF DOING BUSINESS? DOES OR DID THIS PARTY ADHERE TO (INTER)NATIONAL REGULATIONS ON ANTI-CORRUPTION & ANTI-BRIBERY? IS IT POSSIBLE THAT THERE IS A LIABILITY RISK?

At CRI Group, we specialise in Integrity Due Diligence, working as trusted partners to businesses and institutions across the world. Our people work with energy, insight and care to ensure we provide a positive experience to everyone involved – clients, reference providers and candidates.

CRI’s unique identity and vision evolved from our fundamental desire to support our clients and their candidates. Safeguard your business and its integrity with DueDiligence360™.

Our DueDiligence360™ expose vulnerabilities and threats that can cause serious damage to your organisation and can significantly reduce business. CRI Group is trusted by the world’s largest corporations and consultancies – outsource your due diligence to an experienced provider and you will only ever have to look forward, never back. Clients who partner with us benefit from our:

Expertise
CRI Group has one of the largest, most experienced and best-trained integrity due diligence teams in the world.

Global scope
Our multi-lingual teams have conducted assignments on thousands of subjects in over 80 countries, and we’re committed to maintaining and constantly evolving our global network.

Flexibility
Our DueDiligence360TM service is flexible and can apply different levels of scrutiny to the subjects of our assignments, according to client needs and the nature of the project.

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, the CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001 Anti-Bribery Management SystemsISO 37301 Compliance Management Systems and ISO 31000 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations.

To check or not to check?

Background Checks: To check or not to check?

Background checks don’t tend to make international news. They are the low-key diligent step in most well-managed recruitment processes to comfort employers that the person they are hiring is everything they seem – and nothing more.

That’s why the background checks of Belle Gibson, a super influencer who lied about having cancer, and Brett Kavanaugh, a nominee to the US Supreme Court, tend to make news headlines for who can you trust if not those in direct line of the public eye?

The Story of Belle Gibson & Brett Kavanaugh

Belle Gibson was a Melbourne “wellness” who rose to fame after sharing her story on Instagram of her terminal brain cancer and how she controls it through the power of healthy eating. Gibson claimed to have kept her cancer under control by turning away conventional medicinal practices and instead of following what she termed a “wellness” diet, a diet consisting of avocados, berries, no alcohol and so on.

Sounds impressive, right? To rid yourself of an incurable disease simply through eating better? Think again – it is too good to be true. The influencers lie caused untold damage, including turning a 44-year-old mother away from her chemotherapy in hopes of attaining Ms Gibson’s lifestyle.

But the reason why this lie broke headlines is because of what followed; a book deal with Penguin Books publishing company and an Apple app titled ‘The Whole Pantry’. It was evident that neither the tech giants nor the publishers thought to verify her assertions, thus leading to a $320,000 fine and a lot more emotional damage for the individual’s that Ms Gibson had provided false hope.

Context is everything, of course, and this job-for-life is one of the more crucial public office positions in the United States. Mr Kavanaugh had undergone six separate background checks during his career before the latest, which the FBI recently completed on behalf of the White House. Each of these will have been meticulous and thorough, right down to interviews with neighbours and acquaintances.

But you don’t have to be entrusted with national security clearance to pose a real risk to your employer. All staff members are in a position of trust, and even the humblest labourers or office workers will have privileged access to property – whether physical or intellectual. And this is not a theoretical risk – it’s a truism that employees or contractors cause the vast majority of security breaches.

The compliance perspective

Interviewing the ex-wives and sports coaches of factory and desk clerks is overkill and not economic. And that is where professional background checking comes in. It allows low hassle, cost-effective and fast checking for all recruits and employees to ensure everyone is what they claim to be, from the CEO to the company mascot.

Such checks will cover everything required to give HR directors and governing boards peace of mind: from criminal record checks and right-to-work documentation to education and qualification verifications and employment records.

A properly systematised process, supported by local intelligence, is essential to keeping costs low without compromising quality or effectiveness.

CRI Group is one of the few providers with a truly global reach and more than thirty years of experience in the sector. Our proven process means that we have one of the fastest turnaround times in the industry – typically just 3-5 days. Meanwhile, our more than 175 investigatory experts on the ground across the US, Europe, the Middle East and Asia, ensure we can navigate local customs, processes and regulations, no matter where your employees are based.

 

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds B.S. 102000:2013 and B.S. 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 37301:2021 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s international team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

 

 

How to Identify and Prevent Employee Fraud?

In 2017 the major European ABB conglomerate admitted that an employee took advantage of serious management failings to disappear with $103 million of the firm’s cash. According to CNN business, ABB CEO Ulrich Spiesshofer and Chief Financial Officer Eric Elzvik admitted that the organisations managers had failed to maintain sufficient segregation of duties in the treasury unit of its subsidiary in South Korea and did not provide enough oversight of local treasury activities.

To top it all off, ABB also failed to keep the signature seals of the South Korean unit secure which as a result, has lead the company became “bound to unauthorised financial contracts, resulting in undetected financial obligations.” 

Organisations rely on the honesty and integrity of their employees, however employee fraud does unfortunately cost companies vast sums of money. Employee fraud is a reality across all sectors – no matter how credible a job applicant is and how stringent your hiring process is – your business is at risk.

Tips on Identifying and Preventing Employee Fraud

When you trust your employees, it is difficult to think the worst of them, even when there are red flags – circumstances or patterns that are out of the ordinary – alerting you to the contrary. If you have suspicions of employee fraud, it is recommended to hire a forensic accountant to help you detect fraud, understand your circumstances, and put together evidence to target and confront the employee without tipping them off.

The good news is that you can plan and train your team to prevent this from taking place; the best thing you can do for your business is to learn how to recognise the warning signs of employee fraud and have robust procedures in place to minimise the risks and opportunities for fraud. Employee fraud covers a wide range of fraudulent activities in the workplace and can vary in seriousness including embezzlement.

Embezzlement involves an employee who transfers company funds into their bank account. One example of an act of embezzlement is deliberately writing cheques in the employees’ name or diverting company assets without authorisation, e.g. customers unknowingly pay into an employee-controlled bank account, not the business’. This is serious fraudulent behaviour, but employees usually get away with it without raising any suspicion by creating non-existent suppliers and fake employees or using counterfeit credit notes to hide/disguise misappropriated monies.

An easy way to spot this type of financial fraud is to scour through the bank statements and financial records of your organisation and check for irregular activities or patterns of unusual and unauthorised transactions.

Another common sign of embezzlement is when either an employee or a manager/director begins to enjoy a lavish lifestyle that is obviously beyond their means, e.g. holidays, cars, clothes/jewellery. In the case that you suspect an employee or director might be embezzling funds from within your company, it is essential to be discreet in your employee fraud investigation to prevent the employee from covering their tracks and disposing of substantial evidence.

Other Common Types of Employee Fraud

  • Commission fraud – inflating sales figures to gain a more significant commission than deserved.
  • Petty fraud – for example, embellishing an expense claim or taking office supplies.
  • Money laundering – hiding the origin of illegally obtained money and washing it through your business.
  • Insider Trading – making a profit by using valuable information that is unavailable to the public to their advantage, for example, confidential information that could impact the prices of shares, securities, goods/commodities.
  • Manipulation of accounts – false information on sales, purchases or stock can be used to perpetrate fraud for personal financial gain, e.g. overstated trading profits to receive cash/share bonuses, or get a promotion, creating false trading accounts or stock/fixed asset write-offs to obtain goods.

What can you do (as an employer) to minimise employee fraud?

The most effective way to minimise employee fraud as an employer is to implement robust management procedures and employee background screening; the implementation of these preventative measures will ensure staff are adequately investigated and monitored and consider the possibilities for collusion between employees – including a conflict of interest. Paying attention to only the procedures within your accounts department is not sufficient. The same procedures can help you across your operations, including sales and procurement.

Minimise the chances of employee fraud with the following procedures:

  • Separation of employee responsibilities such as placing orders, recording invoices and collecting debts.
  • Requiring purchase or payment authorisation by more than one person.
  • Compare actual to budgeted expenditure for unexpected patterns.
  • Examine bank reconciliations thoroughly.
  • Scrutinise cancelled cheques and cheques made out to employees or unusual vendors.
  • Review supplier invoices for significant amounts, pricing or volumes.
  • Verify credit notes and write-offs with receiving records.
  • Install and monitor CCTV to deter theft of stock or equipment.

Fraud Triangle

An American criminologist, Donald R Cressey, devised a theory that involved three aspects that trigger fraud. Understanding these triggers will help you prevent fraud:

  • Opportunity – the lack of internal controls or reporting structure/oversight increase the chance of fraud.
  • Rationalisation – the fraudster will rationalise the continued deception, which increases slowly, perhaps over a few years, becoming an entitlement, i.e. I deserve this. This offers the chance to stop some employee fraud early if robust detection procedures are in place.
  • Pressure – overwhelming pressure, be it business factors such as company targets to meet or personal pressures, such as gambling or financial problems.

Implement Pre-employment and Post-employment employee screening now!

Preventing financial loss is crucial for your business’s survival and expansion, which is why it’s essential to know and understand its obvious signs. Use the list above as a guide to protecting your organisation.

To detect employee fraud professionally and thoroughly, it is recommended you seek the expertise of a skilled employee fraud accountant as early as possible. They can help you investigate your employees by reviewing your bank statements and financial documents and advise you whether an employee is committing fraud and to what extent. A forensic accountant’s report will also give you the evidence you need to take the necessary action against your employee and act as a deterrent to others.

For a free and confidential chat to discuss how we can help your business, contact us. 

 

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 19600:2014 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Risks of Cybercrime and Social Media: NEW PLAYBOOK

The risks of cybercrime claims many victims over many sectors. The PwC Global Economic Crime Survey 2020 found that a company falls victim to six frauds on average. The most common types are customer fraud, asset misappropriation as well as cybercrime. It also proved a roughly even split between frauds committed by internal and external perpetrators, at almost 40% each – with the rest being mostly collusion between the two. Few can deny the enormous technological advancements that are constantly taking place in the modern world. The internet, the computer, and other technological advancements have dramatically changed what it means to socialise, ‘chat’, and even read a book. Both the disadvantages and advantages of such developments are clear, and as technology gains pace, so have the unlawful activities of those who seek to take advantages of such developments.

According to a 2020 cybercrime report from Europol, COVID-19 sparked upward trend in cybercrime. In fact, since the beginning of the pandemic, the FBI has seen a fourfold increase in cybersecurity complaints, whereas the global losses from cybercrime exceeded $1 trillion in 2020. 

In other words, as technology evolves, the risks of cybercrime have become complex. The sense that one is safe from crime in the privacy of one’s own home has been lost. In fact, according to World Economic Forum’s “Global Risks Report 2020” the chances of catching and prosecuting a cybercriminal are almost nil (0.05%).

Take the first steps towards developing measures against the risks of cybercrime! 

This playbook critically examines the growth of cybercrime, evaluating the risks it poses in terms of the different forms of cybercrime that exist and the regulations that seek to detect, prevent and punish them.

The extension of an old legislation to include cybercrime is not entirely effective – especially not for crimes committed within the realm of social media and social networking. Therefore the need to develop an ‘anti-cybercrime culture emerges. It has to be implemented on an international scale that safeguards these crimes – the promotion of careful use would therefore be facilitated to hinder such crimes before they can materialise. Our playbook includes:

  • What is cybercrime and why is it important?
  • Top corporate cybersecurity risks and 10 types of high-tech crimes
  • How cybercrime impacts business and your company’s growth
  • Cybercrime and regulations in place
  • And how your response as a business matters – how to can you protect your business from cybercrime including advice and tips on how to telework safely

Download the full playbook today and learn step-by-step things your company can do to be better protected from cybercrime. Robust cyber-security, data protection, anti-fraud and risk management all come together to mitigate the dangers posed by hackers, phishers and other cybercriminals.

DOWNLOAD PLAYBOOK

With the playbook in your hands, you’ll learn about the most common cyber attacks. This includes viruses, phishing attacks and website hacks. You’ll also gain a better understanding of the consequences of different types of cybercrime.

To sum it up, the playbook provides best-practices and ways that companies are lessening their risk without spending prohibitive resources to do so. Above all, the right expert advice means that any company can be on the right track to protecting their customers, their assets, and their employees from the risks of cybercrime.

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds B.S. 102000:2013 and B.S. 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 19600:2014 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Review and Reassess Your Organisation’s Third-Party Relationships

The global pandemic is rattling economies worldwide, disrupting supply chains, interrupting production, wreaking havoc on industry sectors and shuttering businesses; this is ultimately having an impact on the third-party relationships businesses have. 

It’s highly probable that, at some point, organisations that affiliate with outside providers will eventually have to deal with any number of operational interruptions resulting from a third-party relationships related issue. And while the risks involved in partnering with outsiders haven’t changed over time, the potential level of liability has been ratcheted up several notches.

International Borders have been ripped down. Technology has improved the way businesses communicate. Easy access to data and information enables the media to report on business news before a business can adequately respond. Consequently, the markets are quick to react based on this 24/7 on-demand news cycle.

The result of this increased liability can be highly problematic:

  • Business litigation has skyrocketed.
  • Corporate reputations are negatively impacted due to the fallout from the current global pandemic.
  • Risk management frameworks are continually evolving to acclimate to changing business environments.
  • Board members are becoming increasingly subjected to intense scrutiny from outside critics.

THE CHALLENGE: The Global Business Climate is Changing. So Are Your Third-Party Partners.

  • Organisations suffer financial loss as the supply chain falters and loses customers because of poor-quality service from a third-party.
  • Company data systems are exposed and breached because of poor security practices by third-parties.
  • Companies are experiencing supply chain issues due to poor disaster recovery procedures by third-parties.
  • Organisations are increasingly being exposed to litigation because of relationships with an outside provider that significantly violated contractual terms, potentially resulting in regulatory exposure.

THE SOLUTION: 3PRM:  A Third-Party Certification Program; Qualify Your Partners.  Protect Your Organisation.

Corporate Research and Investigations Limited (CRI Group) is pleased to announce the rollout of its 3PRM-Certified™ program, specifically designed for organisations across the Middle East, Europe and Asian regions. 

This highly specialised Third-Party Risk Management assessment and certification program was developed to help organisations accurately determine the legal compliance, financial viability, and integrity levels of outside partners, suppliers, and customers who seek to affiliate with and represent your business.

The 3PRM-Certified™ program consists of gap analysis and investigative due diligence on targeted third-party partners, suppliers and agents seeking to affiliate with your organisation.  This highly thorough program can reveal any anti-corruption, compliance and risk management deficiencies associated with the international regulatory framework.

CRI Group employs a network of locally qualified, subject-specific auditors, investigators, certified fraud examiners and industry-specific professionals across the Middle East, European and Asian regions who can provide expert counsel in offering 3PRM-Certified™ strategies as an effective preemptive measure. 

OUTCOMES – IDENTIFYING RED FLAGS

  • Undisclosed third-party transactions
  • Material misrepresentations or ommissions
  • Unreported financial liabilities
  • Criminal or regulatory sanctions
  • Prior bribe or corruption allegations
  • Undisclosed legal or bankruptcy proceedings
  • Politically Exposed Persons (PEPs)

RESULT: A highly educated market responds immediately with their pocketbooks.

CRI Group’s 3PRM™ Third-Party Risk Management Strategy™ Can Safeguard Your Organisation Against: Has your organisation adequately vetted its third-party relationships lately?  Contact CRI Group to learn more about our 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous threats posed by third-party partnerships.

We Look Forward to Assisting You.

GET A QUOTE

our feel free to reach out to our CEO, Zafar I. Anjum, MSc, MS, LLM CFE, CIS, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC), MBCI, CII Int. Dip. (AML) | e: zanjum@crigroup.com | t:+44 7588 454959

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 37301:2021 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.

 

UK solicitor sentenced to four years in prison over £2.3m fraud

UK solicitor, Andrew Davies defrauding his firm £2.3m jailed

A former senior partner, the UK solicitor, has been jailed for four years after defrauding his firm out of a total of £2.3m. Andrew Davies, 59, paid personal invoices to himself from the business and under-declared £1.1m in stamp duty land tax to HM Revenue and Customs (HMRC) for over nine years.

Davies pleaded guilty to one count of fraud by false representation at Reading Crown Court in 2019 and was sentenced to four years imprisonment in January this year. As a senior partner at the firm, Andrew Davies managed to defraud it out of the money by paying personal invoices to himself from the business account.

The 59-year-old also under-declared £1.1m in Stamp Duty Land Tax to HMRC over nine years, over-declaring tax to clients and then taking money from the solicitor’s firms account for himself, both defrauding the company he worked for and HMRC at the same time.

Davies also raised invoices to pay over £1.6 million to his friend Stephen Allan, who worked as a property developer and was a firm client. The 62-year-old from Bishop’s Stortford was convicted at Reading Crown Court on one count of money laundering and jailed for three years.

In a statement, police mentioned the convictions and sentencing of a solicitor’s firm in Berkshire defrauded out of £2.3m between 2010 and 2017.

Allan then made smaller payments into Davies’ account and also pocketed around £400,000 himself. The solicitor extracted funds from the firm’s client account, paying it to Allan in transactions described as ‘fees’, but there was no known work for this.

Davies of The Street, West Clandon, Guildford, and Allan of Thornberry Road, Bishops Stortford, Hertfordshire, were charged by police officers in August 2019.

The statement did not name the firm, but a Solicitors Regulation Authority notice has previously stated that Davies worked for Reading firm Pitmans LLP, which has since become part of another practice. Davies has already been struck by the Solicitors’ Disciplinary Tribunal and ordered to pay £17,000 in costs.

Investigating officer Detective Constable Katie Taylor of Thames Valley Police’s Economic Crime Unit said: ‘In this case, a solicitor trusted to safeguard client funds abused this position and systematically defrauded his firm of large sums of money for his benefit.

‘He then used a corrupt relationship to launder the proceeds of his crime through a property developer. These professional enablers of organised crime represent a significant risk, and we hope that the conviction and sentence, in this case, will act as a deterrent to others.’

Source: Financial Crime News & The Law Society Gazette

 

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About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, the CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001 Anti-Bribery Management SystemsISO 37301 Compliance Management Systems and ISO 31000 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations.

You suspect employee fraud. Now what?

When any type of fraud, including employee fraud, is discovered, it’s usually by surprise. That’s because most of us aren’t used to looking for criminal behaviour inside our own organisation. We trust…
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New European Parliament corporate due diligence and corporate accountability

 

Corporate due diligence and corporate accountability, ending an era of voluntary policing. A new EU mandate places liability on companies unable to assess and mitigate unethical third-party behaviour. New legislation requires companies operating in the EU to ‘identify, address and remedy their impact on human rights and the environment throughout their global value chains.’

Situation Analysis:

  • In 2017, nearly 25 million people categorised as victims of forced labour. International Labour Organization, 2017 report
  • From 2000-2012, nearly 25% of all tropical deforestation was due to illegal agro-conversion for export markets. 2019 study

Global economies have significantly benefited from an increase in cross-border and international business partnerships, which has led to a substantial expansion of the global value chain. Subsequently, more and more companies are being exposed to potential liability by unscrupulous third-party providers in their supply chain pipeline with little respect for business ethics, human rights or the environment.

There is a growing concern worldwide of the many supply chain businesses linked to severe abuses, including exploitative working conditions, modern slavery and child labour, toxic pollution, rampant destruction of rainforests and a general disregard for corporate governance.

For decades, companies have voluntarily monitored supply chain partners for bad behaviour, but this self-policing has limited. But now, the European Union Parliament has presented mandates for EU businesses – under penalties of law – to carry out due diligence to identify, prevent, mitigate and account for actual or potential human rights violations and negative environmental impacts in their operations and supply chain. 

“We live in a world where businesses with the wherewithal can still shift their adverse social and environmental impact to the most vulnerable people and places on the planet.” Lara Ianthe Wolters, Member, European Parliament

The Challenge: You are Liable for the Conduct of Your Partners; lack of due diligence will get you into trouble

The legislation requires companies operating in the EU to identify, address and remedy their impact on human rights (including social, trade union and labour rights), the environment (contributing to climate change or deforestation) and good governance (such as corruption and bribery) throughout their value chain.

This is akin to saying that if a company fails to conduct due diligence on a third-party partner that engages in slave labour, pollutes the environment, manipulates the price or violates jurisdictional regulations, that company is essentially complicit in the partnering company’s illegal behaviour. It may be held liable in a court of law.

Aside from legal and monetary penalties, the company further risks a tarnished reputation in the market and a devaluation of its brand.

It’s crucial for businesses utilising global supply chain partners to conduct due diligence and assess the potential risks that a third party may pose to your organisation, particularly when addressing risks associated with environmental damage and human rights violations.

The Solution: Identify unethical behaviour and protect your organisation with 3PRM, Corporate Due Diligence and Risk Management

CRI Group developed a highly specialised assessment solution for Corporate Due Diligence and Third-Party Risk Management to assist organisations in accurately identifying, preventing, mitigating and addressing actual and potential adverse impacts of affiliating with global partners and complies with all EU mandates.

From enhanced due diligence to identify non-compliance of the regulatory framework and damaging environmental allegations to investigating company (or stakeholder) human rights violations related to labour laws, child labour or human trafficking, CRI Group experts help determine the legal compliance, financial viability, and integrity levels of outside partners and suppliers affiliated with your company’s value chain.

Outcomes

Recent studies have demonstrated a positive correlation between the extent to which companies implement environmental, social and good governance policies, and their overall economic performance, all while contributing to a more stable global marketplace. Such responsible business conduct:

  • Enhances protection for workers
  • Improves access to justice for victims
  • Safeguards the environment
  • Ensures fair products for consumers

Further, apart from general compliance with EU mandates, such organisations enjoy a wealth of intangible benefits, including:

  • Reduced overall liability risks
  • Improved stakeholder protection
  • Lower costs resulting from conflicts
  • Improved company transparency
  • More profound knowledge of the value chain
  • Enhanced reputation in the market 
  • Improved social standards for workers

“The global pandemic has demonstrated that resilient global supply chains that protect both the people and planet will be crucial to companies and economic recovery in the future.” Transparency International EU

CRI Group’s corporate due diligence and accountability solutions can help your organisation comply with a growing list of global regulations and mandates related to human rights and the environment while acting as an integral part of your business decision-making and risk management systems. 

Are you prepared to conduct a due diligence assessment on your global partners? Contact CRI Group to learn more about our Corporate Due Diligence and Accountability solutions and stay one step ahead of the pending EU mandates. We look forward to assisting you.

Zafar I. Anjum | MSc, MS, LLM CFE, CIS, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC), MBCI, CII Int. Dip. (AML)

Group Chief Executive Officer, Corporate Research and Investigations Limited

e: zanjum@crigroup.com | t:+44 7588 454959

Our enhanced Integrity Due Diligence services will ensure that working with an, i.e. potential trade partner will ultimately achieve your organisation’s strategic and financial goals. To find out more about each level of due diligence, contact CRI Group HERE!

About CRI Group

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 37301:2021 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. Contact ABAC® for more on ISO Certification and training.