Part 1(D): Fraud and Corruption Detection - Government Entities

What is the resilience of an entity in preventing, deterring, and detecting fraud and corruption?

Tempe, March 29, 2017
Technical Staff

Proper Anti-Corruption Competencies of Senior Civil Servants, Elected Public Officials, and Employees

The prevalence of adequate anti-corruption education in government entities always determines to a large degree the effectiveness of internal control and corruption prevention policy in detecting fraud and corruption.

Each governmental and / or management level requires a different set of anti-corruption competencies. For example, the internal department head anti-corruption skills differ from those of the deputy minister of a government entity. Each employee should possess the necessary anti-corruption knowledge and skills to meet what management expects her to do in detecting fraud and corruption.

Surprisingly, central banks all over the world require their local banks to ensure that their employees obtain annual anti-money laundering training. Though money laundering is a very tiny and small part of corruption, central banks do not require their local banks to (a) have a corruption prevention policy, and (b) ensure that their employees obtain anti-corruption training annually. There are too many banks that do not have a corruption prevention policy, especially in developing countries.

This is extremely odd as financial institutions are regarded more regulated and disciplined than other business sectors. This is a red flag that regulatory agencies should note due to its severe consequences on not only detecting fraud and corruption but also on financing terrorism.

The AACI believes that the adequacy of anti-corruption competencies of senior public officials and those charged with governance should be quantitatively measured annually. Last year, we launched a certification program called Organizations Anti-Corruption Certification Program to support organizations of all types to quantify their anti-corruption competencies, among other things.

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