Fighting financial crime through health checks - is your organisation prepared?
Fighting financial crime through health checks - is your organisation prepared?
This article was originally published 15 August 2023, updated 28 August 2024.
Financial crime is an ever-evolving trillion-dollar industry, are you and your clients well-equipped to fight it? Our Forensic Services team’s Financial Crime Health Check provides organisations with an assessment of their strengths and weaknesses when it comes to financial crime and anti-money laundering (AML).
As the financial landscape evolves and new threats emerge, a periodic financial crime health check will provide you with valuable insight into the integrity of your financial processes that safeguard your organisation. Here are some of the advantages of undertaking a financial crime health check:
1. Early detection
A financial crime health check may uncover fraudulent activities early on, allowing you to address them promptly and prevent potential financial losses and reputational damage. Early detection can be crucial in minimising the impact of any fraudulent activity and reducing the associated costs.
2. Risk assessment
The health check assesses your organisation’s vulnerability to different types of fraud. It may identify weaknesses in your financial controls, processes, and systems, enabling you to take corrective risk-mitigation measures.
3. Improved security measures
By identifying potential loopholes and weaknesses in your finance and/or accounting systems, you can implement more robust security measures. This might involve updating your internal controls, enhancing data protection protocols, or strengthening your authorisation processes and procedures, all of which contribute to a more secure control environment.
4. Regulatory compliance
In many industries, regulatory compliance requires organisations to maintain a certain level of financial security. AML/CTF regulations are also constantly evolving and becoming more complex. A health check ensures that your organisation has policies and procedures in place to meet these requirements, reducing the risk of non-compliance penalties.
5. Cost savings
Detecting and preventing fraud and financial crime as early as possible can save your organisation from suffering substantial financial losses. Investigating and recovering from a fraud incident can be time-consuming and very costly. A health check can mitigate these expenses by identifying issues before they occur or escalate.
6. Stakeholder confidence
Regular financial crime health checks can become a part of your organisation's continuous improvement process. As you receive feedback from the health check, you can take necessary measures and continually strengthen your financial controls. Demonstrating a commitment to reviewing and improving your financial crime framework can instil confidence in stakeholders, customers, investors, and regulators. They will see your organisation as proactive and dedicated to protecting their interests.
In summary, having a financial crime health check is a proactive and necessary step to ensure compliance, identify weaknesses and continuously improve your organisation’s ability to combat financial crime. It will also help you build trust with your stakeholders and protect your reputation in the marketplace.
If this article has raised any questions or you would like to learn more about our services, please contact our experienced team or review our Forensic Services offering.
To understand and learn more about our offering, and stay one step ahead, download a copy of our latest Financial Crime Health Check brochure.