Financial Crime Prevention Strategies in Ireland: A Priority for Organisations
As the Irish economy continues to grow, so do the risks of financial crime and corruption within organisations. Experts warn that effective management of these risks requires a multi-faceted approach that focuses on prevention, detection, and response.
Essential Requirements for Managing Fraud and Corruption Risks
Organisations in Ireland must take note of specific requirements for formulating a sound foundation for managing fraud and corruption risks. A minimum set of measures must be implemented, including:
- An approved Fraud Prevention Strategy
- A Protected Disclosures Policy
- A Conflict of Interest Policy
- An Anti-Bribery and Corruption Policy
- A Fraud Response Plan
Tiered Approach to Fraud Risk Management
A tiered approach is also necessary, comprising essential elements of:
Prevention
- On-going fraud risk assessments at both enterprise and business unit levels
- Technology-enabled Continuous Control Monitoring measures through Forensic Data Analytics for early detection of fraud and corruption risk indicators
Response
- Effective response plans in place to address fraud and corruption incidents
Detection
- Regular monitoring and assessment of fraud risk indicators
Employee Awareness and Education
Employee awareness is also crucial, with:
- Annual online Fraud Health Check surveys recommended
- Conflicts of interest managed through an auditable declaration process
- Relationships with external stakeholders carefully monitored
- Supplier vetting involving stringent verification and approval measures, including a Conflict of Interest Declaration
Prioritizing Fraud Awareness and Anti-Fraud Education
Organisations in Ireland must also prioritize fraud awareness and anti-fraud education, ensuring all employees know how to raise concerns under the Protected Disclosure Act 2014.
Conclusion
Experts stress that the constant adaptation of fraudulent tactics means constant monitoring and assessment are necessary to manage the risk of financial crime within organisations. Organisations in Ireland must prioritize a multi-faceted approach to fraud prevention, detection, and response to mitigate these risks and maintain a healthy and ethical business environment.