Financial Crime World

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White-Collar Crime on the Rise in Tanzania: PwC Report

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Tanzania has emerged as one of the top 10 countries globally for white-collar crimes, according to a recent report by global audit firm PwC. The report highlights an alarming rise in asset misappropriation and high-level corruption in Africa.

Rising Tide of White-Collar Crime in Tanzania

  • According to the PwC report, 57% of organizations in Tanzania reported economic crime and fraud in the past two years.
  • This ranking is above the world average, with South Africa topping the list at 77%, followed closely by Kenya at 75%.
  • Other African countries, including Uganda and Zambia, also made it to the top 10 list.

Types of White-Collar Crime

  • Asset misappropriation was the most prevalent type of white-collar crime in Tanzania.
  • Cybercrime and fraud committed by consumers were also common.
  • Notably, internal actors perpetrated 52% of reported cases.

Senior Management Involvement

  • The report highlighted a significant increase in frauds committed by senior management in 2017, jumping from 16% to 24%.
  • This trend is worrying, as such crimes often result in substantial financial losses for organizations.
  • Nearly two-thirds (64%) of respondents said losses due directly to their most disruptive fraud could reach up to $1 million.

Global Phenomenon

  • The rise in white-collar crime is not just limited to Tanzania but is a global phenomenon.
  • 49% of global organizations reported economic crime and fraud in the past two years.

Recommendations for Businesses

  • PwC emphasizes the need for businesses to recognize the true nature of the threat, which is not just a nuisance or cost of doing business but a shadow industry with tentacles in every country, sector, and function.
  • The lack of awareness within organizations makes it easier for fraudsters to hide. It’s time for all businesses to take proactive measures to prevent such crimes.

Conclusion

The PwC report provides valuable insights into the nature and extent of white-collar crime in Tanzania. By understanding the risks and taking concrete steps, businesses can reduce their vulnerability to blind spots and improve their overall fraud-fighting efforts.