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Zoe Allen

Finance professional with extensive experience in Anti-Money Laundering (AML)



Published Date

January 5, 2024


Blog / Corruption Monitor – Exposing Fraud in AML Operations

12 min Read

Corruption Monitor – Exposing Fraud in AML Operations

Corruption is considered a major challenge for almost every state and organization. Corruption is one of the main sources of rising crimes in the world. As the world is heading towards more development, crimes are increasing at a greater speed. Because the offenders are discovering new ways to plant a corruption scheme. In these circumstances, corruption monitoring will get the attention. Monitoring of corruption has become an essential practice for organizations as this process is also helping the organizations by keeping them up to date with innovative solutions to fight against corruption. In this blog, we will discuss how indicators for monitoring corruption are helpful in the struggle against corruption.

The Struggle of Corruption

The main channel of money laundering crime is corruption-related activities. Organizations should explore the digital world with strength. This screening helps in the identification of all crime-related risks and threats. It would enhance compliance in the organization. This screening also prevents the organization from all kinds of illicit activities. This screening ensures to build the strong and reliable business relations so that the organization can stay alert against all the rising crime-related threats and risks. Corruption monitoring helps protect the organization from high-risk penalties. This screening helps in keeping the organization away from high-risk individuals and entities. Organizations should always keep an eye on all transactions. If the organization has seen any hurdle related to transactions, it should suddenly adopt the AML compliance programs.

Corruption is considered the starting point of financial crimes. When a person indulges in corrupted activities. The offender tries to conceal his/her illicit crimes with the help of a middleman. That middleman could be a person from official and high ranks who would help the offender conceal his/her illicit private gains. When the offender didn’t get caught at the first step. He/she understands that indulging in money laundering activities would be easy and will provide a lot of benefits. The corruption monitoring process will help the organizations to smoothly alleviate fraudulent operations. Additionally, this practice will provide security to organizations from financial and reputational damage. Corruption monitoring service provides complete armament to the organizations with the help of deep scanning processes.

Mishandling of finances leads to serious loss. In terms of financial operations, organizations should always stay alert against any rising threat. Additionally, organizations should always stay vigilant against all negative factors and always try to avoid building business relations with any of the sanctioned entities or organizations. A proper inspection should be done before initiating any business relationship. On the other side, if a state is struggling with corruption-related activities, then it will become difficult for a state to fully develop. Because financial crimes not only impact the country’s economic operations but it will impact all sectors of the state. A research study was conducted to examine whether corruption affects innovation in a country. The results of the study stated that a high risk of corruption-related activities adversely affects the country’s economy and a lower risk of corruption enhances the innovation in economic sector.

Essentials of Corruption Monitoring

Corruption Monitoring Services helps organizations by ensuring great business success.

The corruption monitoring process helps organizations with numerous benefits such as protection from financial crimes and mitigation of all risks and threats associated with the organization. Let us discuss the advantages provided by monitoring corruption.

Risk Identification

The corruption evaluation process is beneficial for the early identification of all risks and threats related to business activities. The innovative features provided by the online corruption monitoring system will help in mitigating all financial and reputational risks even before confronting them. The adoption of single-time monitoring will not give the organization consistent benefits. Organizations should regularly seek online corruption monitoring services.

Upgrade Due Diligence

The indicators for monitoring corruption not only enhance transparency but also help the organizations with the due diligence processes. This process helps in making the customer onboarding process smooth and seamless. Organizations should regularly seek corruption monitoring services because whenever a new business relationship gets built, it needs a deep scanning of whether the new business relation is reliable or not. AML Watcher provides the best corruption monitoring services which will help your organization to stay compliant with global AML rules and regulations.

Revealing PEPs

PEP screening is one of the indicators for monitoring corruption. This indicator helps the organization to stay vigilant against any PEPs. This screening ensures the mitigation of all risks and threats related to the reputation and integrity of the organization. Additionally, it prevents the organization from building a business relationship with any sanctioned entities or individuals.

Help Avoid Penalties

Monitoring of corruption plays an important role in protecting organizations from all kinds of penalties and sanctions. If the organization doesn’t deal with the corruption at the early stage, it will further lead to severe penalties. A research study was conducted to examine the long-term period and punishment effects on corrupt behavior. The results of the study stated that the implementation of a long-term period of punishment helps in the eradication of bribery.

Keep an Eye on Financial Operations

The corruption monitoring system is helpful in exposing all fraudulent activities to maintain the reputation of the organization. This monitoring process ensures to keep a strong eye on all financial activities of the organization.  This process with its unique and innovative features helps in keeping the organization away from all kinds of financial frauds. A research study was conducted to test whether the use of blockchain helps combat corruption. The results of the study declared that undoubtedly, new and innovative technological solutions have a significant role in the eradication of corruption.

Ensure Compliance and Transparency

To maintain regulatory compliance in the organization, organizations need to seek regular monitoring of corruption in order to alleviate all corruption-related crimes in the organization. A research study was conducted to explore the world of corruption. Multiple criminology theories were used to examine the prevention of corruption. The results of the study stated that a positive work environment and the regular monitoring of red flags help in the alleviation of corruption in the organization. This is the reason organizations should adopt the effortless practice of monitoring corruption. Indicators for corruption monitoring play a great role in the early identification of any red flags associated with the organization.

According to the US news, Russia is considered the world’s most corrupt country in the survey of 2023 best countries rankings. A total of 87 countries were included in the survey. The results of the survey were the same as the previous year. Russia tops the list of corrupt countries in the year 2022.

Corruption (A shocking case study)

A shocking case study about financial crimes, 1MDB is a Malaysian bank. The bank was accused of huge fraudulent activities such as laundering billions of dollars from the US and the bank was also involved in bribery and bond pricing issues. The bank was also supported by false declarations by some officials. The illicit gains and funds were being processed outside the country. The following scandal came to attention in the year 2015. In this scandal, many businessmen, bank employees, and government officials holding senior positions from Malaysia were involved. Not only Malaysians but some people from Saudi Arabia and UAE were also involved. It was also reported that former Prime Minister Najib Razaq was also supporting this scandal. According to the Financial Crime Academy, three phases of this scandal have been explained. Countless amounts of illicit billion dollars were transferred outside the country for the sake of a luxurious lifestyle. All these corrupt people were charged with huge penalties.

Corruption is rising at the fastest rate. In this case, the corrupt officials quickly get them concealed to avoid all kinds of threats. The corrupt activities in the country are the major source of all illegal activities. This case is the right example to elaborate on how corruption takes the form of money laundering. This case started with some light corrupt activities and ended up being a shocking scandal in the world. In addition, corruption takes place when the offender gets worried that he/she will get caught. Offenders always fear the detection of money laundering crime until he/she completely conceal his/her illegal money. In this case, corruption monitoring services by AML Watcher would be the best option for organizations.

AML Watcher’s Corruption Monitoring Process

AML Watcher is providing huge benefits with their exceptional corruption monitoring services.

AML Watcher helps organizations to stay compliant through innovative solutions. AML Watcher is assisting organizations with indicators for monitoring corruption. The best and most exceptional corruption monitoring services are provided by AML Watcher. Monitoring of corruption has become a significant practice for all organizations specifically financial institutes. These indicators help the organizations to identify the illicit and illegal activities that are being practiced behind the wall. Additionally, this monitoring process helps in the management of reputational risk, helps in evading penalties regarding financial crimes, and supports organizations in running according to global values. Do not wait for the arrival of obstacles and contact us today for a safe workplace.

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