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Zoe Allen

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



Published Date

December 29, 2023


Blog / Corruption Monitor – Screening to Control Financial Crimes

13 min Read

Corruption Monitor – Screening to Control Financial Crimes

The corruption-related activities have taken place at almost every institute and organization. Some organizations are not even aware of this act because the criminals are taking action behind the wall. In this situation, the practice that has all eyes on it is “Corruption Monitoring”. The monitoring of corruption is a kind of practice that would prevent all activities related to corruption and even money laundering. Additionally, indicators for monitoring corruption will help in maintaining integrity and compliance in the organization. In this blog, we will discuss the corruption monitoring service and its effectiveness for organizations.

First and foremost we will discuss the relation between corruption and money laundering.

Corruption and money laundering

Corruption is the initial step of the money laundering process. Not surprisingly, sometimes the most well-known employee of the organization is involved in corruption-related activities and no one even believes that because the criminal never acts suspiciously. In this case, the employee consistently works on his/her corruption tasks and gradually gets indulged in the process of money laundering to gain more profits. These kinds of practices are not only related to that specific employee but are also strongly linked to the reputation and functioning of an organization.

According to FATF, the money laundering and corruption are interlinked practices. Corruption-related activities function for the procurement of illicit private gains. Money laundering is the process in which criminals work to convert those illicit gains into legal finances so that there is no chance for risk. In simple words, money laundering helps them to conceal their illegal activities.

A research study was conducted to test the statement of whether Islamic banks in Malaysia and Pakistan gain from corruption and money laundering. The study incorporated 53 standard banks and 19 Islamic banks in both states. The results of the study declared that Islamic banks gain more profits from money laundering activities. Furthermore, the study stated that there is more functioning of corruption-related activities in Pakistani banks as compared to Malaysian banks.

Corruption is one of the most dangerous financial crimes that hype up other crimes.

Shocking corruption cases

The cases of corruption already have a shocking history because almost every state has been fighting a long battle against corruption in the past years. If the organizations adopt the new techniques on time, they will help them in the early detection of any risk or threat. Let us discuss some of the past cases of financial crimes.

  • According to Forbes, the former richest woman in Africa, was generating her wealth by looting people and through money laundering. She was the daughter of the former president of Angola (a country in Central Africa). She was also gaining advantage of her father’s power and authority. She was working in the position of Head of a state oil firm. When the authorities came to know about her deep-rooted financial crimes, the public was shocked. In return, the authorities seized her illicit gains that were in the form of assets in Portugal. In the year 2020, when the Angolan court discovered one of her money laundering crimes, she claimed that she was a private businesswoman who owned multiple businesses and always functions her business in accordance with the law. So, the money laundering crime is none of her business. Her husband was also indulged in her crimes. The Angolan court took the first step after investigating her crimes. She owned different businesses in different states. After the first move by the Angolan court, other states also froze her assets such as Portugal Government, Lisbon Court, and Netherlands authorities. At last, the Angolan court sued her in London Court claiming that her mobile company had defaulted on loan payments and had to pay $430 million.
  • In South Africa, two members of the Gupta family were managing a business empire. In the year 2022, they were arrested from UAE and were accused of fraud and money laundering crimes. Later discovered that the former president of the state of South Africa, Jacob Zuma, was providing aid to these brothers. Also, in 2015, the deputy finance minister of a South African state claimed that he had received offers (bribe offers) of huge amounts from the Gupta brothers to take the top position. They were accused of money laundering crimes and of looting public contracts. Additionally, they were gaining an illegal advantage with the help of the former president. In simple words, they were illegally operating their business. After this scandal, the US and the UK also imposed sanctions on the Gupta brothers.

These cases are examples of how corruption can lead to dangerous financial crimes. This is the corruption monitoring is assisting with deep monitoring of all business elements.

Essentials of corruption monitoring process

Organizations should start adopting the corruption evaluation process because, in today’s world, it has become difficult for organizations to avoid corruption-related activities. According to the IMF, an article was published related to the consequences and causes related to corruption around the world. According to the study, some final points conclude the topic. The first and foremost point that has taken all the attention is that one state cannot get rid of corruption until the state’s government is willing to reduce its practices. Furthermore, control of the budget (Rationing) always gives hype to corruption in the state. Another concluding point is that a coin has two sides such as: one side is related to the fight against corruption and the other side is related to the improvement of the country.

The Corruption Monitoring process provides a shield to a large number of organizations. 

There are many benefits related to monitoring the process of corruption. Let us discuss the benefits.

Protecting the reputation: The indicators for monitoring corruption ensure to maintain the honor of the organization by alleviating all the reputational risks. Adverse media screening and PEP screening are included in the indicators of corruption monitoring. Although, all indicators help in the protection of honor these two play a major role in saving the organizations from reputational damage. These two indicators if adopted consistently can help in the proper management of all honor-related risks and threats of the future.

Consistent monitoring of the financial department: Organizations should go for online corruption monitoring services that would enhance the functioning of all finances. Online corruption monitoring system not only helps in the smooth functioning of the organization but also keep a strong eye on every detail related to the financial system. Every transaction and financial task has its deep monitoring to detail to avoid future issues and challenges.

Eradication of all risks and threats:  Corruption monitoring helps in the alleviation of all risks and threats related to the organization. If organizations adopt the practice of corruption monitoring, it will help them to stay alert of any arising risk towards their business components, which in turn helps in the smooth functioning of the organization.

Proper management of global rules: This monitoring process assists organizations in keeping up with global rules and regulations. This process helps in the deep scanning of all financial operations of the organization with advanced techniques so that the organization can function in accordance with global rules and guidelines.

Enhancing the due diligence process: The indicators of corruption ensure to enhancement of the due diligence process of the organization. This process helps in the onboarding of customers with the help of a deep level of monitoring so that the organization can avoid future challenges related to customers and stakeholders.

Maintaining transparency and compliance: Monitoring of corruption helps in maintaining regulatory compliance in the organization. It also helps the maintenance of the integrity of the organization. With the help of this monitoring process, organizations can acquire the confidence to extend their business to new heights without any fear of financial crimes such as money laundering.

Following global business ethics: This monitoring process provides organizations with an extra layer of protection. Once, this screening ensures protection, in return organizations can easily follow global business ethics. When the organization is free from all kinds of financial crimes, it can act in accordance with the global AML guidelines without any inconvenience.

Alleviating financial crimes: In this fast-paced world, it has become extremely difficult for states to combat financial crimes. Technology is growing rapidly day by day and criminals are busy discovering new ways to indulge in illicit financial crimes. A research study was conducted to examine the different technological strategies to combat money laundering. The results of the study stated that all states should adopt the new techniques for combating financial crimes and it is the responsibility of every state.

In this case, the corruption monitoring system plays the best role in mitigating all kinds of financial crimes. AML Watcher provides the best corruption monitoring services.

Exceptional services by AML Watcher

AML Watcher is providing organizations with numerous benefits with the help of corruption monitoring. Organizations can easily evade the layer of financial crimes with the monitoring of corruption. The indicators for monitoring corruption work in the best way for the complete alleviation of money laundering activities. AML Watcher’s corruption monitoring process ensures the deep scanning of all elements related to the organization with the assistance of new and advanced technologies. Additionally, they deal with all the potential risks so that organizations can avoid future challenges. With the help of these advanced techniques, you can ensure a safe and protective work environment. So, do not wait for the arrival of challenges, and contact us today.

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