The World Economic Forum (WEF) has published a Unifying Framework of five core practices to assist ‘gatekeepers’, including bankers, lawyers and accountants, in their work to stop or interrupt illicit financial flows (IFFs) and corruption.

The framework assumes private sector gatekeepers are essential for preventing and disrupting IFFs and corruption and must implement responsible practices in every aspect of their operations and collaborate across their industry and supply chains.

Five core practices

To support these gatekeepers, which also included art advisors, luxury goods dealers, notaries, private wealth managers and real estate agents, the WEF says its Unifying Framework is centred on five core practices:

1. Establish clear, concrete and up-to-date policies
2. Promote effective due diligence
3. Centre a culture of integrity through training and incentives
4. Foster a “speak-up” culture
5. Collaborate across industries and sectors

Nedbank’s financial crime model

Amongst the models of best practice presented in the framework by WEF is Nedbank’s financial crime risk management policies, including those related to money laundering, terrorist financing and sanctions, fraud, corruption and tax evasion.

These are annually reviewed and approved by the board and disseminated to all employees to read and acknowledge.

Consolidated risk assessment

Nedbank performs individual risk assessments across the group for each financial crime type and holistically for a consolidated enterprise-wide integrated financial crime risk assessment.

These policies provide a view of the threats and vulnerabilities that drive and create Nedbank’s integrated and holistic financial crime risk management and enable the bank to assess how the effectively those threats and vulnerabilities are managed.

The WEF’s Universal Framework can be found here.

Categories: Trade Based Financial crimes News

Tags: Financial crime, financial crime risk, Universal Framework, WEF, World Economic Forum