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Economic Crime Update: 2017 UAE Snapshot

PwC has been surveying trends in global economic crime since 2001 with the findings released bi-annually in the Global Economic Crime Survey. In that time, despite efforts to combat economic crime, there has been no clear indication that levels in the Middle East or globally have decreased. Economic crime remains as tough to tackle as it's ever been.

During our recent Global Trends in Enforcement and Investigations conference in early 2017, we surveyed 150 participants on how economic crime is impacting their organisation. In this snapshot, we outline the sentiments of the audience.

In the last 24 months, what has been the financial impact of economic crime in your organisation?*


5 million to < 100 million USD

11%


1 million to < 5 million USD

17%


100,000 to < 1 million USD

27%


50,000 to < 100,000 USD

17%


Less than 50,000 USD

27%

Has your organisation experienced any economic crime in the last 24 months?

40% of respondents indicated that their organisations have never performed a fraud risk assessment

65% of respondents cited opportunity as the biggest factor driving crimes committed by employees

The 4 most commonly reported types of economic crime

49%

Asset misappropriation

12%

Cybercrime

15%

Bribery and corruption

16%

Procurement fraud




Key themes at a glance

Ethics & Compliance


74%

of all the economic crimes reported in the last two years were committed by staff.

Cybercrime


72%

of respondents indicated that their perception of the risk of cyber crime in their organisation has increased over the last 24 months

Anti-Money Laundering


44%

of respondents reported that their organisation restructured or reorganised departments
responsible for governance and compliance as a measure implemented in the last 24 months to address increased regulatory expectations

Most likely characteristics of an internal fraudster

Male, 31-40 years old, 3-5 years service

Middle East respondents who have an incident response plan to deal with cyber attacks*

Don't know: 0%; No, do not intend to implement a plan: 13%; No, assessing feasibility: 36%; Yes, not yet implemented: 13%; Yes, fully in operation: 37%

Most significant challenges with response to AML/CFT systems*

Complexity of implementing/upgrading: 20%; Data quality and maintenance of client information in electronic format: 37%; Local language issues: 11%; Monitoring systems generating large number of false positive alerts: 14%; Data privacy limitations on information sharing across jurisdictions: 17%.

Measures taken to limit exposure to trade based money laundering activity (TMBL)*

Money laundering

29%

No measures taken specifically to limit TBML as the business is not at risk

20%

The business may be at risk to TBML but no measures have been taken

24%

Third party due diligence at the start of relationship with all business partners to include ownership structure, nature of business, expected activity etc

2%

Real time monitoring of adverse information related all business partners

24%

Established controls around payments to/from third parties, including invoices/purchase orders an/or wire instructions/remittance details

Respondents profiled

Respondents profiled

80% of respondents were managing Finance, Executive Management, Audit, Compliance and Risk Management Functions


17% of respondents were from the Financial Services Industry

25% of participants had over 10,000 employees in their organisation


32% of the survey population represented Privately Owned Companies

38% of respondents were from Government / Stated Owned Enterprises

*Decimal data was expressed in our original survey findings. All percentages have been rounded for the purpose of this survey.

Contact us

Tania Fabiani

Partner, Forensic Services, PwC Middle East

Tel: +971 2 694 6800

Achraf El Zaim

Partner, Forensic Services Leader, PwC Middle East

Tel: +971 (0) 4 304 3132

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