Reports of large-scale bribery, corruption, money laundering, tax evasion and embezzlement — permeating the highest levels of corporations and government — are on the rise around the world. What’s new is that they’re now stoking street protests and multilateral regulatory pushback, and even destabilizing entire governments.
So how do you stop “grand corruption” from contaminating your organization? Here’s a fresh approach.
What is grand corruption? From Brasilia to Beijing, a steady stream of public reports are shining the spotlight on systemic corruption — bribery, money laundering, tax evasion, cronyism, self-dealing and misappropriation — reaching the highest levels of corporations and government leaders.
A new era of grand corruption requires an approach to risk mitigation. Local regulators and multilateral development banks have made it clear: global businesses must up their compliance game. That means being more aggressive and proactive in identifying red flags and strengthening internal controls.
Comply globally, think locally. Different countries have different norms. You have to be able to pivot between in-country and global requirements. A market-level strategy underpinned by on-the-ground, risk-based intelligence — and a deep understanding of local and multi-jurisdictional requirements — is a must.
Partner, Cybersecurity, Privacy and Forensics, PwC US