10 Kasım 2012 Cumartesi

Organizations Fighting Against Fraud and Fradulent Transactions

There are some establishments that are founded all over the globe to create principles and ways to fight against fraud. One of those organizations is “European Anti Fraud Office” that has been established in order to fight against fraud inside European Union. Their mission, methods and principles are shown in the following paragraphs.

The mission of the European Anti-Fraud Office (OLAF) is to protect the financial interests of the European Union, to fight fraud, corruption and any other irregular activity, including misconduct within the European Institutions. In pursuing this mission in an accountable, transparent and cost-effective manner, OLAF aims to provide a quality service to the citizens of Europe.[1]

OLAF achieves its mission by conducting, in full independence, internal and external investigations. It also organizes close and regular cooperation between the competent authorities of the Member States in order to coordinate their activities. OLAF supplies Member States with the necessary support and technical know-how to help them in their anti-fraud activities. It contributes to the design of the anti-fraud strategy of the European Union and takes the necessary initiatives to strengthen the relevant legislation.[2]

In order to do the above activities they are very sensitive about the following principles:[3]
·         Integrity,
·         Impartiality
·         Professionalism,
·         Respect to the rights and freedoms of individuals
·         Being fully consistent with the law.

One other example can be given from United Kingdom. Serious Fraud Office has been established as an independent governmental department that investigates and prosecutes serious or complex fraud. It is a part of the United Kingdom criminal justice system. The Office is headed by the director who is appointed by and accountable to the Attorney General. The Attorney General is appointed by the Prime Minister and is responsible to Parliament for several departments including SFO. [4]

The Serious Fraud Office commenced operation in April 1988. It has been responsible for the investigation and prosecution of some of the biggest frauds in British history. The SFO and its powers were created by the Criminal Justice Act 1987. The impetus for introducing the Criminal Justice Act 1987 and creating the SFO was the Fraud Trials Committee Report, commonly known as 'the Roskill Report' published in 1986.[5]

Its main recommendation was the setting up of a new unified organization responsible for the detection, investigation and prosecution of serious fraud cases. In the UK during the 1970's and early 1980's there was considerable public dissatisfaction with the system for investigating and prosecuting serious and complex fraud.[6]

The government established the Fraud Trials Committee, an independent committee of inquiry, in 1983. Chaired by Lord Roskill, it considered the introduction of more effective means of fighting fraud through changes to the law and to criminal proceedings.[7]

The third organization may be Association of Certified Fraud Examiners (ACFE). ACFE is the world's premier provider of anti-fraud training and education. Together with nearly 40,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession.[8]

The mission of the ACFE is to reduce the incidence of fraud and white-collar crime and to assist the membership in its detection and deterrence. To accomplish its mission, the ACFE:[9]
·         Provides qualifications for Certified Fraud Examiners through administration of the CFE Examination,
·         Sets high standards for admission, including demonstrated competence through mandatory continuing professional education,
·         Requires Certified Fraud Examiners to adhere to a strict code of professional conduct and ethics,
·         Serves as the international representative for Certified Fraud Examiners to business, government and academic institutions,
·         Provides leadership to inspire public confidence in the integrity, objectivity, and professionalism of Certified Fraud Examiners,

After we state some organizations in fighting against fraud, we must also mention an act which is called Sarbanes-Oxley Act of 2002 that is a controversial United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Peregrine Systems and WorldCom.[10] These scandals resulted in a decline of public trust in accounting and reporting practices and this law has passed for restoring public trust to financial reports.[11]


[1] OLAF, “Mission”, http://ec.europa.eu/anti_fraud/index_en.html
[2] OLAF, “Methods”, http://ec.europa.eu/anti_fraud/index_en.html
[3] OLAF, “Principles”, http://ec.europa.eu/anti_fraud/index_en.html
[4] SFO, “About the SFO”, http://www.sfo.gov.uk/about/about.asp
[5] SFO, “Creation of SFO”, http://www.sfo.gov.uk/about/creation.asp
[7] SFO, Ibid.
[8] ACFE, “About ACFE”, http://www.acfe.com/about/about.asp
[9] ACFE, “About ACFE”, http://www.acfe.com/about/about.asp
[10] Wikipedia, “Sarbanes-Oxley Act”, http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act
[11] David H.Bangs, “The Fight Against Fraud”, Internal Auditor, p. 35.

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