A few weeks ago I attended the World Congress of Accountants in Malaysia. For most readers attending such an event will seem about as interesting as watching paint dry, but you’d be surprised what I learned!
One key topic was ‘Fight Corruption and Money Laundering – The ongoing battle for accountants’. A variety of speakers from different countries gave their perspective.
Money laundering quite simply means turning dirty money into clean money, or rather funneling money from criminal activities through legitimate financial institutions, it’s an increasing problem for accountants all over the world.
Many countries (including the UK) already require accountants in practice to:
- Identify their clients, including “Politically Exposed Persons”.
- Have systems to recognise and report money-laundering suspicions, including the laundering of the proceeds of bribery.
The speakers announced a number of possible strategies to combat money-laundering including:
- Political reforms – the government producing more legislation to deter would be money launderers.
- Economic policy – marketing regulation in the financial sector.
- Raising public awareness – through media, and local councils.
- Institution reform – strengthening the powers of revenue and auditing authorities.
One particular accountant from Nigeria stood and said
“If we blow the whistle on these people, what will happen to our jobs, as a nation that job prosperity is very limited is it wise for us to be doing this, how will it help us feed our families?” Scary stuff.
So is being a whistle blower a good thing?
I’ve learned from personal experience that being a whistle blower is hard. I’ve lost jobs at four different accounting offices because I spoke out about fraud and false reporting. But even so I’d always speak out against money laundering and corruption.
Would you? Are you prepared to lose everything?
Emmanuel Sarris
Financial Planner
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