Audit Remedies for PEP Risk

Michael Sandretto, CAMS-Audit

The significance of PEP illicit money and asset crimes cannot be stated strongly enough. The worldwide impact on the reduction of PEP criminal funds will tremendously help citizens in both home and destination countries. From the introduction, where we learned of the Russian anti-corruption campaigner Raman Borisovich and the Ukrainian investigative reporter Natalia Sedletska, it is clear that the citizens of crooked leaders are demanding change. The public outcry is shared by the enforcement agencies who are working tirelessly to stop PEP misconduct. In just the past few years the U.S. has moved from no restraints on anonymous shell companies purchasing deluxe properties to now having six metropolitan areas prohibited from this activity (part of FinCEN’s Geographic Targeting Orders) It is refreshing to see change happening. Every exposure of PEP crimes in the media brings us that much more relief.

The increased and careful use of audit techniques will go a long way to ensure the world’s financial community does everything in its power to mitigate the risk of PEP crimes going unnoticed and unpunished. As the majority of these crimes happen in the developing world there is a disproportionate effect on the world’s poorest people, those who are least able to defend themselves against the crimes perpetuated by their corrupt leaders and their associates. The world may not be a fair place, but the global financial community can work to make sure it is more just for everyone.

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