The Charity Commission has just published its annual report into its investigations and compliance work ‘Tackling abuse and mismanagement: 2016-17’. A quarter of serious incidents reported to the Charity Commission related to fraud, theft, money laundering, terrorist financing and other crimes. The Commission highlighted not just the need to have policies and procedures in place but also the need to verify that they are being implemented. This is a common theme that we are seeing across all the main regulated sectors including financial services and legal.
Weaknesses in governance and inadequate risk management are also common themes with 65% of whistleblowing reports received by the Commission relating to governance issues. All too often organisations have fantastic policies and procedures but are let down by their practical implementation. Effective implementation relies on the people working for the organisation and a poor compliance culture will significantly reduce the effectiveness of key controls.
We have developed a number of practical tools to help implement your fraud and other financial crime policies including anti money laundering and anti bribery and corruption. Many of these tools including guidance on governance and risk management are available free to registered charities.