Anti-Bribery Expert Says Corruption at FIFA Entrenched for Decades

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Sarah Hofmann
ACFE Public Relations Specialist

Hundreds of anti-fraud professionals from Europe will gather in Brussels, March 20-22 for the 2016 ACFE European Fraud Conference, where they will hear from president and founder of TRACE International, Alexandra Wrage. She hopes that she can shed some light on corruption and compliance issues around the world, including those affecting football’s governing body.

As both an anti-corruption expert and a former member of FIFA’s Independent Governance Committee, Wrage believes not much could have prevented the FIFA scandal that continues to unfold. She said, “The problems at FIFA were so widespread and so broadly accepted, that I am not sure anything could have been done to prevent the corruption. The problems, and especially the sense of entitlement, had been entrenched for decades. It’s possible that the corruption could have been stopped earlier if the sponsors, the Swiss government or the enforcement agencies had stepped in sooner. But for years, it seemed that Mr. [Sepp] Blatter and his friends were almost untouchable. They exchanged favors, made secret deals, funded their own extravagant lifestyle … all at the expense of the sport they were meant to protect and promote.”

Alexandra Wrage, President of TRACE International

At the conference, she will share her thoughts on not only the FIFA scandal, but important issues she sees through her work at TRACE International regarding global anti-bribery standards and the importance of setting the right tone at the top when implementing controls to prevent corruption. Wrage said a common challenge she sees is, “The sense at headquarters that nothing can be done because bribery is simply unavoidable in some countries. I certainly don’t believe this and your local employees won’t thank you for that sort of pessimism. They’re living with corruption every day and the head office should be backing them up, providing tools and training and helping them to avoid extortionate demands.”

She will be joined at the conference by other keynote speakers including award-winning investigative journalist and acclaimed author Anita Raghavan, Chief Commissioner of the Belgian Federal Police Johan Denolf, Head of the Security Division and General Services Division, International Court of Justice Maarten Daman, Attorney Mark Livschitz and Deputy Training Director of the Association of Certified Fraud Examiners Liseli Pennings, CFE.

Breakout sessions will include discussions about cybercrime, bitcoin and how linguistic and cultural influences can be used to fight against money laundering. This conference will give attendees an opportunity not only to hone their techniques, but also network and build relationships with other anti-fraud professionals.

Don’t miss your chance to hear from experts on today’s most pressing fraud and corruption issues. Register now for your chance to attend the 2016 ACFE European Fraud Conference in Brussels.

Media's Role in Fighting Fraud & Corruption

INTERVIEW WITH MARGO SMIT

Investigative Journalist and Director, Association of Investigative Journalists (VVOJ) and keynote speaker at the 2014 ACFE European Fraud Conference in Amsterdam, 23-25 March

What would you like to share with the group you will address in Amsterdam?

I would like to share with them the important role investigative journalism may play in combatting fraud and corruption, and that there are commonalities between journalists and anti-fraud professionals in the way we do our jobs and the tools we use. Both professions should explore where they can help each other and benefit from each other’s knowledge and skills.

What role do you think the media currently plays in combatting future frauds?

Media can play a very important role in combatting fraud and corruption. It has been recognized on several occasions and in several studies, for instances by the World Bank and Transparency International (TI), that investigative reporting is the single most effective technique to combat corruption. In 2012, TI asked 3,000 businesspeople how best to fight corruption, and when being able to choose between a number of approaches ranging from international conventions on bribery and corruption to national anti-bribery laws and due diligence by business partners, governments and banks, a majority picked investigative reporting. Journalism and its possible effect of naming and shaming, is apparently seen as a very effective deterrent.

Nice as this may sound to reporters, this is also a large responsibility that we may not always take for what it is: a strong warning that we have to do our work scrupulously. In too many parts of the world, media stories on fraud are used for political and personal gain. Investigative reporting has to be carried out with strong independence, and if not, its possible role will be diminished.

Apart from all this, media can play a much larger role in combatting fraud. The report I published for the European Parliament Budgetary Control Committee showed a stunning indifference by European media to cover – let alone investigate – the large amounts of money being dispersed through many European Union programs. Europe is a hard nut to crack, apparently. Reporters give up too easily when the reporting gets complicated or too data-oriented. There still is a lack of skills amongst reporters to deal with issues of fraud and corruption. However, I hold high hopes of future generations of journalists. My students are much more comfortable with crunching the numbers, and they know how to build a database. There is much room for improvement.

What do you most hope attendees will take away from your address?

We may not be exactly 'one-of-a-kind' but at least 'one-and-a-half of a kind.' We have a lot in common, fraud-fighters and investigative reporters. We look behind the obvious, we look for context and background to occurrences, we like digging for answers, searching for patterns in what doesn’t (seem to) connect. And we may be able to help each other. Though I realize that often fraud fighters cannot easily talk with reporters while investigating fraud cases, perhaps we can teach each other methodology and give insight into what works best for each of us. Investigations, be they journalistic or aimed at combatting fraud, are not done in a vacuum, but are often the result of cooperation between people in different professions: researchers, programmers, and more and more often, the crowd. If we increasingly use the knowledge of the crowd for our investigations, perhaps we can learn to see each other’s professions as part of that crowd of knowledge.

Read more information about the upcoming 2014 ACFE European Fraud Conference in Amsterdam and register today.

Highlights from the ACFE European Fraud Conference

GUEST BLOGGER: LIVE FROM THE ACFE EURO FRAUD CONFERENCE

Allan Bachman, CFE
ACFE Education Manager

It's snowing here in Prague this evening. This is a big difference from last year’s European Conference in London when the weather was surprisingly spring-like. This year the weather is more suitable for a native New Englander who has been describing the below freezing temperatures as "chilly."

Indoors at the Prague Marriott it is much different, as well, as the conference has welcomed representatives from 34 countries at last count. There is obvious European representation, of course, but I am excited to also see people from North America, Africa and the Asia-Pacific region. Once again, like the rest of the ACFE conferences, this is truly an international event.

ACFE President and CEO James D. Ratley, CFE, opened the conference with a new session on professional skepticism which mixed sage advice with his unique brand of humor. The luncheon keynote, Ian Foxley, is a whistleblower who is still tilting at the windmill of the massive fraud and corruption he found as project leader on a large multinational contract which reaches to some of the highest levels of government.

Concurrent breakout sessions featured a couple of returning favorites and some new notables including Pauline Roberts. Pauline is a retired FBI special agent and spoke on international investigations and how to navigate the waters of differing jurisdictions and legal systems. For her first outing as a speaker, Pauline was very well received and a pleasure to work with.

Tomorrow rounds out the conference with three more keynotes and several breakout speakers, but until then I think a walk in the falling snow in Old Town Prague is the perfect way to end this day.

Find more coverage and photos of the ACFE European Fraud Conference on the ACFE's Facebook page.

Top photo: Marek Dandar, James D. Ratley and Stevan Villalobos

Bottom photo: Attendees at the ACFE European Fraud Conference

Resolution #2: Continue to Go Global

#2: BROADEN OUR GLOBAL REACH WITH MORE GLOBAL INITIATIVES

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Anil Narayan

ACFE Global Business Development Manager

Sure, I knew all about Enron, WorldCom and Bernie Madoff. Having worked in international telecommunications for the past 15 years, I was quite familiar with how easily and quickly billions of dollars could be forfeited due to undetected fraudulent activity. However, prior to applying for my newly created position here in the fall of 2012, I wasn’t aware of the ACFE nor of the Certified Fraud Examiner credential. With some research, I quickly learned of the critical role CFEs play in the fight against fraud and the invaluable array of knowledge and skills they bring to their organizations. In accepting this new job, I have taken on the challenges of expanding the ACFE’s reach around the world as well as making my parents understand where I work for a living.

With a couple of months under my belt, I’ve found anti-fraud lingo to be a part of a language that professionals around the world are increasingly learning. Nearly 25 percent of the ACFE’s members reside outside of the U.S. and represent our fastest-growing demographic, with Asia and Africa seeing the largest rise in new membership over the past year. Our CFE Exam Review Course in Singapore last March and the ACFE Asia-Pacific Fraud Conference in Hong Kong in November 2012 were so successful, the events paved the way for ACFE courses to be offered in Melbourne, Jakarta and Shanghai in April 2013.

Historic conferences organized exclusively by ACFE Chapters in South Africa and Greece drew approximately 800 people to each venue, demonstrating the demand for anti-fraud education. Embracing the growth of the ACFE outside of the U.S., our biggest annual conference, projected to attract 2,400 attendees to Las Vegas in June 2013, has been officially renamed the 24th Annual ACFE Global Fraud Conference.

We also recently introduced the Global Spotlight on ACFE.com to celebrate the accomplishments of our members outside of the U.S., with the inaugural feature story showcasing the aforementioned first Hellenic Anti-Fraud Conference in Athens, Greece.

As we start the New Year, our focus is on the ACFE’s global events, beginning with the ACFE European Fraud Conference in Prague, Czech Republic, 17-19 March. By inviting prominent keynote speakers, such as former Europol Director Max-Peter Ratzel and Director-General of European Anti-Fraud Office (OLAF) Giovanni Kessler, we believe the ACFE will continue to draw record attendance to these events.

The ACFE, recognizing the need to enhance and support the growth trend outside of the U.S., launched its latest global initiative at the end of 2012. The first step was to create the Global Business Development Manager position and fill it with me, a product of three distinct cultures: Born and raised in Taiwan as an Indian expatriate, I only moved to the U.S. at the age of 18. I believe I can bring a unique international perspective to the organization and act as the voice of our members around the world, to whom I assure:

我們在聽。

We are listening.

An Olympic Event: ACFE European Fraud Conference Wraps Up in London

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Allan Bachman, CFE
ACFE Education Manager

With 34 countries represented by the more than 200 attendees, the ACFE European Fraud Conference once again showed how truly successful an international meeting of anti-fraud professionals can be. Speakers from countries like Israel, Saudi Arabia, Belgium, Italy, Latvia and the Czech Republic delivered training and shared their professional expertise with an eager group.

The Conference kicked off with ACFE faculty member Cynthia Hetherington, CFE, who, in her unique style, brought the 21^st century to the Old World. Her session on using social networks in fraud examinations was a huge success and left attendees wanting more. Using “live-fire” exercises with real-time social media interaction, she demonstrated ways to gather information about suspects and their likes, dislikes and interests without being detected. She clearly illustrated that what someone will not tell you to your face, they will broadcast to the world via social networks if you only know how to look for it.

ACFE President and CEO James D. Ratley, CFE, opened Monday in his inimitable style. His session on conducting internal investigations was the tip of the iceberg, but left attendees scribbling notes long after he had finished his session. His laid back approach and humor were refreshing to European attendees, and his tips on obtaining a confession even caught the attention of one attendee and his YouTube channel, The Fraud Tube (watch the video here).

The luncheon speaker, Carman Lapointe, CFE, CIA, CCSA, Under-Secretary-General of the Office of Internal Oversight Services at the United Nations, detailed her mission. Her attempt to recruit for some of her mission’s more dangerous assignments brought home the real personal risk to anti-fraud professionals.

The evening networking reception was well attended and a great respite from a long day of serious discussion. Well attended and a chance to make evening plans, these receptions are always a good opportunity to take it down a notch.

Tuesday opened with a keynote from Stephen Harrison, current head of the UK’s National Fraud Authority. Mr. Harrison was detailed in discussing their important strategic objectives, priorities and the NFIB’s (National Fraud Intelligence Bureau) efforts to coordinate fraud reporting and enforcement. The initiative has produced informational videos detailing their goals and tips on how to prevent fraud.

Once again the breakout session and closing panel were captivating and generously complimented. Luncheon speaker and author Nick Kochan was blunt in his assessment of the current state of money laundering, a subject about which he has written extensively.

Like all good things, this too had to come to an end. Mr. Ratley is off to Istanbul, the attendees are off to their respective home countries and I am left to begin to think about how to top this next year.

Want more? View photos from the 2012 ACFE European Fraud Conference on the ACFE's Facebook page.