Mena records lower financial crime than worldwide average
dubai — The ratio of those who fall victim to financial crimes in the Middle East and Africa region is lower than global average, results of a survey show on Thursday.
The survey, released by Thomson Reuters, revealed that globally, 47 per cent had been a victim of at least one form of financial crime within their global operations during the 12 months preceding the survey. The figure was slightly lower in Mena, at 45 per cent.
The global survey on the “Cost of Financial Crime” revealed that extensive third-party networks are evident in Mena, but just 42 per cent of these relationships are fully screened at both onboarding stage and on an ongoing basis. While this percentage is higher than the global average, it is still very low and indicates that more work needs to be done in this important area, Thomson Reuters said.
In fact, the majority of respondents across the region support the idea of collaboration in the ongoing fight against all forms of financial crime,” said Nadim Najjar, managing director, Mena, Thomson Reuters.
The survey uncovered some shortcomings, with respondents globally indicating that just 57 per cent fully screen and classify risk; 52 per cent fully conduct due diligence; and 52 per cent fully monitor and refresh. “Within the region, some notable gaps were also evident. In Mena, only 59 per cent fully implement workflow and process reports and just 60 per cent fully conduct due diligence. Even though companies across the region are spending an average of 3.8 per cent of their global turnover to fight financial crime, gaps in compliance remain,” Najjar added.
When it comes to rooting out financial crime, reliable and complete data is a critical requirement needed to develop a 360-degree view of risk, said Thomson Reuters. Survey respondents highlighted the rate of pressure on their companies to achieve these expectations during the 12 months post-survey and globally 83 per cent reported that pressure to increase turnover will be either extreme or significant. Respondents in the Middle East and North Africa were in agreement, with a significant proportion of 89 per cent also citing the same issue. Globally, an average of just 59 per cent of these relationships are screened with regard to the issues of bribery and corruption; money laundering; fraud; theft; cybercrime; and human trafficking. In the Middle East and North Africa, this figure rises to 65 per cent.
Ongoing monitoring to identify potential risk is also of critical importance, but the survey once again revealed that, after initial screening, an average of just 59 per cent of relationships are monitored and reviewed on at least an annual basis. In keeping with the trend, this figure rose to 64 per cent in the Middle East and North Africa. While these higher percentages are encouraging, it nonetheless means that just 42 per cent of relationships in the region are fully screened at both onboarding stage and on an ongoing basis.