Flip through the latest issue of Gulf Weekly.
A leading business advisory firm has launched its fraud investigation service for the Middle East in Bahrain.
Ernst & Young's Fraud Investigation and Dispute Services was launched during a seminar at the Crowne Plaza, Bahrain, attended by a group of high-level executives.
The service has been made available to the firm's clients across the globe and increased interest from businesses in the Middle East led to a decision to launch it in the region.
"Fraud usually increases as market conditions toughen. People are placed under stress, personally and professionally and are sometimes tempted by an opportunity offered by poor governance and controls," said Ernst & Young, Bahrain partner John Sanderson.
"Fraud is often a by-product of stress in the economic system. The temptation to cut corners is there and it is real," said Mr Sanderson. "This is a time to ensure that systems and processes are robust. It is a time to review how vulnerable your business is to fraudulent activities - large or small."
Tertius Stapelberg has relocated from Ernst & Young in South Africa to lead the development of this service line.
"The Bahrain market has always had a reputation for leading practice in terms of controlling risk," said Mr Stapelberg. "The market aims to be transparent in its business practices and Ernst & Young's clients have shown considerable interest in an independent 'healthcheck' to ensure that their systems are designed to cope with the stresses and strains that current conditions are likely to put on them.
"In reality, no country or region is immune. Fraud is diverse in form and version and increases organisational vulnerability to business fraud and - in turn - to reputational risk," he said. "Investor and consumer confidence is inextricably linked to the way a company is perceived. Good reputations take years to build and can be damaged or destroyed overnight.
Mr Ahmed Bumtaia, the director of compliance at the Central Bank of Bahrain also addressed the group and outlined the anti-money laundering procedures that the CBB enforce.
"During our annual inspections, there are often areas that need to be tightened up in terms of risk management processes. Banks are always interested in learning about and developing leading practice during this process" he said,
"However, the most fundamental part of protecting our valuable banking system from money laundering activity is to prevent fraud and to remain committed to leading practice, staying ahead of criminal practices."
