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which  he  or  she  legaly  bound  to  disclose  with  intent  to  decive  or  defraud  in  a  contract, agreement .This  is  done  by using  the  false  journal  enteries,  destroying  files  etc .

 

                                                     3). CONVERSATION:-  THIS  IS  THE  LAST  STAGE  of  triangle  of  fraud  action. Conversation  means  the  action  of  taking  into  possession  of  another  man's  money  or  property  and  converting  or  using them  fraudulently  for  one  use  and  benefit  of  or  for  the  use  and  benefit  of  the  third  party  to  whom  the  property  or  money  dose  not  belongs. It  may  take  place  when  a  person  actually  appropriates  the  property  of  another  to  his  own  beneficial  use  or  enjoyment  or  to  that  of  a  third  person who  assets  by  the  alteration  of  its  nature. To  constitute a  fraudulent  conversation  there  must  not  only  be  the  intention  to  defraud  but  the  intent  must  be  accompainieshed  by  the  acts  of  fraud.

 

                                                                                  

STRATEGIES FOR FRAUD PREVENTION IN YOUR BUISSNESS

                                                        EMPLOYEES  FRAUD  IS  A  SIGNIFICANT  PROBLEM  FACED  BY organizations  of  all  types ,  sizes, location  and  industries. While  we  could  all  like  to  belive  our  employes  are  loyal  and  working  for  the  benefit  of  the  organitation,  there  are  still  many  reason  why  your  employees  may  commit  fraud  and  several  ways  in  which  they  might  do  it. Luckily  ,  there  are  ways  you  can  minimize  fraud  occurance  by  implementing  diffrent  procedures  and  controls .There  are  6  strategies  for  fraud  prevention  in  your  buisness. They  are  as  follow:        

KNOW  YOUR  EMPLOYES. MAKE  EMPLOYES  AWARE/ SET  UP  REPORTING  SYSTEM. IMPLEMENT  INTERNAL  CONTROL. MONITOR  ATTENDENCE  BALANCE. HIRE  EXPERT

6. LIVE  THE  CORPORATE   CULTURER 

    CONCLUTION

 

                                          1). KNOW  YOUR  EMPLOYEES:-  Observing  and  listening  to  employees  can  help  you  identify  potential  fraud  risk . It  is  important for  management  to  be  involve  with  their  employees  and  take  time  to get  to  know  them.Often ,  an  attitude  change  clue  you  into  a  risk. This  can  also  reveal  internal  issues  that  need  to  be addressed. For  example, if  an  employee  feels  a  lack  of  appreciation  from  the  buisness  owner  or  angerat  their  boss,  this  could  lead  him  or  her  to  commit  fraud  as a  way  of  revenge. Any  attitude  change  should  cause  you  to  pay  close  attention  to  that  employee. This  may  not only  minimize a  better,  more  efficient  place  with  happier employees.

 

                                           2).MAKE  EMPLOYEE  AWARE

                                                       OR

                                        SET  UP  REPORTING  SYSTEM:- Awareness  affects  all  employees. Everyone  with  in  organization  should  be  aware  of  the fraud  and  the  consequences  associated  with  them. Those  who  are  planning  to  commit  fraud  will  know  that  management is  watching  and  will  hopefully  be  deterred  by  this. Honest  employees  who are  not  tempted  to  commit  fraud  will  also  be  aware  of  possible  signs  of  fraud  or  theft. These  employees  are  assets  in  the fight  againts  fraud.Since  many  employees  are  hestant  to  report  incidents  to  their  employers  consider  setting up  an  anonymous  reporting  system. Employees  can  report  fraudulent  activity  through a  website  keeping their  identity  safe  by  using  a  tip  online.

 

                                          3).IMPLEMENT  OF  INTERNAL  CONTROL:-  Internal  control  are  the  plans  or  programs  implemented  to  safegaurd your  campany assets, ensure the  integrity  of  its  accountin  records  and  deters  and  detect  fraud  and  theft. The  action  of  duties  is  an  important  component of  internal  control  that  can  reduce  the  risk  of  fraud  from occuring  documentation  is  another  internal  control  that  can  help  reduce  fraud. Internal control  program  should  be monitored  and  reused  an  current  with  technological  and  other  advances. If you  do  not  have  internal  control  process  or  fraud  prevention  program  in  place,  then  you  should  hire a  professional  with  experiance  in  this area . An expert  will  analize  the  company's  policies  and  procedurers,  recommand  appropriate  programs  and  assist  with  implementation.   

 

                                          4).MONITOR  ATTENDENCE  SHEET:- You  might  be  impressed  by  the  employees  who  haven't  missed  a  day  of  work  in  year  while  these  may  sound  like  loyal  employees, it  could  be  a  sign  that  these  employees  have  something  to  hide  and  are  worride  that  someone  will  detect  their  wrong  deeds  if  they  were  out  of  the  office  for  a  periods  of  time.It is  also  a  good  idea  to  rotate  employees  to  various  job  within  the  company. This  may  aloso  reveal  fraudulent  activity  as  it  allow  a   second  employee  to  rewiew  the  activities  of  the  first.Some  company  also  has   the  policy  of  that  it  is   compulsory  for  employees  to  take  5  days  or  10  days  mandatory  holidays. Its  will  help  management in 2  ways: management  cannot  become  dependent  on  any  employee  and  if  any   employee   refuces  to  take  holiday  then  that  means  something  is  wrong.

                                       

                                      5).HIER  EXPERTS:-  Certified  fraud  examiner (CFE), Certified  public  accountant (CPA) and CPAs  who  are   certified  in  Financial  forensic (CFF)  can  help  you  in  establishing  antifraud  policies  and  procedures. These  proffessional  can  provide  a  wide  range  of  services   from  complete  control  audits  and  forensic  analysis  to  general  and  basic  consultation.

 

                                           6). LIVE  THE  COOPORATE  CULTURER:-   A  positive  work  enviroment  can  prevent  employee  fraud  and  theft  . There  should  be  a  clear  organizational  structurer  and  fair employement  practice. An  open  door  policy  can  also  provide  a  grate  fraud  prevention  system  as  it  gives  employees  open  line  of  communication  with  the  management. Buisness  owner  and  senior  management  should  lead  by  example  and  hold  every  employee  accountable  for  their  actions ,  regardless  of  position.

 

                                             CONCLUSION:-  Those  who  are  willing  to  commit  fraud  do  not  discriminate. It  can  happen  in  large  or  small  companies  across  various  industries  and  geographic  location. Occupational  fraud  can  result  in  huge  fraud  financial  loss, legal  costs  and  ruined  reputation  that  can  ultimate  lead  to  downfall  of  an  organization.  Having  the  proper      plans  in  place  can  significantly  reduce  fraudulent  activities  from  occuring  or  cut  losses  if  a  fraud  already  occured. Making  the  company  policy  known  to  employees  is  one  of  the  best  way  to  determin  fraudulent  behaviour.   

 

 

                                                       

PREVENTION OF MONEY LAUNDERING ACT 2002

                                                                 PREVENTION  OF  MONEY  LAUNDERING  ACT  2002

 

1).ABOUT:- Money   laundering  is  the  process  by  which  illegal  funds  and  assets  are  converted  into  legilimate  fund  and  asset. Money  from  illegal  activities  is  deposited  in  numerous  legimate  accounts  making  it  difficult  to  trace  so  the  money  can  be  used  freely.

 

2).MEANING:- Money laundering is the process of creating the appearance that large amounts of money obtained from criminal activity, such as drug trafficking or terrorist activity, originated from a legitimate source. The money from the illicit activity is considered dirty, and the process "launders" the money to make it look clean.

 

3).STAGES:- Money laundering is essential for criminal organizations who wish to use illegally earned money effectively. Dealing in large amounts of illegal cash is inefficient and dangerous. The criminals need a way to deposit the money in financial institutions, yet they can only do so if the money appears to come from legitimate sources.

                                                                         There  are  three  stages  or  phases  of  money  laundering  placement, layering  and  integration

           (1) PLACEMENT:-Its   refers  to  the  initial  point  of  entry  for  funds  deroived  from  criminal  activities  into  the  financial  system.

          (2)  LAYERING;-  Layering refers  to  the  certain  of  complex  network  of  transaction  that attempt  to  blur  the  link  between  the  initial  entery  point  and  the  end  of  the  laundering cycle. This  stage  can  consists  of  multiple  securites  trades,  cash  transfer , currency  exchange, the  purchases  of  financial  product  such  as  life  insurance etc.

           (3)INTEGRATION:-  INTEGRATION  REFERS  TO  THE  RETURNS  OF  FRAUD  TO  THE  LEGIMATE  ECONOMY.

 

4).MONEY  LAUNDERING  TATICS:- There are many ways to launder money, ranging from simple to complex. One of the most common ways to launder money is through a legitimate cash-based business owned by a criminal organization. For instance, if the organization owns a restaurant, it might inflate the daily cash receipts to funnel its illegal cash through the restaurant and into the bank. Then they can distribute the funds to the owners out of the restaurant's bank account. These types of businesses are often referred to as "fronts."

 

                          Another common form of money laundering is called smurfing, where a person breaks up large chunks of cash into multiple small deposits, often spread out over many different accounts, to avoid detection. Money laundering can also be done through the use of currency exchanges, wire transfers, and "mules" or cash smugglers, who smuggle large amounts of cash across borders to deposit them in offshore accounts where money-laundering enforcement is less strict. Other money-laundering methods involve investing in commodities such as gems and gold that can be easily moved to other jurisdictions, discretely investing in and selling valuable assets such as real estate, gambling, counterfeiting and creating shell companies.

     

                   

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