On 3 January, the EU published this report, saying that the results of the study – a key deliverable of the EU Organised Crime Strategy 2021-2025 – will feed into the Commission’s legislative proposal on combating corruption by criminal law. The European Commission contracted this study, carried out by EY and RAND, to analyse the gaps in the EU legislative framework in the area of corruption prevention and repression, to provide recommendations for possible EU measures to address these gaps and to assess and compare their impacts. It finds that an EU intervention could create added value by contributing to ensuring a level playing field between Member States, hence contributing towards greater harmonisation of national approaches in fighting against corruption.
On 12 January, the Bank for International Settlements published a report saying that recent high-profile failures of FTX and other crypto firms have re-ignited the debate on the appropriate policy response to address the risks in crypto, including through regulation. It says that “shadow financial” functions enabled by crypto markets share many of the vulnerabilities of traditional finance. These risks are exacerbated by specific features of crypto.
On 13 January, ICAEW says that fraud is a complex issue. Misinterpretations are commonplace in terms of both what counts as fraud and at what point auditors can be expected to spot it. Transgressions are not always obvious and the line between error and fraud can be blurred. Still, there are red flags that may indicate material fraud in financial accounts, albeit they are often hard to spot. It stresses that it is vital for auditors, internal auditors and management to be aware of the tricks that fraudsters use in order to detect fraud and prevent fraudulent activities. The news release refers to a report from 2022 – Sharpening the Focus on Corporate Fraud: an Audit Firm Perspective.
On 13 January, Panama America reported that Spain had decided to keep Panama dna the Bahamas off its of tax havens. The list now comprises Anguilla, Bahrain, Barbados, Bermuda, Dominica, Fiji, Gibraltar, Guam, Guernsey, Isle of Man, Cayman Islands, Falkland Islands, Mariana Islands, Solomon Islands, Turks and Caicos Islands, BVI, US Virgin Islands, Jersey, Palau, Samoa (with regard to the harmful tax regime/offshore business), US Samoa, Seychelles, Trinidad and Tobago, and Vanuatu.