Posts Tagged ‘know your customer’
The efforts of the Federal Bureau of Investigation over the past years has been on the detection, the investigation and the prosecution of cases of money laundering, bribery and fraud, be it tax evasion, or the inaccurate keeping of a company or and individuals records and accounting information. Cases of corporate corruption are still wide spread today and most of time involves the falsification of those books, with the intention of hiding a company’s true state of their financial holdings and status. The intention is to hide this information from prospective investors and potential clients
Many white collar crimes are cases of this nature and they affect the shareholders, the customers and the employees. Every daily interaction is based on false information. Stock holders and investors get manipulated, as well as employees who may not know that what they are doing at any given moment, could be breaking the law. These scams affect too, innocent citizens throughout the country, as in the corruption scams involving the losses of the life savings of many people. This has a detrimental effect on the entirety of the nation’s economy, every level of it. Not only is money lost at that moment, but future investors may decide to take their business elsewhere.
It is for these reasons that corporations must practice the “know your customer” policy. For not only do they put themselves at risk financially, they can put themselves at risk of federal investigations, based on dealings they have had with these types of clients and companies that aer committing the acts of fraud and corruption To know your customer is just knowing all that you can know about the people and the corporations with whom one is either considering doing business, or those with whom they are currently involved. This policy must be practiced regularly, being consistently thorough is the key for success in accomplishing the collection of the knowledge necessary.