Financial Management Financial Management InstituteInstitute

HalifaxHalifax

2007-09-192007-09-19

Inspector Eric MattsonInspector Eric MattsonOfficer in Charge Officer in Charge

RCMP Financial Crime RCMP Financial Crime Nova Scotia Nova Scotia

• FRAUD ON THE GOVERNMENTFRAUD ON THE GOVERNMENT

• CORRUPTIONCORRUPTION

• FRAUDFRAUDEXTERNALEXTERNALINTERNALINTERNAL

CORRUPTIONCORRUPTIONACCOUNTABILITYACCOUNTABILITYTRANSPARENCYTRANSPARENCYRATIONALIZATIONRATIONALIZATION

EXTERNAL FRAUDEXTERNAL FRAUD

• PROGRAMSPROGRAMS

• APPLICATION FOR GRANTSAPPLICATION FOR GRANTS

• APPLICATION FOR LOANSAPPLICATION FOR LOANS

• APPLICATION FOR FINANCIAL APPLICATION FOR FINANCIAL ASSISTANCEASSISTANCE

• REFUNDS FOR PROGRAMS ALREADY REFUNDS FOR PROGRAMS ALREADY IN PLACEIN PLACE

• WHERE MONEY IS INVOLVED THER WHERE MONEY IS INVOLVED THER WILL BE FRAUDWILL BE FRAUD

• WHEN THERE IS AN OPPORTUNITY WHEN THERE IS AN OPPORTUNITY FOR FRAUD THERE WILL BE AN FOR FRAUD THERE WILL BE AN ATTEMPTATTEMPT

PROGRAMSPROGRAMS

• POLITICALPOLITICAL

• RUSHEDRUSHED

• DEADLINES IMPOSEDDEADLINES IMPOSED

• POSITIVE HEADLINESPOSITIVE HEADLINES

• POSITIVE RESULTSPOSITIVE RESULTS

PREPARATIONPREPARATION

• STAFFSTAFF

• MANAGERSMANAGERS

• CONSEQUENCECONSEQUENCE

• OVERSIGHTOVERSIGHT

• PUBLIC PUBLIC

WHEN IT GOES BADWHEN IT GOES BAD

• POLICEPOLICE

• GENERAL PUBLICGENERAL PUBLIC

• PROSECUTORS PROSECUTORS

• COURTCOURT

PREVENTIONPREVENTION

• EVALUATE PLANEVALUATE PLAN

• PREPARE FOR FRAUDPREPARE FOR FRAUD

• KNLW YOUR PROGRAMKNLW YOUR PROGRAM

• REVIEW PREVIOUS PROGRAMS REVIEW PREVIOUS PROGRAMS

• TAKE YOUR TIMETAKE YOUR TIME

• BEST AND WORST PRACTICESBEST AND WORST PRACTICES

PREVENTIONPREVENTION

• ENSURE FILERS AND RECEIVERS ENSURE FILERS AND RECEIVERS UNDERSTAND THE INTENTION OF PROGRAMUNDERSTAND THE INTENTION OF PROGRAM

• HAVE AN OVERSIGHT SYSTEMHAVE AN OVERSIGHT SYSTEM

• ADVISE CLAIMANT OF REVIEW SYSTEMADVISE CLAIMANT OF REVIEW SYSTEM

• WATCH FOR IDENTITY ISSUESWATCH FOR IDENTITY ISSUES

• ADVISE MANAGEMENT OF POTENTIAL ADVISE MANAGEMENT OF POTENTIAL ISSUESISSUES

• ACT QUICKLY ONCE FRAUD DISCOVEREDACT QUICKLY ONCE FRAUD DISCOVERED

REMEMBERREMEMBER

• THERE WILL BE AN ATTEMPT TO THERE WILL BE AN ATTEMPT TO DEFRAUDDEFRAUD

• PLAN FOR ITPLAN FOR IT

• RECOGNIZE IT RECOGNIZE IT

• REACT TO ITREACT TO IT

CORRUPTIONCORRUPTION

• SPECIFIC FORM OF FRAUDSPECIFIC FORM OF FRAUD

• RELATIONSHIP BETWEEN PUBLIC RELATIONSHIP BETWEEN PUBLIC OFFICER AND PUBLICOFFICER AND PUBLIC

• CULTURE OF CORRUPTION IN SOME CULTURE OF CORRUPTION IN SOME COUNTRIESCOUNTRIES

• DEVASTATING AFFECT ON ECONOMY DEVASTATING AFFECT ON ECONOMY OF COUNTRYOF COUNTRY

FRAUD TRIANGLEFRAUD TRIANGLE

• OPPROTUNITYOPPROTUNITY

• MOTIVEMOTIVE

• RATIONALIZATIONRATIONALIZATION

PREVENTION OF PREVENTION OF CORRUPTIONCORRUPTION

• AWARENESSAWARENESS

• STRONG GOVERNMENT LEADERSHIPSTRONG GOVERNMENT LEADERSHIP

• ANTI CORRUPTION INITIATIVESANTI CORRUPTION INITIATIVES

• WHISTLE BLOWERSWHISTLE BLOWERS

• INVESTIGATIONINVESTIGATION

• ENFORCEMENTENFORCEMENT

HIGH RISK AREASHIGH RISK AREAS

• MEGA CONSTRUCTION PROJECTSMEGA CONSTRUCTION PROJECTS

• COUNTRY TO COUNTRY COUNTRY TO COUNTRY DEVELOPMENT ASSSITANCEDEVELOPMENT ASSSITANCE

• DISASTER RECOVERY ASSISTANCEDISASTER RECOVERY ASSISTANCE

• EXTRACTIVE MINERALSEXTRACTIVE MINERALS

LEGISLATIONLEGISLATION

• LEGISLATION HAS TO EXTENSIVE TO LEGISLATION HAS TO EXTENSIVE TO BE EFFECTIVEBE EFFECTIVE

• CANADA HAS SOME OF THE BEST CANADA HAS SOME OF THE BEST ANTI CORRUTION LEGISLATION IN ANTI CORRUTION LEGISLATION IN THE WORLDTHE WORLD

• FITS IN WITH ACCOUNTABILITY, FITS IN WITH ACCOUNTABILITY, TRANSPARENCY AND TRANSPARENCY AND CRIMINALIZATIONCRIMINALIZATION

ACCOUNTABILITYACCOUNTABILITY

• FEDERAL ACCOUNTABILITY ACTFEDERAL ACCOUNTABILITY ACT

• CONFLICT OF INTERESTCONFLICT OF INTEREST

• AUDITOR GENERAL ACTAUDITOR GENERAL ACT

• FINANCIAL ADMINISTRATION ACTFINANCIAL ADMINISTRATION ACT

TRANSPARENCYTRANSPARENCY

• KEY TO GOOD GOVERNMENTKEY TO GOOD GOVERNMENT

• ACCESS TO INFORMATION ACTACCESS TO INFORMATION ACT

• CANADA ELECTIONS ACTCANADA ELECTIONS ACT

• PARLIAMENT OF CANADA ACTPARLIAMENT OF CANADA ACT

• LOBBYING ACTLOBBYING ACT

• PUBLIC SERVANT DISCLOSURE PUBLIC SERVANT DISCLOSURE PROTECTION ACTPROTECTION ACT

CRIMINALIZATIONCRIMINALIZATION

• CRIMINAL CODE NUMEROUS PROVISIONSCRIMINAL CODE NUMEROUS PROVISIONS

• PROCEEDS OF CRIME PROCEEDS OF CRIME

• TERRORIST FINANCIING ACTTERRORIST FINANCIING ACT

• MONEY LAUNDERING MONEY LAUNDERING

RCMP ENFORCEMENT RCMP ENFORCEMENT

• COMMERCIAL CRIME SECTIONCOMMERCIAL CRIME SECTION

• INTEGRATED PROCEEDS OF CRIMEINTEGRATED PROCEEDS OF CRIME

• INTEGRATED MARKET ENFORCEMENT INTEGRATED MARKET ENFORCEMENT

RECAPRECAP

• FRAUD ON GOVERNMENTFRAUD ON GOVERNMENT

• TAKE AN IDEA TO A PLANTAKE AN IDEA TO A PLAN

• ASSUME FRAUDASSUME FRAUD

• TAKE STEPS TO PREPARE YOUR TAKE STEPS TO PREPARE YOUR STAFFSTAFF

• ROLE OF MANAGERS IN OVERSIGHTROLE OF MANAGERS IN OVERSIGHT

• ROLES OF POLICE , COURT , PUBLICROLES OF POLICE , COURT , PUBLIC

CORRUPTIONCORRUPTION

• FRAUD TRIANGLEFRAUD TRIANGLE– OPPORTUNITYOPPORTUNITY– MOTIVEMOTIVE– RATIONALIZATIONRATIONALIZATION

PREVENTIONPREVENTION

• AWARENESSAWARENESS

• STRONG POLITICAL LEADERSHIPSTRONG POLITICAL LEADERSHIP

• ENFORCEMENTENFORCEMENT

• PUNISHMENTPUNISHMENT

DETECTIONDETECTION

• WHISTLE BLOWERSWHISTLE BLOWERS

• TRANSPARENCYTRANSPARENCY

• CONTROLSCONTROLS

INVESTIGATIONINVESTIGATION

• STRONG LAWSSTRONG LAWS

• ENFORCED LAWSENFORCED LAWS

• PROSECUTIONPROSECUTION

• ACCOUNTABILITY ACTSACCOUNTABILITY ACTS

• CRIMINAL CODECRIMINAL CODE

• PROCEEDS OF CRIMEPROCEEDS OF CRIME

GOMERY COMMISSIONGOMERY COMMISSION

• Let me also suggest that a system of government that would Let me also suggest that a system of government that would impose upon itself a searching inquiry by an independent impose upon itself a searching inquiry by an independent commissioner, armed with the authority to compel the commissioner, armed with the authority to compel the production of incriminating documentation from the public production of incriminating documentation from the public administration and able to subpoena witnesses from every administration and able to subpoena witnesses from every level of society, with a far reaching mandate to investigate and level of society, with a far reaching mandate to investigate and report on matters that could prove to be embarrassing to the report on matters that could prove to be embarrassing to the Government itself, is proof that our democratic institutions are Government itself, is proof that our democratic institutions are functioning well and objectively. There are very few countries functioning well and objectively. There are very few countries in the world where an inquiry commissioner has the power to in the world where an inquiry commissioner has the power to summon the sitting Prime Minister and his predecessor, to be summon the sitting Prime Minister and his predecessor, to be examined under oath concerning their administration of public examined under oath concerning their administration of public affairs and their involvement in what is publicly referred to as affairs and their involvement in what is publicly referred to as a scandalous affair. The fact that the Inquiry has been held a scandalous affair. The fact that the Inquiry has been held demonstrates that in this country persons at even the highest demonstrates that in this country persons at even the highest levels of government are accountable for their actions, not levels of government are accountable for their actions, not only to Parliament but also to the citizenry only to Parliament but also to the citizenry

THANKS THANKS

QUESTIONSQUESTIONS