Going beyond AML: fraud, corruption and whistleblowing

One could say that by default, Luxembourg has a very strong focus on AML. Topics that are not directly linked to the fight against money laundering and terrorism financing are not heavily regulated and therefore often overlooked.

But where does the money that is being laundered actually come from? Wouldn't it make sense to cut off the sources of illicit money instead of focusing so much on how it might be moved through the financial system?

Both fraud and its sub-category corruption are predicate offences for money laundering, meaning they can be sources of illicit money. Perpetrators can be both externals, such as cybercriminals but also business partners, and internals or both can work in collusion. An anti-fraud and anti-corruption programme including thorough checks of your suppliers and vendors can be an effective instrument to reduce the risks linked to these offences and the following money laundering schemes. Other countries already demand the implementation of such programmes and a new 'ABC' (Anti-Bribery and Corruption) package by the EU will soon introduce new standards just like the AML directives did.

The recent adoption of the law on whistleblower protection in May 2023 is a further addition to these efforts since internal alert systems are generally considered as one of if not the most efficient fraud detection mechanisms.

PwC's Academy offers this course in order to go beyond AML and to equip you to better protect your organisation from financial losses, fines and reputational damage. Together with members of the anti-financial crime team you will discuss current and upcoming legal requirements, practical tips for implementation and best practices.

At the end of the course, participants will be able to:

• explain how different forms of financial crime are connected and why they should be considered holistically;
• understand the different national, EU and international requirements (both current and upcoming);
• discuss the elements of standard anti-fraud management system;
• identify the steps to implement an anti-fraud management system in their organisation.

This module covers the following:

• Overview of different forms of fraud and corruption
• International and national laws, regulations and penalties
• Components of an anti-fraud programme
• Elements of a whistleblowing system
• Governance structures and internal controls
• Third party due diligence
• Risk assessments
• Case studies and discussion

This training is coordinated by Michael Weis, Partner at PwC Luxembourg and will be given by directors and managers who benefit from a strong professional experience in this area.

Through his previous positions and projects, Michael, Partner in the forensic service and Financial Crime Leader, gained extensive knowledge in the investment management and banking industries. As a key member of the internal controls practice of PwC Michael specialises in the review of internal controls in the context of SAS 70 reviews and controls reports. He is the manager of various high-profile client assignments on internal controls reports and on AML in the investment management industry.

Within PwC, Michael takes a key role in the AML taskforce and on internal controls work for the prevention of financial crime. He is coordinating the PwC’s Academy's 'Fight against financial crime' leading training programme that regularly involves international subject matter experts (e.g. Transparency International, UN Security Council, FATF, SCPC, FSA, CSSF etc.). Through his professional qualifications he is specialised in compliance related topics such as internal controls frameworks, fraud prevention/investigation and AML.