Major cause for perpetration of fraud is laxity in observance in laid-down system and procedures by supervising staff. Harris and William (2004), however, examined the reasons for ‘loan’ frauds in banks and highlighted on due persistent program. They concluded that lack of an effective internal audit staff in the company, frequent changes of management and directors, appointment of unqualified staffs in important audit or finance posts, customer’s reluctance to provide requested information or financial statements and false data provided by the customers are the main reasons for loan frauds. Beirstaker et al. (2005) in their study provided numerous fraud protection and detection techniques.
Every Royal Bank customer has a relationship with the bank, but the nature and definition of the relationship vary according to the needs and requirements of the customer. As an example, some customers have no interest in being recognized by bank personnel when they contact the institution—for these customers low price or speed of service are the dominant properties of the relationship. For other customers, highly personalized interactions are the most important aspect of their relationship with the bank. The critical challenge for Royal Bank is to recognize that it must act in accordance with the wishes of its customers while still trying to achieve its own strategic objectives. If customers do not emphatically make known their expectations of the organization, the bank attempts to predict what the customers’ expectations are based upon prior observed behavior.
Implementation of GAAP is done through disclosure and measurement principles (Bampton and Cowton, 2013, p.557). Disclosure principles explain the actual figures and other necessary information useful to be presented the financial statements. Measurement principles determine and recognize the basis and timing of items that are to be in the accounting cycle and lead to an impact on the financial statements. In summary, GAAP is concerned with; economic activity measurement, the time to measure and record such measurements, the disclosures surrounding this activity and preparing and presenting of financial statements in a summarized form. In the absence of GAAP, it would be hard for investors and creditors to make decisions since different companies would be free to choose what financial
I will also be emphasising how the banks that were part of this rigging affected/ how they influence the Libor rate and they left Libor as a mess. The fines that were charged to the banks or individuals who played and what the fines were for and how much they will be charged. Libor stands for London Interbank Offered Rate and is a key market benchmark interest rates used in many financial contracts with
2. Front Companies and False Loans – Front companies that are incorporated in countries with corporate secrecy laws, in which criminals lend themselves their own laundered proceeds in an apparently legitimate transaction. 3. Foreign Bank Complicity – Money laundering using known foreign banks represents a higher order of sophistication and presents a very difficult target for law enforcement. The willing assistance of the foreign banks is frequently protected against law enforcement scrutiny.
Accounting profession is related to sensitive information of each individual, their clients such as social security or bank account numbers. To be ethical in accounting can give a power to accountant to maintain trust between their clients which cannot be abused. Poor ethics in accounting results a lag in
ESMA was given the mission of providing protection to investors and promoting stable financial markets in the EU. It also plays an advisory role giving technical advice to the European Commission. The European Banking Authority Although the national authorities (and soon the ECB for those countries that will participate in the new sole supervising mechanism, main role of the so-called “banking union”) are still the ones in charge of supervising the different financial institutions, the EBA’s function is to improve the functioning of the domestic market ensuring an adequate supervision and regulation, and at the same time efficient to a European