RIAS 2016 OECD AML ILLICIT MONEY FLOWS 7 SEPT 2016

ORGANISATION FOR ECONOMIC
CO-OPERATION AND
DEVELOPMENT

RIAS 2016
« INTERNAL AUDITORS’ ROLE IN ANTI MONEY
LAUNDERING AND COMBATING ILLICIT MONEY
FLOWS »
THURSDAY, 8 SEPTEMBER 2016
ORGANISATION for ECONOMIC
CO-OPERATION and DEVELOPMENT
www.oecd.org
Peter STOKHOF B.Acc., C.A., C.I.A.
Deputy Director, Internal Audit
OECD Internal Audit & Evaluation Directorate
peter.stokhof@oecd.org

Content of this Presentation

What IS the OECD? What does it DO?
G20/OECD Principles of Corporate Governance
OECD Anti-Bribery Convention
OECD work to combat « harmful tax practices »
Questions / discussion

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Content of this Presentation

What IS the OECD? What does it DO?
G20/OECD Principles of Corporate Governance
OECD Anti-Bribery Convention
OECD work to combat « harmful tax practices »
Questions / discussion

4

OECD Working Methods
OECD Convention:
Members…
share information with each other…
consult together…
and cooperate closely

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OECD Working Methods

OECD Working Methods

OECD Acts:
1.Decisions – legally binding on Members
2.Recommendations – non-binding « soft law »

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OECD Working Methods

Content of this Presentation

What IS the OECD? What does it DO?
G20/OECD Principles of Corporate Governance
OECD Anti-Bribery Convention
OECD work to combat « harmful tax practices »
Questions / discussion

11

G20/OECD Principles of Corporate Governance

G20/OECD Principles of Corporate Governance
An example of the acceptance of the OECD Standard as the
International Standard
http://www.oecd.org/corporate/principles-corporategovernance.htm

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G20/OECD Principles of Corporate Governance

«Corporate Governance involves a set of relationships
between a company’s management, its board, its
shareholders and other stakeholders.
Corporate Governance also provides the structure
through which the objectives of the company are set,
and the means of attaining those objectives and
monitoring performance are determined.»

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G20/OECD Principles of Corporate Governance
References to Audit, External and Internal
V. Disclosure and transparency
“The audit committee or an equivalent body should
provide oversight of the internal audit activities and
should also be charged with overseeing the overall
relationship with the external auditor…”

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G20/OECD Principles of Corporate Governance
VI. Responsibilities of the Board
D. The Board should fulfil certain key functions…
Ensuring the integrity of the corporation’s accounting
and financial reporting systems, including the
independent audit, and that appropriate systems of
control are in place, in particular, systems for risk
management, financial and operational control, and
compliance with the law and relevant standards.
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Content of this Presentation

What IS the OECD? What does it DO?
G20/OECD Principles of Corporate Governance
OECD Anti-Bribery Convention
OECD work to combat « harmful tax practices »
Questions / discussion

16

OECD Anti-Bribery Convention
The OECD Convention on Combating Bribery of Public Officials
in International Business Transactions
• criminal offence of bribing a foreign public official
• prevent, detect, investigate and sanction foreign bribery
http://www.oecd.org/daf/antibribery/oecdantibriberyconvention.htm

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OECD Anti-Bribery Convention

The 2009 Anti-Bribery Recommendation

www.oecd.org/daf/anti-bribery/2009_AntiBribery_Recommendation_Brief.pdf

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OECD Anti-Bribery Convention

How does the OECD monitor whether the Convention
obligations are being complied with?
The OECD Working Group on Bribery
http://www.oecd.org/daf/antibribery/countryreportsontheimplementationoftheoecdantibriberyconvention.htm

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OECD Anti-Bribery Convention
Whistleblower Protection
OECD's 2009 Anti-Bribery Recommendation
"protect from discriminatory or disciplinary action public
and private sector whistleblowers who report [foreign
bribery] in good faith and on reasonable grounds"
www.oecd.org/corruption/whistleblower-protection.htm
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OECD Anti-Bribery Convention

The OECD Foreign Bribery Report

www.oecd.org/daf/anti-bribery/scale-of-internationalbribery-laid-bare-by-new-oecd-report.htm

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OECD Anti-Bribery Convention
What does the Convention require for accountants and
auditors?
Art. 8 of the Convention requires countries to criminalise false
accounting to prevent bribes being disguised in company's books
and records
OECD's 2009 Anti-Bribery Recommendation requires countries to
put in place certain requirements concerning external audit

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OECD Anti-Bribery Convention and NOCLAR

How does the Convention fit with the new NOCLAR code?
The struggle to balance the duty to report against the duty of
confidentiality
www.iaasb.org/projects/noclar

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Content of this Presentation

What IS the OECD? What does it DO?
OECD Anti-Bribery Convention
G20/OECD Principles of Corporate Governance
OECD work to combat « harmful tax practices »
Questions / discussion

24

OECD work to combat « harmful tax practices »

Standard for automatic exchange of financial account
information
www.oecd.org/tax/automatic-exchangehttp
Co-operative Tax Compliance: Building Better Tax
Control Frameworks
www.oecd.org/tax/co-operative-tax-compliance9789264253384-en.htm
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OECD work to combat « harmful tax practices »

Base Erosion and Profit Shifting (BEPS) Project
http://www.oecd.org/tax/beps/beps-about.htm

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Content of this Presentation

What IS the OECD? What does it DO?
OECD Anti-Bribery Convention
G20/OECD Principles of Corporate Governance
OECD work to combat « harmful tax practices »
Questions / discussion

27

Thank You
http://www.oecd.org/about/whodoeswhat/internalaudit-evaluation.htm

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