IFAC publishes action plan to tackle economic crime and corruption
Accountants are key to fighting against money laundering, fraud, and tax evasion according to IFAC
The International Federation of Accountants (IFAC) has published an action plan to help the accountancy profession tackle economic crime and corruption.
The Action Plan for Fighting Corruption and Economic Crime sets out more than 30 specific actions for IFAC and the accountancy profession related to education, evidence-based policy, global standards, partnership, and thought leadership.
The global accountancy profession is a “central ally” in the fight against corruption and economic crime, according to IFAC CEO Kevin Dancey.
“Corruption and related economic crimes, such as money laundering, bribery, tax evasion and fraud, are significant obstacles to economic growth and human development and, ultimately, to achieving the UN Sustainable Development Goals—all seventeen of them,” said Dancey.
He added that the action plan illustrates some “time tested” alongside new ways that show the global accountancy profession is central to tackling economic crime. He hopes the plan will drive positive change.
The plan has five key pillars:
- Harnessing the full potential of education and professional development
- Supporting global standards
- Contributing towards evidence-based policymaking
- Strengthening impact through engaging and public partnership; and
- Contributing expertise through thought leadership and advocacy.
The Institute of Chartered Accountants in England and Wales (ICAEW) has welcomed the new action plan published by IFAC.
“We believe that accountants play a key role in the fight against economic crime, so we’re pleased to support IFAC’s anti-corruption plan which sets out specific actions for accountancy bodies to take in relation to tackling corruption and economic crime,” David Gomez, ICAEW senior lead, ethics, said.
“At ICAEW, we’re continuing to engage with government on economic crime and corporate transparency, while we’re also ensuring our members are aware of these issues as part of their CPD.”
IFAC’s plan harnesses the profession’s reach across public practice, business, and the public sector to directly contribute to the fight against corruption.
The ICAEW also believes the plan outlines indirect action, by supporting integrity and transparency in business and government, as well as effective global and domestic policymaking.
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In relation to the first pillar of the plan, ICAEW has announced its forthcoming introduction of mandatory ethics CPD training for its members will include a module on economic crime.
ICEAW has engaged constructively with the UK government on proposals for the content of the upcoming Economic Crime Plan v2.0, including advocating for the need to ensure a level playing field in relation to the rise of unregulated “concierge services”.
It also supports transparency reforms and continues to engage with the government to increase transparency and information exchange within the sector and measures to be included in the Corporate Transparency Bill.
“Increased transparency measures, appropriate funding and resources for law enforcement agencies are vital to combat corruption, and so we will continue to work with international accountancy bodies, politicians and regulators to tackle these crimes,” said Gomez.
