KUALA LUMPUR (Oct 28, 2008): Police today said an estimated RM3 billion was lost in white collar crimes from 2006 to this month, a loss that reflects the size of the problem for businesses regardless of size. Deputy Inspector-General of Police Tan Sri Ismail Omar said Commercial Crimes Investigations Department (CCID) records showed the losses were sustained from cyber fraud, money laundering, criminal breach of trust, counterfeiting and other forms of cheating. He said according to a survey by an established accounting and auditing firm, about 48% of companies in Malaysia have experienced white collar crimes in the past two years. The same study showed fraud to be the most problematic issue for businesses regardless of size, location and industry. Speaking at the launch of the National Seminar on Forensics Accounting and Financial Criminology at the Securities Commission in Bukit Kiara, Ismail said corporate fraud increases the cost of doing business, puts a dent on consumer confidence and affects the profits of shareholders. He said in the long run, this can damage the soundness of the financial system and the economy. He said to safeguard legitimate businesses and consumers from fraud, financial institutions must develop a framework on its risks, conduct regular audits, issue regulatory guidelines and develop monitoring mechanisms. He said there should also be a suitable channel for informers or whistleblowers to come forward and corporations should share information of fradulent activities among themselves. Ismail said forensics accounting will eventually become the most powerful investigative tool in combating economic crimes. He said the CCID had formed its Forensic Accounting Division three years ago and it is headed by an assistant commissioner of police with a team of officers who have a strong background in the legal, financial and accounting fields. He said the police will work hand in hand with several other law enforcement agencies such as Bank Negara and the Anti Corruption Agency to contain economic crimes.
