This document summarizes a presentation on cross-border fraud investigations. It discusses classifying different types of fraud as simple, organized, or semi-organized. It also addresses legal frameworks for dealing with internal and external fraud, as well as local versus cross-border fraud cases. The presentation raises questions about a company's compliance policies regarding internal investigations, criminal prosecution, and dealing with cross-border fraud.

1. © G. DELRUE
Cross Border Internal
Investigation
Wednesday, July 6, 2016
4.00 PM – 5.45 PM
DELRUE GEERT
Detective Commissioner – Law Enforcement
Belgium
4th Viadrina Compliance
Congress

2. © G. DELRUE

3. © G. DELRUE
HOW TO ACT IN CASE
OF CROSS BORDER FRAUD

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4
MONEY
LAUNDERING
FRAUD
FRAUD TIME LINE
E
M
P
I
R
I
C
E
M
P
I
R
I
C
ORGANIZED
SIMPLE
SEMI ORGANIZED
C
R
I
M
E
PREVENTIVE PREVENTIVE
L
E
G
A
L
L
E
G
A
L
M
O
N
E
Y
L
A
U
N
D
E
R
I
N
G
F
R
A
U
D
REPRESSIVE REPRESSIVECRIMINAL CODE CRIM CODE
LEGAL FRAME
EMPIRIC FRAMEWORK
CROSS
BORDER
FRAUD

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QUESTIONS
 What is the policy of my firm?
 Internal investigation?
 Criminal prosecution?
 Cross Border Compliance ?
 Cross Border Fraud !

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LEGAL FRAMEWORK
F
R
A
U
D
LEGAL versus EMPIRIC
FRAUD
INTERNAL – EXTERNAL FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

7. © G. DELRUE
LEGAL FRAMEWORK
F
R
A
U
D
LEGAL versus EMPIRIC
FRAUD
INTERNAL – EXTERNAL FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

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F
R
A
U
D
- CYBERFRAUD e.g. HACKING
- CORRUPTION
- FRAUDULENT BANKRUPTCY
- FALSIFICATION - PIRACY
- ...
- …
HORIZONTAL FRAUD
VERTICAL FRAUD
TYPES OF FRAUD - CLASSIFICATION
ORGANIZED
SEMI
- DRUGS
- HUMAN
TRACKING
- …
- FRAUD
SIMPLE

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F
R
A
U
D
FINANCIAL CRIME
VERTICAL FRAUD
= between persons and/or
legal entities and authorities
- TAX FRAUD
- SOCIAL FRAUD
- …
TYPES OF FRAUD
ORGANIZED
SIMPLE
HORIZONTAL FRAUD
= between persons themselves
and/or legal entities themselves
- LEGAL ENTITY LEVEL
- MANAGEMENT FRAUD
- EMPLOYEE FRAUD
- PERSONAL LEVEL
SEMI

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F
R
A
U
D
FINANCIAL CRIME
- FRAUD
- …
HORIZONTAL FRAUD
LEVEL LEGAL ENTITY -
MANAGEMENT FRAUD
- FINANCIAL REPORTING FRAUD –
e.g. falsification of the books (“Cooking
the books”)
e.g. theft of goods of the firm
e.g. fictitious expenses
- market abuse and insider trading
- ….
TYPES OF FRAUD
ORGANIZED
SEMI

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F
R
A
U
D
FINANCIAL CRIME
- FRAUD
- …
HORIZONTAL FRAUD
- MANAGEMENT FRAUD–
- EMPLOYEE FRAUDE
- theft of social goods or money
- theft professional secrets or commercial
secrets
- …
TYPES OF FRAUDE
ORGANIZED
SEMI

12. © G. DELRUE
LEGAL FRAMEWORK
F
R
A
U
D
LEGAL versus EMPIRIC
FRAUD
INTERNAL – EXTERNAL FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

13. © G. DELRUE
QUESTIONS
 MANAGERS - EMPLOYEES ?
 EX-EMPLOYEES?
 THIRD PARTIES?
 Who are the FRAUDSTERS ?

14. © G. DELRUE
LEGAL FRAMEWORK
F
R
A
U
D
LEGAL versus EMPIRIC
FRAUD
INTERNAL – EXTERNAL FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

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TYPES of FRAUD - CLASSIFICATION
- DRUGS
- HUMAN
TRAFICKING
- …
- FINANCIAL CRIME
- FINANCIAL CRIME
- DROGUES
- …
- FINANCIAL CRIME
- TRAFIC D’ÊTRES
HUMAINS
- DRUGS
- TRAFIC D’ÊTRES
HUMAINS
- …
CHARACTERISTICS
F
R
A
U
D
SIMPLE
ORGANIZED
SEMI ORGANIZED
- BASED ON STRUCTURES
- HIGH PROFESSIONALITY
- AIMES AT MORE GOALS
AT THE SAME TIME
- CRIMINAL INTENTIONS
- CAMOUFLAGE – COVER UP
- GENERALY LIMITED TO
ONE OBJECT
- LOW PROFESSIONALITY
- AIMES ONE GOAL
- QUICK PERCEPTIBILITY
- SLOW BUILT UP

16. © G. DELRUE
LEGAL FRAMEWORK
F
R
A
U
D
LEGAL versus EMPIRIC
FRAUD
INTERNAL – EXTERNAL FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

17. © G. DELRUE
QUESTIONS
 What is the policy of my firm?
 Internal investigation?
 Criminal prosecution? LEGAL SYSTEM
 LEGAL IMPLICATIONS
 CIVIL LAW – SOCIAL LAW
 CRIMINAL LAW
 Cross Border Compliance ?

18. © G. DELRUE
LEGAL FRAMEWORK
F
R
A
U
D
SYNTHESIS
FRAUD
INTERNAL – CROSS BORDER FRAUD
SIMPLE - ORGANIZED FRAUD
LOCAL – CROSS BORDER FRAUD
E
M
P
I
R
I
C

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Thanks for your
attention
geert.delrue@telenet.be

20. © G. DELRUE
BIBLIOGRAPHY

21. © G. DELRUE
© Geert DELRUEThis second edition treats the
preventive legislation, the new
40 Recommandations of the
FATF, 4th European AML
Directive, money laundering
indicators, typologies…) but
also the repressive legislation
(Criminal Code, freezing of
assets, seizure and confiscation,
…)
ORDERING:
E-mail: info@maklu.be
Fax: 0032 3 233 26 59
Somersstraat 13-15
2018 Anvers
www.maklu.be

22. © G. DELRUE
22
AML TRAINING in Dutch
CD 1 – LEGAAL en institutioneel
kader
CD 2 – Atypische verrichtingen
herkennen
Website
www.witwaswet.be
met kennistest
22

23. © G. DELRUE
© Geert DELRUECette deuxième édition révisée
traite la législation préventive (loi
anti-blanchiment du 11 janvier
1993, les nouvelles 40 Recom-
mandations du GAFI, indicateurs
de blanchiment, typologies…)
ainsi que la législation répressive
(Code pénal, le gel des avoirs, la
saisie et la confiscation, …)
COMMANDER:
Courriel: info@maklu.be
Fax: 0032 3 233 26 59
Somersstraat 13-15
2018 Anvers
www.maklu.be

24. © G. DELRUE
24
FORMATION ANTI-BLANCHIMENTCD 1 – Cadre légal et institutionnel CD 2 – Reconnaître des trans-
actions atypiques
Site Web
www.loiblanchiment.be
avec teste de connaissance
2404-12-2012
AML TRAINING in French

25. © G. DELRUE