INTEGRATED APPROACH A CLEAR NECESSITY TO COMBAT FRAUD, MONEY LAUNDERING

KUALA LUMPUR, July 19 (Bernama) -- A more integrated approach to effectively
combat financial crimes is a clear necessity for enterprises, given the growing
complexity of fraud and money laundering schemes, says an expert.

Karen Van Ness, Senior Manager for Financial Crime and Compliance Solutions,
Product Management at Oracle Mantas, said a better integrated financial crime
and compliance management to anti-money laundering (AML) and fraud prevention
would enable enterprises to understand the full impact of financial crime on the
institutions.

Oracle Mantas is part of Oracle Financial Services Software Inc.

She said the silo'd approach to financial crime management results in
exposure whereby most firms rely heavily on point solutions to fight crime.

"An integrated approach creates an extra "layer" to review high-risk
customers, channels and products, and helps you better understand how anti-fraud
and AML efforts apply to the totality of the institutions operational risk
assessment.

"It urgrades systems, streamline processes and improve efficiencies," she
told reporters after speaking on "An Integrated Approach to Fighting Financial
Crime: Leveraging Investments in AML and Fraud Solutions" at the 2nd
International Financial Crime and Terrorism Financing Conference 2010 Monday.

"Together, they form a team whose experience is deep and varied. Big and
important names sit on the board," she said in her opening address.

"However, the directors missed the extent of project woes until the external
auditor intervened by reporting to the chairman. The debacle dragged the
conglomerate into the Red for the first time in 20 years," she said.

Ang proposed making training for directors mandatory again as directors must
seriously undergo training to ensure they are more acutely aware of their roles,
their fiduciary responsibilities and the penalties they will face for breach of
the law even before accepting appointments to positions.

She said a review of the directors' remuneration system was also necessary
to better reflect their onerous duties and responsibilities.

"The system now pays directors, in some cases, less than RM20,000 a year.
In other cases, a little bit more if the director is also the chair of the audit
committee," said Ang.

MAICSA inked a memorandum of understaning (MoU) with MSWG on independent
directors training programme, governance and ethical practices at the official
opening of the conference.

The MOU allows both parties to collaborate in developing programme modules
aimed specifically at corporate professionals who have a keen interest in being
appointed as independent directors of listed companies.

Ang also announced the opening of nominations for the MAICSA AmBank
Leadership in Governance Award, an initiative launched by MAICSA in partnership
with the AmBank Group to award individuals who have demonstrated untiring
efforts to help improve corporate governance in his or her organisation.

"Employers are invited to nominate candidates for the two
categories of the awards, i.e. Leadership in Governance for Public-Listed
Companies and Leadership in Governance for non-listed companies," she said.

Closing date for nominations is December 2010.
-- BERNAMA