Anti-Money Laundering Across the Praxity Alliance

However, it is through the work of our industry that financial criminals can be dragged into the sunlight. As an industry, accountancy must be acutely aware of the strategies criminals use and the dangers that result. With technology and artificial intelligence changing at a quickening pace, alongside fluid financial regulation and new incentives for crime, money laundering is, unfortunately, unlikely to go away. 

Praxity Alliance member firms are careful to leave no ambiguities, seeing the control of illegal profit as a key part of their business mission and far exceeding legislation in their regions. This extends from high professional standards to initiatives designed to address specific problems in their areas, which can be extremely varied.  

Moores Rowland, Indonesia 

In the Asia-Pacific region, Moores Rowland of Indonesia have taken robust steps in their auditing process, authoring measures to eradicate human rights abuses in their clients’ supply chains, as well as in the firm’s own. 

In 2012, Moores Rowland Indonesia (then trading under the name of Mazars Indonesia) received the inaugural International Accounting Bulletin “Audit Innovation of the Year” award for its Human Rights Audit Practice. In the process of the audit, the firm uses indicators it developed, covering forced labour, child labour and young workers, along with factors such as the conditions of employment and work, non-discrimination, freedom of association and workplace health and safety. Community and environmental impact and supply chain management are also considered in the audit. In making the award, the IAB judges suggested that these indicators could set a benchmark for global best practice.1 

The abuse of labour practices, modern slavery and child labour are common ways in which illicit money is procured and protected. This helps to demonstrate the reach of money laundering, as the further capital gets away from legal systems, the less it is exposed to restraint and scrutiny by the wider world. The indicators that Moores Rowland developed were based closely on the UN Guiding Principles on Business and Human Rights, as well as Indonesia’s own action on human rights due diligence for business, the Indonesia National Action Plan on Business and Human Rights. 

Prime Solutions, Panama 

Businesses in Panama have been subject to enhanced scrutiny since the 2016 data leak from law firm Mossack Fonseca, which demonstrated the extent of offshoring and tax evasion that had been operating in the jurisdiction. The much-publicised “Panama Papers” demonstrated how one rogue company can prop up corrupt businesses and regimes by helping them hide their profit, as well as how complex and multi-faceted the problem can be. It's important to be clear that while the name “Panama Papers” has been the public-facing description of the scandal, there is no suggestion of involvement by the Panamanian authorities or of any wrongdoing by other firms in Panama.  

Praxity Alliance member firm Prime Solutions of Panama City has been at the forefront of subsequent measures ever since, with partner Giovanna Bernal leading the firm’s ISO 37001 Anti-bribery management systems certification. The process is rigorous and ongoing, with a huge degree of paperwork and due diligence and every level of the firm under the microscope. The firm’s staff receive ongoing training in anti-bribery and anti-money laundering, as well as in KYC and international tax rules. That the firm has attained such a certification under what are surely among the most stringent standards in the world is a remarkable achievement. 

The firm has become one of less than twenty certified “compliance companies” in the country, guiding all kinds of industries through compliant routes. The written AML assessment tool that the firm authored has become widely used in the jurisdiction, with all Prime Solutions’ clients subjected to a risk-based approach when undertaking work. With multi-national or trans-national entities, the firm collaborates closely with fellow Praxity member JA Del Río to cover various jurisdictions in the Latin America, leveraging the reach of the Alliance. 

Furthermore, the firm provides ongoing training to other entities and sectors, extending their methods beyond their immediate business remit. The firm’s action demonstrates their commitment to tackling money laundering and makes them an authority in this technical area. Their actions, along with the work of fellow specialists and government agencies, has seen the country’s removal from the Financial Action Task Force's (FATF) financial crime “grey list” in October 2023. 2 

LeitnerLeitner, Austria 

In Austria, Praxity member firm LeitnerLeitner specialises in tax law and defending against criminal tax mistakes and evasion. They offer a range of Advisory services relating to tax law and risks under criminal financial law. They also help to minimise damage to business if an inadvertent mistake is made. This includes robust analysis of risks under financial criminal law, identification of suspected perpetrators, corporate responsibility, and the understanding of imminent sanctions and liabilities for their clients. The firm also provides their clients with support for their internal audits and investigations.3 

VBR, Brazil 

In Brazil, Praxity member firm VBR feature fraud detection and prevention as an important tenet of their client offering, making it part of their suite of Consulting tools. The firm emphasises the human impact as well as the damage to business: 

“The risk of fraud is still taboo in most organisations, but it is an existing risk that managers need to be aware of. With specific fraud prevention and detection methodologies, VBR Brazil has been helping its clients effectively and discreetly, without neglecting the human aspect when dealing with an issue that requires special care for people within the company.”4 

Working together as independent experts, professionals across the Praxity Alliance stay connected in a united front against financial crime. The cross-border structure of the Alliance keeps pace with criminal methods, ensuring member firms can access support in every global region. The fight against money laundering is complex and ongoing, but with agility and vigilance, the talent across our member firms is uniquely placed to confront it.