CFE-Investigation Reviews Questions

“Records obtained from financial institutions are perhaps the single most important financial source available to a fraud examiner for tracing purposes. They can be used as evidence for fraud, uncover criminal profits, identify criminal assets, and locate assets”.

The Fraud Examiners Manual clarifies:

“The recommendations section is optional, and there might be instances where the fraud examiner wishes to discuss remedial measures or specific recommendations in a separate document”.

The Prep guide also states: “A written report might include a section for recommendations”.Thus, it is not required in every report.

The Manual and Prep Guide state:

“Before conducting a covert operation, it is essential that the basis for the operation be committed to writing, preferably in a memo. The memorandum should clearly state: the information upon which the covert operation will be based; the information that is expected to be gained from the operation; the identities of suspects, if known; operatives under the fraud examiner’s care, custody, or control. Confidential sources’ identities should not be disclosed.”

Thus, expected information belongs, but confidential source identities must not

“Due to the risks of illicit transactions, most jurisdictions require financial institutions to obtain information about the ownership and control of the foreign bank with which they maintain correspondent relationships”.