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Therefore if an employee doesn't report the fraudulent activities done by others because he is affraid it can create problems from himself, what will be his accountability.
It is a criminal offence under money laundering for NOT reporting the breaches or fraudulent activities. (Willful blindness)
When you are saying him liable then I don't think he is liable but being a trustworthy employee he should report it to the Audit Department (or the department authorize to inquire the suspects).
In context of Corporate Governance, all levels of staff should have a basic apprehension and understanding of their roles within the ‘internal control framework’.
They should contribute in ‘promoting’ a strong control environment as well as participate in monitoring the activities. If any suspicious or fraudulent activity is witnessed, it must be immediately reported to the management.If an employee does not report an incident that he had witnessed, it constitutes as “willful blindness or willful ignorance” of the facts. Therefore, he should be held liable for not reporting the incident to higher management under code of ethics and corporate governance rules.
Yes liable.This is connivance which is also liable.
Yes the employee will be liable as he is an interested party..
YES
Under Corporate Governance, He is only obligated to report the fraud to his supervisor and/or to the compliance department of the company. If not corrective measures are taken by the company, the person should leave the company.
Not only under the perview of Corporate Governance but as an ethical practice "conflict of Interest" according to intigrity standards and depanding upon implemented responsibility matrix, it is mendatory for one to report any fradulant practices occured within the department or in the other department. But the matter is too subject, however if more clarity on a practicle issue is furnished, I can elaborate further.
I don't see this employee is accountable. Accountability lies with the manager of the subject section. On the other hand the inability of the employee to report what he thinks indicatee a failure in the company's management which they should address and blame themselves for creating such an environment.
