PwC on how to tackle fraud and economic crimes in Africa

Fraud and economic crimes continue to plague Africa, with the continent experiencing higher levels of such crimes compared to the global average. John Kamau, Director of Forensics at PricewaterhouseCoopers (PwC), emphasizes the importance of individual responsibility in fighting these crimes. Kamau stresses that both employees and directors in public and private institutions need to recognize their role in combating fraud and economic crimes. Taking a proactive approach by implementing measures to prevent these crimes is crucial, rather than waiting for incidents to occur. Technology investment is also key, especially in the current landscape of increased remote working and online transactions due to the COVID-19 pandemic. Kamau highlights the significance of cultural change and ethics in addressing these crimes, noting that legislation alone may not suffice. While laws play a role in combating economic crimes, a cultural shift towards ethical behavior is essential. Kamau points out that corruption remains a significant issue in Africa, reflecting deeper cultural and ethical challenges that need to be addressed. In terms of the impact of economic crimes, many financial crimes often go undetected and unreported, making it difficult to quantify the financial losses accurately. Detection remains a challenge, with many crimes being discovered through transaction monitoring. Kamau acknowledges the pervasive nature of bribery and corruption in generating illicit funds that are often laundered through property investments. Government institutions in countries like Kenya and Uganda are taking steps to enhance anti-money laundering measures in financial services, aiming to curb the flow of illicit funds into the property market. By strengthening AML programs and enforcement, the property market can potentially see a correction in prices as the influx of criminal money diminishes. While the process may take time, Kamau believes that these efforts will ultimately benefit local communities by combating economic crimes and stabilizing property prices. Addressing the root causes of fraud and economic crimes requires a multi-faceted approach involving legislative reforms, cultural change, technology investment, and enhanced enforcement mechanisms. By fostering a culture of integrity and ethical conduct, African nations can work towards reducing the prevalence of economic crimes and protecting the interests of their citizens.