Taking matters into their own hands? Corporate self-investigation and self-reporting of fraud and corruption

• In Event: EUROC 10 Financial crime prevention

Abstract

As is the case in other countries, in the Netherlands a practice has emerged in which organisations use self-investigations in the event of suspicions of internal fraud or corruption. Based on the results of these investigations, the organisation may decide to self-report the findings to the criminal justice authorities. Recently, these practices have been subject to media (and political) discussion. Proponents point to the efficiency that allows more fraud and corruption cases to be investigated and settled, and to the expertise of specialised investigators, such as forensic accountants. Opponents question the independence of corporate investigators, criticise the (improper) use of legal privilege in this context and see a reduction in penalties for self-reporting companies as a form of class justice.
Based on a combination of a legal international comparison and an empirical qualitative study in the Netherlands, this presentation addresses the above topics. Given the discussion that gave rise to this study, it is striking that there are mainly similarities in the perception of the various experts who have been consulted in this study, with regard to perceived benefits and risks of self-investigation and self-reporting and the regulation thereof. However, differences of opinion on important themes are perceptible as well. In this presentation, these topics will be discussed, including the various potential benefits and risks that can be identified for three groups of stakeholders (the companies in question, the criminal justice system and society).

Authors

• Clarissa Meerts, Vrije Universiteit Amsterdam

• Sanne Buisman, Vrije Universiteit Amsterdam

• Wim Huisman, Vrije Universiteit Amsterdam

• Marcel de Groodt, Universiteit Leiden

• Suzanne de Jong, Vrije Universiteit Amsterdam