Role of Forensic Audit in Asset

Recovery
AntAC Conference

16 December 2016

1 Forensic Audit Tools & Techniques  Zoë Newman

Confidential —
Proprietary and Proprietary External
and — External Use Only
Use Only
Confidential
Why forensic audit
 FORENSIC: “Finding Evidence to solve a crime”
 Prior to initiating Asset Recovery the following questions need to be answered
 What is the nature of wrongdoing?
 Dictates nature of claim(s) (civil and criminal) which might be initiated
 Who has orchestrated / managed the wrongdoing and who has benefitted?
 Dictates the scope of potential parties to a claim (civil and criminal) and where
 What is the potential loss and when did it occur?
 Informs the value of a claim
 Who benefited?
 Informs who civil claims and criminal actions may be brought against
 Where has the money gone?
 Informs the relevant jurisdictions where actions for recovery might be launched

2 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Forensic Audit: An Investigative approach to asset
recovery

Internal
KYC files
Loan applications
Fund flow analysis
Data analytics

Recovery
Loan Portfolio Strategy
Verification
Population of loans
for focused asset
recovery

External
Public record research
Local sources
Deep web analytics

3 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Observations
The Big Picture

Customer A

Customer B

4 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Loss Quantification: Data Analytics

5 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Use of Forensic Audit Findings

People Companies

Formation Financial
Agents Institutions

Correspondent
Forensic
Forensic
Banking
Relationships
Audit
Audit Countries
Evidence
Evidence

6 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Use of Forensic Audit Findings

Forensic Audit:
Evidence

International Civil
Asset Recovery Criminal
Strategy
 Disclosure orders
 Freezing Orders
 1782 (United States)
 Search and seize

7 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

Funding Asset Recovery

 Initial investment required to determine:

 Valid claim;
 Identifiable Assets; and
 Recoverable Assets

 Once assessed decision surrounds:

 Investment by client with benefit of full returns and control
 Success fees
 Litigation funding

8 Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only

 Zoë Newman
Managing Director, Investigations & Disputes

Kroll
Nexus Place, 25 Farringdon Street,
London, EC4A 4AB
T +44 (0) 20 7029 5154
M +44 (0) 7917 857 448
znewman@kroll.com

9 kroll.com
Forensic Audit Tools & Techniques  Zoë Newman

Proprietary and Confidential — External Use Only