Bank calls in auditors over FIFA scandal
Bank calls in auditors over FIFA scandal
(CNS): Fidelity Bank has called in auditors in the wake of allegations made by the US authorities that it may have played a part in the possible laundering of the alleged bribes and kickbacks at the centre of the FIFA scandal. Officials from Fidelity said they had “engaged Deloitte Cayman to conduct an independent review of the Bank’s internal processes and policies to confirm that they are in line with regulatory requirements.”
In a press release issued on Monday, the bank said it has consulted with the Cayman Islands Monetary Authority (CIMA) regarding the internal review and the regulator will contribute to the preparation of the Terms of Reference for the work “to ensure that the review covers any questions that CIMA may have”, the bank stated.
“These are matters of significant complexity, and the expertise of this Big Four firm is second to none,” said Anwer Sunderji, Chairman of Fidelity Bank, as the institution faces questions over its alleged role in what is proving to be one of the biggest corruption scandals the world has ever seen.
Fidelity Group CEO Anwer Sunderji
“They have the appropriate breadth of experience to assess Fidelity Bank’s processes to ensure they are sufficiently robust. The Deloitte team will be supported by the Bank’s compliance and internal audit team, and outside resources as needed,” Sunderji added.
In the short release, the bank’s Board and Executive Committee also expressed their commitment “to upholding their policies and procedures to the highest possible standard”.
Fidelity, where Jeffrey Webb worked for many years before he became the CONCACAF president and FIFA VP, was one of the institutions named in the 167-page indictment from the US justice department, which outlines the massive corruption investigation in which Webb and other FIFA officials, as well sports marketing executives, have been accused of racketeering, fraud and money laundering.
Meanwhile, according to the international press, KPMG, one of the other members of the world’s so-called “Big Four” accounting firms, is also being drawn into the FIFA probe as the global football body’s auditors. Questions are now being asked why the firm missed such significant and questionable payments for so long.
Category: Local News
Sounds like Fidelity is just trying to avoid a run on the bank.
Of course Fidelity are on the defensive! they are being attacked and are not legally able to say what actions they did take. Good on them for hiring Deloitte, who will review their processes and submit a report as to their findings. It is reasonable to suggest that if they are willing to undergo this, that they have nothing to hide.
HSBC
Not always the best move I’m afraid appointing a so called “Big 4”, it’s usually those guys who have missed some of the slam dunk red flags that could have stopped some of the largest global frauds in history (notice KPMG are referred to as FIFA’s auditors for possibly missing obvious warning signs). What you then find is when it goes pear shaped they (the Big 4) hide behind their contractual letters or company mem and arts to wriggle out of any responsibility whatsoever. Sorry for being so cynical folks!!!
If only the purpose of a statutory audit was to detect fraud…unfortunately, it is not
At least some proper checks to see assets exist would be good though, I’ve seen audits signed off by the auditors when 5 minutes google research would evidence that certain assets aren’t worth the paper they are written on. Sorry I’m a cynical insolvency practitioner and usually have to try and explain to affected stakeholders why stuff like this has never been spotted. The problem I see is the audits seem to be conducted in line with a standard checklist, which doesn’t involve anyone having to think outside the box or engage their brains as long as a box is ticked.
An auditor is a watchdog not a bloodhound. Whilst I do not disagree with your comments entirely if auditors tailor made their audit programmes to suit the circumstances there would be less audit litigation. Of course with some entities they are so small that there can be so proper system of internal control and thus they are unauditable.
This is obviously Fidelity Bank’s attempt at damage control. The bank has now been involved in two major corruption investigations, the FIFA/Jeff Webb allegation and the Canover Watson allegation. How is this all just a coincidence? This “internal review” is nonsense. CIMA, the nation’s financial industry regulator, should head a formal review of its own.
CIMA doesn’t have either the legal authority or the impartial, in house expertise to get involved this. They should step back and let professionals deal with it.
Wow, must be nice to be able to decide who is going to investigate the “allegations” of money laundering by a former long time employee.
My firm must have applied for the wrong licence. I didn’t realize there was an option for self regulation.
What’s not clear is whether Deloitte are Fidelity’s usual auditors. If so, then such a review isn’t as independent as it should be, as they are acting for their existing client. If not, good choice.
Such a constant lack of trust. I am prepared to believe that any of the big four accounting firms can be trusted to act with integrity and professionalism. That is what they do. God help us if we can’t rely on them.
You obviously don’t remember how the Big Five became the Big Four.
yes, 5:18, I actually did forget, Arthur Andersen, fell to the Enron scandal, falsifying financial records.
But I bet none of the Big Four have forgotten!
…and, it was eight,(8) Audit Firms before the ‘Eron Scandal’.
Their website lists their auditors as PWC so seems they are doing the right thing and using an independent auditor…
Deloitte are not Fidelity’s regular auditors.
I work at an unrelated bank and at my bank accepting a deposit from a personally known individual (who was a 20 year employee) would hardly raise any suspicions. If that was the case, the banking systems in all developed nations would come to a bureaucratic halt from piles of suspicious transactions.
Not sure that is right. The reports suggest that the deposits were rather large and would have been unusual transactions.
The auditors are PWC, an excellent choice for auditors. You should check the group accounts in the Bahamas. They are very liquid and in good Nick.
Hmm. Unbiased and impartial opinion? Or influenced by something?
Chris – perhaps a little too subtle for most people on here
The indictment does not state that Fidelity “played a part” in the FIFA scandal. It was involved as an unwilling participant, in that it was used and I am sure that they feel that they were used.
They will not be able to talk about what actions they took when the received the funds, but the law is very clear on what needs to be done (including raising a SAR and then not doing anything whatsoever to tip off the client that this has been done) and Fidelity has already said that they followed the law. We can connect the dots and assume that a SAR was raised and that the Bank did what it was required to do.
It is an unfortunate circumstance that the Bank finds itself in and it is honourable that they have brought in a consultant to look more carefully at their processes and are willing to publicly say so. Good luck to them – the last thing any company wants is to be slammed for doing the right thing.
Excellent move. I wish the bank and Mr. Sunderji all the best as they move forward in this regard and others.