Avoiding Crime and Corruption When Trading Internationally

Well, doesn't this sound exciting? In this last instalment of my series on exporting, I'll be looking at the riskier side of international trade. Crime and corruption, and how you can protect your business.

Fraud from organised crime is the number one threat to businesses trading globally. This includes theft of goods, business identity, cross-border crime and road-freight crime. Money-laundering, terrorist financing, intellectual property infringement, VAT fraud and employee fraud are other risk factors.

Here are some things to consider, to protect your business from falling victim to crime:

• Educate yourself on the risks posed by each country you plan to trade with.
• Keep all of your tax invoices, records and VAT/Sales Tax numbers in good order to avoid becoming liable for investigation.
• Make sure your trading partner is legitimate, and who they say they are, by asking for their original documents of incorporation. Ask for references, and consider using a an international credit-checking agency.
• Agree upon secure methods of payment.
• Remember to check closer to home, vet your employees. Do get references and check the identity of new staff. Consider limiting your employees’ access to information and restricting access to the level needed for each role.
• Keep your IT systems secure and updated.
• Work with reputable shipping companies and reliable freight forwarders that allow you to track your shipments throughout the delivery process. Check they are members of FIATA (the largest non-governmental organisation in the field of transportation. Its influence is worldwide).
• Where possible, insure your business against international crime and fraud.

If the worst happens, and you suspect your business has been affected by criminal activity - act immediately. Depending on the nature of the crime you should report it to the police, your border agency or government. And remember to also tell your insurance company as soon as you uncover the problem.

As much as businesses need to be aware of the potential risks when exporting, we should not be put off from expanding into other markets. If you need a reminder, here is my post detailing some of the benefits of exporting.

International Crime Resources

Financial Action Task Force
UK Government Agency
Export.gov (USA)
Serious Fraud Office
FCO Economic Fact Sheets

Go To Jail by Olga Raevskaya is licensed under CC BY 2.0