Role of Forensic Audit in Asset Recovery AntAC Conference 16 December 2016

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

Forensic Audit: An Investigative approach to asset recovery Internal KYC files Loan applications Fund flow analysis Data analytics Loan Portfolio Recovery Strategy Population of loans for focused asset recovery Verification External Public record research Local sources Deep web analytics

Observations The Big Picture Customer A Customer B

Loss Quantification: Data Analytics

Use of Forensic Audit Findings Forensic Audit Evidence Countries Financial Institutions Companies People Formation Agents Correspondent Banking Relationships Forensic Audit Evidence

Use of Forensic Audit Findings Forensic Audit: Evidence Criminal International Civil Asset Recovery Strategy Disclosure orders Freezing Orders 1782 (United States) Search and seize

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

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 kroll.com