,FOR2607 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 (629888) - DUE 21 April 2025; 100%
correct solutions and explanations.
Question 1: Explain in your own words, what is a “Financial
Investigation.”
(5 Marks)
A financial investigation is a systematic and detailed
examination of an individual’s or an organization’s financial
activities to uncover potential illegal or unethical conduct, such
as fraud, corruption, or money laundering. It involves tracking
the flow of money, examining financial records, and identifying
inconsistencies or irregularities that may indicate criminal
behavior. The aim is often to follow the "money trail" in order to
expose hidden assets, unexplained wealth, or links to criminal
transactions.
In the context of the Public Service, financial investigations are
crucial for detecting and preventing misconduct like bribery,
tender manipulation, and embezzlement. These investigations
help determine whether an employee’s income and lifestyle
match their declared earnings, especially when suspicions arise
from sudden lifestyle changes.
Financial investigations typically involve:
Reviewing bank statements, credit card transactions, and
loan agreements.
Analyzing procurement records, payroll data, and expense
reports.
, Cross-referencing lifestyle indicators (e.g., property
ownership, luxury items) with legitimate income sources.
This process supports lifestyle audits and risk management
systems to uphold integrity in the Public Service.
Supporting Sources:
1. UNODC (United Nations Office on Drugs and Crime)
Defines financial investigation as “an enquiry into the
financial affairs related to criminal activity, with the
objective to identify and document the movement of money,
property, or assets to support prosecution or recovery.”
(UNODC, Financial Investigations Guidance Manual,
2004)
2. FIC (Financial Intelligence Centre South Africa)
Explains that financial investigations are used to “trace the
proceeds of crime, identify criminal networks, and establish
links between suspects and illegal activities.”
(FIC, Annual Report, 2021)
3. OECD (Organisation for Economic Co-operation and
Development)
States that financial investigations are vital in corruption
cases, where “offenders often leave financial footprints that
can be followed to uncover the nature and scale of illicit
activities.”
(OECD, Effective Financial Investigations in Corruption
Cases, 2011)
Semester 1 2025 (629888) - DUE 21 April 2025; 100%
correct solutions and explanations.
Question 1: Explain in your own words, what is a “Financial
Investigation.”
(5 Marks)
A financial investigation is a systematic and detailed
examination of an individual’s or an organization’s financial
activities to uncover potential illegal or unethical conduct, such
as fraud, corruption, or money laundering. It involves tracking
the flow of money, examining financial records, and identifying
inconsistencies or irregularities that may indicate criminal
behavior. The aim is often to follow the "money trail" in order to
expose hidden assets, unexplained wealth, or links to criminal
transactions.
In the context of the Public Service, financial investigations are
crucial for detecting and preventing misconduct like bribery,
tender manipulation, and embezzlement. These investigations
help determine whether an employee’s income and lifestyle
match their declared earnings, especially when suspicions arise
from sudden lifestyle changes.
Financial investigations typically involve:
Reviewing bank statements, credit card transactions, and
loan agreements.
Analyzing procurement records, payroll data, and expense
reports.
, Cross-referencing lifestyle indicators (e.g., property
ownership, luxury items) with legitimate income sources.
This process supports lifestyle audits and risk management
systems to uphold integrity in the Public Service.
Supporting Sources:
1. UNODC (United Nations Office on Drugs and Crime)
Defines financial investigation as “an enquiry into the
financial affairs related to criminal activity, with the
objective to identify and document the movement of money,
property, or assets to support prosecution or recovery.”
(UNODC, Financial Investigations Guidance Manual,
2004)
2. FIC (Financial Intelligence Centre South Africa)
Explains that financial investigations are used to “trace the
proceeds of crime, identify criminal networks, and establish
links between suspects and illegal activities.”
(FIC, Annual Report, 2021)
3. OECD (Organisation for Economic Co-operation and
Development)
States that financial investigations are vital in corruption
cases, where “offenders often leave financial footprints that
can be followed to uncover the nature and scale of illicit
activities.”
(OECD, Effective Financial Investigations in Corruption
Cases, 2011)
