The Varied Reasons to “Know Your Customer”
When a corporation does not practice the “know your customer“ policy, they not only risk being taken advantage of or losing money, the risk being investigated by the Federal Bureau of Investigation. Knowing one’s customer is just knowing all that one can know about those whom one is considering doing business with, or those with whom they are currently in business. Not only does following the investigative procedures thoroughly and practicing them consistently and competently, ensures not only that they are doing as much as they possible can with regards to protecting their company assets, but it likewise ensures that should an investigation arise, they will be found innocent if they can prove that they followed those guidelines.
The FBI has focused for many years, their efforts on detecting, investigating and prosecuting cases of money laundering, schemes involving accounting and doctoring the books, bribery, and any other case wherein a corporation has obstructed justice. Most cases of fraud against corporations are those involving fraud that is designed to deceive auditors, analysts and investors. This form of corruption involves falsifying the true condition of the financial status of the company.
Manipulation of this data is one of the most common forms of white collar crime. This affects not only the customers of a company those other companies in which they are partners, but it affects the shareholders as well. They are buying and selling stocks based on false information that is being provided to them. They are investing in something that is not real. When a company has been convicted of fraud and scandal, not only are those involved the victims, but so too are all those in the rest of the country, those who may not even know that that company existed in the first place. For these types of crimes affect the United States economy on the whole. And may further serve to destroy the confidence of future investors, in any other United States company.
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