In New Zealand, CFOs have a responsibility to prevent financial fraud within their organisations. The Companies Act 1993 imposes a duty on company directors, including CFOs, to act in good faith and in the best interests of the company. This duty includes taking reasonable steps to prevent fraudulent activities within the company.
In addition, the Financial Markets Conduct Act 2013 requires licensed financial service providers, including CFOs in some cases, to establish and maintain effective systems and controls to detect and prevent financial misconduct. Failure to meet these obligations can result in significant penalties, including fines, imprisonment, and disqualification from serving as a director.
CFOs can take a number of steps to prevent financial fraud, including implementing strong internal controls, conducting regular risk assessments, training employees on fraud prevention and detection, and monitoring transactions for suspicious activity. By taking a proactive approach to fraud prevention, CFOs can help protect their organisations and fulfil their legal obligations.
However, preventing fraud is ultimately a team effort. Kiwis helping Kiwis to prevent fraud, that's VigilantPay.