32 ALRAQABA . ISSUE 20 This pernicious phenomenon exists in all large and small countries, rich and poor, but its effects in the developing world are more destructive. Corruption is a key element in the deterioration of economic performance and a major obstacle to development and poverty alleviation. Therefore, international organizations have contributed to activating their role in combating the current epidemic of corruption. They have established international conventions and guidelines, e.g., the United Nations Convention against Corruption and the ASOSAI Guidelines for Dealing with Fraud and Corruption, and have always been keen to promote the accession and adherence of many countries to them. In addition, many countries have established different oversight bodies. For example, the oversight bodies in sister countries, such as the Control and Anti-Corruption Authority in the Kingdom of Saudi Arabia and the Administrative Control and Transparency Authority in the State of Qatar. Because of the importance of this topic, I will highlight in this article the fight against fraud, corruption, and money laundering and the role of audit institutions in reducing them. The article will introduce these concepts and explain the most important international standards and guidelines issued by international bodies and the relevant legislation in force in the State of Kuwait. It will also discuss relevant experiences of some countries and finally clarify the role of the State Audit Bureau of Kuwait and other oversight bodies in reducing fraud, corruption, and money laundering. At the beginning of this article, I will address the concepts of fraud, corruption, and money laundering as follows: First: The Concept of Fraud, Corruption and Money Laundering: • Fraud: Fraud includes the deliberate falsification of important facts and information to obtain illicit or illegal financial advantages. • Corruption: It includes the abuse of public powers by unjustly accepting or giving tempting or illegal rewards or any other special advantages. It can also be said that fraud is one of the most serious crimes that the perpetrator is adept at, using deception and fraud to entrap others to obtain financial benefits or gains. Fraud often includes the deliberate falsification of information recorded and summarized by an authority, whose impact can be compared to mathematical errors. It includes topics such as measurement, facts, and disclosure and is usually accompanied by efforts to falsify and misdirect the records and reports of the authority. Therefore, fraud and corruption are linked, although some fraud is not necessarily considered corruption and can be committed by one individual or a small group of individuals. The problem that corruption raises for the supervisory process is that it is related to the concept of bribery. It is conceivable that a company pays a bribe to an employee who has authority over one of its contracts. In such a case, appropriate disclosure is required because corrupt practices of illegal expenses are usually covered up by a registered or reported fraud. • Money Laundering: Money laundering is defined in the UN Vienna 1988 Convention Article 3.1 as the transfer or movement of funds knowing that they are derived from any crime or crimes, with the aim of concealing or disguising the illicit source of funds or with the intention of helping any person involved in the commission of such a crime or crimes to evade the legal consequences of his/her actions. Perspective Audit
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