Mitigating Fraud Risk in the Green Market
Issues in Forensic Accounting
Although the green energy/carbon offset business is largely reputable, even here there is potential for fraud and other illegal acts that can adversely impact unwary participants. In addition to “environmental” fraud risks such as double counting of carbon offset credits, there are also “transactional” fraud risks, which include:
- Bribery and corruption
- Money laundering
- Intentional round-trip transactions
- Consumer fraud
For example, in August 2009, the European police agency, Europol, reported nine arrests in connection with a suspected $62.8 million tax fraud perpetrated by an organized criminal group that allegedly sold carbon emissions credits but failed to remit to the authorities the applicable taxes paid by buyers.
Edition 15 of ForThoughts outlines some of the “transactional” fraud risks to be aware of when going green.
Learn more by reading Edition 15 of ForThoughts, available for download below.