Perspective
08 Dec 2025
Fraud and Corporate Misconduct Watch
Managing fraud risks in related party transactions
Related party transactions can be a breeding ground for fraud—creating opportunities for manipulation, concealment, and financial misstatement. High-profile scandals globally and regionally highlight the urgent need for vigilance.
Are your controls strong enough?
Download and read the article here
Why it matters?
- Related party transactions allow control over both sides of a deal, making them a favorite tool for fraudsters.
- Risks include earnings management, concealing liabilities, round-tripping, and asset stripping.
- Complex structures and undisclosed relationships can obscure illicit activities.
Deloitte’s Fraud Risk Management framework helps organisations:
- Strengthen governance and leadership
- Implement robust policies and controls
- Enhance detection and reporting mechanisms
- Foster transparency and accountability
This approach not only strengthens governance but also enhances decision-making, prevents financial loss, and demonstrates ethical leadership to regulators, investors, and the public.
Next steps
Safeguard your organisation’s integrity—take the first step toward stronger fraud risk management today.
