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Corruption

The definition of Corruption includes but is not limited to:
1. Wrong doing on the part of an authority through means that are illegitimate,
immoral, or incompatible with ethical standards. Corruption often results from
patronage and is associated with bribery.

2. An impairment of integrity, virtue, or moral principle (in criminal law, “depravity
or gross impropriety).

3. The misuse of private power in relation to business outside the realm of
government. This is an important topic as it could relate to someone in position of
authority acting in a manner that causes another to do something ‘corrupt or
immoral’.

Kickbacks
The return of a sum already paid or due as a reward for awarding or furthering business.
Kickbacks can include money, gifts, entertainment, etc.

What Does Corruption Mean to You?

Corruption can take place in many types of activities. It usually is designed to obtain financial
benefits or other personal gain. For example, providing or receiving a bribe, which is
intended to influence behavior. A bribe could be in the form of money, a privilege, an object
of value, an advantage, or merely a promise to influence a person in an official or public
capacity. Usually, two people are involved and both will benefit.

Corruption could mean a form of behavior that changes an outcome. For example, the
Recovery Agent steals personal property from a vehicle. This corrupt act negatively affects
the consumer. If caught this could affect the employment of the Recovery Agent. It could
also affect the relationship between the Recovery Agency and the lender client.

In the financial services industry, financial analysts and other financial professionals are
required to adhere to a code of ethics and avoid situations that could create a conflict of
interest. Penalties for being found guilty of corruption include fines, imprisonment and a
damaged reputation.

In both the financial industry and the collateral recovery industry there should be a strong
focus on education; it must reinforce best business practices and alert Recovery Agency
owners, managers and employees where to look for signs of bribery and corruption. A robust
control environment reduces the risk of corruption.

You Are Responsible

Bribery is a criminal offense and you can be held accountable whether you pay a bribe
yourself or whether you authorize, assist, or conspire with someone else to violate an anti-
corruption or anti-bribery law. Punishment may include imprisonment, probation, mandated
community service and significant monetary fines, none of which are covered in your
insurance contract.

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