Cost of failure to disclose

How much can it cost you if you don’t tell your bank about how many other loans you have?

“World Bank Is Suspending Direct Financial Aid to Mozambique,” The Wall Street Journal, April 28, 2016 C2.  World Bank holds back $40 million in loans after learning that Mozambique had more than $1 billion in undisclosed loans.

Devastating for Mozambique.  But what does it tell us about compliance?  What requirements did Mozambique agree to?  And does one part of a large organization necessarily know what every other part is doing or what requirements have been agreed to?  How do you communicate contractual requirements internally?

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Filed under Business Case, Communications, Compliance, Controls, Governance, Internal controls, Investor relations, Oversight, Requirements, Risk, Third parties

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