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[PASSED] Concerning Financial Fraud

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Connopolis
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[PASSED] Concerning Financial Fraud

Postby Connopolis » Sat Dec 03, 2011 10:35 pm

Concerning Financial Fraud

Category: Free Trade
Strength: Significant


The General Assembly,

NOTING the existence of financial fraud, especially against public and state institutions, and its pervasive strain on the economies of many nations,

CONCERNED that a lack of attention to this issue could cause damage not only to the economies of nations in which such crimes take place but also to the economies of other nations to which they are, to varying degrees, connected,

DETERMINED to bring an end to this practice in the interests of global economic stability,

The World Assembly therefore resolves:

1. "Financial fraud" shall be defined as the procurement of fiscal and/or material assets by deceptive means, either by way of intentional misrepresentation of fact or deliberate and outright statement of false information,

2. For the purposes of this resolution, the term "victim(s) of fraud" shall be disambiguated to refer to any individual, public or private entity, national or international body or any group thereof that suffers a loss of fiscal and/or material assets due to financial fraud,

3. Member-states shall take all practical, effective preventative measures, including the creation of domestic laws, in order to eliminate financial fraud,

4. Member-state shall ensure that all victims of fraud shall receive compensation for their loss equal to or greater than the value of the loss and that this compensation shall be derived from the fiscal and/or material assets of the perpetrator of the act of financial fraud which resulted in the loss,

5. Member-states are encouraged to share information on those who have been convicted of financial fraud upon request and co-operate with each other on the prevention of further acts of financial fraud by all possible means.

Co-authored by Ossitania


The General Assembly,

NOTING the existence of fraud and other forms of deceitful larceny, and its application in situations that may actively harm domestic or international economies, specifically those of member-states that are part of economic unions, or political federations,

RECOGNIZING the strain that financial fraud may put on the international economy, specifically in member-states in a state of exorbitant debt, in which financial fraud may intensify, or exacerbate the debt,

INTENT on ending such shameless practices for the sake of posterity and economic stability.

The World Assembly therefore resolves:

1) Fraud shall be defined as any practice that incorporates all of the following circumstances:

  1. A false statement of a material fact by any given individual,
  2. Knowledge on the part of the aforementioned individual that the statement is untrue,
  3. Intent on the part of the aforementioned individual to deceive the alleged victim,
  4. Justifiable reliance by the alleged victim on the aforementioned false statement,
  5. Injury, whether it be financial or otherwise, to the alleged victim as a result.

2) For the purpose of this resolution, the term "victim(s)" shall be disambiguated to be defined as an individual, a group, public or private entity, the state/national government, or any international/inter-regional bodies.

3) All member-states shall take effective preventative measures, inclusive of creating domestic laws, against fraud in order to protect possible financial harm to their citizens and themselves; all laws shall be enforced by member-states as to ensure these preventative measures are effective.

4) The WAMD shall compile a list of verified individuals convicted of fraud, and shall make this master-list viewable by all member-states, as well as their citizens, upon request; member-states are encouraged to disclose information on fraudulent activity to their citizens, and are forbidden from disclosing false information concerning the prior mentioned activity for any reason.

5) Member-states shall analyze the financial history of all its citizens, for their benefit, and shall disclose this information to private institutions prior to significant fiscal decisions on the part of the citizens, such as acquiring loans from banks and similar transactions.

6) All victims of fraud shall receive compensation from the state, equal to or greater than what was lost as a result of the aforementioned fraudulent activity; member-states reserve the right to displace the required capital from the financial estate of the convicted fraudulent individual to victims directly affected by the convicted individual's actions.

The General Assembly,

NOTING the existence of fraud and other forms of deceitful larceny, and its application in situations that may actively harm domestic or international economies, specifically those of member-states that are part of economic unions, or political federations,

RECOGNIZING the strain that financial fraud may put on the international economy, specifically in member-states in a state of exorbitant debt, in which financial fraud may intensify, or exacerbate the debt,

INTENT on ending such shameless practices for the sake of posterity and economic stability.

The World Assembly therefore resolves:

1) Defines fraud as the act of intentional abuse of state welfare systems or taxation policies, by withholding information or giving false or inaccurate information with the intent of gaining additional/extended benefits or reducing imposed taxes.

2) All member-states shall take effective preventative measures, inclusive of creating domestic laws, against fraud in order to protect possible financial harm to their citizens and themselves; all laws shall be enforced by member-states as to ensure these preventative measures are effective.

3) The World Assembly Monetary Division (WAMD) shall be created, and will be funded solely through donation by member-states and private actors, independent of funding from the World Assembly General Fund, unless the WAMD is incapable of sustaining itself financially, in which it shall receive funding from the World Assembly General Fund. The WAMD shall analyze the economies of member-states on a case-by-case basis tri-annually, and shall process the information into a compiled report each fiscal year; should the economies of member-states be threatened by financial fraud, the WAMD shall provide financial assistance.

4) Member-states reserve the right to extend welfare benefits for an indefinite period of time, as well as the right to increase welfare benefits indefinitely.

The General Assembly,

NOTING the existence of fraud and other forms of deceitful larceny, and its application in scenarios that involve the attainment of state provided benefits,

LAMENTING that such forms of theft may stymie or negatively affect the dispensing of the aforementioned benefits to those who genuinely require it,

INTENT on ending such shameless practices for the sake of posterity and basic morality,

The World Assembly therefore resolves:

1) Defines fraud as the act of intentional abuse of state welfare systems, taxation policies, or by withholding information or giving false or inaccurate information with the intent of gaining additional/extended benefits or reducing taxation.

2) All member-states are strongly encourage to take preventative measures against fraud in order to protect possible financial harm to their citizens and themselves.

3) All individuals affected negatively as a result of welfare fraud shall receive compensation from the state, equal to or greater than what was lost as a result of the aforementioned fraudulent activity; member-states reserve the right to displace the required capital from the financial estate of the convicted fraudulent individual to victims directly affected by the convicted con artist's actions.

4) Member-states reserve the right to extend welfare benefits for an indefinite period of time, as well as the right to increase welfare benefits indefinitely.


A rough draft, at best, and I do hope to receive as much constructive criticism as possible.

Yours in waiting,
Last edited by Flibbleites on Sat Jan 07, 2012 10:09 am, edited 17 times in total.
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Sionis Prioratus
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Postby Sionis Prioratus » Sat Dec 03, 2011 10:38 pm

I see great promise in this. It is certainly outstanding for a very first text. Will link this to the mothership.

Yours in praise,

EDIT: Linked ;)
Last edited by Sionis Prioratus on Sat Dec 03, 2011 11:03 pm, edited 1 time in total.
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Connopolis
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Postby Connopolis » Sat Dec 03, 2011 10:46 pm

Sionis Prioratus wrote:I see great promise in this. It is certainly outstanding for a very first text. Will link this to the mothership.

Yours in praise,


We thank your excellency for their support as well as their praise.

Yours in reciprocating praise,
From the office of,
Mrs. Pamela Howell
GA Ambassador of the Connopolian Ministry of Foreign Affairs


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Knootoss
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Postby Knootoss » Sat Dec 03, 2011 10:49 pm

This will need some serious work:

-As worded, this is maybe a moral decency or political stability resolution, certainly not "social justice". Why not write it to another category?

-How can individuals be negatively affected by welfare fraud, if it is defined as the intentional abuse of state welfare systems?

-As it is, this is purely domestic legislation. (And the definitions are a bit ramshackle, but that can be improved.) Is there any international component to this? Any human right that motivates this legislation? Because right now the only reason to have a resolution like this is as a blocker, or to help states too stupid to breathe...

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Last edited by Knootoss on Sat Dec 03, 2011 10:53 pm, edited 1 time in total.

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Connopolis
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Postby Connopolis » Sat Dec 03, 2011 10:54 pm

Knootoss wrote:This will need some serious work:

-As worded, this is maybe a moral decency or political stability resolution, certainly not "social justice". Why not write it to another category?

-How can individuals be negatively affected by welfare fraud, if it is defined as the intentional abuse of state welfare systems?

-As it is, this is purely domestic legislation. (And the definitions are a bit ramshackle, but that can be improved.) Is there any international component to this? Any human right that motivates this legislation? Because right now the only reason to have a resolution like this is as a blocker, or to help states too stupid to breathe...

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Ambassador Aram Koopman
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I whole-heartedly agree with your criticism, Mr. Koopman - as for the Social Justice bit... Force of habit I guess. :p I'd be ecstatic to hear some of your suggestions, and will make some serious edits tomorrow as well.

Yours,
From the office of,
Mrs. Pamela Howell
GA Ambassador of the Connopolian Ministry of Foreign Affairs


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Knootoss
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Postby Knootoss » Sat Dec 03, 2011 10:55 pm

(OOC: I'll wait for these edits before commenting. :>)

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Eternal Yerushalayim
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Postby Eternal Yerushalayim » Sun Dec 04, 2011 1:56 am

It would be more effective if incorporated into future international welfare mandates. Certainly less cumbersome.
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Postby Sionis Prioratus » Sun Dec 04, 2011 2:14 am

Eternal Yerushalayim wrote:It would be more effective if incorporated into future international welfare mandates. Certainly less cumbersome.


Your Excellency must think it is amusing to make a clown out of yourself, since Your Excellency is one of the most hysterical cheerleaders of the resolution currently at vote, which I quote in relevant part:

HOWEVER, REGRETS that the 'Social Assistance Accord' overreaches on the number of policies it tries to regulate, and that the lack of detail may lead to situations that are clearly unfair:


Your Excellency's history betrays you. Fortunately, there are watchful eyes to keep you honest.

Yours laughing,
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Eternal Yerushalayim
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Postby Eternal Yerushalayim » Sun Dec 04, 2011 2:34 am

Sionis Prioratus wrote:
Eternal Yerushalayim wrote:It would be more effective if incorporated into future international welfare mandates. Certainly less cumbersome.


Your Excellency must think it is amusing to make a clown out of yourself, since Your Excellency is one of the most hysterical cheerleaders of the resolution currently at vote, which I quote in relevant part:

HOWEVER, REGRETS that the 'Social Assistance Accord' overreaches on the number of policies it tries to regulate, and that the lack of detail may lead to situations that are clearly unfair:


Your Excellency's history betrays you. Fortunately, there are watchful eyes to keep you honest.

Yours laughing,

Note that I referred to such welfare mandates in the plural, from which we can infer that I actually do support certain parts of the original resolution.

On the other hand, extending the scope of this draft to all government payments, including grants from the World Assembly, would be another alternative.
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Postby Libraria and Ausitoria » Sun Dec 04, 2011 6:05 am

We support the concept of this proposal.
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Postby Erendi » Sun Dec 04, 2011 7:19 am

Well fraud of any kind is already illegal under Ernedian law (that includes welfare fraud) but am a bit unsure about the necessity of this. I don't see how this is an international issue and seems like something best left to each nation to regulate on their own.

Also am a bit unsure what compensation of victims and what that would entail. It seems as written it would basically require us to send a check to every citizen for the amount of tax lost due to welfare fraud every year. Something I think would be cumbersome and could pose problems for nations in a budget crisis and it also raises the difficulties of getting an accurate number for amount lost due to welfare fraud.
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Postby Frenequesta » Sun Dec 04, 2011 1:14 pm

Lionel Ersthauer, who made it a goal of himself after the participation in the 'mothership' committee to support the new line of programs, walked in to find the first of the proposals of substance, and nodded to the others expressing concerns.
"I too am confused about how 'individuals harmed by the fraud' is to be interpreted. Do you mean the taxpayers or the more honest recipients? Or is that for the individual states to decide?"

Then, addressing the ambassador from Erendi, continued. "I agree that something like this is also something that is best fitted to state proceedings, but if you haven't noticed the din of the arguments in favor of passing the resolution currently on a floor vote, you'll notice the big concern, if there ever was one, was 'prohibiting' states from denying benefits to fraudulent recipients. I never liked the philosophy of 'if you can't beat 'em, join 'em', but if the opponents of "Social Assistance Accord" seem to operate on a premise of 'one size fits all' and put the resolution in jeopardy because of that, we might as well remind nations that they ought to do such a thing, by power of fiat if to quell the nitpickers."
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Postby Ossitania » Sun Dec 04, 2011 1:36 pm

The idea here is right but the avenue of attack needs to be shifted. The negative effects of not legislating against benefit fraud are not being fully expanded upon, especially its negative effects on an international level. Primarily, the negative effect of benefit fraud is that it creates an unnecessary strain on the national budget but this in of itself is not a reason to legislate. However, such a strain on the national budget can have economic impacts on an international level. For example;

1. Country A has made a substantial loan to Country B.
2. One or both countries enter a period of economic recession, either way, irregularities are produced in loan repayments, either because Country A requires repayment to stabilise its economy or because Country B cannot make its regular repayments or both.
3. As this difficult as this situation is, both countries suffer from benefit fraud, which increases the need for repayment and the inability to repay. Thus, the international economic problem is exacerbated.

Similarly, benefit fraud can affect other international economic situations and one can argue that the world has become so interconnected that the failure of any even modestly-sized economy, indeed any economy that has some sort of value to one or more other economies, not only can but will have an impact on the international economy. While it is part of the Welfare and Dignity umbrella project, this proposal is not itself concerned with social welfare, it is concerned with an economic crime and needs to take an economic stance to be effective and coherent.
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Postby Alqania » Sun Dec 04, 2011 3:02 pm

Christine was not sure where to start her comments on the proposal.

"Hmm, I would like to concur with the statements in critique of the assertion that there are individuals who are victims of welfare fraud - the state is the victim of such fraud. This being the case, it really should be up to each state to estimate the losses of welfare fraud and decide if it is worthwhile to combat it; to combat welfare fraud costs money and may cost more money than those that are saved by the state not giving benefits to fraudulent recipients. Furthermore, is punishing someone for injuring oneself not akin to punishing someone for attempting suicide? Should the WA really prevent the Queendom from giving benefits to someone who has been incapacitated on the grounds that the person is the one responsible for their own incapacitation? Should such a decision not be up to Her Majesty's Government?"
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Postby Bears Armed » Mon Dec 05, 2011 6:43 am

Surely 'fraud' is already, by definition, going to be considered illegal in most if not all of this organisation's member nations?
:blink:
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Postby Sionis Prioratus » Mon Dec 05, 2011 8:27 am

Bears Armed wrote:Surely 'fraud' is already, by definition, going to be considered illegal in most if not all of this organisation's member nations?
:blink:


Surely we could apply the same reasoning to "genocide"? :blink:

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Postby Dizyntk » Mon Dec 05, 2011 8:31 am

Sionis Prioratus wrote:
Bears Armed wrote:Surely 'fraud' is already, by definition, going to be considered illegal in most if not all of this organisation's member nations?
:blink:


Surely we could apply the same reasoning to "genocide"? :blink:

Yours,

"Not necessarily, Ambassador. Genocide is often something done to another nation and therefore, except for international law on the subject, many nations might not view it as illegal per se. Fraud is generally an internal matter that most nations would already have laws against."
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Postby Sionis Prioratus » Mon Dec 05, 2011 8:56 am

Dizyntk wrote:Genocide is often something done to another nation


Often indeed, Ambassador. Surely not always. Ethnic "cleansings", religious persecutions, rounding up homosexuals... Can be discreetly be done inside any nation's own borders, near-universal restrictions and taboos on murder notwithstanding.

I was trying to point out that is not just because an issue seems obvious, that it is actually so. I do not want to see this transformed on a debate on genocide. What I did do was to make a germane and useful comparison, in light of a challenge to the very necessity of this draft.

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Dizyntk
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Postby Dizyntk » Mon Dec 05, 2011 10:26 am

Sionis Prioratus wrote:
Dizyntk wrote:Genocide is often something done to another nation


Often indeed, Ambassador. Surely not always. Ethnic "cleansings", religious persecutions, rounding up homosexuals... Can be discreetly be done inside any nation's own borders, near-universal restrictions and taboos on murder notwithstanding.

I was trying to point out that is not just because an issue seems obvious, that it is actually so. I do not want to see this transformed on a debate on genocide. What I did do was to make a germane and useful comparison, in light of a challenge to the very necessity of this draft.

Yours,

"The very premise of the draft seems quite weak however. Benefit fraud would be detrimental to a nation and therefore one would think that any nation would already have laws prohibiting it, along with any other forms of theft. That being said, I really do not see the point of the proposal as its entire premise falls under Reasonable Nation Theory."
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Sionis Prioratus
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Postby Sionis Prioratus » Mon Dec 05, 2011 11:15 am

Dizyntk wrote:
Sionis Prioratus wrote:
Often indeed, Ambassador. Surely not always. Ethnic "cleansings", religious persecutions, rounding up homosexuals... Can be discreetly be done inside any nation's own borders, near-universal restrictions and taboos on murder notwithstanding.

I was trying to point out that is not just because an issue seems obvious, that it is actually so. I do not want to see this transformed on a debate on genocide. What I did do was to make a germane and useful comparison, in light of a challenge to the very necessity of this draft.

Yours,

"The very premise of the draft seems quite weak however. Benefit fraud would be detrimental to a nation and therefore one would think that any nation would already have laws prohibiting it, along with any other forms of theft. That being said, I really do not see the point of the proposal as its entire premise falls under Reasonable Nation Theory."


Benefit fraud was one of the overarching themes in both "Safety in Difficult Times" and in "Social Assistance Accord". Your Excellency knows, the repeals of which Your Excellency supported and continues to support, among other things, for having "overreache[d] on the number of policies [they] trie[d] to regulate"! No omnibus Social Security resolution could have been complete without fraud prevention (Your Excellency would agree?). The World Assembly has twice installed Social Security protections, but since the World Assembly did repeal both laws because they "overreache[d] on the number of policies [they] trie[d] to regulate", or arguments to that effect, it seems only obvious to separate the issues. And fraud prevention is a fundamental feature of any welfare system. Therefore, this.

Yours,
Last edited by Sionis Prioratus on Mon Dec 05, 2011 3:45 pm, edited 2 times in total.
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Reverend Lyndon Love
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Postby Reverend Lyndon Love » Mon Dec 05, 2011 2:52 pm

Well fraud is a form of theft and theft is a sin, so I can certainly support a resolution that tries to combat sin. This seems like it would cover fraud perpetrated against domestic welfare programs though. While that could certainly be considered sinful, shouldn't the WA be concentrating on fraud perpetrated against WA-funded or WA-sponsored welfare programs?
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Postby Alzadia » Mon Dec 05, 2011 3:16 pm

Reverend Lyndon Love wrote:Well fraud is a form of theft and theft is a sin, so I can certainly support a resolution that tries to combat sin. This seems like it would cover fraud perpetrated against domestic welfare programs though. While that could certainly be considered sinful, shouldn't the WA be concentrating on fraud perpetrated against WA-funded or WA-sponsored welfare programs?

The good Reverend speaks the truth. Is there a provision within this legislation, or can there be one, that directs a way to protect welfare programs sponsored and/or funded by this body?
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Postby Parti Ouvrier » Mon Dec 05, 2011 4:35 pm

The moralising is pointless. Benefit fraud is so small, it makes me wonder why anybody would prioritise such a thing. We have it on good information that many people have a right to claim benefit in many coutries, yet don't. The monetary value of those who do not claim is higher than those who make fraudulent claims. Not only that, more corpoations find ways of not paying taxes and screwing the tax payer through unnecessary subsidies.

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Postby Welsh Cowboy » Tue Dec 06, 2011 5:21 am

The delegation of Welsh Cowboy sees the problems that benefit fraud may cause, and recognizes that it is a serious issue. However, the delegation feels, that at this time, this legislation is too vague and general to present as a proposal.

One specific critique is that the state should not have to pay for benefit fraud, it should be the person directly responsible for it.

At this time, we stand opposed, but provided the right amendments are made, we will full-heartedly and gladly approve of this legislation.

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Postby Alqania » Tue Dec 06, 2011 11:26 am

Parti Ouvrier wrote:The moralising is pointless. Benefit fraud is so small, it makes me wonder why anybody would prioritise such a thing. We have it on good information that many people have a right to claim benefit in many coutries, yet don't. The monetary value of those who do not claim is higher than those who make fraudulent claims. Not only that, more corpoations find ways of not paying taxes and screwing the tax payer through unnecessary subsidies.

Against

Wez Spencer
WA Ambassador to the DRPO


Christine smiled contentedly. "Hear hear! The wise statement from His Excellency Ambassador Spencer is more eloquently put than I could hope of wording it myself, though my earlier critique was aimed along the same lines. Let us scrap this proposal and focus on what is important!"
Queendom of Alqania
Amor vincit omnia et nos cedamus amori
Former Speaker of the Gay Regional Parliament
Represented in the WA by Ambassador Lord Raekevikinfo
and Deputy Ambassador Princess Christineinfo
Author of GA#178
Member of UNOG and the Stonewall Alliance

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